Abstract
This paper aims at establishing a strictly information system science viewpoint onto management accounting and budgetary processes. This viewpoint is presented in terms of a strictly subject-oriented, time variant data model—the so-called interactive budget warehouse. The target is to overcome the ERP/ad-hoc planning divide that challenges budgetary planning as well as budgetary control in many of today’s enterprises. With respect to technology we see the need to establish budgetary IT systems that potentially enable a total budget control across all levels down to the smallest cost units we deal with in daily operations. However, total budget control is not the target. We try to characterize a possible sweet spot between the obvious micro management of total budget control and today’s budgeting practices, which we tentatively call total budgeting. Total budgeting is the organizational concept corresponding to a reasonable usage of the interactive budget warehouse. Total budgeting is about commitment to the power of financial flows, pervasive profit and cost awareness, overcoming the budget responsibility-accountability divide, and a tight integration of budgetary control with the overall management system of the enterprise.
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Notes
- 1.
Compare our single cost center entity to the number of different kinds of cost centers that exist in SAP merely in module RM (real-time cost accounting): primary cost center, cost center to be debited, node cost center, collective cost center, final cost center, overhead cost center.
- 2.
We have chosen the POC terminology in analogy with the POS (point of sale) terminology in the retail domain, which is still the role model domain for data warehousing [7]. The cost point class is the hub of the whole budget data schema. It is a point in a multidimensional information space. This is similar to the POS in the star schemas of the retail domain [7] where it plays exactly the same role.
- 3.
Cost object is the name for cost units in the SAP cost unit accounting module CO-PC (Controlling—Product Costing).
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Draheim, D. (2013). Towards Total Budgeting and the Interactive Budget Warehouse. In: Piazolo, F., Felderer, M. (eds) Innovation and Future of Enterprise Information Systems. Lecture Notes in Information Systems and Organisation, vol 4. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-37021-2_20
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DOI: https://doi.org/10.1007/978-3-642-37021-2_20
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