Planning and Budget in SAP

PLANNING AND BUDGETING

 

Strategy, Planning, Budgeting and Execution are the ongoing process cycle in any business enterprise and happens to be the key to survival, stability and yet compete in the world market. 

Based on its needs and the benefits, it is the efficient allocation of resources to meet theoperations expenses for a period of time.

Planning and budgeting do sound much similar in terms of their processing. In a way, they are both allocated with fixed amount of funds to meet the operational expenses for a planned period of time.

However, SAP, in real time application; identifies them in their clear unique definitions in view of their functionality and purpose of use.

In terms of SAP:

PLANNING is explicitly a tool for department use, where as

BUDGET is an official supported spending plan.

Budget is stored in a special plan version 0, 

(Usually approved OBFP or OSP)

PLANNING in SAP

SAP’s planning component offer a planning tool for organization departments and areas.  Departmental plan amounts are entered manually by the department.  SAP places no built in restrictions.  Therefore it becomes the responsibility of the departments for the accuracy of the numbers in their plans.

Calculating Employees Benefits, facilities and Administrative Cost rates (F&A) becomes the responsibility of the Planners to calculate and to enter in their plans as SAP does not automatically calculate these costs.

Planning in SAP gives the advantage of the ability to run reports on your planning data besides the instituted budget.  Planning with SAP, you can update your plan at any point of time and be able to run new reports accordingly.