AC700 - Funds Management

Funds Management: Processes, Organization und Configuration AC700

R/3 System Release 46C 04/04/2001

0

Funds Management: Processes, Organization und Configuration.................................................................................0-1

Copyright ..................................................................................................................................................................0-2

SAP Public Sector.................................................................................................................................................0-4

Course Prerequisites..............................................................................................................................................0-5

Target group..........................................................................................................................................................0-6

IMR Funds Center Hierarchy................................................................................................................................0-7

IMR Revenue Hierarchy .......................................................................................................................................0-8

IMR Expenditure Hierarchy (Extract)...................................................................................................................0-9

Introduction...............................................................................................................................................................1-1

Introduction: Contents...........................................................................................................................................1-2

Course Goals .........................................................................................................................................................1-3

Course Objectives .................................................................................................................................................1-4

Course Content......................................................................................................................................................1-5

Course Overview Diagram....................................................................................................................................1-6

Main Business Scenario ........................................................................................................................................1-7

Funds Management Master Data ..............................................................................................................................2-1

Funds Management Master Data:Unit Objectives (1)...........................................................................................2-2




Representing the Budget Structure........................................................................................................................2-6

Organizational Elements within Accounting ........................................................................................................2-7

Organizational Structures......................................................................................................................................2-8

FM Area Global Settings ......................................................................................................................................2-9

Message Control .................................................................................................................................................2-10

Representing the Budget Structure in the R/3 System ........................................................................................2-11

Funds Center Hierarchy ......................................................................................................................................2-12

Commitment Item Hierarchy ..............................................................................................................................2-13

Representing Funds from Secondary Sources.....................................................................................................2-14

Representing Funds from Secondary Sources.....................................................................................................2-15

Fund Master Record............................................................................................................................................2-16

Working Without Funds......................................................................................................................................2-17

Processing Large Volumes of Master Data.........................................................................................................2-18

Graphical Hierarchy Selection for Subtrees........................................................................................................2-19

Restricting Levels ...............................................................................................................................................2-20

Manual Budget Structure ....................................................................................................................................2-21

Generating Budget Structures ............................................................................................................................2-22

Budget Structure with Commitment Item Group ................................................................................................2-23

Classification.......................................................................................................................................................2-24

Concepts in Classification...................................................................................................................................2-25

Functions in Classification..................................................................................................................................2-26

Changing Master Data.........................................................................................................................................2-27

Example: Changing the Master Record...............................................................................................................2-28

Changing Master Data Structures and Hierarchies (1)........................................................................................2-29

Changing Master Data Structures and Hierarchies(2).........................................................................................2-30

Default Values for FM Account Assignments ....................................................................................................2-31

Example: Assigning G/L Account to Commitment Item ....................................................................................2-32

Commitment Item Assignment Program.............................................................................................................2-33

Assigning CO Objects to FM Objects (1) ...........................................................................................................2-34




Assignment Report for FM Account Assignments .............................................................................................2-38

HR/FM Object Assignment for Wages and Salaries ...........................................................................................2-39

HR/FM Object Assignment for Travel Expenses................................................................................................2-40

Default Account Assignments: Priorities ............................................................................................................2-41

Funds Management Master Data: Summary (1) .................................................................................................2-42

Funds Management Master Data: Summary (2) ................................................................................................2-43

Funds Management Master Data Exercises ........................................................................................................2-44

Funds Management Master Data Solutions.........................................................................................................2-50

Budgeting..................................................................................................................................................................3-1

Budgeting: Unit Objectives (1) .............................................................................................................................3-2

Budgeting: Unit Objectives (2) .............................................................................................................................3-3


Budget Creation ....................................................................................................................................................3-5

Example: Planning Process ...................................................................................................................................3-6

Budget Values - Budget Categories ......................................................................................................................3-7

Annual and Overall Budgets .................................................................................................................................3-8

Periodic Budgeting................................................................................................................................................3-9

Payment Budget and Commitment Budget (1) ...................................................................................................3-10

Payment Budget and Commitment Budget (2) ...................................................................................................3-11

Budgeting techniques ..........................................................................................................................................3-12

Top-Down Budgeting..........................................................................................................................................3-13

Bottom-Up Budgeting.........................................................................................................................................3-14

Budgeting: Entry transaction...............................................................................................................................3-15

Local Budgeting..................................................................................................................................................3-16

Central Budgeting ...............................................................................................................................................3-17

Budgeting: Budget Versions ...............................................................................................................................3-18

Budgeting Tools..................................................................................................................................................3-19

Utilities for Processing Budgets..........................................................................................................................3-20

Types of Budget Update Entry............................................................................................................................3-21

Total Up / Additive (1)........................................................................................................................................3-22

Total Up / Additive (2)........................................................................................................................................3-23

Totaling Up A Version........................................................................................................................................3-24

Roll Up................................................................................................................................................................3-25

Transferring CO/PS Planning Data .....................................................................................................................3-26

Releases and Budget Updates .............................................................................................................................3-27

Releases...............................................................................................................................................................3-28

Updating Budgets................................................................................................................................................3-29

Example: Updating Budgets ...............................................................................................................................3-30

Budgeting Control...............................................................................................................................................3-31

Budget Profile Functions.....................................................................................................................................3-32

Budget Consistency Check .................................................................................................................................3-33

Active Availability Control.................................................................................................................................3-34

Overview: Active Availability Control ...............................................................................................................3-35

Overview: Budget Bearing Element ...................................................................................................................3-36

Determining the Budget Bearing Element (1).....................................................................................................3-37



Availability Control (1).......................................................................................................................................3-40



Availability Control Tolerance Limits ................................................................................................................3-43

Reconstructing Availability Control ...................................................................................................................3-44

Budgeting: Summary (1).....................................................................................................................................3-45

Budgeting: Summary (2).....................................................................................................................................3-46

Budgeting Exercises............................................................................................................................................3-47

Budgeting Solutions ............................................................................................................................................3-52

Budget Execution......................................................................................................................................................4-1

Budget Execution: Unit Objectives (1) .................................................................................................................4-2




Overview: Budget Execution ................................................................................................................................4-6

Expenditure Scenario: ...........................................................................................................................................4-7

Budget Execution: Earmarked Funds and Funds Transfers ..................................................................................4-8

Budget Execution: Characteristics of Commitments Documents ........................................................................4-9

Budget Execution: Special Settings for Commitments Documents ....................................................................4-10

Budget Execution: Approval Workflow for Expenditures Commitments ..........................................................4-11

Earmarked Funds Structure.................................................................................................................................4-12

Budget Execution................................................................................................................................................4-13

Funds Commitment Posting Procedure...............................................................................................................4-14

Purchasing Without Warehouse Management ....................................................................................................4-15

Expenditure Scenario: .........................................................................................................................................4-16

Purchasing Without Warehouse Management ....................................................................................................4-17

Multiple Account Assignment for a Purchase Order ..........................................................................................4-18

Purchasing with Warehousing.............................................................................................................................4-19

Expenditure Scenario: .........................................................................................................................................4-20

Warehouse Processing Scenario..........................................................................................................................4-21

GR/IR Update .....................................................................................................................................................4-22

Integrating Financial Accounting........................................................................................................................4-23

Integration FI - FI-FM.........................................................................................................................................4-24

Payment Conversion ...........................................................................................................................................4-25

Integration FI-AA - FI-FM..................................................................................................................................4-26

Transaction Types Relevant to the Budget..........................................................................................................4-27

Trip Costs Accounting ........................................................................................................................................4-28

Travel Management Process ...............................................................................................................................4-29

Account Assignment Options for Trips...............................................................................................................4-30

Funds Management and HR................................................................................................................................4-31

HR - FI-FM Integration Options .......................................................................................................................4-32

Expenditure Scenario: ’Integrating Human Resources Without Commitments' .................................................4-33

Time-Dependent FM Assignments .....................................................................................................................4-34

Expenditure Scenario: ’Integrating Human Resources with Commitments' .......................................................4-35

Financing Scenarios ............................................................................................................................................4-36

Constructing and Reducing HR Commitments ...................................................................................................4-37




Financing Scenario for HR Commitments ..........................................................................................................4-41

Funds Management and Controlling ...................................................................................................................4-42

CO - FI-FM Integration Options .......................................................................................................................4-43

Possible Entries and Automatic Account Assignment Derivation ......................................................................4-44

Posting Integration CO - FI-FM..........................................................................................................................4-45

Posting Integration CO - FI-FM..........................................................................................................................4-46

Integrating Project System with Funds Management..........................................................................................4-47

PS and FI-FM: Structures and Functions ............................................................................................................4-48

PS and FI-FM: Updating Commitments/Actuals ................................................................................................4-49

Integrating Plant Maintenance ............................................................................................................................4-50

PM Transactions Relevant to Funds Management..............................................................................................4-51

FI-FM Account Assignment in the Maintenance Order......................................................................................4-52

Integrating Sales and Distribution.......................................................................................................................4-53

Transactions in SD: Sales Order/Credit and Debit Memos.................................................................................4-54

FI-FM Account Assignment in the SD Sales Order Item....................................................................................4-55

Integration of SD and PM Orders .......................................................................................................................4-56

Revenue Scenarios ..............................................................................................................................................4-57

Revenue Scenarios ..............................................................................................................................................4-58

Revenues Increasing the Expenditure Budget: Budget Increase / Timeframe Procedure ...................................4-59

Revenues Increasing the Expenditure Budget:Distribution Rules ......................................................................4-60

Revenues Increasing the Expenditure Budget:Distribution Procedure ...............................................................4-61

Change and Adjustment Options.........................................................................................................................4-62

Change and Adjustment Options.........................................................................................................................4-63

Adjustment Option: Transfer .............................................................................................................................4-64

Budget Execution: Summary ..............................................................................................................................4-65

Budget Execution: Summary ..............................................................................................................................4-66

Budget Execution Exercises................................................................................................................................4-67

Budget Execution Solutions................................................................................................................................4-86

Updating....................................................................................................................................................................5-1

Updating: Unit Objectives.....................................................................................................................................5-2


Updating................................................................................................................................................................5-4

Dialog functions....................................................................................................................................................5-5

Updating................................................................................................................................................................5-6

Basics of updating.................................................................................................................................................5-7

Handling Tax.........................................................................................................................................................5-8

Carryforward Level...............................................................................................................................................5-9

Overview: Update Profiles ..................................................................................................................................5-10

Controlling Update Profiles ................................................................................................................................5-11

Update Profile 000100 ........................................................................................................................................5-12

Update Profile 000350 ........................................................................................................................................5-13

Statistical Update ................................................................................................................................................5-14

Updating..............................................................................................................................................................5-15

New Data Structure and Conversion...................................................................................................................5-16

Supplementary Account Assignments and Subsequent Postings ........................................................................5-17

Updating..............................................................................................................................................................5-18

Financial Transactions and Value Types.............................................................................................................5-19

Value types..........................................................................................................................................................5-20

Updating: Irrelevant Documents .........................................................................................................................5-21

Updating: Summary (1).......................................................................................................................................5-22

Updating: Summary (2).......................................................................................................................................5-23

Year-End Closing......................................................................................................................................................6-1

Year-End Closing: Unit Objectives.......................................................................................................................6-2


Closing Operations................................................................................................................................................6-4

Fiscal Year Change ...............................................................................................................................................6-5

Monitor .................................................................................................................................................................6-6

Carryforward Parameter and Carryforward Type .................................................................................................6-7

Carryforward Rules...............................................................................................................................................6-8

Maintaining Carryforward Rules ..........................................................................................................................6-9

Copying Carryforward Rules ..............................................................................................................................6-10

Budget Carryforward Process .............................................................................................................................6-11

Carrying Forward Open Commitments...............................................................................................................6-12

Carryforward Procedure for Commitments.........................................................................................................6-13

Carrying Forward Fund Values...........................................................................................................................6-14

Carrying Forward Fund Values...........................................................................................................................6-15

Closing Operations: Carry Forward Fund Balance .............................................................................................6-16

Year-End Closing: Summary (1).........................................................................................................................6-17

Year-End Closing: Summary (2).........................................................................................................................6-18

Year End Closing Exercises................................................................................................................................6-19

Year-End Closing Solutions................................................................................................................................6-23

Funds Management Reporting ..................................................................................................................................7-1

Funds Management Reporting: Unit Objectives ...................................................................................................7-2


Information System Architecture ..........................................................................................................................7-4

Advantages of the Architecture.............................................................................................................................7-5

Master Data Reporting ..........................................................................................................................................7-6

Administrative Reporting......................................................................................................................................7-7

Administrative Reporting: Example......................................................................................................................7-8

Line Item Reporting ..............................................................................................................................................7-9

Basics of Line Item Reporting ............................................................................................................................7-10

Logical Database: F1F .......................................................................................................................................7-11

Selection Functions .............................................................................................................................................7-12

Functions in the Executed Report .......................................................................................................................7-13

Working with Display Variants...........................................................................................................................7-14

Drilldown Reporting ...........................................................................................................................................7-15

Principle of Drilldown Reporting........................................................................................................................7-16

Architecture of Drilldown Reporting ..................................................................................................................7-17

Report Functions .................................................................................................................................................7-18

Two Coordinates (Matrix)...................................................................................................................................7-19

One Coordinate with Key Figure ........................................................................................................................7-20

One Coordinate Without Key Figure ..................................................................................................................7-21

Forms: Rows and Columns/Formulas .................................................................................................................7-22

Maintaining Characteristics in Reports ...............................................................................................................7-23

Working with Drilldown Reports........................................................................................................................7-24

Selection Phase ...................................................................................................................................................7-25

Navigation in Drilldown Reports ........................................................................................................................7-26

Drilldown Report Functions................................................................................................................................7-27

Exceptions...........................................................................................................................................................7-28

Exceptions for Columns......................................................................................................................................7-29

Exceptions for Cells ............................................................................................................................................7-30

Defining an Exception.........................................................................................................................................7-31

Further Processing Options .................................................................................................................................7-32

User roles ............................................................................................................................................................7-33

Activity Groups...................................................................................................................................................7-34

Creating Activity Groups ....................................................................................................................................7-35

Funds Management Reporting: Unit Summary...................................................................................................7-36

Funds Management Reporting Exercises ............................................................................................................7-37

Funds Management Reporting Solutions ............................................................................................................7-40

General Information..................................................................................................................................................8-1

General Information: Unit Objectives...................................................................................................................8-2


Checking Authorizations.......................................................................................................................................8-4

Preparing for Production Startup...........................................................................................................................8-5

Supplementary Account Assignments and Subsequent Postings ..........................................................................8-6

Activating Funds Management .............................................................................................................................8-7

Budget Planning in Euro .......................................................................................................................................8-8

Adjusting Budget in Euro......................................................................................................................................8-9

Status Management .............................................................................................................................................8-10

Status Management: Basic Concept....................................................................................................................8-11

Status Assignment...............................................................................................................................................8-12

Status Maintenance .............................................................................................................................................8-13

General Information: Summary ..........................................................................................................................8-14

© SAP AG 1999

Funds Management: Processes, Organization undConfiguration

© SAP AG

AC700AC700Funds Management :Processes, Organizationund Configuration

Funds Management :Processes, Organizationund Configuration

R/3 Release 4.6B June 2000 Material number 50038849

© SAP AG 1999

Copyright 2000 SAP AG. All rights reserved.

Neither this training manual nor any part thereof maybe copied or reproduced in any form or by any means,or translated into another language, without the priorconsent of SAP AG. The information contained in thisdocument is subject to change and supplement without prior notice.

