What is appropriation in SAP PSM-FM-BCS - Budget Control System?

SAP Term: appropriation

• Component: PSM-FM-BCS

• Component Name: Budget Control System

• Description: Budget approved by the relevant body with legal character. The amount and account assignment of the budget is defined with the approval.

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• Key Concepts: 
  Appropriation is a term used in the Budget Control System (BCS) component of SAP's Project System Management (PSM) module. It is the process of allocating funds from a budget to a specific purpose or project. This process is used to ensure that funds are used in an efficient and effective manner. 
  
  How to use it: 
  In SAP, appropriation is done through the BCS component of PSM. The user must first create a budget plan and then assign it to a project or purpose. Once the budget plan is assigned, the user can then allocate funds from the budget plan to the project or purpose. This process can be done manually or automatically depending on the user's preferences. 
  
  Tips & Tricks: 
  When creating a budget plan, it is important to consider the amount of funds that will be needed for the project or purpose. This will help ensure that there are enough funds available for appropriation. Additionally, it is important to keep track of how much has been appropriated so that there are no overspending issues. 
  
  Related Information: 
  Appropriation is closely related to budgeting and financial planning in SAP. It is important to understand how these processes work together in order to effectively manage funds in SAP. Additionally, appropriation can be used in conjunction with other features such as cost control and resource planning in order to ensure that projects are completed on time and within budget.