Manage Cost Center Budgets: Explanation and Demo on SAP S/4Hana 2023

*To request access to my SAP S/4HANA 2023 system used in this demo, send an email to [e-mail]*
There's a new feature in SAP S/4HANA to manage budgets and activate budget availability check on Cost Centers. In this video, I explain all about this feature (manage cost center budgets) with a full process demo on SAP S/4HANA 2023. I also explain the process limitations.
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Video chapters:
00:00 Introduction
01:47 SAP Server Access
03:50 My New SAP Press Book
05:08 Career Coaching Sessions
06:20 G/L Account Hierarchy (Manage Globel Hierarchies)
11:23 Manage Cost Centers Master Data
17:00 Import Financial Plan Data
27:48 Cost Center Budget Report
30:10 Create Purchase Order (ME23N)
37:04 Post Goods Receipt (MIGO)
39:15 Non Budget Carrying Cost Center
42:23 Summary
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Thank you for watching 8)

[@milanm.5529]

Hey Abdul, thanks for the video. It's clear and well explained. If you would like to know my personal opinion, I love limitations on GL account and period. Finally SAP came with something simple and usable! Finally. Let me hear. First, feature id budget per Cost Center, therefore I don't see any reason adding another dimension (G/L account). Second, budget per year is totally fine. I never experienced anybody (in business or private) to plan for month(s). All cycles are per year, than why not to keep it simple. Yearly cycles are most common, like interest per year, yearly salary, taxes etc. etc. Only exception I see is something which is discontinued during year. Leaving employee, seasonal tools. For that you can limit by date in CC. Anyway, if you're controller and you run report, you see immediately that some budget is exceeding for certain month. In my experience, budgets are per year, and by the end of year, everybody is trying to spend yearly budget ;-) What catch my eye is your favorites. Is there any video for SAP Gateway? Specially for error handling?

[@AbdullahGalal]

Great opinion Milanm! Looks like I was a victim to something I always warn others not to do: Think of the system process before the business process. I'm happy I understand SAP's reasoning now, another proof that SAP's best practice is very well designed. Nice note for the favorites :D not many ppl pay attention to the hidden messages in the videos. I've done ALOT of troubleshooting for FIORI. I took me 4 full days to get the Journal Entry Verification process to work properly with all the fiori and authorization errors. All of the troubleshooting steps are explained in the Configuration Manual I share with the members (elite and higher). Also I've 2 FIORI troubleshooting videos.

[@sanggilee3605]

@@AbdullahGalal I always enjoy your lecture and I fully agree with milanm.5529 comments on this topic. I believe controllers will compare plan vs actual monthly and control budget only yearly by certain G/L group. As you promised, I will look forward to watching your demo on predictive accounting through extension ledger.

[@blackwolf1528]

It's intersting. جزاك الله خيرا

[@videorao]

Felt happy to watch your video after some time. Your explanation as usual is of top most quality. Though usually budgets will be at whole year from business perspective, it could have been much better if SAP provided that option to control either at individual period level or at whole year level by giving the flexibility. Similarly, not considering the individual GL level budgets is really a big limitation though budgets usually again are controlled at cost center level rather than the combination of GL & cost center; but that should have been left to business to decide by providing the flexibility.

[@AbdullahGalal]

Glad to see this comment! happy you watched the full video. You're right! most of the time the budget is on CC level + Fiscal year, so maybe this feature has practical business applications even with these limitations.

[@raybuttigieg1343]

Thankfully the Manage Cost Centre Budgets application will keep management accountants employed by managing and relocating budgets as required.

[@Marcos-qn2nf]

Hello Abdullah, I am a junior consultant and your videos have helped me a lot, I want to thank you very much. Please, can you post a class or series of classes teaching the CLM J78 Best Practice in practice?

[@AbdullahGalal]

Will do my best!

