SAP PBC -Personnel Cost Savings

Personnel Cost Savings occur when the costs the system determined in the current commitment run are lower than the commitment in the previous commitment run.  Savings can happen when;

  • An employee reduces his/her working time and this reduces the encumbrance requirement

Savings from vacant positions and on-hold positions occur:

  • At the start of the fiscal year – when savings are incurred from the time of the initial encumbrance until the position is filled.
  • During the course of the fiscal year – when savings are incurred from the time of the vacancy or on-hold status until the position is filled.

Savings from vacant positions and savings from on-hold positions releases budget.  The released budget is made inaccessible by the creation of a funds block for the amount of the cost savings in Funds Management. The budget can only be used for another purpose when the funds block have been removed.

PBC-Personnel-Cost-Savings