Defining budget as commitment budget

To perform budget edits, you must define a commitment budget. The commitment budget record is used during budget editing as part of the calculation to arrive at the remaining budget balance. Use this procedure to define a budget as a commitment budget.

Note: After you set up your company for commitments and budget editing in the General Ledger application, you must define a commitment budget in the Budgeting application before budgeting editing can take place. This includes selecting one budget within the company to be the commitment budget and, optionally, creating budget edit groups.

See Defining budget edit groups.

Follow these steps to define budget as commitment budget:

  1. Access Period Budget, Rate (FB20.1).
  2. Click New Budget to access Define Budget (FB20.2).
    Note: As it is not specifically tied to commitments, you can use the Double Entry budget field on FB20.2 separately or with commitments as an additional budget control function.

    See Double entry budget.

  3. Use these guidelines to specify the field values:
    Company

    Select the company number that you are defining the budgets.

    Year

    When you select a company, the fiscal year defined for that company is the default value. You can define budgets for the current, last, or next fiscal year.

    Budget

    Select the new budget number.

    Note: You can define up to 999 different budget numbers for one company and year.
    Currency Code

    This field contains the company base currency code established in Company (GL10.1 ).

    Allow Amount Decimals –

    Select whether to allow decimals in the budget. The default setting is No. If you select Yes, and change the value to No at a later date, then the budget amounts can change due to rounding.

    Allow Unit Decimals –

    Select whether to allow Unit decimals in the budget. The default setting is No.

    Double Entry

    Select whether the FB20 or the double entry functionality in FB40 will update the budget.

    Commitment Budget

    Select whether General Ledger commitments are edited against this budget. Select Yes to define this budget as a commitment budget.

    Note: If you select Yes, then Commitment Budget will appear under the budget description on FB20.1.
    Note: You can set up only one commitment budget per year for a company.

Follow-up tasks

  • If you want to display budgets that are flagged for commitment processing for a specific company, then access Budget Control (FB25.1). Choose the Inquire special action. See Inquiring on budgets using budget control.