SAP Learnings - #11

Dear All,

Let’s have a discussion around WBS element in SAP today.

Instead of following the usual approach, let me share the observations identified around WBS elements, which would be of use if you come across such aspects in your audits.

Brief background:

Work breakdown Structure (WBS) elements in SAP Plant Maintenance (SAP PM) is used to carry out budget planning and control.

Some of the issues identified:

1. Budget control will not be activated unless atleast Rs 1 is released. System will not check the budget availability if amount is not released. This can lead to possibility of expenditure exceeding the budgets without any controls or further approvals.
2. Once the CAPEX/Projects are completed, WBS related to that project should be blocked. If budget is not blocked, the user will have option to make further procurement against the budgets. This can lead to overstocking/unwarranted purchases not approved by management. Cash flow of the company may also be impacted.
3. Materials purchased in one WBS can be transferred to another WBS or to a cost center. This is done by way of 411 and 911 movements respectively. Generally, since fund management is done by the Finance Controller, control of WBS element also rests with them. Transferring materials from one project to another is as good as budget transfer without approval. Unrestricted 411 movement access by various users (stores and other users will have access as part of normal SAP MM set up) can lead to unauthorised budget transfers. ?Similarly, transfer of materials purchased under Capex budget to a cost center will impact P&L account. As this impact the profitability of the company, posting such entries should also be restricted.

?How can we check this?

1. Obtain WBS elements with budget allocated, released and used details. Though t-codes are available, it would be prudent to obtain complete list from client. The report should also include status of budget i.e. whether it is released, blocked etc., If budget used exceeds budget allocated/released, it is a clear-cut case of budget control not enabled for that WBS.
2. Obtain the list of completed Capex projects and ensure whether WBS pertaining to those projects are blocked.
3. Review 411 and 911 movements in MB51 report and report exceptions if any.

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Thanks for reading!

Until next time.

Signing off,

Balaji M