Setting Up and Using Revenues Increasing Budget

Budgets are often made available for expenditure only after the corresponding revenue has been recognized. This is true for both the budget that has already been approved and for additional portions of the budget that were not part of the original approved or voted budget. For such requirements, Revenues Increasing the Budget (RIB) enable you to define rules for when and how such budget increases should take place.

Typical use cases are public owned convention centers or swimming pools. Frequently, they are required to generate revenues for their expense budget. However, RIB could also be relevant for other parts of the organization.

The starting point is the basic RIB settings in configuration. Here Business Process Configuration (BPC) expert defines if you use RIB for your organization. If yes, you need to define on which account assignment level you want to control the RIB process. (for example, you want to do RIB by a combination of funds, cost centers and budget accounts). These settings are typically performed once during set up and are valid for several years.

Based on these settings the budget specialist creates RIB rules containing all definitions necessary to increase the expenditure budget from specific revenues. RIB rules are typically defined at the beginning of the fiscal year and might be valid for several years.

The creation of Revenue Budgets is optional for RIB and only required, if you want to use limits based on revenue budgets. For example, you could define that you are only allowed to use revenues for RIB up to the planned revenue budget amount.

All steps so far are typically performed once or at the beginning of a fiscal year. During the fiscal year, the organization collects revenues (for example, customer invoices posted by the receivable accountant).

A RIB specific application job is reading these revenue postings (and if used revenue budgets) and calculates the amounts available for RIB based on the definitions of the RIB rule. The result of this RIB run is a budget document increasing the budget of the receiver addresses maintained in the rule.

The RIB run is typically scheduled periodically (for example, weekly or monthly). It compares every time the revenue amount with the budget amounts already distributed in previous runs. Any delta leads to a new budget document reflecting this delta.

The following image shows the RIB process overview. The steps RIB Settings, RIB Rules, RIB Run and Expenditure Budget created by the RIB run are specific to RIB. Note that this is a simplified view of the whole process and it is not necessary to strictly follow all steps in the shown order. Therefore, you could for example already start collecting revenues before a corresponding RIB rule is defined. The RIB run will read and process all revenues for the fiscal year retrospectively in case a RIB rule was created at a later time.

The RIB profile is the central configuration object in Revenues Increasing the Budget. Using the RIB profile, you define amongst other settings the Scenario for Budgeting (PSM Budget Management or Grantee Management) and the Journal Fields available as RIB control objects in the Manage RIB Rules app.

Under Journal Field Dependencies, all fields available as RIB control objects can be listed and a relationship type can be assigned to each field.

The relationship type is used to determine the RIB control level for each dimension and it can be Not Relevant, One to One, or Hierarchy.

During the RIB run, revenue postings and revenue budget amounts are calculated based on the RIB control object (master data object or hierarchy node) that is maintained in the corresponding RIB rule. If a hierarchy node is maintained, revenue postings and revenue budget amounts are consolidated for all master data objects (that are not defined as RIB check level themselves) belonging to the respective hierarchy node.

In this configuration activity, the RIB profile can be assigned to a combination of the company code, fiscal year, and budget scenario.

This enables you to define a RIB profile for a specific company code in a specific fiscal year. <Fiscal Year From> means that the entry is valid for the year defined here and all subsequent fiscal years, until a new entry for the same combination of company code, budget scenario using a later fiscal year is found.

In this configuration activity, you maintain the calculation schemes that define the rules for revenues increasing the budget (RIB).

You can use a calculation scheme to define the following:

• The percentage of collected revenues that are relevant for a budget increase (usually = 100%).
• A lower limit for revenues with a budget-increasing effect.
• An upper limit for revenues with a budget-increasing effect.

You have the option of working without lower or upper limits. If you decide to set up a lower or upper limit, you have to choose the type of limit (for instance, absolute value of relative percentage) and enter a value for it.

If you do not work with limits or if you only set up limits using absolute values, it is not necessary to enter revenue budget. Revenue budget values are only needed to calculate limits that are defined by relative percentages.

The area in green shows the revenue amount generally available for RIB. While the revenues up to the lower limit (shortfall amount) are not taken into account for an expenditure budget increase using RIB, revenues above the upper limit (surplus amount) can be transferred to a separate budget address (surplus address). Using the surplus amount is an option in RIB rules.

