Please find below notes ( Ref: SAP) abt Budgeting:

In real term scenario, the budget implementation is quite similar to the

one specified. However, the one specified only talks about top down
approach. In reality, most of the organizations follow a Counter - Current
approach (combination of both top - down and bottom - up).
The following points should be kept in mind while implementing Budgeting
Process with BPC:
1. Budget approach
a. Frequency and timing
Will budget information be entered monthly, quarterly, yearly?
Will budgeting and forecasting happen at the same time or at different
times?
b. Iterations
If only the current budget or forecast is required, then a single budget or
forecast category is all that is needed
If multiple versions of the budget need to be saved, members such as
BUDGETV1, BUDGETV2u2026will be needed
If a monthly version of the forecast needs to be saved, members such as
JANFCST, FEBFCSTu2026will be needed
c. Best Practice: Multiple iterations
Create a single category that users write to (e.g. Current Budget)
When a version of the Current Budget needs to be saved, the
Administrator can use a Data Manager copy package to copy that data to
another category member (e.g. Budget Version 1)
2. Modeling requirements and budget method
a. Level of detail
What level is being budgeted for in every dimension?
The best practice is to budget at the base level in every dimension
b. Approaches for budgeting at a level that is higher than base:
Separate application: If you need to model at aggregated levels across
most of the dimensions and detail is not important
Separate hierarchy: For example, if certain budget inputs need to occur at
the total year level, set up a separate hierarchy that includes only total
year members for each year
Smart input: Use the existing full hierarchy, but only input to certain
members. For example, to budget for all products in a dimension with
individual products at the base level, input the value that represents the
total for all products into one of the base level products and let it
aggregate to the total
c. Top Down
Allows for inputs that represent aggregated values to be allocated down
to the base members of one or many dimensions
d. Bottom Up
Allows for inputs at the base level of every dimension. This does not
require that every member in every dimension is budgeted for.
Allows budget creators to input their numbers and provide justification,
rather than having a number assigned to them
e. Budgeting Tips
Auditing: in most cases, auditing is not turned on for Budget or Forecast
categories
Insight: the Budget detail should be the same as the Actual detail if using
Insight
Utilize optimization to improve performance
3. Seeding requirements
a. Zero base: No data seeded as a starting point
b. Prior year actual: Data manager copy package is used to copy actual
data from the prior year to the budget for the current year
c. Current forecast: Data manager copy package is used to copy current
forecast data to the budget for the current year
d. Percent increase or decrease of actual or forecast: Data manager copy
package is used in conjunction with conversion and transformation files
which define the calculation
4. Input schedules
a. Input schedules can be broken out by:
Business process
Account classification
b. How input templates are broken out typically depends on:
Budget process
Budget creators
Structure of the company
c. Functions used to send data to the database:
EVSND gives cell by cell control and is best used when you need to
convert an existing schedule
EVDRE performs better and is more scalable
d. Built u2013 in modeling functions
Spread: allows you to take a value and allocate it among selected
destination cells. The value may be allocated equally, or it may be
weighted by an optional range of weights
Trend: takes a value and grows it by a factor among selected cells. The
source value will be placed in the first cell of the destination range. Each
subsequent cell in the destination will increase by the amount specified
Weight: allows you to allocate an amount by weighted factors in your
spreadsheet
5. Business process flows
a. EVASV Function: status reporting
Returns the approval status codes for a given category, entity, and time
member
Can also be used to return the owner and the time the status was updated
EVASV (AppName, Category, Entity, Time, Parameter)
The Parameter returns one of the following:
u2022 0 u2013 (Default) Returns the status code
u2022 1 u2013 Returns the person who updated the status code
u2022 2 u2013 Returns the time the status was updated
Budget Method:
u2022 Direct Input: the account is being populated via direct input into an
input schedule that interfaces with the database
u2022 Calculated (Driver Based): the account is calculated based on
another account value. One account u201Cdrivesu201D the value in the
second account. An account that is a driver may drive the value of more
than one target account