Manage investment budgets and expenses (CAPEX/OPEX) within your SAP system

Are you still managing your CAPEX and OPEX budgets outside of SAP in a spreadsheet? It is common to see many clients using SAP, you often see the controller keeping an Excel spreadsheet of budget items and updating commitments or expenditures. Not only is this redundant management since the data is already in SAP, but it is also not a proactive solution when it comes to controlling variances that have occurred.

Wouldn't you like to have a standard solution SAP, not need spreadsheets and be able to control your budgets proactively and immediately (as the orders and the invoices related to them are entered into the system).

Investment Management SAP is the standard tool for managing all CAPEX purchases of the company and enables the presentation of planned and budgeted costs of investment projects in the form of a hierarchical structure.

CAPEX and OPEX budgets can be managed using standard SAP functionality:

CAPEX – Capital Expenditures

They represent the purchase of all those assets that will be owned by the company and are not intended for sale. We will distinguish them by:

Final Fixed Assets - The assets that are finalized, subject to amortization. Example: Office Chairs
Fixed Assets in Progress - Those assets that are not yet completed and therefore are not amortized, but when completed they represent a new Final Fixed Asset and therefore must be subject to amortization. Example: SAP Implementation.

OPEX – Operational Expenditures

They represent the purchase of all those materials or operational services that are incurred in the day-to-day operations of the company.

Examples of indirect purchases: rent, expenses (water, electricity, gas), salaries, travel expenses, etc.


SAP procedures for managing budgets​

The first step in managing budgets is to prepare the budget/company investment plan:

Later, investment orders will be created to which we will assign a budget:

Orders are usually capital expenditures (if they must be capitalized and settled against Fixed Assets ) or statistics (if they are expenditure items).

When entering the orders and invoices related to the budget orders/items, the system validates the availability control. The budget is checked against the sum of the Committed (MM Orders assigned to the orders) and Real (invoices). In the event of a drawdown, warnings or errors are normally issued at the time the order or FI invoice is created. Normally, a warning is set to be triggered when a large part of the budget has been used (e.g. 80%) and an error (at 100%), although the percentages are fully configurable.

At the level of budget management reports, SAP has standard reports with the basic information:


By way of illustration, we explain the operation of a general expense order in SAP in a summarized flow. In the case of investment order, the operation would be similar, but with the link with the Fixed Assets module.

Another interesting point is that SAP allows the user to easily manage different versions of budgets. This way, the company can make more optimistic (post-COVID) and pessimistic (COVID) versions of budgets at the same time. It is also possible to create a budget with a copy taking inflation into account (also a common scenario today).

Advantages of using standard SAP functionality.​

  • The solution is included within standard SAP without licensing costs.

  • Allows detection of any deviation from the budget by activating availability control.

  • Linking investment projects with the Fixed Assets module.

  • Possibility of easily managing different versions of the budget.

  • Management reports very fast.

  • Errors in transferring information from spreadsheets to SAP.

  • Optimizing the time spent by the user.

  • Possibility of attaching information/documentation to orders.

  • Possibility of activating monthly budget control by account and order.


To learn more about how we manage this type of project, contact us at We will get in touch with you as soon as possible.