Budget Set-up in SAP Business One
Budget Set-Up in SAP Business One Training
We all know your budget rules what you can and cannot do as a company. And we all also know how difficult it can be to manage that budget. But never fear, SAP Business One and Pioneer B1 are here to help!
With Budget Management an out-of-the-box feature for SAP Business One, you can track and manage company expenses, define accounts and distribution methods, use, import, and copy Budget scenarios, reporting, and more!
Read on below to see the overview of the Budget Setup in SAP Business One Training from Pioneer’s own Oren Tabib and Elizabeth Cameron. Or watch the training session On Demand now.
Budget Setup Training Overview
In the training session, Oren and Elizabeth go over several different topics related to Budget Management in SAP Business One.
- Defining Budget Settings
- Budget Scenarios
- Budget Distribution Methods
- Copying or Importing Budget Scenarios
- Things to be aware of…
Defining Budget Settings
To get to the Budget Initialization Settings in SAP, go to:
Administration > System Initialization > General Settings
Below the Budget Initialization checkbox, you will see a few options involving Deviations.
A “Deviation” may occur when you or your coworker submits a transaction into the system that will cause you to exceed or “deviate” from the Budget setup in that account.
When this occurs you have 3 options:
- Block Deviation from Budget – prevents the employee from taking any further action
- Warning – warns the employee/their superior of the impending deviation
- Without Warning – No warnings or preventions occur and the transaction proceeds
You can also modify which budget, and which documents may trigger these alerts
Defining Budget Accounts
Next, how does SAP know which accounts are relevant to the Budget?
There are a few ways you can define these accounts.
Let’s first see how to do it manually. Go to:
Financials > Chart of Accounts > > Account Details
Once there Check the box that says “Relevant to Budget”
When you are first initializing your Budget, this may not be the best route to take. When you first initialize your Budget, there will be an option to mark all your P/L accounts as Budget Relevant.
If there are different accounts you wish to include after initialization, you can do that manually as shown above, or through the Data Transfer Workbench as well.
Now that you have your Budget Relevant Accounts all established, let’s setup Budget Scenarios.
To get to Budget Scenarios go to Financials > Budget Setup > Budget Scenarios
“Budget Scenarios” allows us to create multiple different Budget Scenarios
Budget Distribution Methods
Within each Budget Scenario, you can set up the Budget Distribution Method.
- You can make it Equal
- Or you can create your own Custom Distribution Method
Tip: Even within a certain Budget Scenario, you can choose the Method Distribution for each Expense!
Alternate Budget Scenario Setup Options
Instead of creating a Budget Scenario from scratch, you also have a few other options that may be quicker.
One option is to Copy a past scenario.
From your Budget Scenario Setup Screen:
> Copy Scenario > >
The other option is to Import a scenario.
Starting again from your Budget Scenarios Setup Screen:
> Import Scenario > Choose Company > >
Be aware that the “Actual Balances” shown are only from years that were Budgeted.
Now that your budgets are set up, how do you know they are being followed?
Easily keep track of your budget with Budget Reports.
Go to Financials > Financial Reporting > Budget Reports
Balance Sheet Budget Report
Trial Balance Budget Report
Profit and Loss Statement Budget Report
Things to Be Aware Of…
Last Beth and Oren cover some “Tips and Tricks” related to Budgets.
Budget Setup in SAP Business One Resources
Looking for more information? Below are a few links carefully selected by our experts that should give you everything you need to know about SAP Business One’s Budget Setup. Feel free to browse our resources or check out our knowledgebase. If you have any questions about Budgeting in SAP Business One or want to know how you can run your business better with SAP B1, reach out to us by phone 855-202-5087 or email firstname.lastname@example.org.