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Maintenance Budgeting Using Maintenance Order/Internal Orders

This document provides steps to configure budgeting for maintenance orders in SAP using either maintenance order (PM order) budgeting or internal order budgeting. It outlines how to create a budget profile, define internal order types, set tolerance limits, assign the budget profile to maintenance orders, create reservations and issue components against a maintenance order budget. Using maintenance order budgeting directly is recommended over internal order budgeting to better fulfill the maintenance budgeting and cost control process.

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vadiraj tanjore
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345 views7 pages

Maintenance Budgeting Using Maintenance Order/Internal Orders

This document provides steps to configure budgeting for maintenance orders in SAP using either maintenance order (PM order) budgeting or internal order budgeting. It outlines how to create a budget profile, define internal order types, set tolerance limits, assign the budget profile to maintenance orders, create reservations and issue components against a maintenance order budget. Using maintenance order budgeting directly is recommended over internal order budgeting to better fulfill the maintenance budgeting and cost control process.

Uploaded by

vadiraj tanjore
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Maintenance Budgeting using Maintenance Order/Internal

Orders
October 18, 2013 | 2,843 Views |

SAP PM
more by this author
PLM Enterprise Asset Management (EAM)/Plant Maintenance (PM)
 Enterprise Asset Management

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Scenario : To map a process in SAP , where a budget should be allocated to maintenance department for
major maintenance task and user should not be allowed to exceed the expenses than budget amount .

Solution : Solution for the same is explained in two ways :

  1. with PM order budgeting [ Recommended]    and , 

  2. Internal Order budgeting [ can be used for information purpose at higher level ] .

Configuration : This involves configuration from both PM & CO side .

Configuration Steps CO :

1. Create Budget Profile :


Here past , future & start field values indicate the period upto which you can do budgeting . Here above
config means for a internal order , you can specify budget for next 5 years .

Activation type 1 is automatic activation of budget .

Save budget profile .

2. Define Internal Order Type :


In the Internal order , mention budget profile if the budgeting is also required at internal order level
otherwise this budget profile should be assigned to maintenance order only .

Click Field selection button :


After saving the order type , create number ranges for the same order type .

3. Define Tolerance limit :


Here , Act. = 1 means warning and usage = 80 means when the actual expenses reach 80% of the allocated
budget system issues warning .

In the second line Act = 3 and Usage 99 means at 99% system issues error message .

PM Configuration :

1. Assign budget profile to PM Order :


Transaction level :

1. Create Order (IW31 )  and save it .

2. Assign Budget to it ( tcode : KO22) .

NOTE : Here the budget is being allocated to PM order , if you want to compare actual cost with budget
when issue is being done on PM order . If you want to do the same for internal order in KO22 use internal
order and settle your PM order to internal order using tcode KO88. But using KO22 for PM orders is
recommended , as it will fulfill process needs in a better way .
Drawback of using internal order could be that first you have to settle your PM order to this internal order
and only then budget will be compared .

Generally we use internal order budgeting for PM to bring the cost to the notice of management . This
notice can be after the actual consumption whereas budgeting at PM order level will help you to mitigate
this drawback .

Save it .

3. Create Reservation in Order ( IW32 ) :

Reserve a component in order . After you reserve components in order and save it . Cost will appear in
Planned Cost column :
Now as planned cost has increased budget system will not issue any error . Error will be issued when you
will issue the component .

4. Issue component ( MIGO :

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