What is financial budget in SAP PSM-FM - Funds Management?

SAP Term: financial budget

• Component: PSM-FM

• Component Name: Funds Management

• Description: A budget category used to store budget values in order to obtain a mid-term overview of the finances which have been budgeted. In contrast to the payment or commitment budget, the financial budget is not consumed and is usually not changed during the fiscal year.

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• Key Concepts: 
  Financial budgeting is a process used in SAP Funds Management (PSM-FM) to plan and manage the financial resources of an organization. It involves setting financial goals, estimating future income and expenses, and creating a plan to achieve those goals. The budget is then monitored and adjusted as needed to ensure that the organization meets its financial objectives. 
  
  How to use it: 
  In SAP Funds Management, financial budgeting is used to create a budget plan for the organization. This plan includes setting financial goals, estimating future income and expenses, and creating a budget that meets those goals. The budget can then be monitored and adjusted as needed to ensure that the organization meets its financial objectives. 
  
  Tips & Tricks: 
  When creating a financial budget in SAP Funds Management, it is important to consider both short-term and long-term goals. Additionally, it is important to consider the impact of inflation on the budget. Finally, it is important to review the budget regularly to ensure that it is still meeting the organization’s financial objectives. 
  
  Related Information: 
  For more information on financial budgeting in SAP Funds Management, please refer to the official SAP documentation at https://help.sap.com/viewer/product/SAP_PSM_FM/latest/en-US.