GL Planning/Budgeting

Purpose

In this Document we will capture GL Planning/ Budgeting Process, Scenarios and requirement of an Organization.
This component is used to handle GL accounting transactions that you can Prepare Future forecast, Allocation in a Particular Department.
You can use the planning function in General Ledger accounting to enter and distribute plan data to create budgets, forecasts, and other reports.
You can quickly and easily enter large amounts of plan data. You have the following options for plan data entry:

1. You can enter amounts as plan totals that are (automatically or manually) distributed to the planning periods.
2. You can enter amounts as period amounts that are automatically totaled.
3. You can enter a combination of both totals and period amounts.

Features

Planning in General Ledger Accounting comprises the following functions:

1. You can perform planning locally. When setting up planning, you provide a framework for the individual planners and assign authorizations. You can also adapt the entry screen layout.
2. For balance sheet accounts, you can choose between planning balance sheet change values or balance sheet values.
3. For each fiscal year, you can post plan data to multiple versions.
4. You can compare actual and plan data
5. You can display totals records of your plan data.
6. You can display individual plan documents.
7. You can use allocations to allocate/distribute plan data

Planning

Planning is generally part of controlling. However, we can plan for the general ledger accounts in finance module of sap. This can be done to prepare the variance analysis within financial accounting.

Cost Center Planning

The planning application "cost center planning" enables the planning of the necessary budget of cost centers in the organizational structure of your company. You identify and value the relevant cost drivers, define manually entered prices (also called "political prices") for the internal activity allocation and enter primary and secondary costs.
Cost center planning involves entering plan figures for costs, activities, prices or statistical key figures for a particular cost center and a particular planning period. You can then determine the variances from these figures when you come to compare these plan values with the costs actually incurred. These variances (see: Variance Calculation) serve as a signal to make the necessary changes to your business processes.
Cost center planning forms part of the overall business planning process, and is a prerequisite for standard costing. The main characteristic of standard costing is that values and quantities are planned for specified time frames, independently of the actual values from previous periods.

Prerequisites

You have to activate the delivered planning application. For more information

Process Flow

The general process flow of cost center planning covers the following steps:

• Preparation: Planning cost drivers for externally related activities and the manually entered prices for internal activity allocation
• Planning of primary costs
• Planning of secondary costs
• Analysis of results in the SAP Business Information Warehouse
• Optional: Returning the plan data into the operational Cost Center Accounting of the R/3 System

Profit center Planning

Profit center planning forms is a part of corporate planning. For this reason, planning integration and reconciliation are particularly important.
Planning is a combination of top-down/bottom-up planning on several aggregation levels. The different roles of the persons involved in the planning process are reproduced with the help of various Planning Profiles, which enable a role-specific view of the existing planning objects.

Process Flow

Process Flow

The persons responsible for planning for their respective company call up their planning folder and plan revenue cost of sales, working capital, investments, and depreciation corresponding to the sequence suggested in the planning folder

Master Data

The following profit center master data is maintained in the central master data maintenance system and distributed from there to the local systems:

1. Profit centers
2. Profit center groups
3. Account groups

Planning Program Update

Description:	Planning tables Update
Transaction Code:	GLPLINSTALL
Menu Path:
Client dependent settings:	Yes / No

Cost Center Planning

Define versions

Description:	Define versions
Transaction Code:	SPRO
Menu Path:	1. IMG --> Enterprise Structure --> Controlling -->Cost Center Accounting-->Planning-->Basic Settings for Planning-->Define versions
Client dependent settings:	Yes / No

Maintain fiscal Year -Select Version “0” and double Click on Settings for Each Fiscal Year .

Define Defined Planner Profiles

You use planner profiles to control the way planning is carried out. In a planner profile, you specify per planning area which planning layout is to be used with which default values. Per planning area, you can create as many planning layouts as you require. The profile item determines the order of the planning layouts within a planning area and can be used to assign the same planning layout to a planner profile in multiple areas, but with a different default setting each time.

Description:	Define Planner Profile
Transaction Code:	GLPLADM
Menu Path:	IMG --> Enterprise Structure --> Financial Accounting (New) --> General Ledger Accounting (New)-->Planning-->Define Planner Profile
Client dependent settings:	Yes / No

Define Plan Versions

In this activity you can maintain plan versions for each ledger. For each fiscal year, you can post plan data to an unlimited number of versions.

Description:	Define Planner Profile
Transaction Code:	GLPLADM
Menu Path:	IMG --> Enterprise Structure --> Financial Accounting (New) --> General Ledger Accounting (New)-->Planning-->Define Planner Profile
Client dependent settings:	Yes / No

Assign Fiscal Year to Version

In this activity, you can specify fiscal-year-dependent parameters for the plan versions of your ledgers. In so doing, you assign the desired fiscal year and posting period to your plan versions and activate them. You can also lock a plan version.

Description:	Define Planner Profile
Transaction Code:	GLPV
Menu Path:	IMG --> Enterprise Structure --> Financial Accounting (New) --> General Ledger Accounting (New)-->Planning-->Plan Versions-->Fiscal-Year-Dependent Version Parameters
Client dependent settings:	Yes / No

Define Plan Period

In this activity you can determine the posting periods allowed for entering planning data. You can create permitted posting periods in the form of variants, which can then be assigned to company codes.

Description:	Define Planner Profile
Transaction Code:	GCP5
Menu Path:	IMG --> Enterprise Structure --> Financial Accounting (New) --> General Ledger Accounting (New)-->Planning-->Define Plan Periods
Client dependent settings:	Yes / No

Define Number Ranges for Plan Documents

In this IMG activity, you define the number range for your planning documents in General Ledger Accounting. You specify the following number range details for each company code:

1. A number interval from which the document numbers are to be chosen

2. The type of number assignment (internal or external)

Activate Line Items for Planning

In this activity you determine in the planning if summaries as well as plan line items are to be written.

Description:	Define Planner Profile
Transaction Code:	GLPV
Menu Path:	IMG --> Enterprise Structure --> Financial Accounting (New) --> General Ledger Accounting (New)>Planning-->Plan Versions-->Activate Line Items for Planning
Client dependent settings:	Yes / No

And execute to update

User-Defined Planning Layouts

To be able to plan for cost elements, you first need to define the planning layout. In the planning layout, you specify the format of the planning screens.

Description:	Define Planner Profile
Transaction Code:	SPRO
Menu Path:	IMG --> Enterprise Structure --> Controlling --> Cost Center Accounting-->Planning-->Manual Planning-->User-Defined Planning Layouts-->Create Planning Layouts for Cost Element Planning
Client dependent settings:	Yes / No

Planning data

Transaction GP12N

Display Plan Data F.01

Here Plan Version “0” used for display Plan data

Source: scn.sap.com