Pre SAP Budget Planning Control
- Manage the initiation gating process of every investment to assure that a proper business case is assigned to it, and Assign checkpoints to investments
- Provide workflow-driven, bottom-up process that allows initiation, negotiations and careful approval of budget requests based on roles and accountability
- Trace and audit the budget line managed by SAP with the project managed by MS-Project
- Reflect both financial constraints and delivery capacity (amount of available resources to perform the work)
- Automatically feed the PS/FI module with a uniform, traceable, business aligned budget structure
- Support soft constraint such as strategic goals, capacity & budget constraints, Risk, NPV, Depreciation, ROI, Customers and more in “what-if” scenarios
A corporation’s delivery unit needs to fund (and justify) their expenses and investments. There is a great challenge of how to wisely charge those investments and expenses across the units that benefit from it.
MSP unifies and mechanizes the charging process under a single corporate “charging-logic”. This simplifies the process and removes the need to train managers and get them acquainted with the charging process or WBS that reflects the budget tree.
The CFO can very easily implement changes in the charging process, or use MSP as a platform to manage charges that are related to issues such as procurement.
MSP provides a unique bottom up approach based on the required management foundation that allows initiation, negotiations and careful approval of budget requests, based on roles and accountability.
MSP sets off the requirement gathering process by collecting initiations from dispersed units (thousands of initiations from across the globe).
MSP then sets an automated process (work flow based) that assigns accountability for all stake holders to these initiations. MSP uses an advanced algorithm for setting accountabilities, by binding the "Service Catalog" to roles and people (who are actually assigned to each role). This way, requirements are collected, provided with the high level Total Cost of Ownership (TCO), approved, prioritized, scheduled and tracked by accountable individuals.
The requirements initiated represent "budget lines," that later along the year act as a "parent" to the project which is being formed. The budget lines serve as “skeletons” that hold multiple projects and work packages. For example, multiyear projects may have several budget lines.After the budget planning process has been initiated, charged, approved, prioritized and the entire budget plan is approved, MSP integrates into the ERP systems to actively create the budget tree and maintain traceability. Once alignment and traceability are set between the budget line and the projects / releases / programs they represent, then online reports and KPIs are delivered (such as planned vs. actual, earned value; strategic alignment of the budget and operations and much more).