What is full-time equivalent budget in SAP PA-PM - Budget Management?

SAP Term: full-time equivalent budget

• Component: PA-PM

• Component Name: Budget Management

• Description: A budget structure element the budget of which is expressed in full-time equivalents FTEs.

Smart SAP Assistant

• Key Concepts: 
  Full-time equivalent (FTE) budget is a budgeting tool used in SAP's PA-PM Budget Management component. It is used to calculate the total number of hours worked by all employees in a given period of time. This allows organizations to accurately track and manage their labor costs. 
  
  How to use it: 
  The FTE budget is calculated by taking the total number of hours worked by all employees in a given period of time and dividing it by the total number of hours that would be worked if all employees were working full-time. This calculation gives an organization an accurate picture of their labor costs and allows them to better manage their budget. 
  
  Tips & Tricks: 
  When calculating the FTE budget, it is important to take into account any overtime or part-time hours worked by employees. This will ensure that the budget is accurate and up-to-date. Additionally, it is important to regularly review the FTE budget to ensure that it is still accurate and up-to-date. 
  
  Related Information: 
  The FTE budget can be used in conjunction with other SAP components such as HR, FI, and CO. This allows organizations to better manage their labor costs and ensure that they are staying within their budget. Additionally, the FTE budget can be used to track employee performance and productivity over time.