[@moazzamalikhan3320]

Ah! so that was the issue. Thanks. I tried Cost Center Budgeting about a year ago for my own learning and faced same issues. I thought there may be some configuration issues at my part. Best of luck for the book and really great feeling to have your own server without any interruptions from other users. If you find some time from work then it may be a good idea to gather a team of consultants from different modules among members and do a full mock implementation on your server (just KDS and Config part with no documentation). You are doing a very fine job. Learnt a lot from you.

[@AbdullahGalal]

Great plan for the server! The idea for now is to find some users willing to join and pay the subscription or we will have to shut it down. The server has a high running cost (electricity + licence) and also the cost to initially set up the server (hardware, consultants, etc) so we need some subscripers.

[@AbdullahGalal]

You can now get access to my SAP S/4HANA 2023 training server. Send an email to [e-mail] for the details

[@cavinmendes5357]

Hi Abdulla , Its indeed a nice video and explanation, Could you please also make video on commitment update and the configuration needed for Hierarchy . TIA

[@AbdullahGalal]

Thank you for the feedback! Will do my best

[@sulemanpiracha8123]

Hello Abdullah! like your videos. I think the limitation of availability check at cost center level is due to the fact that one cost object is assigned to a PO or in actual postings and multiple cost elemnts are assigned to one cost object (Cost Center). Alternatively, Account Groups can be used for availbility contraol, which has a limitation of its own, e.g., each account can only be assigned to one account group

[@AbdullahGalal]

We can assign the same GL to multiple account groups, it's very flexible. The reason for the limitation is as others explained in the comments: there's no business need for more!

[@monzerrajeh2054]

Hi Abdullah, Thanks for your nice video i followed your steps every things are good and availability check working fine and system stop the posting if the budget exceeded . However when i tried to post using import F data i chose Cost center budget template but data posted to plan not to budget i could not find any data with cost center budget report pls advice.

[@raybuttigieg1343]

Long live SAP GUI. I agree with you, I will always prefer to use GUI when a process or functionality does not mandate the use of Fiori.

[@AbdullahGalal]

SAP is not giving us a choice now :) we have to evolve

[@sportmance6460]

Can you carryforward (remaining unused) budgets from one period to another?

[@cmarchionni]

Hey Abdul..Then is better continue we used PSM-FM-BCS Component for control budget segment (account and cost center based in derivation rule for funds center and commintment item)

[@AbdullahGalal]

Fund management if much more complex

[@saurabhrai5470]

Hey Abdullah do you take classes for controlling covering all possible scenarios?

[@AbdullahGalal]

Not for now. I put all my effort on public content creation (books, videos, Udemy Courses)

[@cats4life361]

Hi Thanks for the session. I have 2 questions. Appreciated your response. 1. Budget check only available for the P&L account codes or it’s available for balance sheet accounts as well. As an example to control the material purchase budget. 2. Can we create a purchase order current year and budget control check to be done based on the next year’s budget. Usually this happens at the year end. Is this possible in S4? Thanks.

[@AbdullahGalal]

Answer 1: I have to test it, but only primary P&L accounts post to cost objects, so I don't expect BS accounts to work Answer 2: The PO will pick the budget based on the planned delivery date. If that is next year then it would pick next year's budget. Test it and let me know

[@ivetaschuster134]

But I can't buy the book in EU. 😢

[@AbdullahGalal]

The printed book is still not available on the German warehouse. It should be available end of June. For now, you can either but the online version or buy the printed version from the US site but will cost more delivery costs and take more time

[@oussamabennis2023]

We believe in you 😂

[@AbdullahGalal]

Yeah, I check everything 10 times before I make a video :D

[@ivetaschuster134]

My Explanation - The "Budget Avalability Control is Activ" is OFF because the Cost Center 2000 does not have a budget; it's 0.00. It's like I can't control my budgets if I am spending my husband money. :)

[@AbdullahGalal]

I'll use this one from now on whenever I explain this part :D :D