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

SAP Term: initial budget

• Component: PSM-FM

• Component Name: Funds Management

• Description: The financial resources that are planned for allocation to a budget unit at the beginning of a fiscal year.

Smart SAP Assistant

• Key Concepts: 
  Initial budget is a term used in SAP Funds Management (PSM-FM) to refer to the amount of money allocated to a project or activity at the beginning of a fiscal period. This amount is used as the basis for all subsequent budgeting and financial planning. It is important to note that the initial budget does not necessarily reflect the total amount of money available for the project or activity, as additional funds may be allocated during the course of the fiscal period.
  
  How to use it: 
  In SAP Funds Management, the initial budget is set up in the Budget Planning module. This module allows users to enter the initial budget amount for each project or activity, as well as any additional funds that may be allocated during the course of the fiscal period. Once the initial budget has been set up, users can then use this information to create detailed financial plans and forecasts.
  
  Tips & Tricks: 
  When setting up an initial budget in SAP Funds Management, it is important to ensure that all relevant information is included. This includes any additional funds that may be allocated during the course of the fiscal period, as well as any restrictions or limitations on how these funds can be used. Additionally, it is important to ensure that all relevant stakeholders are consulted when setting up an initial budget, as this will help ensure that all parties are aware of and agree with the proposed budget.
  
  Related Information: 
  For more information on setting up an initial budget in SAP Funds Management, please refer to SAP’s official documentation on Budget Planning. Additionally, there are a number of online resources available which provide detailed tutorials and best practices for setting up an initial budget in SAP Funds Management.