All rights reserved.

Copyright

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SAP, SAP Logo, mySAP.com, mySAP.com Marketplace, mySAP.com Workplace, mySAP.com Business Scenarios, mySAP.com Application Hosting, WebFlow, R/2, R/3, RIVA, ABAP™, SAP Business Workflow, SAP EarlyWatch, SAP ArchiveLink, BAPI, SAPPHIRE, Management Cockpit, SEM, are trademarks or registered trademarks of SAP AG in Germany and in several other countries all

over the world. All other products mentioned are trademarks or registered trademarks of their respective companies.

Design: SAP Communications Media

© SAP AG 1999

SAP Public Sector

Level 2 Level 3

Overview of Financial Accounting and Reporting

AC010 5 days

Funds and PositionManagement Functionality(Release 4.5)

HR610 3 days

Funds Management:Processes, Organizationand Configuration

AC700 5 days

Financial AccountingSolution for Germany

IPS920 5 days

Funds and PositionManagement Configuration(Release 4.5)

HR611 1 day

Special Functionality for the Public Sector

IPS910 2 days

HR

FI

© SAP AG 1999

Course Prerequisites

Prior to training course AC700, it isrecommended that you attend AC010Financial Accounting and Reporting

© SAP AG 1999

Target group

ParticipantsProject managers and members of the projectteam who are responsible for the introductionof Funds Management

Duration: 5 Days

© SAP AG 1999

Secretary's officeC11

Acctg/PurchasingC12

HRC13

Building admin.C14

AdministrationKelly

C1

Project group P11P11


Department 1Cooper

A1


Department 2Parker

A2

Exec.BoardHillV

Lab. equipmentZ11

Computer equipmtZ12

Department ZStone

Z1


IMR Funds Center Hierarchy

© SAP AG 1999

Grantsand subsidies

20000

Revenues fromsponsored research

10010

Other revenues10020

Revenues2

Revenues fromgeneral research

20010

Revenues fromresearch projects

20020

Revenues fromfees/disbursements

10021

Revenues fromdisposals

10023

Revenues frompublications

10022

IMR Revenue Hierarchy

© SAP AG 1999

Expenditures forBusiness supplies

50000

Expenditures forproject groups

60000

Expenditures3

Materials60010

Chemicals60030

Travel costs60020

Office supplies50010

Post andtelephone charges

50030

Books andmagazines

50020

Data processing80010

Fixtures and fittings80030

Lab. equipment80020

Expenditures forinvestments

80000

Expenditures forHR

40000

Employees’remuneration

40010

Payment of removal costs etc.

40030

Welfare40020

Laboratory requirements

60040

Hire of equipment

50040

IMR Expenditure Hierarchy (Extract)

(C) SAP AG AC700 1-1

© SAP AG 1999

Key Points

Further information via the topic buttons

Exercises

Introduction


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Course Goals

Course Objectives

Course Content

Course Overview Diagram

Main Business Scenario

Course Introduction

Introduction: Contents


© SAP AG 1999© SAP AG

Basics of Funds Management

Integration of Funds Management with other R/3 application components

The configuration of Funds Management

The logic and technical background of Funds Management

This course will provide you with training for:

Course Goals


© SAP AG 1999

Master data and budget planning in Funds Management

Integration of Funds Management with other R/3 components

Fiscal year change and reporting in Funds Management

The configuration of master records and budgeting in Funds Management

The configuration of updating and fiscal year change in Funds Management

At the conclusion of this course, you will be familiar with:

© SAP AG 1999

Course Objectives


© SAP AG 1999

Unit 5 Updating

Unit 6 Year-End Closing

Unit 7 Funds Management Reporting

Unit 8 General Information

Unit 1 Introduction

Unit 2 Funds Management Master Data

Unit 3 Budgeting

Unit 4 Budget Execution

Preface

Exercises

Solutions

Course Content


© SAP AG 1999

Budget ExecutionBudget Execution

IntroductionIntroduction START

Funds Management ReportingFunds Management Reporting

Year-End ClosingYear-End Closing

Funds Management Master DataFunds Management Master Data

BudgetingBudgeting

UpdatingUpdating


General InformationGeneral Information


© SAP AG 1999

In order to make efficient use of limited financial resources, your company uses the R/3 component FI-FM

As a user of Funds Management or member of the project team, you have to master the various functions

You define the organizational structure and the controls for budgeting, updating, fiscal-year change, and reporting

Main Business Scenario


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Organizational Structures

Global Settings

Representing the Budget Structure

Representing Funds from Secondary Sources

Using Large Master Data Hierarchies

Changing Master Data

FM Account Assignment Default Values

Funds Management Master Data


© SAP AG 1999

At the end of this unit, you will be familiar with:

Possible views within your organization's accounting environment

Important organizational structure elements in accounting

How to represent your organization's budget structure in the R/3 System

The meaning, structure, and contents of the funds center hierarchy and the commitment item hierarchy in Funds Management

© SAP AG 1999

Funds Management Master Data:Unit Objectives (1)


© SAP AG 1999


The meaning and layout of the budget structure

Representation of the financing of funds from secondary sources in the R/3 System

The meaning and contents of the fund master record in Funds Management

Working with budget structure

Support options when handling large hierarchies in the R/3 system

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© SAP AG 1999


Options for changing master data hierarchies and what to be aware of when doing so

Most important assignments of commitment items to general ledger accounts

Options for assigning Funds Management and Controlling master data objects

© SAP AG 1999



© SAP AG 1999






BudgetingBudgeting

UpdatingUpdating




© SAP AG 1999

Introduction

The budget structure represents the structural and organizational outline of an organization from a Funds Management viewpoint

It is the basis for budget planning and budget execution

Representing the Budget Structure


© SAP AG 1999

Organizational Elements within Accounting

FM areaexpenditures /

revenues

Company codeexpense / revenue

Controlling areacosts / revenues

BUDGET PLAN

BUDGET PLAN1996EXP

199550.490

3621.470

23547

45.1451278. . .. . .. . .. . .. . .. . .. . .. . .. . .

. . .

. . .

. . .

. . .

. . .

. . .

. . .

. . .

. . .

. . .

. . .

. . .

. . .

. . .

. . .

. . .

. . . FIFI

FIFI--FMFM

COCO

BUDGET PLAN2000EXP

50.490362

1.47023

54745.145

1278. . .. . .. . .. . .. . .. . .. . .. . .. . .

48.320370

1.47025

53842.873

970. . .. . .. . .. . .. . .. . .. . .. . .. . .

2001EXP

Depending on the level from which accounting is viewed, the organization is represented in the R/3 System using the following structures: The organizational unit for Funds Management is the financial management area (FM area) The organizational unit for Controlling is the controlling area The organizational unit for Financial Accounting is the company code The FM area and the controlling area have precedence over the company code.


© SAP AG 1999

Organizational Structures

Plant Purchasingorganization

Personnelarea

Salesorganization

Personnelarea

Salesorganization

FM area

Controllingarea 2

Controllingarea 1

Companycode 1

Companycode 2

Companycode 3

Companycode 4

Client

Plant Purchasingorganization

Personnelarea

Salesorganization

You can use clients in the R/3 System. The client corresponds to a whole organization. Each component in the R/3 System has its own organizational units. These are assigned to each other. The organizational unit in Funds Management is called the "financial management area" (FM area). You can assign one or more units from cost accounting (controlling areas) and financial accounting (company codes) to an FM area.

When doing this, ensure that the relationships between the three organizational units are consistent. All other organizational units, such as those in Logistics (plant, purchasing organization and so on) and Human Resources (HR area and so on) are linked to Funds Management via the financial accounting organizational unit, that is, the company code.

The currency in the FM area can differ from the company code currency selected.


© SAP AG 1999

FM Area Global Settings

0102

03

04

050607

1211

10

0908

Jan.Feb.

Mar.

Apr.

MayJun.Jul.

Aug.

Sept.

Oct.

Nov.Dec.

FM area currency

Fiscal year variant

The FM area currency and a fiscal year variant must be defined as global parameters. The fiscal year variant can be selected independently from the variants for the company codes.

(C) SAP AG AC700 2-10

© SAP AG 1999

Message Control

The user can define the system reaction

The user can control dialog and batch processing in various ways

E Error

W Warning (standard)

I Note in window

- Turn off message

System message System reaction settings

MsgNo Message

053 Item & contains ...

062 Commitment item & different ...

066 Fund & different from fund in...

...

(C) SAP AG AC700 2-11

© SAP AG 1999

Representing the Budget Structure in the R/3 System

Budget structure1996EXP

50.490362

1.47023

54745.145

1278. . .. . .. . .. . .. . .. . .. . .. . .. . .

. . .

. . .

. . .

. . .

. . .

. . .

. . .

. . .

. . .

. . .

. . .

. . .

. . .

. . .

. . .

. . .

. . .

organ

izatio

nal

functional

Commitment item

Funds center

1995EXP

BUDGET PLAN2000EXP

50.490362

1.47023

54745.145

1278. . .. . .. . .. . .. . .. . .. . .. . .. . .

48.320370

1.47025

53842.873

970. . .. . .. . .. . .. . .. . .. . .. . .. . .

2001EXP

Structure in the R/3 System

To represent the budget structure of an organization in the R/3 System, a breakdown of the entire organizational structure is carried out in an analytical process according to: Organizational viewpoints Structural viewpoints

The result is a funds center hierarchy and usually several commitment item hierarchies. For funds centers, organizational units are formed (areas of responsibility, departments, projects) and arranged in a hierarchy.

For commitment items, structural aspects are displayed hierarchically (expenditure and revenue structures).

The funds management system joins organizational and functional structures (funds center and commitment item hierarchies) in one structure. In this structure, each funds center contains the entire commitment item hierarchy.

(C) SAP AG AC700 2-12

© SAP AG 1999

Funds Center Hierarchy

responsible

superior center

FM areaFunds center 1

Funds center 2 Funds center 3

responsible

superior center

responsible

Funds centers are used to represent organizational units (areas of responsibility, departments, projects) and are arranged in a hierarchy.

You can only define one funds center hierarchy in each financial management (FM) area. There is only ever one funds center at the top of a funds center hierarchy (top funds center). Every other funds center has one superior center which is defined in the master record of the subordinate funds center.

The funds center master record contains important information, such as the name and description of the funds center, the name of the person responsible for the funds center and so on.

You can maintain both the name of the person responsible (as information) as well as a user name (SAP user name) in the system. The person defined in the user name as responsible for the funds center is the recipient of automatically generated system messages (mails) in certain situations.

(C) SAP AG AC700 2-13

© SAP AG 1999

Commitment Item Hierarchy

Financial trans.

Name

Item category

Revenues

302

Expend.

303

Goods receipt/Invoice receiptclearing

403

Customer/vendorreconcil.acct

602 / 3

Bank

901

Summarization itemcan be budgeted tocannot be posted toAcct assignment itemcan be budgeted tocan be posted to

Commitment items describe an organization's functional breakdown structure. Summarization items can be budgeted to but cannot be posted to. Account assignment items are characterized by the fact that they can be budgeted to and posted to. Financial transaction and item category are control parameters used to define the meaning of a commitment item.

- The financial transaction represents the business transaction from feeder application components. - The item category stipulates whether you are working with:

A revenue item an expenditure item or a cash balance item.

All commitment items representing the budget structure as revenues and expenditures types have the financial transaction "30" in the master record.

In addition, there are several "technical" commitment items, such as those for reconciliation accounts, bank accounts and so on.

(C) SAP AG AC700 2-14

© SAP AG 1999

Introduction

In addition to the operating budget, secondary funds are managedseparately, usually according to other, more rigid regulations. These funds are often made available for projects.

Funds require a defined term and have special reporting requirements.


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© SAP AG 1999


32

Budget

Sec. Fund 1

Sec. Fund 2

Budget structure

Budget Fund 1

. . .

Customer SAP

The financing of funds from secondary sources is represented in the R/3 System by funds. The organizational and functional breakdown structure (funds center hierarchy and commitment item hierarchy) is passed on to each fund.

By "passing on", we mean here that the master data structure is combined automatically with the fund master data.

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© SAP AG 1999

Fund Master Record

Basic data

Supplem. data

Customer: Link to FI customer master record

Balance: Behavior of fund with regard to fiscal year change

Budget profile: Individual control of budgeting and availability control

Application of fundsApplic. Valid from Valid to

1 01.01.2000 31.12.2001

Validity interval

An entry must be made in the fund master record in order to validate it. It is possible to enter an application of funds that is defined time-independently or to specify a corresponding validity interval.

Entries in the fields "budget profile", "balance update" and "customer for fund" are optional. The customer for a fund can be consulted for evaluation purposes in Funds Management reporting. The budget profile allows budgeting and availability control to be controlled individually. The "balance update" indicator controls whether the totals records are carried forward for each fund when changing to the next fiscal year.

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© SAP AG 1999

Working Without Funds

Funds center

Commt item

Fund

A1

50010

"Blank" fund represents the actual budget

If there is no entry in the "Fund" field, the system resorts to a technical fund representing the actual budget.

There is no master record for the "blank" fund. The relevant budget profile is defined in Customizing.

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Graphical hierarchy selection

Restricting Levels

Budget structure

Classification

Processing Large Volumes of Master Data

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© SAP AG 1999

Graphical Hierarchy Selection for Subtrees

FM area IMR

A

A.1

A.1.1A.1.2A.1.3

A.2

A.3

--

+

+

Graphical hierarchy selection:The current funds center/commitmentitem hierarchy is displayed level by level.The elements flagged "+" contain other elements which are not displayed; those flagged "-" contain other elements which are displayed.

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© SAP AG 1999

Restricting Levels

Restricting levelsThe number of levels to be processed after entering a transaction is determined:improved overviewfewer blocked objects: objects can be processed by several userssimultaneouslyincludes defined budget objects

Level12345

Access: Restricted to two levels.The level of entry counts as the first level.

The restriction of levels can be used in budgeting and budget structure maintenance.

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© SAP AG 1999

Manual Budget Structure

Only certain combinations of fund centers and commitment items should be available for budgeting

Center Item BudgetS1 A 1.1S2 A 2.1S2 A 2.2S2 A 2.3

The combination of center + item + fund result in a unique budget address.

Only a complete combination can be used for budgeting

Budget structuredefinition

Creating original budget

Ctr Item Budget ViewS1 A 1.1S2 A 2.2S2 A 2.3

The budget structure is a combination of the grouping of the organization (funds centers) and the actual structure of the funds (commitment items).

In the budget structure, the combinations of fund center and commitment item that are to carry a budget are flagged. If no combinations of funds centers and commitment items are selected for an FM area/fund, all logical combinations are valid budget items. Once a combination is selected, the budget structure is valid as defined and only the selected combinations can have budgets assigned to them.

An individual budget structure can defined for each fund. The budget structure is year-dependent and is valid until it is redefined. Note: if you are using the budget processing transactions, once you have created a budget structure, the system will only offer you the funds management account assignments that are flagged as budget carrying.

A unique funds management account assignment consists of a funds center, commitment items, and fund.

You can only use complete combinations of these master data elements for budgeting. In the budget structure, you can select funds management account assignments as budget carrying at any time.

You can also define the so-called posting objects in the same transaction. These are the combinations of funds centers and (account assignment) commitment items to which commitment and actual postings can be made.

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Generating Budget Structures

Budget structure

Funds Cmmt Budgetcenter item objectIMR EXPIMR Pers. .. .. .

