What is 'basic cover' in SAP PSM-FM-BU - Budgeting and Availability Control?

basic cover - Overview

• Component: PSM-FM-BU

• Component Name: Budgeting and Availability Control

• Description: The amount of revenue that must be reached or surpassed before the budget for the relevant funds center is increased.

basic cover - Details

• 
  Key Concepts: 
  Basic cover is a feature of the Budgeting and Availability Control component of SAP. It is used to ensure that the budgeted amount for a particular cost element is not exceeded. It works by setting a limit on the amount that can be spent on a particular cost element, and then monitoring the actual spending against this limit. If the actual spending exceeds the limit, then an alert is triggered. 
  
  How to use it: 
  To use basic cover, you first need to set up a budget for the cost element in question. This budget should include an upper limit for the amount that can be spent on the cost element. Once this budget has been set up, you can then enable basic cover for the cost element. This will cause SAP to monitor the actual spending against the budgeted amount, and alert you if it exceeds the limit. 
  
  Tips & Tricks: 
  When setting up a budget with basic cover, it is important to ensure that the upper limit is realistic and achievable. If it is too low, then it may be difficult to stay within the budgeted amount. On the other hand, if it is too high, then it may be difficult to keep track of spending and ensure that it does not exceed the limit. 
  
  Related Information: 
  Basic cover is just one