SAP System Application Study In Comprehensive Budget Management

Comprehensive budget management has been developed from the early20thcentury to21st century. It plays more and more significant roles in supportingbusiness management with financial and non-financial resource rational utilization,decision-making scientificalness, internal control strengthening, and economic benefitimprovement.Comprehensive budget management has been arisen in China at the endseventies of20thcentury as well as western management accounting theory presentedto China. Nowadays, comprehensive budget management is implementing a certainextent in China with hard work from both theory and practicing. While there are quitea lot of activities have to be carried out in order to promote enterprise key competitivepower through the integration of comprehensive budget management withmanagement tools as MBO (management by objective) and BSC (balance score card),comprehensive budget management with organization design and reporting design,budget target lie embed in ERP system linking with detailed daily businessmanagement, set up comprehensive budget management chain to enhance keycompetitive power with enterprise desirability, strategic target, budgeting, controlling,variance analysis, performance evaluation. It takes time for enterprise controllingsystem build-up especially integration of comprehensive budget management withERP system. This thesis takes example of an international manufacturing company tostudy and summarize how does it integrate comprehensive budget management withSAP system and how does it integrate details of budget target with SAP modules inorder to realize a systematic and elaborate budget management. So that raisemethodology on how to define company target with integration of strategymanagement accounting, MBO and BSC, how to make a clear role and response tosupport target realization with integration of responsibility accounting, managementreporting design and business analysis, how to integrate comprehensive budgetmanagement with ERP system, how to integrate comprehensive budget, ERP standardcost, variance analysis, performance evaluation with daily business control. Thisthesis present a good propose of series systematic comprehensive budget managementconsolidation on comprehensive budget management with the related management facilities, with the assistance of ERP system and the constant development along withvarious internal and external environment.