IMR Funds CenterEXP

EXP 1000. . . 200. . . 100

AdministrationEXP

EXP 200. . . 50. . . 40

Department 1

. . .

. . .

Department 2

. . .

. . .

Automatic generation of budget structure from the budgeted elements

The "Generate Budget Structure from Budget and Actual Data" program uses the budgeted combination of funds centers and commitment items to generate a budget structure.

You can also use this program to create a posting object definition, using the combinations of funds centers and (account assignment) commitment items to which actual data has been posted.

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Budget Structure with Commitment Item Group

CI 2CI 1

CI 3

CI 1CI 3

Commt item Commt Itemgroup

Funds center

BudgetstructureFC 1

FC 2Assignmt

CI 1CI 3

Budget Postingobject object

xxx

MaintainIndicator

CI 1CI 3

Budget Assig.object object

xxxFC 2

FC 2

Funds Cmmtcenter item

Generation

To make processing easier, commitment items can be put together to form commitment item groups. When defining a group, you specify the function (budget/posting object) of the commitment items that make up the group.

When defining the budget structure with group assignment (generate budget structure from group), you must assign the commitment item groups to funds centers.

Any subsequent changes made to the functions of the object in a funds center group also affect all funds centers within the budget structure.

For year-dependent budget structures, you must to create groups that are year-dependent. For budget structures that are not year-dependent (fund with a total value), you set up groups which are year-independent.

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© SAP AG 1999

Managing a large volume

of information

Searching for objects with similar properties

Reporting

Classification

You will often need to use master data to manage a wide range of information which cannot be stored in the master records themselves.

These information requirements may arise retrospectively. Therefore you should store the information so that it is easy to find.

Classification is a good way of managing a large number of master data objects.

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Concepts in Classification

A class is a group of objectswhich share identical or similar features.ClassClass

An object is a unit which can be classified.Examples: commitment item, fundObjectObject

A characteristic describes features of an object,such as who is processing it or how the tax is to be treated.

CharacteristicCharacteristic

Feature of a characteristic, such as special note or public.CharacteristicCharacteristic

valuevalue

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© SAP AG 1999

Functions in Classification

Object searchin the class

Object SearchObject SearchAssignmentObject: Fund 10217Class: Fund originChar. valuation

Country: GermanyType: Private

ClassificationClassificationClassClass MaintMaint..

Fund: 10217

Country: GermanyType: Private

CharacteristicsCharacteristics

Object MaintenanceObject Maintenance

- Country

- Type of financing

CharacteristicsCharacteristics

CharacteristicsCharacteristics MaintMaint..

Class Fund OriginClass Fund Origin

- Country

- Type

Class search

Step 1: Define the characteristics and the permitted characteristic values. Step 2: Maintain classes, thereby assigning the characteristics. Step 3: Maintain objects, such as funds, thereby assigning and valuating one or more classes. Step 4: Search for objects.

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Changing the Master Record

Changing Hierarchies

Changing Master Data

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Example: Changing the Master Record

Changing Account Assignment ItemChanging Account Assignment Item

Name

Basic data

Default value

Financial trans.

Item category

Superior item

Funds center

Field can be changed

Field cannot be changed

It is only possible to make changes to the master records in Funds Management in fields that are ready for input. If , for example, when you are creating a commitment item, you have not completed field "Superior commitment item", it will not be possible to make a subsequent change to it. The commitment item must be deleted or created again and reassigned.

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© SAP AG 1999

Changing Master Data Structures and Hierarchies (1)

1

Possible scenarios :

Only hierarchy data exists Changes present no problem

Hierarchy data + budget objectdefinition exist

Changes must be taken into account in budgetobject definitions.

Procedure:1. First, switch off the budget object definitions for the

elements you want to change.2. Change the hierarchy as required.3. Define budget objects in new hierarchy

(for each fund!)

Red: new objects

2

You can change the names of account assignment items without changing the hierarchy. You can also limit the duration of this change.

You need special authorization to make hierarchy changes for items with budget and actual values (activity 47 in the FM area authorization).

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© SAP AG 1999

Changing Master Data Structures and Hierarchies(2)

4

Possible scenarios :

Hierarchy data + budget objects +budget values + actual postingsexist

Procedure:1. As scenario 3, steps 1 - 5.6. Reconstruct assigned values.7. Transfer actual values manually, if necessary.

3 Hierarchy data + budget object+ budget values exist

Procedure:1. Here, you must not switch off the budget objects

(relevant budget would no longer be accessible).2. Change the hierarchy as required.3. Adjust the budget objects (to ensure consistency).4. Reconstruct the distributed values

(with or without "Maintain additional master data").5. If necessary, adjust the budget distribution manually

You can change the names of account assignment items without changing the hierarchy. You can also limit the duration of this change.

You need special authorization to make hierarchy changes for items with budget and actual values (activity 47 in the FM area authorization).

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© SAP AG 1999

Default Values for FM Account Assignments

G/L account to commitment item

Assignment of CO objects to FM objects

Assignment of HR objects to FM objects

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© SAP AG 1999

Example: Assigning G/L Account to Commitment Item

FI-FMFIFI--FMFMFIFIFI

Financial transaction Item category

Bank Bank 90 1Assets Assets 30 3

Assets goods movement Not relvnt 50 3Material stock Material 30 3Vendor reconciliation acct Payable 60 3Input tax Input tax 30 3

GR/IR GR/IR 40 3Down payments made DPs 30 3Raw materials expend. Material 30 3

The main factor affecting assignment of G/L accounts to commitment items is not the commercial character of the G/L account, but its position in the processing run for a revenue or expenditure. Accounts providing the base for a revenue or expenditure must be linked to a commitment item using control 30/2 or 30/3. This is the only way the SAP system can recognize a revenue or expenditure. Material stocks and asset portfolios also require this type of control. Specifying the organizational assignment (funds center and fund) is only useful if a revenue or expenditure is defined in a posting line.

Bank and cash accounts, along with the related clearing accounts, show a cash balance. The commitment item must have financial transaction 90 and item category 1.

Reconciliation accounts for customers and vendors have the status 'invoice' and require a commitment item with transaction 60. The system does not require the differentiation to be made between revenues and expenditures, but it can be used to make assignments clearer.

The GR/IR clearing account requires a 40/3 commitment item. Enter a commitment item with 50/3 in all non-relevant accounts.

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Commitment Item Assignment Program

G/L account

Company code

Commitment item

FM area

G/L account with commt itemG/L account w/o commt item

Commitment item w/o G/L account

Assignment of commitment items to G/L accounts

The assignment program for G/L accounts provides information about existing assignments of commitment items to G/L accounts and those assignments that are still missing.

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Assigning CO Objects to FM Objects (1)

Assign cost element/cost element group to commitment item

Controlling area IMRCost elementCost element group IMR-KOAGR-01FM area

Assignment

Commitment item OFFICEMATERIAL

With this assignment table, you can assign cost elements/cost element groups to a commitment item. What is more, it is also possible to assign secondary cost elements/cost element groups to the appropriate commitment items.

1.1.1.

2.2.2. Cost center/cost center group is dependent on allocation of cost element/costelement group to funds center/commitment item/fund

Before you can enter assignments between CO and TR-FM, you must assign the controlling area to the FM area. You can only do this if you have activated the company code.

For each FM area, you can stipulate whether the assignments made in Funds Management master data maintenance between CO account assignments and FM account assignments are year-dependent or not. The year assignment is always derived from the document posting data in the other components (for example, Financial Accounting or Controlling). You cannot change this in Customizing.

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Controlling area IMRKostenstelle MANAGEMTCost center groupFM area IMR

AssignmentCost element

Cost element Group Funds center Commitment itemFundIMR-KOAGR.01 GEN.MGMT OFFICEMATIMR-KOAGR.02 GEN.MGMT TELEPHONE

: : : : :

Order / order group depending on cost element / cost element groups to funds center / commitment item / fund3.3.3.

4.4.4.

5.5.5.

Example for cost center / cost center group(cases 3, 4 and 5)

The functions listed in cases 2-5 enable you to assign CO objects to objects in Funds Management, dependent on a cost element or on cost element groups.This gives you a wide range of object assignment options.

WBS element / WBS element group depending on cost element / costelement group to funds center / commitment item / fund

Profit center / profit center group depending on cost element / costelement group to funds center / commitment item / fund

During posting, postings are made to the objects that you entered manually. If a funds commitment was specified during the posting of an invoice, the FM account assignment is transferred from this funds commitment and cannot subsequently be overwritten with a manual entry.

The system issues a warning if entries contradict one another.

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© SAP AG 1999


Assign cost element/cost element group to commitment item

Controlling area IMRCost elementCost element group IMR-KOAGR-01FM area

Assignment

Commitment item OFFICEMATERIAL

With this assignment table, you can assign cost elements/cost element groups to a commitment item.Note that it is possible toassign secondary cost elements/costelement groups to the appropriatecommitment items.

1.1.1.

2.2.2. Cost center/cost center group is dependent on allocation of cost element/costelement group to funds center/commitment item/fund

Before you can enter assignments between CO and TR-FM, you must assign the controlling area to the FM area. You can only do this if you have activated the company code.

For each FM area, you can stipulate whether the assignments made in Funds Management master data maintenance between CO account assignments and FM account assignments are year-dependent or not. The year assignment is always derived from the document posting data in the other components (for example, Financial Accounting or Controlling). You cannot change this in Customizing.

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© SAP AG 1999


Controlling area IMRCost center MANAGEMTCost center groupFM area IMR

AssignmentCost element

Cost element Group Funds center Commt item FundIMR-KOAGR.01 GEN.MGMT OFFICEMATIMR-KOAGR.02 GEN.MGMT TELEPHONE

: : : : :

Order / order group depending on cost element / cost element groups to funds center / commitment item / fund3.3.3.

4.4.4.

5.5.5.

Example for cost center / cost center group(cases 3, 4 and 5)

The functions listed in cases 2-5 enable you to assign CO objects to objects in Funds Management, dependent on a cost element or on cost element groups.This gives you a wide range of object assignment options.

WBS element / WBS element group depending on cost element / costelement group to funds center / commitment item / fund

Profit center / profit center group depending on cost element / costelement group to funds center / commitment item / fund

During posting, postings are made to the objects that you entered manually. If a funds commitment was specified during the posting of an invoice, the FM account assignment is transferred from this funds commitment and cannot subsequently be overwritten with a manual entry.

The system issues a warning if entries contradict one another.

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© SAP AG 1999

Assignment Report for FM Account Assignments

Cost objectControlling area

Commitment item

FM area

Cost obj. with FM acct assignmt

Funds center w/o cost object

Assignment of FM account assignment to cost object

Cost obj. w/o FM acct assignmt

The assignment programs in the master data index of Funds Management support the maintenance of the CO assignment table.

The programs allow you to search for assignments originating from CO account assignment and/or FM account assignment.

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HR/FM Object Assignment for Wages and Salaries

1.1.1.

Assignment of cost distribution for wages/salaries (infotype0027/01) to funds center/fund2.2.2.

Organizational assignment of an employee (infotype 0001) to funds center/fund3.3.3.

Recurring payments/deductions (infotype 0014) and additional payments (infotype 0015) to funds center/fund

If you are using component HR, the individual assignments have the following order of priority during a payroll posting:

1.If you are using component HR Funds and Position Management (HR FPM), the FM account assignments maintained in HR FPM are used for HR commitments and for the posting of payroll results. 2. Irrespective of whether you are using HR FPM, wage types entered as recurring payments and deductions in infotype 0014 or as additional payments in infotype 0015 are posted to the FM account assignments defined in those infotypes, that is if cost assignments exist for the infotypes. 3. If you are not using HR FPM, the funds center(s)/funds defined in the cost apportionment are debited according to the appropriate percentage, if a cost apportionment exists for wages and salaries in infotype 1018 (cost distribution of organizational unit/position) or in infotype 0027/01 (cost distribution of person). If no cost assignment is available for the recurring payments and deductions (infotype 0014) or for additional payments (0015), either the account assignment for HR FPM is used (if you are using HR FPM) or the cost distribution to the position and the person is queried (if HR FPM is not being used). 4. If you are not using HR FPM, no cost apportionment is given for wages and salaries or a cost apportionment is given but it does not apportion all of the costs, then the posting goes to the funds center/fund specified in the organizational assignment (infotype 0001).

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HR/FM Object Assignment for Travel Expenses

Assignment of travel expenses cost distribution (infotype 0027/02) and wage/salary (infotype 0027/01) to funds center/fund1.1.1.

2.2.2.

4.4.4.

3.3.3.

Manual assignment of funds center/commitment item/fund in coding block for a trip or documents

Organizational assignment of an employee (infotype 0001) to funds center/fund

Assignment of travel privileges (infotype 0017) to funds center/fund

The system posts travel expenses according to the following order of priorities: 1. If manual account assignments have been specified in the coding block for an individual trip, postings

are made to the funds center(s)/ commitment item(s)/fund(s) defined within it. 2. If infotype 0027/02 contains an apportionment of the costs for the last day's travel, the system charges costs to the funds center(s)/fund(s) in this apportionment. 3. If the full amount of the travel expenses has been apportioned, the residual percentage is posted to the funds center/fund specified in the travel privileges (infotype 0017). 4. If there is no account assignment in the travel privileges, the travel expenses or the undistributed remainder in infotype 0027/02 are distributed to the funds center/fund specified in the cost distribution for wages and salaries (infotype 0027/01) using the account assignment stored there. 5. If the cost apportionment for wages and salaries (infotype 0027/01) does not distribute all the costs, the percentage not distributed is posted to the funds center/fund from infotype 0001.

As soon as all the costs have been assigned, the system stops querying infotypes. This means that funds centers/funds must be defined parallel to other cost relevant account assignments, so that the system can take them into account.

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Default Account Assignments: Priorities

created inDefault

Customizing

CO assignment binding

FI assignment binding

G/L account

CO assignment

Commitment item

CO assignment

Funds center

CO assignment

Commitment item

Funds center

Fund

The default account assignments you have saved are provided as default values during posting. In the standard system, the system displays a warning if you overwrite the default account assignments. You can turn off this warning or not allow default account assignments to be overwritten. For postings running in the background (such as CO assessment), Funds Management default account assignments must have been created.

FM-CO account assignments or assignments to G/L accounts are binding: During postings in the components feeding into Funds Management (such as purchase orders or invoices), the system automatically suggests the FM account assignment from "the assignment of commitment item-to-G/L account"/"assignment of FM account assignment to CO account assignment“ - if an assignment has been maintained. If you set this indicator, the FM account assignment determined by the system cannot be overwritten by a manual entry.

If you set both indicators together, the following assignments must correspond in the system: - Commitment item to G/L account - Commitment item to cost element - Commitment item to cost element in the assignment of cost center to FM account assignment

If these assignments do not agree, the system will not execute the posting.

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© SAP AG 1999

The Financial Management Area (FM area) is the organizational element in Funds Management. The Accounting environment is mapped out by assigning company codes and controlling areas to the FM area.Commitment items are used to represent the functional structure of the budget, while funds center represent the organizational structure. Financing from secondary funds can be represented using special funds.Working with budget structure, restricting levels and classification simplify the processing of large volumes of master data.

Funds Management Master Data: Summary (1)

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© SAP AG 1999

Changes can only be made to master records under certain circumstances. A change to the Funds Management hierarchies must be supported with programs according to the scenario.The integration of CO, FI and FM allows you to define default values. The order of priority can be determined in Customizing.

