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

SAP Term: ceiling type

• Component: PSM-FM-BCS

• Component Name: Budget Control System

• Description: Defines how availability control AVC handles budget expenditures or revenues. There are two ceiling types: ceiling type for expenditures or outgoing amounts ceiling type for revenues or incoming amounts. If you set tolerance limits for the ceiling type "expenditures", availability control treats any budget consumption in the normal way: Expenditures or negative revenues exceeding the limit defined by the expenditure budget or by the negative revenue budget lead to AVC issuing a message for example, an error blocking the posting of a document. However, if you want to limit the revenues of your organization, you have to set tolerance limits for the ceiling type "revenues". Availability control then verifies that revenues or negative expenditures do not exceed the limits set by the revenue budget or by the negative expenditure budget.

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• Key Concepts: 
  Ceiling type is a feature of the Budget Control System (BCS) component of SAP’s Project System Management (PSM) module. It is used to define the maximum amount of funds that can be allocated to a particular budget item. Ceiling types are used to ensure that the budget is not exceeded and that all funds are allocated in an efficient manner. 
  
  How to use it: 
  In order to use ceiling types, users must first define the ceiling type in the BCS configuration. This includes setting the maximum amount of funds that can be allocated to a particular budget item. Once the ceiling type has been defined, users can then assign it to a budget item in the BCS system. This will ensure that the budget item cannot exceed its allocated amount. 
  
  Tips & Tricks: 
  When defining ceiling types, it is important to consider how much flexibility is needed for each budget item. For example, if a budget item needs to be able to adjust its spending based on changing circumstances, then a flexible ceiling type should be used. On the other hand, if a budget item needs to remain within a fixed amount, then a rigid ceiling type should be used. 
  
  Related Information: 
  For more information on using ceiling types in SAP’s Project System Management module, please refer to SAP’s official documentation on Budget Control System configuration. Additionally, there are many online resources available that provide detailed tutorials and best practices for using ceiling types in SAP.