How To Fix FMCE003 - Annual budget almost exhausted for &1

SAP Error Message - Details

• Message type: E = Error

• Message class: FMCE - Cover Eligibility Messages

• Message number: 003

• Message text: Annual budget almost exhausted for &1

What causes this issue?

Current budget consumption is &V2& less than the annual budget for the
FM account assignment &V1&. Depending on the type of document, this FM
account assignment is either a budget address or a posting address.
Budget control on outgoing amounts
(<DS:DE.BUAVC_CEILTYPE>ceiling type</> <ZK> Expenditures</>) raised this
message for the budget address <ZH>&V3&</> (= <ZK>first-level control
object</>) without considering the cover eligibility rule that exists
for this budget address.
Although at this point the system checks availability on the level of
the budget address, an automatic cover eligibility rule was found. This
rule ultimately decides whether sufficient budget is available for
posting, if the present message has not been raised as an <SE><LS>Error
</></>.
The corresponding cover eligibility rule is determined by the following
combination of availability control ledger, fiscal year (and if
applicable, <DS:DE.FM_CEFFYEAR_BCS> year of cash effectivity</>) and
<ZK>second-level control object</> (<DS:DE.FMCE_CVRGRP>cover group</>
and if applicable, the <DS:DE.GM_GRANT_NBR>grant</>):
<ZH>&V4&</>
DEFINE &N& = '003'
INCLUDE FMCE_ANNUAL_MESSAGE_EXT

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?

Procedure for System Administrators

Error message extract from SAP system. Copyright SAP SE.

Smart SAP Assistant

• What is the cause and solution for SAP error message FMCE003 - Annual budget almost exhausted for &1 ?

  The SAP error message FMCE003 ("Annual budget almost exhausted for &1") is related to the Funds Management (FM) module in SAP. This message indicates that the annual budget for a specific budgetary account (represented by &1) is nearing its limit, which can prevent further postings or transactions against that budget.
  Cause:
  
  Budget Consumption: The error typically arises when the budget for a particular fiscal year is nearly exhausted due to high consumption of funds. This can happen if many transactions have been posted against the budget or if the budget was not set high enough to accommodate expected expenditures.
  Budget Control Settings: The system may be configured to issue warnings or prevent postings when a certain percentage of the budget is consumed.
  Incorrect Budgeting: There may be issues with how the budget was planned or allocated, leading to an underestimation of required funds.
  
  Solution:
  
  Review Budget Consumption: Check the budget consumption reports to understand how much of the budget has been utilized and for what purposes. This can help identify if the budget was indeed too low or if there are unexpected expenditures.
  Adjust Budget: If the budget is indeed too low, consider increasing the budget allocation for the relevant account. This can be done through the budget adjustment process in SAP.
  Reassess Budgeting Process: Review the budgeting process to ensure that future budgets are more accurately planned based on historical data and expected future expenditures.
  Monitor Transactions: Implement better monitoring of transactions against the budget to avoid reaching the limit unexpectedly.
  Consult with Finance Team: Work with the finance or budgeting team to understand the implications of the budget limit and to strategize on how to manage funds effectively.
  
  Related Information:
  
  Transaction Codes: You can use transaction codes like FMBB (Budgeting) or FMAVCR01 (Budget Availability Control) to analyze and manage budgets.
  Reports: Utilize standard SAP reports for budget analysis, such as S_ALR_87013558 (Budget/Actual/Commitment) to get insights into budget utilization.
  Configuration: Review the configuration settings in the Funds Management module to ensure that the budget control settings align with organizational policies and practices.
  
  By addressing the underlying causes and implementing the suggested solutions, you can effectively manage the budget and prevent the occurrence of the FMCE003 error in the future.