Funds Management Master Data: Summary (2)

(C) SAP AG AC700 2-44

Funds Management Master Data Exercises

Unit: Funds Management Master Data Topic: Representing the Budget Structure

At the conclusion of these exercises, you will be able to:

• Represent the master data structure in Funds Management.

• Create funds centers

• Create commitment items

• The Institute for Medical Research (IMR) has decided to check the effects of newly developed cleansers on skin and to carry out a representative research project.

1-1 Your group will be responsible for this project (Project P12) and is assigned to department A1. Using the hierarchy display, include Project P12 in the existing organizational structure. You will assume responsibility for the budget. For the moment, do not make an entry in the "Fund" field.

1-2 Create two commitment items for project expenditures. Note that expenditures are to be posted to these commitment items.

Commitment item: 60030 for chemicals

Commitment item: 60040 for laboratory requirements

The superior item for both items is commitment item 6000 (project expenditures).

(C) SAP AG AC700 2-45

(C) SAP AG AC700 2-46

Unit: Funds Management Master Data Topic: Secondary funds management


• Create applications of funds

• Maintain funds master records

• You are employed in the Finance Department and have the assignment to specifically track the use of funds from secondary sources.

The company was able to win a well-known producer of body-care products, Young & Fresh Co. (Y&F), and the European Union (EU) as sponsors for the project. They are prepared to cover the costs that arise. Y&F and the EU require you to be able to trace the funds used for the project separately from other research projects. For this reason, you need to create an application of funds to enable project-related valuations.

2-1 Create an application of funds.

Application of funds: CLEANSER

Validity of the application of funds: From 01.01.200Y to 31.12.200Y + 2

2-2 Create two funds. You should budget the funds from the EU yearly and the funds from Y&F for the entire validity period of the project.

Fund: EU, Customer: 1000, Application of funds: CLEANSER

Fund: YF, Customer: 2000, Application of funds: CLEANSER

Assign the funds to the corresponding budget profiles (F4 Help).

(C) SAP AG AC700 2-47

Unit: Funds Management Master Data Topic: Budget structure


• Generate a budget structure.

• Generate and delete budget structures.

• You are only using certain account assignments in your EU fund for planning and procurement. Therefore you will need to generate an appropriate budget structure.

3-1 You are only using funds center P12 with commitment items 60010, 60020, 60030 and 60040 as the budget and budget objects. Generate a manual budget structure for the “EU” fund in year YYYY.

3-2 In addition to secondary funds, IMR’s own funds are also managed in the “Space” fund. Consequently, it already contains budget values. Generate a budget structure in Customizing for the “Space” fund. Check what you have generated in the menu Then delete the budget structure in Customizing.

(C) SAP AG AC700 2-48

Unit: Funds Management Master Data Topic: Organizational Structures


• Represent the assignment between FM area and company code.

• You work in the Administration department and have an excellent working knowledge of information technology. For this reason, the Executive Board has personally requested that you implement the changes in the system.

4-1 IMR has an associated institute in another country. The Funds Management of this institute should also be represented in your FM area. What conditions must the company code of the associated institute meet in order to be managed in your FM area?

4-2 Your institute founds a marketing department in order to market your research work more effectively. The new marketing department must be added to the funds center hierarchy. Assume that only budget values have been entered so far and no actual values. What should you do?

(C) SAP AG AC700 2-49

Unit: Funds Management Master Data Topic: Master data assignment


• Maintain G/L account -> commitment item assignments.

• Carry out the prerequisites for ensuring a parallel structure in CO and Funds Management.

• In order to simplify the budget execution process, you are using specific default values for FM account assignments.

5-1 Define commitment item 60040, which you have already created, in G/L account 403000.

5-2 Use the CO assignment table to find out the default values for the funds center and fund.

Assignment

Cost center Funds center Fund

C1 C1 -

C11 C11 -

C12 C12 -

C14 C14 -

5-3 As well a parallel structure, the contents should also be the same. To ensure this, you should make cost element and commitment item assignments.

Cost element Commitment item

500301 50030

(C) SAP AG AC700 2-50

Funds Management Master Data Solutions

Unit: Funds Management Master Data Topic: Representing the Budget Structure

1-1 Financial Accounting – Funds Management - Master Data – Funds center – Hierarchy -Maintain

Field name or data type Values

Funds center P12

Name Project 12

Description User-definable

Superior center A1

User name AC 100 - ##

Name: Dr. John

1-2 Financial Accounting – Funds Management - Master data - Account assignment – Create No entry for carryforward item category and default value “Fund”.


Commitment item 60030

Name Chemicals


Financial transaction 30

Item category 3

Superior item 60000 (already defined)

(C) SAP AG AC700 2-51



Name Laboratory requirements


Financial transaction 30

Item category 3

Superior item 60000 (already defined)

(C) SAP AG AC700 2-52

Unit: Funds Management Master Data Topic: Secondary funds management

2-1 Financial Accounting – Funds Management – Master data - Fund – Application of funds - Create


Application of funds Cleanser

Name Cleanser


Valid from 01.01.YYYY

Valid to 31.12.YYYY +2

2-2 Financial Accounting – Funds Management – Master data - Fund - Create


Fund EU

Name European Union



Budget profile F00001

Customer for funds 1000


Fund YF

Name Young & Fresh Co.



Budget profile F00002

Customer for funds 2000

(C) SAP AG AC700 2-53

Unit: Funds Management Master Data Topic: Budget structure

3-1 Accounting – Financial Accounting – Funds Management - Master data – Budget structure – Change


FM area 90##

Fiscal year YYYY

Funds center No entry

Commitment item No entry

Fund EU

- Select combinations of P12 and appropriate commitment items and flag as budget objects.

- Also flag P12 60010, P12 60020, P12 60030 and P12 60040 as posting objects

- Edit => Add

3-2 Tools- Customizing – Edit Project – Goto – SAP Reference IMG – Financial Accounting – Funds Management – Basic data – Budget structure – Generate budget structure


FM area 90##

From fiscal year YYYY

Fund

Generate budget objects and posting objects.

Accounting – Financial Accounting – Funds Management - Master data – Budget structure – Display

Tools- Customizing – Edit Project – Goto – SAP Reference IMG – Financial Accounting – Funds Management – Basic data – Delete budget structure

(C) SAP AG AC700 2-54

Unit: Funds Management Master Data Topic: Organizational structures

4-1 There are no prerequisites for the company code. Fiscal year variant and local currency can differ from the settings for the FM area.

4-2 The procedure depends on whether you are working with or without budget objects. If there are budget values for the budget objects defined, then they must not be deactivated before you make changes to the hierarchy. Main procedure without taking budget objects into consideration: The new Marketing department is created as a funds center and is classified in the hierarchy. The distributed values must subsequently be reconstructed: Accounting – Financial Accounting – Funds Management- Budgeting- Tools – Reconstruct distributed values After the distributed values have been reconstructed, further corrections can be made to the original values. While making corrections, the “distributed” view can be called up to help.

(C) SAP AG AC700 2-55

Unit: Funds Management Master Data Topic: Master data assignment

5-1 Accounting – Financial Accounting – General ledger – Master data – Individual processing – In company code


Company code 90XX

Change G/L account – Create/bank/interest

5-2 Accounting – Financial Accounting – Funds management – Master data – Assignments – Controlling - Cost centers Environment => Set controlling area


Controlling area 90XX


Cost center C1; C11; C12;C14

Funds center C1; C11; C12;C14

5-3 Accounting – Financial accounting – Funds management – Master data – Assignments – Controlling - Cost elements


Cost element 500301



© SAP AG 1999

Budget values - budget categories

Budgeting techniques

Budgeting tools

Releases and budget updates

Budgeting control

Active availability control

Budgeting


© SAP AG 1999

Budgeting: Unit Objectives (1)

© SAP AG 1999

At the end of this unit, you will be able to:

Describe the planning process in SAP Funds Management.

Enter annual, overall and period values.

Enter budget in the commitment budget and payment budget.

Execute top-down and bottom-up budgeting.

Copy, change and block budget versions.


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Budgeting: Unit Objectives (2)

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List the effects of the "total up" function.

Enter budget releases and budget updates.

Outline the functions of the budget profile.

Explain the central ideas, mode of operation and configuration options for active availability control.


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BudgetingBudgeting

UpdatingUpdating




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Budget Creation

IntroductionYou draw up your budget based on the master data structure. During budgeting, you may find it necessary to run through the budgeting process several times before arriving at a final, coherent budget plan.

Depending on your planning approach, you may require different versions of the budget and the budget plan. The remaining units explain how budget plans and budgets can be created in the system and the functions you can use to assist your budget planning.


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Example: Planning Process

Budget 1999

Version 1

01.10.1999 01.01.2000 01.03.2000

Interim budget

2000

Version 2

Copy of previous

year's values

Interim budget

2000

Version 0

Final budget

2000

Version 1

Copy in version 0

ReleasesReleases5% Increase

Budget plans from previous years can be used as a model. The procedure for drawing up a budget generally involves the discussion of different estimates by committees. The results of these consultations can be stored in the system as budget versions.

Version management allows you to copy, change and block versions. You make the decision whether budget releases should be used for budget execution.


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Budget Values - Budget Categories

Overall and annual valuesPeriod viewPayment budget and commitment budget


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Annual and Overall Budgets

1. Budget and funds from secondary sourcesavailable for a financial year

2. Funds from secondary sources which are available for the total duration of a "project", without specific funds having to be allocated at any particular time

3. Funds from secondary sources which are available for the total duration of a "project", with stipulation as to how the funds are to be distributed across the individual years

Annualvalues

Overallvalues

X

X

X

X

Budget 99100,00020,000

. . .

Fund xyvalid from 01/05/99 to 30/08/02

100,00015,00065,000

. . .

Fund xyvalid from . . . to . . .

100,000 99 30,00000 20,00001 50,000

. . .

Consistency!!

Budget 00Budget 01

When budgeting, you can work with overall values and/or annual values. You can define overall values only in connection with a fund. Annual values are budget values that are available either in the budget or as funds from secondary sources for an individual financial year.

Overall values are budget values which are available for more than one financial year without the funds being distributed to the individual financial years, e.g. funds from secondary sources used for the total duration of a project that runs over several financial years.

The combination of annual and overall values contains budget values which are available for several financial years but which are to be distributed to the individual financial years according to certain conditions.

You can enter a standard text (document text) for each budgeting document. By way of contrast, you can also enter an explanatory short text with a corresponding long text (budget text) for each fund/funds center/commitment item/fiscal year/budget transaction combination.


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Periodic Budgeting

1. Periodic budgets can be entered for an annual value.

2. Annual values are distributed to individual periods either manually or using distribution keys.

3. Periodic budgets are used for statistical purposes only. For reporting purposes, budget utilization is represented for each period. The active availability control always carries out checks against the annual budget.

Annual values

Overall values

Periodic values

X

X X

XBudget 98

100.000

Budget 98Periods

100.0001 8.0002 8.0003 10.0004 10.000...

You can distribute annual budget values to individual periods. Using distribution keys, you can have the system automatically distribute budget values to individual periods according to different criteria.

Overall values cannot be displayed per period. Periodic budgets can be displayed per period for statistical purposes only. In reporting, budget utilization is displayed for each period. The active availability control checks either against the annual budget or against the overall budget. You cannot carry out an availability control against periodic values.

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Payment Budget and Commitment Budget (1)

Two independent budget categoriesPayment budgetCommitment budget

Various application scenariosBudget assignment is determined by the update profile

The commitment budget is an abstract representation of a second budget The transactions (such as purchase order, invoice, payment and so on) that can be used to assign commitment budget are specified in an update profile.

Update profile 000350, which triggers an update in the commitment budget, is shipped with the standard system. You must select this profile, if you want to work with the commitment budget.

This profile stipulates that commitments and commitment documents (purchase requisitions, purchase orders, earmarked funds) are updated in the commitment budget. Invoices are updated in the payment budget and the commitment budget. Payments are only updated in the payment budget.

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Payment Budget and Commitment Budget (2)

2000500250250

Paymentbudget

FC/CIV/5V/50010V/50020

2000200100100

Commitmentbudget

FC/CIV/5V/50010V/50020

Originalbudget

Transfer

Supplements

Releases

Returns

Maintenance of hierarchy

Roll up

All budget transactions are available for each budget category. The budget values in the payment budget and the commitment budget may differ. There is no check on whether the values in both categories match.

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Budgeting techniques

Entry transactionsEntry variantsBudgeting scenariosBudget versions

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Top-Down Budgeting

ExpendituresProject expenditures

Travel

Training

Material

100,000

70,000

10,000

70,000

10,000

Distributed budgetOriginal budget

Check budget consistency

Budgeting can be carried out in the R/3 System according to the top-down or the bottom-up principle. With top-down budgeting, you assign the budget from superior funds centers and commitment items to subordinate ones. Top-down budgeting is an analytical, evolutionary procedure which works out the budget estimate for the organizational and functional subareas of your organization in the R/3 System.

Example: You have the total funds available for a financial year in your organization and you would like to use the system to distribute the budget to subordinate funds centers and commitment items. The R/3 System carries out the consistency check for the budget distribution.

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Bottom-Up Budgeting


Travel

Training

Material

31,000

31,000

10,000

31,000

31,000

Distributed budgetOriginal budget

Automatic budget consistency due to totaling up of individual values

11,000

10,000

With bottom-up budgeting, you enter budget values for subordinate funds centers and commitment items which are then totaled up and displayed by the R/3 System at each higher level. Bottom-up budgeting is therefore a synthetic, operational procedure which supports the efficient entry of budget values in the R/3 System.

Example: You have the budget values for your organization's individual subareas which are to be entered in the R/3 System.

If you are only working with bottom-up budgeting, we recommend that you use the "Roll up" transaction.

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Budgeting: Entry transaction

Change original budget: Budget structure overview

FM area Funds centerCommt item

FM area hierarchy 1999 UNI

Fund

1 V A 1,000,000

Distributed

2 V1 A1 500,000

3 V11 A12 70,000

2 V2 A1 500.000

Enter original budget: List screen

FM areaFund

Currency:

Funds center Commt item

Year

Commt budget

2000

UNI

A1,500,0001,000,000V

A1700,000500,000V1

A1263,00070,000V11

A1500,000500,000V2

Hierarchy List screen / Roll up

3 V11 A13

3 V11 A14

2 V22 A11

2 V22 A15

If several account assignment addresses are budgeted in the list screen of the entry transaction, an entry document and all the necessary hierarchy documents are generated for each account assignment address. After budget values have been updated, the most recently generated document is displayed in a system message.

Budgeting within a hierarchy always generates a hierarchy document and not an entry document. Once all the prerequisites are fulfilled, a budget document is posted. Budgeting is assigned to number

range 05 (Customizing).

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Local Budgeting

Budget structure

Level Funds Cmmt Budget Postingcenter item object object

1 IMR Expenditures x2 IMR Human resources x2 IMR Office supplies x1 Admin Expenditures x2 Admin Human resources x2 Admin Office supplies x1 Dept. 1 Expenditures x2 Dept. 1 Human resources x2 Dept. 1 Office supplies2 Dept. 2 Expenditures2 Dept. 2 Human resources2 Dept. 2 Office supplies

IMR

HRHR SUPP.SUPP.

ExpendituresExpenditures

HRHR SUPP.SUPP.


HRHR SUPP.SUPP.


Administration Department 1

Local budget allocation involves entering the whole budget distribution to lower-level items via top commitment items. The available budget is always distributed to lower-level commitment items within a funds center.

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IMR

HRHR SUPP.SUPP.


