Financial Budgeting System (FBS)

The Financial Budgeting System (FBS) functionality includes these budget systems:

• A flexible budget system in which you can adjust the budget and is flexible to accommodate changes in volume or activity.
• A static budget system where the budget remains unchanged from the amounts established at the time the budget was determined.

Flexible budgeting enables you to perform these functions:

• define budgets for ledger accounts (for example, cost types such as energy or material handling) based on dimensions
• set up performance budgets for reference units (for example, cost drivers such as square meters or number of deliveries)
• define flexible budgets by introducing the distinction between fixed and variable budget amounts and quantities
• define activity-based budgets in relation with the Cost Accounting (CAT) functionality
• bottom-up budgeting
• define multiple hierarchies for analysis purposes
• integrate budget cost-rates and budget surcharges with the Manufacturing processes using Standard Cost Calculation and the Project Control System (PCS) functionality.
• perform variance analysis in conjunction with flexible budgeting
• compare budgets

Static budgeting, enables you to perform these functions:

• ledger account budgeting
• (multi) dimension-oriented budgeting, such as setting up budgets with dimensions of different types in combination
• top-down budgeting
• bottom-up budgeting
• compare budgets
• compare budget data with actuals from Financials

Financial Budgeting System (FBS) receives data from:

• The General Ledger (GLD):The actual values posted on respective ledger accounts and dimensions can be copied to a budget or can be displayed during the budgeting process
• The Cost Accounting (CAT): Adjusting or creating budget performances for the defined reference unit per specified budget as a result of cost allocation (in case of retrograde planning).