Activity-based budgeting procedure

The activity-based budgeting procedure includes these steps:

  1. Define the parameters in the Financial Budgeting Parameters (tffbs0100s000) session..
  2. Define all the relevant ledger accounts in the Chart of Accounts (tfgld0100m000) session.
  3. Define the required dimensions in the Dimensions (tfgld0510m000) session.
  4. Define or verify the dimension types that are used for activities in the Cost Accounting Parameters (tfcat0100s000) session
  5. Define new activities for dimensions and define the activity dimension type in the Dimension Master (tfgld0510m000) session.
  6. Copy the range of dimensions of the activity dimension type in the Copy Activity Dimensions into Activity Status Table (tfcat5200m000) session. The activity dimension type is defined in the Cost Accounting Parameters (tfcat0100s000) session.
  7. Maintain the budget characteristics in the Budgets (tffbs0503m000) session. A distribution method can be linked to the budget. You must select the Single Dimension Budget option.
  8. Define the budgets, the home currencies, and the comparison budget in the Budgets by Year (tffbs0505m000) session.
  9. Create the reference units for each dimension in the Reference Units per Dimension (tffbs0530m000) session.
  10. Maintain cost categories in the Cost Categories (tfcat0102m000) session used for grouping ledger accounts.
  11. Maintain ledger accounts that belong to a cost category in the Ledger Accounts by Cost Category (tfcat0103m000) session.
    • A percentage must be specified for each ledger account to indicate the amount that belongs to this cost category.
  12. Define the performance budget by defining the performance quantity or surcharge base amount per year in the Performance Budget by Year (tffbs1120m000) session depending on whether the reference unit type is quantity-based or amount-based.
    Note: In case of Retrograde planning type (only for quantity-based reference units) quantities are automatically back-flushed when you define allocation relations.
  13. Specify or modify the performance budget by period in the Performance Budget by Period (tffbs1121m000) session, if the Periodic Distribution Mode check box in the Performance Budget by Year (tffbs1120m000) session is not selected.
  14. Define budget amounts for each reference unit and for each ledger account in the Flexible Budget by Year (tffbs1510m000) session. Variability can also be defined to have variance analysis.
  15. Define budget and quantities by periods in the Single Dimension Budget by Period (tfffbs1111m000) session, if the Periodic Distribution Mode check box is cleared.
  16. Define or modify the details for the budget year and the actual allocation relations in the Allocation Relations (tfcat4500m000) session. Budget period relations are automatically filled and can only be modified. You cannot modify budget relations with a definitive budget.
  17. Calculate the exact rate for the budget year or the budget period based on the allocation relations of the specific budget in the Price Iteration (tfcat4210m000) session. Secondary costs are determined using this session.
  18. Integrate the results of the iteration process into the applicable budget using the Integration of Iteration Results (tfcat4211m000) session. With this session the secondary costs are integrated into the single dimension budget concerned. This step is optional.
  19. Generate the bill of activities for the particular budget year and the budget-period activity budgets using the Generate Bill of Activities (tfcat5201m000) session based on the defined budget year/budget period allocation relations.
  20. Review the generated bill of activities in the Bill of Activities (tfcat5501m000) session.
  21. Print an analysis of the costs of performing activities based on dimensions using the Print Activity Results (tfcat5402m000) session.
  22. Define an integration scheme using the Integration Scheme for Standard Cost Calculation (tffbs1530m000) session.
  23. Define the defaults for dimension and/or reference units in the Defaults for Cost Price Calculation (tffbs1531m000) session.
  24. Integrate the budgeted cost rates for a single dimension budget into the Cost Price Calculation (CPR) in the Integrate Budget Operation Rates (tffbs1230m000) session to integrate.
  25. Integrate effective cost surcharges in the Cost Price Calculation (CPR) and/or in the Project Control (PCS) in the Integrate Budget Surcharges (tffbs1231m000) session.