HRHR SUPP.SUPP.


HRHR SUPP.SUPP.


Administration Department 1

Budget structure

Level Funds Cmmt Budget Postingcenter item object object

1 IMR Expenditures x2 IMR Human resources x2 IMR Office supplies x1 Admin Expenditures2 Admin Human resources x2 Admin Office supplies x1 Dept. 1 Expenditures2 Dept. 1 Human resources x2 Dept. 1 Office supplies2 Dept. 2 Expenditures2 Dept. 2 Human resources2 Dept. 2 Office supplies

Central Budgeting

In central budgeting, the first step is to distribute the budget in hierarchically arranged funds centers from the top commitment item to the commitment items beneath it. In the next step, the lower-level funds centers receive their budget at the level of lower-level commitment items. You cannot enter budget for the top commitment items in the lower-level funds centers.

Corresponding budget object definitions in the budget structure enable you to carry out central budgeting.

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Budgeting: Budget Versions

Change original budget: Budget structure overview



Fund

1 V A 1,000,000

Distributed

2 V1 A1 500,000

3 V11 A12 70,000

Version 1Change original budget: Budget structure overview



Fund

1 V A 1,000,000

Distributed

2 V1 A1 500,000

3 V11 A12 70,000

Version 0

Block

Copy

You can manage more than one budget version in Funds Management. You create the versions in Customizing, then use the budgeting transactions to edit them.

You can generate parallel budget estimates with reference by copying budget versions. A budget version 0 must exist in order to execute a budget. If certain budget estimates (budget versions) are not to be changed, they can be blocked using version

management.

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Budgeting Tools

UtilitiesTotal up / roll upTransfer to CO planning

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Utilities for Processing Budgets

Scalinge.g. UNI (000)

Ctr Item Budget ViewC1 I11C1 I12C2 I11C2 I12

View Copy budgetRevaluate- amount- % rate

bottom up

Total up

Possible viewsDistributedDistributedDistributableDistributableAssignedAssignedCurrent budgetCurrent budgetReleaseReleasePrevious yearPrevious year......

The transactions for processing budgets include the following functions: Annual overview Displays the annual values which exist for an FM account assignment.

Check Carries out a consistency check for the distributed budget values.

Total up To support the bottom-up estimate, budget values from a funds center and commitment item are totaled for the superior level and displayed there.

Views In the views column, you can display different budget values to assist you. These views include the distributed value, distributable value, release value, previous year's budget value, and so on.

Copy view: By choosing Edit -> Copy view, you can copy values from the view column into the budget column.

Revaluate By choosing Edit -> Adjust values, you can revaluate budget values, that is you can increase or decrease them by a certain percentage or a certain amount.

Scaling Via Settings -> Scaling factor, you select the currency units for displaying the budget values (for example, 000's USD) and the decimal places.

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Types of Budget Update Entry

Budget

AdminHRProjects

Budget

Admin 1000HR 700Projects 100

Additive Not additive

Data stored previously is not displayed. The new data is added to the existing data.

Data stored previously is displayed. The new data overwrites the existing data.

These two entry variants are available for all budget types - that is, for maintaining the original budget, returns, or supplements.

Budget updates can be customized, but original budget maintenance cannot. The original budget is always configured with the "Additive" indicator switched off.

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Total Up / Additive (1)

100

10

10

10

101

11

11

11

11

11

11

11

Not additiveNot additiveSave original

V3

C3

60000

60010

X

Add changed valuesChange budget to 11

1

2

The program for totaling up budget values has a number of uses including the simplification of future year budgeting . The system calculates all the intervening levels in the budget hierarchy and enters values in them automatically.

Scenario Changing the budget with "additive" switched off

Step 1 Save an original estimate

Step 2 Change the budget estimate at one of lower levels of the hierarchy

Step 3 Total up

You can control changes to the overall budget estimate using the “Add changed values” function.

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Total Up / Additive (2)

100

10

10

10

11

11

11

11

-79

11

11

11

111

21

21

21

21

21

21

21

AdditiveAdditive Not additiveNot additiveSave original

V3

C3

60000

60010

X X

Add changed valuesChange budget by 11

1

2

Scenario Changing budget with "additive" activated


Step 2 Change the budget estimate at one of lower levels of the hierarchy

Step 3 Total up

You can control changes to the overall budget estimate using the “Add changed values” function.

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Totaling Up A Version

255

255

80

55

255

255

80

75

75

75

80

75

Save original

V3

C3

60000

60010

X

Add changed valuesChange budget to 75

1 2

3

Without budget consistency

Scenario Totaling up a version


Step 2 Only applies for version 0, you can save all other versions without a check

Step 2 Change the budget estimate at one of the lower levels of the hierarchy

Step 3 Total up

Since a "budget buffer" of 190 is still in place in account assignment C3, the change does not have any effect on the subordinate nodes. Since the superior level of the hierarchy has a smaller estimate, the budget remains inconsistent despite totaling up.

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Roll Up

255

255

60

55

330

330

135

130

Save original

V3

C3

60000

60010

1

2 Account assignment funds center C, commitment item 60010, value 75

Roll up has an additive effect on the budget up to the highest level of the hierarchy. The budget remains consistent despite changes.

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CO/PS FM

CO planning data:

- Primary costs

- Revenue elements

Assignment

table

Planning data

FM budget

Transferring CO/PS Planning Data

If you want to plan primary costs and revenue elements in cost centers, requests and project definitions and you want to create similar budgets in Funds Management (FM), you can use program RFFMCOPI to copy the data from a plan version in Controlling into a budget version in Funds Management. The program only takes the primary CO plan data into consideration for the planning of primary costs and revenue types (table COSP, transactions RKP1 and RKP5).

Data can be transferred as often as you require. Only the differences resulting from the last run are updated and logged in line items.

Budget changes, carryforwards and transfers that have been made manually in Funds Management are not overwritten by the transferred planning data. In this respect, the budget in Funds Management is therefore independent of the CO planning data.

FM account assignments are determined using the FM-CO account assignment table. If an account assignment has changed between the two runs, the planning data already transferred into Funds Management will automatically be transferred to the new recipient during the next transfer of planning data.

In this program, you can stipulate: The cost centers, requests and projects from which planning data is to be transferred Whether the amounts in Funds Management are to be updated as original budget or a

supplement/return Whether the payment budget and/or the commitment budget is to be updated

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Releases and Budget Updates

ReleasesBudget updates

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Releases

You can obtain greater flexibility within a budget period by:

Using percentage releases

Releasing fixed amounts

Current budget

Release 1: January

Release 2: June

Release 3: September

In some organizations, the assignment of a budget amount does not necessarily mean that the funds have been released. As a result, the R/3 system allows you to release budget values so that they are available gradually.

You can release budget values as a percentage or as whole amounts. Releases can refer to overall values or to annual values. However, you cannot release period budget values.

You can make as many releases as you want, but they cannot exceed the existing budget. You can carry out the individual releases at any time

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Updating Budgets

Agenda•blocking budget•cutting budget•supplementary budget

R

SupplementsTransfers

ReturnsBudgetplan 2001

Σ = current budgetBudget plan 2000

SupplementsTransfers

Returns

Results:

During a financial year, it may be necessary to adjust the budget values. These corrective actions are known as budget updates.

Based on the current year's budget plan, consultations take place concerning any necessary budget updates; the results from these consultations are maintained in Funds Management as so-called supplements, returns, or transfers.

The result is the current budget, which is made up of the total from the financial year's original budget, plus the supplements, returns, and transfers.

Releases refer to a financial year's current budget.

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Example: Updating Budgets

• Supplement

• Transfer


Travel

Training

Material

31,000

31,000

10,000

36,000

36,000

Current budgetOriginal budget

11,000

10,000

Travel 5000

Sender: Material 1000 - - - Receiver: Training 1000

15,000

11,000

10,000

There are three different types of budget update in Funds Management: Supplements: You assign an additional budget for particular FM account assignments; this way the

distributable value for these FM account assignments is increased by the amount of the supplement Returns: You use a return to return surplus funds from one FM account assignment within your

hierarchy to superior funds centers and commitment items. The distributable value is then increased by the amount returned

Transfers: If there are funds shortages in one funds center and the available funds in another one have not yet been fully utilized, Funds Management will allow you to transfer funds from one FM account assignment to another

In the above example, the current budget is made up of the total of the original budget, plus supplement and transfer.

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Budget profileBudget consistency check

Budgeting Control

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Budget Profile Functions

Assignment of budget profile to FM area

FM area without fund with fund

IMR FM0001 FM0002....

General definition in Customizing Optional definition in individual fund master record

Profile FM0001

Text FM profile

FormatView 11Decimal places 2Scaling 0

Time horizonPast 1Future 5Start 0

Overall valueX Annual value

Period values

Availability controlReleasesOverall

FM area IMRFonds SOURCE1

Name . ....Budget profile FM0003. . . . . .

Format defaults for theFormat defaults for thebudgeting transactionsbudgeting transactions

Against releases orAgainst releases orcurrent budget andcurrent budget andagainst overall or against overall or annual valuesannual values

PermittedPermittedbudgetingbudgetingtimeframetimeframe

You can choose overallYou can choose overallvalues and/or annual valuesvalues and/or annual valuesand period values;and period values;overall values can onlyoverall values can onlybe selected for fundsbe selected for funds

Distribution key

1

Key for automatically distributing Key for automatically distributing annual values to individual periodsannual values to individual periods

To be able to use budgeting in an FM area, you must first create at least one budget profile and assign it to the FM area. You can then assign further budget profiles to the FM area centrally and to the individual fund master records. You can then use them for the relevant funds. The most specific assignment is the one which applies.

You can define a range of control parameters in a budget profile: Time horizon: Time frame which can be budgeted for as of a specified start date in the future or the past.

The start year for budgeting is the current fiscal year Value representation parameters: You can use the parameter view to stipulate which values (such as the distributed value or previous year budget) are displayed in the first screen with the budget value. In addition, you can stipulate the scaling and the number of decimal places you require when displaying budget values.

Only annual values can be distributed to individual periods. You can use the distribution key to specify that annual values are to be distributed to periods automatically.

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Budget Consistency Check

Year-dependent parameters

FM area Year Consistency Availability

IMR 2000

Availability controlAvailability controlis only possible if is only possible if budget consistency is budget consistency is active.active.

FM areaFunds centerCommitment item

Hierarchy 2000 UNI

Fund

Distributed

3 A1 50000 70,000

3 A1 3 70,000

1 V 3 70,000

3 A1 50010 90,000

70,000

70,000

70,000

In Customizing, there are switches that you can use to activate the consistency check and availability control for each FM area and fiscal year.

The consistency check is designed to ensure that the budget distribution to individual hierarchy levels is consistent in the individual budgeting transactions. The system logs any errors found. When the consistency check is active, you can only store budget versions which are consistent.

Active availability control is only available for budget version zero. You need to activate the consistency check before activating availability control.

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Active Availability Control

OverviewSearching for budget bearing elementsControl of availability controlTolerance limitsReconstructing availability control

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Overview: Active Availability Control

An important function in the Funds Managementsystem is the monitoring of available funds.

Active availability control determines:Which budget structure elements have budget, andWhich actual and commitment values have been posted to them

If the actual and commitment values exceed specified tolerance limits, the system reacts with one of the following actions:

WarningWarning Warning + MailWarning + Mail Error messageError message

Warningto the user

Warning to the user and automatic mail to the funds center manager

The system rejects the posting

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Overview: Budget Bearing Element

The determination of the budget bearing element is independent from the building of the budget structure:

“Without” special budget structureWith special budget structure, but without dynamicbudget objectsWith special budget structure and dynamic budget objects

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Determining the Budget Bearing Element (1)

“Without” special budget structure

Funds commitment

V

A1

P12

47114712

47114712

47114712

Budget values

Determine for the document account assignment

1. The directly superior commitment item within the funds center 2. In the funds center hierarchy, the directly superior funds center together with the top commitment item 3. According to the hierarchy order determined in the budget database, the first FM account assignment without a budget record. This is the relevant budget-bearing element.

If the total of a determined budget record for a budget transaction is zero, that record is not valid, and the system searches for the next budget record. This is necessary if a budgeting run has been executed incorrectly.

If the budget check is run after a release, the system still searches for budget records and not for release records.

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With special budget structure, but without dynamicbudget objects

Funds commitment

V

A1

P12

47114712

47114712

47114712

Budget valuesx Budget object

xx

x

xx

x


1. The directly superior commitment item within the funds center 2. In the funds center hierarchy, the directly superior funds center beginning with the assigned commitment item

The first funds management account assignment defined in the budget structure is the budget-bearing element. The system stops searching once it has found this FM account assignment.

During this search, only the definition in the budget structure is taken into account. Whether budget was entered in the FM account assignment defined is not relevant.

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With special budget structure and dynamic budget objects

Funds commitment

V

A1

P12

47114712

47114712

47114712

Budget valuesx Budget object

xx

x

xx

x


1. The directly superior commitment item within the funds center 2. In the funds center hierarchy, the directly superior funds center beginning with the assigned commitment item

The first funds management account assignment which is defined in the budget structure and which has a budget assigned to it is the relevant budget-bearing element. The system stops searching once it has found this FM account assignment.

Unlike the budget structure without a dynamic budget object, the system (in this process) determines the first budget structure element that also has a budget assigned to it. This means that the actual and commitment values can 'move around' with the budget.

If you want to work with dynamic budget objects, you need to set the corresponding parameter in the year-dependent parameters for the availability control.

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Availability Control (1)

1. Posting with account assignment

2. Year-independent controlof availability control

3. Find budget-bearing element

4. Search for profile- in fund (if posting with funds)- in FM area (posting w. funds: funds

profile; otherwise, normal profile)

Availability control does not check posting. Assigned values are not updated.activeactive

Not activeNot active

I. Which profile applies?

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5. Calculate available budgetaccording to budget profile

6. Find tolerance definition:1. Using the profile from

specific tolerance2. Using the budget profile

a. for special activityb. for general activity (++)

Overall / annual valuecurrent budget / releases

Posting within tolerance;Posting within tolerance;Tolerance found not active;Tolerance found not active;No tolerance foundNo tolerance found

Posting and assignedvalue update

Posting would exceed anPosting would exceed anactive tolerance limitactive tolerance limit

II. Is sufficient budget available?

Determination of tolerance definition plays a central role in the decision as to whether sufficient budget is available. Firstly, the system checks whether a specific tolerance has been defined for the given posting combination. If so, the profile relating to the specific tolerance is used. If not, the profile already determined is used.

The system then checks for a tolerance, using the activity from the transaction and the profile as determined in the first check. If there is one, the tolerance found applies. If there is not one, the system searches again using the general activity (++).

If a tolerance definition is not found, the posting is allowed. By default, the system does not have a 100% limit!

If a tolerance is found but is not active, no new search takes place and the posting is allowed. Otherwise, the system calculates whether the amount to be posted exceeds the tolerance limit.

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III. How should the system react?

7. Action according to tolerance definition

WarningWarningWarning and MAIL to person responsible for funds centerWarning and MAIL to person responsible for funds center

Error messageError message

The system reacts according to the tolerance limits defined: The system generates a warning or an error message.

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Availability Control Tolerance Limits

FM area Profile Transaction Action Rel. Var. Abs. var Inactive

IMR FM0001 ++ 2 90% 1000 UNI

Control depending on FM area and budget profile.Control depending on FM area and budget profile. Depending on the Depending on the budget profile, you can distinguish further by funds center, budget profile, you can distinguish further by funds center, commitment item, fund, and fiscal year.commitment item, fund, and fiscal year.

