What is approved budget in SAP IM - Investment Management?

SAP Term: approved budget

• Component: IM

• Component Name: Investment Management

• Description: The approved budget is the budget approved in a specific fiscal year. It contains all expenses and internal costs due in the current year, and sometimes also in following years for the measures that were approved in this year.

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• Key Concepts: 
  Approved budget is a term used in SAP Investment Management (IM) to refer to the total amount of money that has been allocated for a particular project or activity. This amount is approved by the relevant stakeholders and is used as a reference point for tracking and controlling the costs associated with the project or activity. 
  
  How to use it: 
  The approved budget is set at the beginning of a project or activity and is used to track and control costs throughout its duration. It can be used to compare actual costs against the approved budget, allowing for better decision-making and cost control. The approved budget can also be used to set limits on spending, ensuring that resources are allocated efficiently. 
  
  Tips & Tricks: 
  It is important to ensure that the approved budget is realistic and achievable. This will help to ensure that resources are allocated efficiently and that costs are kept within the approved budget. It is also important to regularly review the approved budget to ensure that it remains up-to-date and relevant. 
  
  Related Information: 
  The approved budget is closely related to other terms such as planned budget, actual costs, and variance analysis. Planned budget refers to the estimated amount of money that will be required for a project or activity, while actual costs refer to the actual amount of money spent on a project or activity. Variance analysis is used to compare planned and actual costs, allowing for better decision-making and cost control.