What is 'budget' in SAP CO - Controlling?

budget - Overview

• Component: CO

• Component Name: Controlling

• Description: An approved cost structure for an action or project in a particular period of time. Budgeting differs from cost planning in that it is binding. While you must estimate costs as accurately as possible during the planning phase, it is in the approval phase that you prescribe your funds, in the form of a budget.

budget - Details

• 
  Key Concepts: 
  Budget in SAP CO Controlling is a plan of expected costs and revenues for a certain period of time. It is used to compare actual costs and revenues to the planned ones. It is also used to monitor and control the financial performance of an organization. 
  
  How to use it: 
  In SAP CO Controlling, budgeting is done by creating budget plans. These plans are created based on the organization’s goals and objectives. The budget plans are then used to create budget documents which are used to track and monitor the actual costs and revenues against the planned ones. 
  
  Tips & Tricks: 
  When creating budget plans, it is important to consider the organization’s goals and objectives. This will help ensure that the budget plan is realistic and achievable. It is also important to review the budget plan regularly to ensure that it is still relevant and up-to-date. 
  
  Related Information: 
  SAP CO Controlling also provides other features such as cost center accounting, profitability analysis, and cost object controlling which can be used in conjunction with budgeting.