Restricts defined tolerance limits to particular transactions, sRestricts defined tolerance limits to particular transactions, such as uch as funds reservations, purchase orders, actual postings, and so on.funds reservations, purchase orders, actual postings, and so on.

Intended system reaction:Intended system reaction:1 Warning1 Warning2 Warning and mail2 Warning and mail3 Error message3 Error message

Definition of relative or Definition of relative or absolute variance from absolute variance from budget valuebudget value

Deactivation Deactivation indicatorindicator

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Reconstructing Availability Control

You must reconstruct availability control:

After changes to the funds center/commitment item master data hierarchies (after reconstructing the distributed values)

After changes to the budget structure definition

Each time you activate/deactivate- The company code/FM area assignment- Availability control

After changes to the budget profile assignment

After changes to the following in the budget profile definition:- Releases/current budget- Overall values/annual values- Tolerances (to see messages)

After changes to the sequence in the generic searchAfter reconstructing actual data in FMAfter removing status "No availability control"

Caution: You must carry out suitable organizational measures to ensure that no other activities are carried out in the system while availability control reconstruction is in progress. Budgeting and document entry in particular must not be carried out.

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Budgeting: Summary (1)

For the budget categories commitment budget and payment budget, you can enter annual, overall and period values.Budgeting can be carried out using a bottom-up or a top-down procedure.Depending on whether you are working with the "roll up" transaction or "Change hierarchy”, an entry and/or hierarchy document is generated.Budget versions can be copied, changed and blocked. A budget version 0 must exist in order to execute a budget.You can make changes to the current budget using supplements, transfers and returns.

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Budgeting: Summary (2)

Releases offer a further control on budget execution.The budget profile controls the formatting, time horizon and values for budgeting.It also controls the availability control.The active availability control first determines the budget bearing object and then determines the assigned value for it. This information is then used to determine the assigned budget.You can define tolerance limits and the corresponding system reaction in Customizing.

(C) SAP AG AC700 3-47

Budgeting Exercises

Unit: Budgeting Topic: Budget Planning


• Execute budget planning in the payment budget and the commitment budget

• Enter budget in the hierarchy or using roll up

• The budget for the Institute of Medical Research has already been created in the system. However, project P12 has not yet been included in the budgeting process.

The executive board estimates expenditure of around USD 4,200,000 for physical resources and travel expenses for P12. To cover this expenditure, the institute receives secondary funding from Young & Fresh Co. and the EU.

1-1 Using hierarchy maintenance, enter the following payment budget in version 1:

Y&F Co. provides you with an overall budget.

Amount Commitment item

300 000 UNI Supplies 60010

300 000 UNI Travel exp. 60020

150 000 UNI Chemicals 60030

1 350 000 UNI Lab supplies 60040

2 100 000 UNI

The EU provides the following amounts for years YYYY, YYYY+1, and YYYY+2 respectively.

Amount Commitment item

100 000 UNI Supplies 60010

100 000 UNI Travel exp. 60020

50 000 UNI Chemicals 60030

(C) SAP AG AC700 3-48

450 000 UNI Lab supplies 60040

700 000 UNI

1-2 You should also enter commitment budget for the following account assignment in year YYYY:

Fund: EU

Funds center: P12

Commitment item: 60040

Amount: 450000 UNI

Use transaction “roll up”.

(C) SAP AG AC700 3-49

Unit: Budgeting Topic: Budget Versions


• Create budget versions

• Copy budget versions

• Block budget versions

• The IMR budget should be adopted and made available for budget execution.

2-1 Create a new budget version GXX (XX = group number).

2-2 Copy the budget values (payment budget) from version 1 of the Y&F fund into your new version and block this version against changes.

2-3 Copy the budget values for 200Y (payment and commitment budget) from version 1 of the EU fund into version 0.

(C) SAP AG AC700 3-50

Unit: Budgeting Topic: Releases and Budget Updates


• Enter releases

• Carry out budget updates

• The IMR budget has already been adopted. You have decided to use releases. As a result, you have the task of entering the resulting agreed budget changes into the R/3 System.

3-1 Release payment budget for 30% of the budget for year 2000 in version 0.

3-2 Enter releases in the payment budget and the commitment budget for 100% of the EU fund in version 0.

The advisory committee has decided to make the following budget updates: 3-3 It has transpired that the funds budgeted for office material exceed expenditures by 25 000

UNI, this budget can however be used for books and magazines. Transfer the payment budget. Sender funds center: C12 Sender commitment item: 50010 Sender Fund: - Receiver funds center: A1 Receiver commitment item: 50020 Receiver fund: -

3-4 Since new reference books are to be purchased for all employees, the budget for books and magazines is still not sufficient, despite this transfer. Use function “roll up” to post a supplement of 5000 UNI in the payment budget. Funds center: A1 Commitment item: 50020 Fund: -

(C) SAP AG AC700 3-51

Unit: Budgeting Topic: Budgeting control


• Define budget profiles

• Use budgeting tools

• You should use releases to control the funds from secondary sources in the EU fund.

4-1 Define a budget profile GR##, that allows you to maintain annual and period values and to set an active availability control against released annual values.

4-2 Change the assignment of the budget profile in the master record for the EU fund.

4-3 Define availability control tolerance limits for your FM area 90## and budget profile GR## . These limits should stipulate for all transactions that utilizations greater than 80% trigger a warning, those in excess of 90% result in a warning and a mail to the person responsible for the funds center and those over 100% trigger cause an error message.

4-4 Finally, reconstruct the availability control.

(C) SAP AG AC700 3-52

Budgeting Solutions

Unit: Budgeting Topic: Budget Planning

1-1 Accounting – Financial Accounting – Funds Management – Budgeting – Original budget – Payments - Change Entry screen:


FM area 90XX

Version 1

Fiscal year 200Y

Period -

Funds center -

Commitment item -

Fund YF and EU Edit: Expand all – Total up

1-2 Accounting – Financial Accounting – Funds Management – Budgeting – Original budget – Commitments – Roll up

(C) SAP AG AC700 3-53

Unit: Budgeting Topic: Budget Versions

2-1 Accounting – Financial Accounting – Funds Management – Budgeting – Versions – Create – New entries

2-2 Accounting – Financial Accounting – Funds Management – Budgeting – Versions – Copy


FM area 90##

Source version 1

Target version G##

Total values Check

Fund YF

- Only select payment budget and only transfer original budget.

- Select “Add data”

Accounting – Financial Accounting – Funds Management – Budgeting – Versions – Block


FM area 90##

Version G##

Fund YF

- Block current budget

(C) SAP AG AC700 3-54

2-3 Accounting – Financial Accounting – Funds Management – Budgeting – Versions – Copy


FM area 90##

Source version 1

Target version 0

Source year YYYY

Target year YYYY

Fund EU

- Select commitment budget and payment budget, but only transfer original budget.

- Select “Add data”

(C) SAP AG AC700 3-55

Unit: Budgeting Topic: Releases and Budget Updates

3-1 Accounting – Financial Accounting – Funds Management – Budgeting – Releases – Payments - Change


FM area 90##

Fiscal year 200Y

Version 0



Fund No entry � Edit – Expand all

� Edit – Select – Select all

� Edit – Copy view 30%

3-2 Accounting – Financial Accounting – Funds Management – Budgeting – Releases – (Payment/Commitment budget)


FM area 90##

Version 0



Fund EU � Edit – Expand all

� Edit – Select – Select all

� Edit – Copy view 100%

(C) SAP AG AC700 3-56

3-3 Accounting – Financial Accounting – Funds Management – Budgeting – Transfer – Payments


FM area 90##

Version 0

Fund sender No entry

Fund receiver No entry

Sender year YYYY

Receiver year YYYY

Sender funds center: C12

Sender commitment item: 50010

Funds center A1


Amount 25000

3-4 Accounting – Financial Accounting – Funds Management – Budgeting – Supplement – Payments – Roll up


FM area 90##

Version 0

Fund No entry

Year 200Y

Funds center A1


Amount 5000

(C) SAP AG AC700 3-57

Unit: Budgeting Topic: Budgeting control

4-1 Tools – Accelerated SAP - Customizing – Project processing – Goto – SAP Reference IMG- Financial Accounting – Funds Management – Budgeting and Availability Control – Budget profiles – Set up budget profiles => New entries – Check annual values and period values – Availability control => Check releases

4-2 Accounting – Financial Accounting – Funds Management - Master data – Fund – Change

4-3 Tools - Accelerated SAP- Customizing – Project processing – Goto – SAP Reference IMG- Financial Accounting – Funds Management – Budgeting and Availability control – Availability control – Define tolerance limits for availability control


FM area 90##

Profile GR##

Transactions ++

Action 1

% Consumption 80


FM area 90##

Profile GR##

Transactions ++

Action 2

% Consumption 90

(C) SAP AG AC700 3-58


FM area 90##

Profile GR##

Transactions ++

Action 3

% Consumption 100

4-4 Accounting – Financial Accounting – Funds Management – Budgeting – Tools – Reconstruct assigned values


© SAP AG 1999

Earmarked funds and funds transfers

Purchasing

Integrating Financial Accounting

Trip Costs Accounting

Funds Management and HR

Funds Management and CO

Integrating Project System

Integrating Plant Maintenance

Integrating Sales and Distribution

Revenues Increasing the Expenditure Budget

Adjustment Option: Transfer

Budget Execution


© SAP AG 1999

This unit explains:

Business processes that are handled using Funds ManagementDifferent core processes that take place within purchasing, and within payroll accounting and trip cost accountingIndividual steps to be followed and a detailed explanation of how they are inter-linked and how assessed value is adjusted.Availability control procedure; how it functions and the different settings that can be madeWays in which the Controlling, Project System, Asset Accounting, Plant Maintenance and Sales and Distribution application components can be integrated with Funds Management.

Budget Execution: Unit Objectives (1)


© SAP AG 1999

This unit explains:

At what points you can make adjustment postings, and make changes to documents and to account assignment objectsHow to process revenues and points to be borne in mind when so doingThe concept of revenues that increase expenditure budgets and how these are processed in the R/3 System



© SAP AG 1999

This unit explains:The posting of individual earmarked funds with the appropriate relationshipsUse of enhancements to integrate Cost Controlling and Project ControllingEntering commitments postings in Funds Management using trip receiptsStatistical postings optionsNew functions for revenues increasing the budget



© SAP AG 1999






BudgetingBudgeting

UpdatingUpdating




© SAP AG 1999

Overview: Budget Execution

FM budget

COCO

FIFI

MMMM

SDSD

FIFI--FMFM

HRHR

PMPM

The Funds Management component is used for budget execution. To enable you to carry out more wide-ranging functions, Funds Management makes use of a number of other SAP application components, in particular Materials Management and Human Resource Management. Posting data from these modules then streams into Funds Management. Commitments/actuals data is updated in FM and issued in the information system.

Conversely, data also flows from Funds Management back into these other modules, for example during active availability control. Example: Component Materials Management (MM) is used to process purchase orders. MM is integrated with Funds Management. When you enter a purchase order in MM, it is monitored by an active availability control within Funds Management.

Depending on the stage a process has reached within the system, the data shown above represents either commitment or actual values. For the Funds Management component, all data that is entered up to the point of the incoming or outgoing invoice is commitment data, such as a purchase order, funds reservation, or purchase requisition. All other data is actual data.


© SAP AG 1999

Procurement process

PurReq.

Reservation

Order Invoice Payment

GR to final target

Goods issue to stock

UsageMM

GI to target

Using the different SAP modules allows for different scenarioswhen processing procurement transactions

Commitment Actualaccrual

Actualcash

MM not usedMM not used

ReqmtReqmt

Expenditure Scenario: "Procurement Without MM"

This slide shows possible procedures for the procurement process from a Funds Management point of view. The version highlighted is that where the Materials Management component is not used.

Irrespective of which substeps of a process are carried out, from a Funds Management perspective, the data is seen as being a commitment value up to the point when the invoice is posted, and an actual value after that.

Depending on the scenario, the procurement process is carried out either with or without using the Materials Management component

Customers themselves can decide whether they want to display their data on an invoice basis (accrual basis) or on a payment basis (cash basis).


© SAP AG 1999

Fundsreservation

Fundsprecommt

FundsFundscommtcommt

Invoice

Expenditures budgetExpenditures budget

Fundsblock

Funds transfer

Revenues budgetRevenues budget

Forecastof

revenues

Customerinvoice

Budget Execution: Earmarked Funds and Funds Transfers

Starting from Release 4.5A, there are three types of commitments document: Funds reservation, funds precommitment and funds commitment. The system automatically converts what were formerly known as funds reservations into funds commitments.

These commitments documents can be used to represent an earmarked fund process with the referencing outlined above. The process can start with any of the individual document types. At the beginning of the process you must select the number of levels.

Only funds reservations and funds commitments can be referenced from the invoice. The funds block is a special type of commitment which can be used to block individual budget values from further budget execution. The funds block cannot be referenced by follow-on documents.

You can use funds transfers to transfer assigned funds from one FM account assignment to another. Funds transfers correspond to what were previously called payment transfers.

The term 'earmarked funds' covers funds reservations, funds precommitments and funds commitments as well as the new document types funds blocks and forecasts of revenues.

By using forecasts of revenues, you can also take anticipated revenues and the funds that they bring with them into consideration.

Forecasts of revenues are made up of Financial Accounting documents (revenues) such as customer invoices, vendor credit memos, down payment requests or down payments.


© SAP AG 1999

CommitmentsCommitmentsdocumentdocument

Document types:Funds transferFunds blockFunds reservationFunds precommitmentFunds commitmentForecast of revenues

Document type(user defined)

Characteristics

• Number range• Field status group• Reference type• Workflow relevance

Budget Execution: Characteristics of Commitments Documents

It is possible to define different document types for each document category. These document types specify the earmarked funds documents for number range, field status group, reference type, workflow relevance and so on.

(C) SAP AG AC700 4-10

© SAP AG 1999

Overruntolerance

Completedindicator

CO integration(only funds

commitments)

Acct assgmtcan be changed

Statisticalindicator

No carryforward atfiscal year change

Itemblocked

Budget Execution:Special Settings for Commitments Documents

Funds reservation/Funds reservation/fundsfunds precommtprecommt//

fundsfunds commtcommt//forecast offorecast ofrevenuesrevenues

CO integration: If a CO account assignment is entered, the funds commitment also posts a commitments amount in CO.

Completed indicator: The completed indicator can be set at document header level (for a whole document) or at item level. Once a document has been flagged as completed, no more changes can be made to it. Funds that have not been consumed are returned to the budget and can be used for other purposes.

Overrun tolerance: This indicator can only be set for documents that can be reduced by other documents. The follow-on document can 'overrun' the earmarked funds of the preceding document by the given percentage.

Block document (item): If you block a document (item), no postings can be made to it. Statistical indicator: Items flagged as statistical can be entered statistically; this means that no budget is conusmed.

Account assignment can be changed: This indicator can be used to allow account assignment changes in follow-on documents that reduce the indicated document line item.

No carryforward at fiscal year change: This indicator is used to prohibit the carryforward of earmarked funds documents into the next fiscal year.

