SAP ERP Financials and FICO Handbook

1.12 CO-IO 83
a budget represents the actual approved amount of funding for a given order. Because
the budgeted amount is maintained separately you have an opportunity to do plan
versus budget comparisons. This profile contains parameters and default values for
budgeting. You can also assign an order type to a budgeting profile at a later date.
191. What are reference orders and model orders?
A model order is not a real order in the commercial sense. It is customized with
certain default values to reduce time and effort while creating real IOs. Model orders
contain default values for the orders in an order type. You need to enter the model
order as the reference order in the order type. When you create a new order, all of
the active fields in the relevant order type are copied from the model order to the
new order. Model orders make the work of entering new orders considerably easier.
The data that recurs in orders from a particular order type is already defined. This
reduces the likelihood of errors.
192. What is a settlement rule?
The settlement rule determines what portions of a sender’s costs are to be settled
to which receiver(s). You specify this by assigning one or more distribution rules to
each sender. Typically there is one distribution rule for each receiver. This is carried
out at order level.
193. What is availability control in IO?
Availability control is a process where users of IOs will issue a warning when the
order cost reaches a particular stage. The idea behind availability control is that
the SAP solution should alert you when you are about to exceed some predefined
percentage of the budgeted amount. This activity is carried out through the establishment
of spending tolerance levels associated with each budget profile/controlling
area relationship.
194. What is a budget manager?
A budget manager is a person who will be informed when an IO reaches a
particular spending level. When you are maintaining the action setting for