How To Fix BQ017 - Annual budget & less than distributed budget

SAP Error Message - Details

• Message type: E = Error

• Message class: BQ - Messages for Budgeting and Planning

• Message number: 017

• Message text: Annual budget & less than distributed budget

What causes this issue?

The annual budget &V1& for one or more funds center(s)/commitment
item(s) is less than the distributed budget.

System Response

The system issues an error message and will not allow you to continue with this transaction until the error is resolved.

How to fix this error?

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message BQ017 - Annual budget & less than distributed budget ?

  The SAP error message BQ017, which states "Annual budget & less than distributed budget," typically occurs in the context of budget management within SAP's Controlling (CO) or Financial Accounting (FI) modules. This error indicates that the system has detected a situation where the annual budget allocated for a particular cost center, internal order, or project is less than the amount that has already been distributed or committed against that budget.
  Cause:
  
  Budget Overcommitment: The most common cause of this error is that the total amount of expenses or commitments (such as purchase orders, planned costs, etc.) exceeds the annual budget that has been set for that cost center or project.
  Incorrect Budget Settings: There may be an error in the budget settings, such as incorrect budget amounts entered or budget periods not properly defined.
  Changes in Budget: If the budget was reduced after commitments were made, this could lead to the error.
  Data Entry Errors: Manual entry errors in budget amounts or commitments can also lead to discrepancies.
  
  Solution:
  
  Review Budget Settings: Check the budget settings for the relevant cost center or project. Ensure that the annual budget is correctly defined and that it matches the expected expenditures.
  Adjust Budget: If the commitments are valid and necessary, consider increasing the annual budget to accommodate the expected expenses.
  Analyze Commitments: Review the commitments and expenditures to identify any unnecessary or erroneous entries. If there are any that can be canceled or reduced, do so to bring the total within the budget.
  Consult with Finance Team: If you are unsure about the budget adjustments, consult with your finance or controlling team to ensure that any changes made are in line with organizational policies.
  Use Budget Reports: Utilize SAP reports to analyze budget consumption and commitments. Reports like S_ALR_87013611 (Budget/Actual/Commitment) can help in understanding the budget status.
  
  Related Information:
  
  Transaction Codes: Familiarize yourself with relevant transaction codes such as:
  
  KSB1: Display actual line items for cost centers.
  S_ALR_87013611: Budget/Actual/Commitment report.
  CJ20N: Project planning and budgeting.
  
  
  Budgeting Process: Understand the budgeting process within your organization, including how budgets are created, approved, and monitored.
  SAP Notes: Check SAP Notes for any known issues or patches related to budget management that may address specific scenarios leading to this error.
  
  By following these steps, you should be able to resolve the BQ017 error and ensure that your budget management processes are functioning correctly.