(C) SAP AG AC700 4-11

© SAP AG 1999

Budget Execution: Approval Workflow for Expenditures Commitments

Commitments documents Commitments documents CustomizingCustomizing

Level 1

Level 3

Level 2

FMFMFunds reservation/Funds reservation/fundsfunds precommtprecommt//

fundsfunds commtcommt//

Approved

The approval workflow is triggered by the commitment document. The people responsible are determined using the following parameters:

- Document type - FM account assignment (commitment item, funds center, fund) - Commitments amount

Several people can be responsible at each level of approval; at least one of the people responsible must approve a document.

An unlimited number of levels and responsible people can be assigned. The reasons for approval or rejection must be entered. On rejection, the approval procedure is automatically restarted.

(C) SAP AG AC700 4-12

© SAP AG 1999

Institutefor MedicalResearch

Current budget

Fundsreservation Invoice Payment Available

budget

HR

50010

5002050030

Officesupplies

40010

1000

100--

100100-

--100100

900900900900900

. . .

. . .

. . .

Commt InvoiceInvoice PaymentPaymentonline batch

FIFIFIFI--FMFM FIFI--FMFM

10001000

online

Fundsprecommt

Fundscommt

PrecommtPrecommtonline

Reservation

900900

900100100

100

Earmarked Funds Structure

This diagram illustrates the steps within a simple procurement process without using the Materials Management component, and how the available budget changes during this process.

In order to automatically reduce a funds reservation, you must enter a reference to funds reservation in the follow-on document; you can also set a completed indicator such that the commitment from the funds reservation is reduced to zero, even if the invoice amount is smaller than the funds reservation amount.

With each step in the process, the diagram shows how the value displayed in Funds Management changes.

The current budget does not change with commitment/actual postings (changes only take place in the current budget if postings are made in the budgeted values themselves).

The available budget is constantly recalculated and adjusted online. Each step in the process is recorded online in Funds Management right up until the point when the invoice is posted.

When the payment is posted, the data is transferred to Funds Management using a batch run.

(C) SAP AG AC700 4-13

© SAP AG 1999

No check,as invoice ≥payment

System searches for check level in budget hierarchy

Acct assgmt

Check ifinvoice >reservation

Availabilityalwayschecked

Result of budget check

Budgetusage > 80 % > 95 % >100 %

Reservation Warning Warning+Mail

Error

Purc.order Warning Warning+Mail

Error

Invoice Warning Warning Error

Trans.

Budget Execution

PaymentPaymentInvoiceEarmarked fundsEarmarked funds

Depending on the FM account assignment you enter in a funds reservation, the Funds Management module uses certain rules to determine the budget hierarchy level at which the budget is checked for availability.

The system carries out this check: for earmarked funds (always). When you post an invoice, but only if the invoiced amount is greater than the reservation amount. When you post a payment however, no check is carried out since the payment amount cannot be

greater than the invoiced amount. You can define the reaction of the system to active availability control depending on the degree to which the budget has been utilized and on the transaction type.

(C) SAP AG AC700 4-14


Financial Accounting Funds Management

Accounts payable

G/L accounting

Vendor100 = 100

Balance sheetBank

97Payables

100 = 100

P&L

Physical supplies100

Disc.received3

Funds center: AdministrationCommitment item: Physical supplies

Budget FndsCmt Invoice Payment Resid. bdgt

100010001000100010001000

100100100

10097

1000900900900900903

RFFMS200SAPF181

= Budget= Funds commitment= Invoice with reference to funds reservation= Payment with cash discount= Payment conversion= Subsequent adjustment of automatic posting

FIFI--FMFMFIFI

Funds Commitment Posting Procedure

The above example of a posting with reference to a funds reservation illustrates the following main steps: The budget is entered in Funds Management. A funds commitment is posted in Funds Management. This in turn reduces the available budget by

the corresponding amount. By making a posting in Financial Accounting (expense to payables), an invoice is posted with

reference to this funds commitment. This leads to the value being displayed in the invoice column in Funds Management. The available budget is adjusted if necessary.

The invoice is paid with cash discount (payables to bank). Initially there is no change in the value displayed in Funds Management since invoice information (accrual basis) is not converted into payment information (cash basis) until a batch job is run.

The batch run for converting payments affects the corresponding value display. The cash discount amount taken is initially not taken into account here.

The subsequent adjustments for automatic postings, such as cash discount and gains or losses from exchange rate differences, are made in a further batch run.

(C) SAP AG AC700 4-15

© SAP AG 1999

Introduction

Whilst the focus of the previous section of this unit was the general procurement process without using the Materials Management application component, the following section covers important information inconjunction with other procurement scenarios.

The commitments that result from purchase orders or purchase requisitions and which are transferred from MM to Funds Management are of special importance here.

Presentation

Exercises

Solutions

Purchasing Without Warehouse Management

(C) SAP AG AC700 4-16

© SAP AG 1999

Procurement process

Reservation

Invoice Payment

GR to final target


MM not used

GI to target


Actualcash

ReqmtReqmt

UsageMM

UsageMM

PurReq. Order

Expenditure Scenario: "Purchasing Without Warehousing"

The second variant of the procurement process from a Funds Management viewpoint is purchasing using an integrated purchase order but without warehouse management.

In order to process purchase orders (or purchase requisitions as the preliminary stage of purchase orders) you use the corresponding functions in the Materials Management (MM) component. By entering the account assignment data relevant to Funds Management at the time of the purchase requisition or purchase order, you can display the resulting commitment amount in Funds Management. When doing so, the final FM account assignment should already be known at the time of the purchase order/purchase requisition since this FM account assignment is debited with the commitment.

(C) SAP AG AC700 4-17

© SAP AG 1999

InvoiceInvoiceInvoice PaymentPaymentPaymentPOrd.POrdPOrd..

Institutefor MedicalResearch

Current budget PurReq. Invoice Payment Available

budget

HR

50010

50020

Businessrequirement

40010

100--

-

100100100-

-

-100100100

900

900900900900900900

. . .

. . .

PurReq.

online batch

Purc.order

900900900100100100

-

FIFI--FMFM MMMM FIFI FIFI--FMFM

100010001000

1000

10001000

Purchasing Without Warehouse Management

The above slide shows the purchasing process using a purchase requisition and purchase order (MM). The current budget does not change with commitment/actual postings (changes only take place in the current budget if postings are made in the budgeted values themselves).

The available budget is recalculated and displayed for each individual step. Each step in the process is recorded online in Funds Management right up until the point when the invoice is posted.

When the payment is posted, the data is transferred to Funds Management using a batch run. The commitment originating from Materials Management can be displayed separately according to whether it relates to a purchase order or purchase requisition so as to take the different degree of commitment into account.

The process for a scheduling agreement is the same as for a purchase order. For a contract, on the other hand, no commitment data is set up since the reference in terms of time is missing. Only once a purchase order has a reference to a contract are the corresponding funds committed and displayed in Funds Management.

(C) SAP AG AC700 4-18

© SAP AG 1999

Item010 . . . . . . . . . . . . 020 . . . . . . . . . . . . 030 . . . . . . . . . . . . 040 . . . . . . . . . . . . 050 . . . . . . . . . . . . . . .. . .

Purchase order FM account assignment

Funds Commt Fund Sharecenter item. . . . . . . . . 40 %. . . . . . . . . 30 %. . . . . . . . . 30 %

Funds Commt Fund Sharecenter item. . . . . . . . . 70 % . . . . . . . . . 30 %

Multiple Account Assignment for a Purchase Order

The multiple account assignment for a purchase order item enables the order value for each purchase order item to be shared out as a percentage to as many FM account assignments (funds center, commitment item, fund) as you wish.

(C) SAP AG AC700 4-19

© SAP AG 1999

Introduction

The procurement process using warehousing is based on the principles outlined in the previous section of this unit. The following section covers additional information regarding central warehousing in Funds Management.

Four scenarios that are each distinct from the perspective of the SAP system are also explained.

Presentation

Exercises

Solutions

Purchasing with Warehousing

(C) SAP AG AC700 4-20

© SAP AG 1999

Procurement process

Reservation

PurReq. Order Invoice Payment

GR to final target


MM not used

GI to target


Actualcash

ReqmtReqmt

UsageMM

UsageMM

Expenditure Scenario: "Purchasing with Warehousing"

From a Funds Management perspective, the third variant of the procurement process is purchasing via an integrated purchase order with warehouse management.

You use the Materials Management (MM) component for representing purchase orders and warehouse management from the point of view of the system. There are four scenarios within Warehouse Management which are explained in more detail in the following.

(C) SAP AG AC700 4-21

© SAP AG 1999

Man.acct assgtdefaultNo update

Warehousefunds centerWarehouse funds center

No updatedefaultNo inventorylinesCredit to funds centerNo inventorymanagement

+ Define warehousefunds center in system

Customizingupdate controlSwitch 1Unassignedpurc.ord./purch.req.

Switch 2Goods issue

Subprocesses

Functions in operative modules

Goods issued to consumerGoods issued to consumerGoods receiptGoods receiptPurc.order

Purc.req./Purc.order

GR (or IR) Goods issue

I

II

III

IV

Commitment values Actual values

Scenario

Debit consuming funds centerDebit consuming funds centerConsump. fnds ctr

Consuming funds centerNo value updateNo value updateNo value updateNo value update

Credit Credit whsewhse+debit consump. FCWarehouse fundsWarehouse funds ctrctrWarehouse fundsWarehouse funds ctrctr

Consuming funds centerWarehouse fundsWarehouse funds ctrctrWarehouse fundsWarehouse funds ctrctr

Warehouse Processing Scenario

You can choose one of the following four scenarios for warehouse processing in each FM area. Consuming funds center known at time of purchase requisition/purchase order You enter the consuming funds center when you create the purchase order or purchase requisition. The funds center is debited immediately, setting up a purchase order commitment. When you post the invoice, the commitment value is converted into an actual value. Warehouse postings are not made.

Warehouse not subject to budget When you post the purchase order and goods receipt, no Funds Management-relevant account assignment is entered and no commitment data created. No account assignment or debit to the consuming funds center is entered until the goods are issued.

Debits and credits automatically posted to warehouse funds center You create a warehouse funds center in Customizing. The system automatically posts purchase orders and goods receipts to it. The goods issue itself is debited to the consuming funds center and credited to the warehouse funds center.

No credit to warehouse funds center Purchase order and warehouse processing is as described in scenario 3. When the goods are issued, the debit is posted to the final funds center, but no credit posting is made to the warehouse funds center.

(C) SAP AG AC700 4-22

© SAP AG 1999

InvoicereceiptGoods receipt

Reservation


GR to final target


MM not used

ReqmtReqmt

UsageUsageMMMM

GI to target


Actualcash

The update can take place at the time of the goods receipt or at the timeof the invoice receipt.

GR/IR Update

The update is always made under value type "invoice".

(C) SAP AG AC700 4-23

© SAP AG 1999

Introduction

Transactions and postings in Financial Accounting and in Asset Accounting that can broadly be classified as incomes or expenditures are updated in Funds Management.

Integrating Financial Accounting

(C) SAP AG AC700 4-24

© SAP AG 1999

Commitment item G/L accountExpenditures 475,000

476,000430,000

Office suppliesEDP cons.materialPersonnel costs

Other 191,100160,000113,100

191,100191,100160,000160,000113,100113,100

GR/IR clearingVendor reconc. acctBank

Vendor rec. acct160,000Commt

item Invoice

Off.supp. 475,000

Off.supp.

G/L account master record FI document

PK Account Commitment item

31 Vendor 1 Invoice

40 475,000 Office supplies

Commtitem

MaterialHR. . .

GR/IRInvoiceBank

Integration FI - FI-FM

Commitment item master records are assigned to G/L accounts in Financial Accounting by defining the commitment item in the G/L account master record. Note that a commitment item can be assigned to more than one G/L account.

You must enter a commitment item in every G/L account in Financial Accounting. When you post in Financial Accounting, the system then enters this commitment item in the line item as a default value. Depending on your system configuration, you can then change this value accordingly.

When you post the accounting document, each line item in the document can then supply Funds Management with the information as to (a) whether the line item is of relevance to the budget, (b) whether you need to enter a funds center, and (c) the way in which the information is to be updated in Funds Management.

In line with the above information, the default value for the commitment item is derived from the G/L account posted to. The funds center and the fund are normally entered manually.

(C) SAP AG AC700 4-25

© SAP AG 1999

FIFI FIFI--FMFM

Invoice

Payment

Invoice

PaymentRFFMS200RFFMS200

Payment PaymentRFFMS201RFFMS201

Payment Conversion

Program RFFMS200 updates each payment clearing document under the posting date. Only those clearing payments containing a commitment item with a payment transaction >= 80 are updated.

Payments without an invoice reference can be transferred into Funds Management using program RFFMS201. However, these postings are only updated statistically - no budget is assigned. The postings are undone if an invoice reference to these payments is produced as a result of postings in other application components. In Customizing, you can specify whether these documents should be deleted or reversed.

(C) SAP AG AC700 4-26

© SAP AG 1999

Integration FI-AA - FI-FM

Asset Accounting FIFI--AAAA

Asset Asset acquisitionacquisition

Asset Asset retirementretirement

FIFI--FMFM

Budget 1998

Department XY

Capital expenditure

Budget Actual Avail.

120 80 40

Operative expenditure

...

Is the transaction relevant to the budget?

In the R/3 standard system, the following transaction types in Asset Accounting are updated in Funds Management:

- Asset acquisition - Asset transfer - Asset sale - Down payments for assets under construction

The transaction types that are relevant to depreciation are not updated in the standard system because these do not affect expenditure.

If a cost center or a CO order is defined in the asset master record, the system uses the funds center and fund assigned to this cost center or order as the default account assignment for the FI document.

(C) SAP AG AC700 4-27

© SAP AG 1999

Business transact.

FIFI--FMFMFIFI--AAAAFIFIFI

Transaction Types Relevant to the Budget

Ext. acq. with vendor Vendor reconcil. acct 60

Asset G/L account 100 30

Transfer To assets 330 30

From assets 320 30

Financial transactionof commt item

Transaction typeAccounts

(C) SAP AG AC700 4-28

© SAP AG 1999

Introduction

Budgets also cover the trip costs of members of an organization. It follows that you can enter a business trip directly with the appropriate Funds Management account assignment, and view this trip in Reporting (budget/actual comparison).

Presentation

Exercises

Solutions

Trip Costs Accounting

(C) SAP AG AC700 4-29

© SAP AG 1999

Travel requestbefore trip

Travel expenses

Approvalbefore trip

HRHRHR HRHRHR

• Statistical update in FM

• No availability control

• Update in FM

• Availability control

Entry of document after trip

• Availability control, if trip costs > approved costs

Payment by FI

Payment by HR

Actual update in FM

Travel Management Process

Business trip commitments are updated in Funds Management with value type 52. In this way, business trip commitments can be displayed separately in the information system.

An individual tolerance group (tolerance group 70) for the active availability control can be assigned for business trip commitments.

Business trip advances are not updated in Funds Management.

(C) SAP AG AC700 4-30

© SAP AG 1999

Trip

from to

to

Documents

001 _ _ _ _ _ _ _ _ _

002 _ _ _ _ _ _ _ _ _

003 _ _ _ _ _ _ _ _ _

. . .

HOTEL

TAXI

OPTION 1

OPTION 2OR

FM acct assignment

30 % Destination 1

70 % Destination 2 Entire trip

30 % Destination 170 % Destination 2

30 % Destination 130 % Destination 240 % Destination 3

Per document

Account Assignment Options for Trips

Trip costs can be assigned to accounts in one of two ways: Assigning the entire trip to an account If you assign the entire trip to an account, you can break down the amounts on a percentage basis and distribute these to more than one funds center and fund. You can enter this account assignment when the travel request is first received, and can also define a default value in the HR master record. When you enter the trip, the system automatically adopts any account assignment entered in the travel request.