When you assign the relationship type Hierarchy for an account assignment in the RIB profile, you need to specify which global hierarchy ID should be used. You maintain hierarchies using the Fiori app, Manage Global Hierarchies.

Using a new attribute called RIB Check Level, you can define which hierarchy nodes and master data objects within this hierarchy are available to define RIB control objects.

You can use the relationship type Hierarchy and the new attribute for the following dimensions:

• Fund
• Functional Area
• Cost Center
• WBS Element
• Budget Account

This new attribute is only visible for hierarchy IDs that are assigned to a RIB profile.

When you maintain PSM master data with a hierarchical structure, you must observe the following rules:

• PSM master data is always the leaf node in an hierarchical structure. You can assign additional PSM master data under PSM master data, but you cannot assign hierarchy nodes.
• Hierarchy nodes and the assigned PSM master data can both be defined as an RIB check level.
• If a hierarchy node is defined as an RIB check level, all of its children (master data and /or sub hierarchy nodes) are automatically part of this check level. Only if the RIB check level is also enabled for the underlying children, are these children separate control objects and not part of the RIB control object for the parent node.

The following figure illustrates some examples of how and where to define the RIB check level and how this influences the selection of revenue budget and revenue postings if the related RIB check level is used in a RIB control object.

In addition to the budget account that is used for this example, you can also organize all the other PSM master data elements mentioned above as a hierarchy.

The root node from hierarchy BA01 is defined as an RIB check level and has two sub nodes, BA011 and BA012. Sub node BA011 is not defined a RIB check level.

This means that sub node, BA011, containing budget account 1 and 2 is part of the RIB check level BA01. Sub node BA012 is defined as RIB check level itself. Therefore, this sub not and all underlying budget accounts are not part of RIB Check Level BA01.

Node BA012 is defined as RIB check level. The subordinate budget accounts 3 and 5 are part of this RIB check level. Whereas budget account 4 is also defined as RIB check level and therefore a separate control object (not part of RIB check level BA012).

A Revenues Increasing the Budget (RIB) rule contains all of the definitions required to increase the budget for specific expenditure budget addresses from specific revenues. It is defined by a unique combination of the fields, Valid from Fiscal Year, Company Code, and Plan Category with a RIB Control Object.

A RIB control object is an aggregation object for the application of a RIB rule. Like an availability control (AVC) object, a RIB control object uses budget accounts (here revenue) in combination with other PSM master data. It compares the posted revenues with the definitions of the RIB rule. Fields that define a RIB control object are controlled using the RIB profile. RIB control objects can be defined by the combination of master data objects and hierarchy nodes.

A RIB rules includes the following attributes:

• Activation Status (Active/Frozen/Inactive)
• Filter Profile (Revenues or Revenues and Revenue Transfers)
• Calculation Scheme (Rule for the calculation of available revenue amount, for example, using upper / lower limits)
• One Sender Revenue Budget Address (part of the RIB Control Object)
• One or more Receiving Expenditure Budget Addresses
• Surplus amount indicator (are revenues exceeding the upper limit used)
• Surplus Budget Address (Receiver of Surplus amount)

You define RIB Rules using the Fiori app, Manage RIB Rules, in the Budget Specialist role.

The object list gives an overview of all existing RIB rules and their status. Using Valid on Fiscal Year, you can select all rules valid for a specific fiscal year, even if the Valid from Fiscal Year of the RIB rule was a previous fiscal year.

You can create a new RIB rule from scratch or as a copy of an existing RIB rule. You can revise existing RIB rules and delete any RIB rule that is not used and is no longer required. Note that it is not possible to delete a rule in the following cases:

• If amounts (from RIB budget documents) are available for a RIB rule for the current fiscal year and if the amount is greater than zero.
• If amounts (from budget documents) are available for a RIB rule for previous fiscal years.

To schedule and start RIB runs, use the job template, Revenues Increasing the Budget (SAP_PSM_S4C_BUDGET_RIB) in the Application Jobs - Public Sector app. The app is available in the business role, SAP_BR_BUDGET_SPECIALIST.

You can use this job template to increase the budget for one or more expenditure budget addresses in a background job based on the amounts posted to the corresponding revenue posting addresses. The budget for the corresponding revenue budget address is decreased accordingly.

This is done by creating a specific type of budget document (similar to a budget transfer document) during background job processing. The creation of budget documents follows rules that are defined upfront in the Manage RIB Rules app and are triggered by this application job.

The corresponding budget document uses a specific budget process RIBD (Revenues Increasing the Budget) that is created specifically for RIB and consists of one sender revenue budget address and one or more receiver expenditure budget addresses. Sender revenue budget addresses and receiver expenditure budget addresses are defined in the Manage RIB Rules app. You can schedule the job for one or more RIB control objects. A separate budget document is created for every RIB control object. Therefore, the job could create one or more budget documents.

Additionally, if a RIB rule selected by the application job is using the surplus amount, the budget document will distribute the revenue exceeding the upper limits for revenues defined in a RIB calculation scheme to the surplus address.

In the job, you define for which company code you want to start the RIB run. Plan category, sender budget type, receiver budget type Budget Type (Receiver), and budget document type are used for the creation of the resulting RIB budget document(s).

Under Date Parameter, you can define and overrule the default system date for the budget document and the posting date. The posting date is also used to restrict the data selection for revenue budget and posting data included in the RIB run.

The fiscal year is derived from the posting date provided. It is designed to observe budget and revenue posting data for this specific fiscal year.

Under Revenues Increasing Budget Controlling Objects, you can limit the job runs for dedicated PSM account assignments.

If the job run is successful, you can monitor the budget document created and amount distributed to Sender (SRIB), Receiver (RRIB) and Surplus address (RRIB) PSM account assignments and check the log for errors. A surplus budget address is also an additional expenditure budget address.

When you run the job as a test run, all settings are executed but no budget document is created.

You can review the resulting RIB budget documents in the Manage Budget Documents app. In contrast to other budget documents like transfers or supplement, RIB budget documents are only reversable using this app. You cannot create new or copy existing RIB budget documents using the Manage Budget Documents app.

You can use this app to monitor the RIB process during the fiscal year. It allows you to compare the relevant amounts for all selected RIB rules based on RIB control objects.

The following measures are available for each RIB control object for comparison:

• Revenue Budget: The total current revenue budget entered for the selected RIB rules. This amount is used as a reference for the determination of the lower and upper limits defined in the RIB calculation formula (if these are defined as a percentage of the current reference budget). This amount is the total current revenue budget amount for all revenue budget addresses that contribute to the RIB object for the RIB rule. Only approved or imported (uploaded) revenue budget is considered.
• Total Revenue Amount: The total revenue amount posted to the selected RIB rules. This amount only considers relevant budget consumption types as defined in the RIB rule (filter profile) and is equal to the total revenue amounts available for the revenue posting addresses that contribute to the RIB rules.
• Available Revenue Amount: The revenue amount posted to the selected RIB rules available for RIB. This amount only considers relevant budget consumption types as defined in the RIB rule (filter profile) and takes RIB calculation schemes (limits) used in the definition of the RIB rules into account.
• Transferred Amount: The total revenue amount already transferred to the RIB rule's receivers using RIB budget documents.
• Transferable Amount: The total revenue amount still available for a budget transfer to the RIB rule's receivers using future RIB budget documents. RIB calculation schemes used in the definition of the RIB rules are considered.

This app provides a view on RIB amounts by different bar charts (default) based on RIB control objects, like chart by Cost Center or Fund.

Additionally, it offers the display of a table of RIB control objects with the revenue budget, total revenue, available revenue, transferred and transferable amounts.

Four related KPI apps

• RIB Revenue Amount Details
• RIB Transferable Amount Details
• RIB Transferred Amount Details
• RIB Revenue Budget Details

allow you to drill down into the corresponding line item information.

In regards to RIB Revenue Amount Details, Financial Accounting documents contributing to the total revenue amount posted to the selected RIB control objects are shown.

You can switch between an account assignments and document detail view. From the document detail you can jump to the related Financial Accounting document object page.