Assigning each document to an account individually If you choose this option, you can still break down the amount of each document on a percentage basis. Since documents are not generated until the trip itself takes place, you cannot enter documents at the same time you enter the travel request. The account assignment defined in the HR master record is not used because the account assignment per document is only required if the trip cannot be assigned generically.

(C) SAP AG AC700 4-31

© SAP AG 1999

Introduction

In most cases, human resources expenditures constitute the largest block of expenditures in a budget. A number of different integration scenarios are possible depending on the structural similarities between FI-FM and CO and whether you want to use a HR commitment.

Presentation

Funds Management and HR

(C) SAP AG AC700 4-32

© SAP AG 1999

Withoutusing

HR

Parallel structure

in COand

FI-FM

HRcommt

in FI-FM

Acct assignmentsin HR derived fromCO acct assignmts

FM master dataentered in HR

Pos.managementintegration with CO acct assignmtderivation

Pos. managementintegration withoutCO acct assignmtderivation

Integration scenario

FM account assignments are derived in the Accounting interface, but are not visible in HR

FM master data is entered in Organizational Management and HR master data

FM account assignments are derived in position management and are visible in HR

FM account assignments are entered in position management and are visible in HR

HR - FI-FM Integration Options

(C) SAP AG AC700 4-33

© SAP AG 1999

Payment by HR

Transfer to FI/FM/CO

No actual data in Funds Management

FI: G/L account postingsFM: Posting of expenditures

and availability controlCO: Cost center postings

Org. unit / Position / Employee

•Defining an account assignment

•Validation of the master data objects

No commitments No commitments

Transfer of accountassignments topayroll data

Payrollaccounting

Expenditure Scenario: ’Integrating Human Resources Without Commitments'

The procedure depicted above applies for a) the derivation of account assignments from CO in HR and b) the entry of FI-FM master data in organizational management and HR master data. In the case of b) FM account assignments are contained in the HR posting document.

Although the scenario above does not contain any HR commitments, the separation of the payment and update of expenditures ensures that HR payments are not delayed or prevented by problems resulting from availability control.

(C) SAP AG AC700 4-34

© SAP AG 1999

Organizational unit / Position / Employee - Assignment:

01.01.96 30.06.98 Cost center 1001 Funds center A1 40

Internal order 1007 Funds center A2 Fund 2 60

01.07.96 31.12.98 WBS Element 1001 Funds center C3 Fund 4 100

. . . . . . . . .

Date Date CO Obj. Funds center Fund %from to

Time-Dependent FM Assignments

As of Release 4.6B, you can enter funds centers and funds for the organizational unit / position / person. If a funds center and a fund are entered for the organizational unit, then these entries are passed onto the positions within an organizational unit. If no different funds centers /funds are defined for the positions, they are passed on to the people who occupy the positions. If a funds center and fund are entered for the position, these entries are valid for the person who is assigned to a position, if a funds center and fund are not directly maintained for that person.

In the HR integration scenarios without position management, the personnel costs are not broken down into functional areas for every employee or every position. Instead, the commitment item defined in Financial Accounting is used due to the link between wage types in Human Resources and G/L accounts in Financial Accounting.

As of Release 4.6B, as well as defining a funds center and fund, it will also be possible to define a commitment item for the infotypes that have account assignment blocks (infotypes 0014, 0015, 2001-2005, 2010). A commitment item entered manually overrides a commitment item defined in a G/L account or a cost element.

(C) SAP AG AC700 4-35

© SAP AG 1999

Expenditure Scenario: ’Integrating Human Resources with Commitments'

The budgeting of all revenues /expenditures is carried out in FundsManagement.HR Funds and PositionManagement controls andadministrates the budgetfor HR expendituresHR FPM represents adetailed subsidiary ledgerfor Funds Management

Funds Management

Budget for all revenues and expenditures (including HR expenditures)

HR Funds and PositionManagement

Budget for HRexpenditures

The budget data for HR expenditures are only entered once - in Funds Management. These budget values are available in HR Funds and Position Management and are also allocated there. To avoid any inconsistencies in data, you can only save data in Funds Management.

The allocation of the HR budget in HR FPM allows you to view HR expenditures in detail.

(C) SAP AG AC700 4-36

© SAP AG 1999

FM account FM account assignmentassignment

PositionPosition Person

finances

occupies

finances

finances

Financing a position

Financing a person directly, i.e. not via a position

Financing a person via a position

2

1

3

1

2

3

Financing Scenarios

The recipients of the HR expenditures budget (positions and persons) are financed in HR Funds and Position Management. This means that budget is provided for positions and persons and assigned to them.

You cannot finance a person using more than one of the possible processes. Either you finance employees directly from a FM account assignment or you finance them via the position(s) they occupy.

The different financing scenarios can be used in parallel: An employee can be financed completely or partially via a position, or you can choose not to use a position at all.

You can designate funds for vacant positions. If an employee (or several employees) fills a financed position, the amount reserved for that position can be taken over by the employee(s).

(C) SAP AG AC700 4-37

© SAP AG 1999

Budget (FM account assignment)

HR Funds Management

Constructing and Reducing HR Commitments

(C) SAP AG AC700 4-38

© SAP AG 1999

HR Funds Management

PositionPosition

Evaluation of Default value

Funds precommitment

Budget is assigned



The financing of positions and persons results in an HR commitment being automatically constructed in Funds Management.

The financing of a position leads to a funds precommitment in Funds Management. The pay scale classification of a position corresponds to a monetary value - the so-called default value. This default value determines the funds requirements for a position.

(C) SAP AG AC700 4-39

© SAP AG 1999

HR Funds Management

PositionPosition


Funds precommitment

Budget is assigned


PersonPerson

Payroll simulation/ Default value

Funds commitment

Referenced / reduced funds

precommitment


The financing of a person leads to a funds commitment in Funds Management. The basis for the funds requirement of a person is either the payscale evaluation of the person which corresponds to a default value (monetary value), or the funds requirement for a person based on a payroll simulation.

If you finance a person via a position, the funds commitment of the person relates to the funds precommitment of the position, that means that the funds precommitment is reduced by the value of the funds commitment.

(C) SAP AG AC700 4-40

© SAP AG 1999

Posting of payroll resultPosting of payroll resultActual values

Referenced / reduced funds commitment

HR Funds Management

PositionPosition


Funds precommitment

Budget is assigned


PersonPerson

Payroll simulation/ Default value

Funds commitment

Referenced / reduced funds

precommitment


The posting of payroll results reduces the HR commitment.

(C) SAP AG AC700 4-41

© SAP AG 1999

FM account FM account assignment 5assignment 5


Position Person 1Person 1




Person 2Person 2

finances

occupiesfinances finances

occupies

A position / person can be financed by more than one financing source / Funds Management account assignment.

Financing Scenario for HR Commitments

(C) SAP AG AC700 4-42

© SAP AG 1999

Introduction

Funds Management and Controlling can show similar structures in the sub-areas of an organization.

Depending on the degree of similarity, it may be useful to integrate the transactions and functions of these areas.

Presentation

Funds Management and Controlling

(C) SAP AG AC700 4-43

© SAP AG 1999

WithoutCO

Parallel structure

in COand

FI-FM

Parallel contents

in CO and

FI-FM

Input help +acct assgmntderivation

Posting integration

Input help+

account assignment derived automatically for postings from integrated modules

CO internal postings are automatically recorded in FI-FM:

- Order settlement- Assessment + distribution- Internal activity allocation- Overhead costing- Actual repostings- Actual accrual calculation

CO - FI-FM Integration Options

Controlling and Funds Management comprise different views of the same business processes. If the structures required in both modules have similarities, then integration is possible between the modules for certain functions. With a purely parallel structure, the Funds Management account assignment can automatically be derived from the Controlling account assignment so that a manual entry is not necessary. Nevertheless, Funds Management remains unaffected by activities within Controlling such as overheads or assessments. If you also require parallel contents, then the activities within Controlling must be reflected in Funds Management.

When using parallel structures, you should note that reconciliation between Controlling and Funds Management will always vary by the activities within Controlling. On the other hand, cost-based figures reach Funds Management due to parallel contents and are there in addition to expenditure-based figures. This is to be taken into consideration during comparison.

The integration described here includes cost elements, cost centers, orders, and projects on the Controlling side.

(C) SAP AG AC700 4-44

© SAP AG 1999

FIFI

CstCtrOrder WBS elem.Profit Ctr

Cost element

Funds Commt Fundcenter item

A1 Mat. -

A1 Mat. WorkAssignment table

Account 400000Amount 1000 UNICstCtr 4711FndsCtr

FI - COintegration

Collective cost center

1000

Funds center: A1Item: MATFund: Work

1000

FIFI--FMFM

COCO

4711

4711 400000

A1 Mat. -

A1 Mat. Work

Possible Entries and Automatic Account Assignment Derivation

You can activate derivation of FM account assignments from Controlling objects separately from posting integration. To achieve a consistent user guidance, you should define an active derivation for all combinations.

For postings which do not allow you to enter an account assignment relevant to Controlling, it is also not possible to derive the FM account assignment.

The FM account assignment is always derived from the Controlling object. A relationship the other way around is not supported.

The derived account assignment is a default account assignment that you can overwrite in manual transactions, if allowed.

(C) SAP AG AC700 4-45


Collective Cost Ctr Administration I Administration II Research field ABC

1000 1000 400 300 300

Example: Assessment cycle

Funds center A1MAT Funds center ADM I Funds center ADM II

Funds centerResFld ABC

1000 1000 400 300 300

FMFM

Assignment tableCO Obj. FM Obj.

Posting Integration CO - FI-FM

If posting integration is also active, you should then make sure that you assign a special commitment item to the secondary cost elements from Controlling. This commitment item should not also be defined in a Financial Accounting G/L account for the following reasons:

The origin of the debit can be recognized at a glance within reporting If a reconciliation of the Funds Management data is carried out for control purposes, then: – The postings from Financial Accounting can be compared with the respective commitment items – The balance of the commitment items for secondary cost elements must always be zero across all

funds centers and funds since this is a characteristic of postings within Controlling CO transactions do not participate in the active availability control, they can, however, be included in FI-FM reporting.

(C) SAP AG AC700 4-46

© SAP AG 1999

Funds center hierarchy

COCO

Cost center hierarchy

ExpenditureExpenditureitemitem

A1A1

P11P11 P12P12

A1A1

P11P11 P12P12

Updating1Updating1

Postingintegration

2

FIFI

FIFI--FMFM

Posting Integration CO - FI-FM

In addition to assigning master data, you can specify how internal CO activities are updated in Funds Management. You use Funds Management customizing to choose which business transactions from controlling are to be recorded for an FM area.

The "General Settings" for the update for the posting integration should be entered as shown. They will then match the process by which business transactions are updated in Controlling.

- Purchase order period: Delivery date - Invoice period: Posting date - Payment period: Invoice - Goods issues: Must be recorded - GR/IR update: MM goods receipt - Tax display: Tax net - Payment evaluation: Do not activate payment conversion

You can make different Funds Management settings, but this will mean that data is recorded differently to how it is recorded in CO, making direct comparison difficult. When you enter the CO business transactions to be recorded, the system warns you that the settings are different.

In Funds Management, you must create number ranges for each FM area for the documents generated by the business transactions in Controlling

(C) SAP AG AC700 4-47

© SAP AG 1999

Introduction

For certain areas, such as the representation of capital investment measures and planned research, the use of Project System can be quite attractive.

Depending on the degree of similarity, it may be useful to integrate the transactions and functions of these areas.

Presentation

Integrating Project System with Funds Management

(C) SAP AG AC700 4-48

© SAP AG 1999

Field of research XY

. . . Project 1

. . .

Project 2

FIFI--FMFM

Project

Phase 1 . . .

App. EDP

PSPScan be used in parallel

no automatic budget integration

Availability controltakes place twice,in project systemand in FI-FM

commitment items have same structure,if using CO cashbudget management

Update of costsUpdate of costsAvailability control Availability control Optional update of payments (COOptional update of payments (COcash budget management)cash budget management)

Update on cash or accrual Update on cash or accrual basisbasisAvailability controlAvailability control

Phase 2

PS and FI-FM: Structures and Functions

(C) SAP AG AC700 4-49

© SAP AG 1999

Field of research XY

. . .

FIFI--FMFM

Project

App. EDP

PSPS

WBS CstEl. Ctr Item FundEDP 400,000 Project 2 ... ...

AccountAccount 400000400000UNIUNI 2000 2000 WBSWBS EDPFCtrFCtr //CmtItemCmtItem //FundFund //

Commitment

FI-FM reservation

PS manual commt

Purch.req / purch.ord.

Actuals

Posting document

Phase 1 . . . Phase 2. . . Project 1 Project 2

PS and FI-FM: Updating Commitments/Actuals

A 1:1 representation of project and funds center is technically possible but not recommended, since the funds center structure should represent the company structure and is not created for representing time-related measures.

(C) SAP AG AC700 4-50

© SAP AG 1999

Introduction

The integration of the R/3 component Plant Maintenance (PM) with Funds Management allows the monitoring of budget-relevant plant maintenance processes in Funds Management.

Above all, this affects the external procurement procedures (MM Purchasing) and material withdrawals from an internal warehouse triggered by plant maintenance orders as well as internal processing operations.

Presentation

Exercises

Solutions

Integrating Plant Maintenance

(C) SAP AG AC700 4-51

© SAP AG 1999

Technicalobject

Technical placeEquipment

Purchase requisitions

Material reservation

Time confirmation

(internal)

Cost center Cost center WBS elementWBS element

......

Order settlement

Plant MaintenancePlant Maintenanceorderorder

Goodsissue

PM Transactions Relevant to Funds Management

The connection of plant maintenance processes to funds management is made with the related account assignment of the plant maintenance order to the funds management account assignment terms funds center, commitment items, and fund.

In doing so, the system automatically provides a default value for the funds management account assignment using the FM - CO assignment table from the cost center of the technical object (technical place, equipment) that is assigned to the PM order.

It is not absolutely necessary to assign an account assignment to the order for all three account assignment terms funds center, commitment item, and fund, if an automatic derivation of the missing account assignment term is possible for each posting. Thus, you normally only need to assign the order to a funds center and possibly a fund, since the related commitment item can be provided from the G/L account or cost element.

(C) SAP AG AC700 4-52

© SAP AG 1999

Maintenance order 4711

Operation 10

Operation 20

Operation 30

FM account assignment

Fds Ctr

Cmmt It.

Fund

A1

...

...

FI-FM Account Assignment in the Maintenance Order

You can maintain an assignment between a maintenance order and FI-FM objects. Follow-on documents of the maintenance order (reservation, purchase requisition, CO settlement) are then provided automatically with the FI-FM account assignment.

If the field status is maintained, the assignment can be entered in the header of the maintenance order under additional data - funds management.

If, according to field control, the FI-FM account assignment is not complete, the order status HMKU (FM account assignment incomplete) remains active. This status prevents the automatic generation of purchase requisitions for components and services procured externally and also the release of the order.

(C) SAP AG AC700 4-53

© SAP AG 1999

Introduction

Sales revenue which must be shown as income in Funds Management can be posted using invoices in the Sales and Distribution component.

The following section shows how the integration of the Sales andDistribution component with Funds Management is carried out.

Presentation

Exercises

Solutions

Integrating Sales and Distribution

(C) SAP AG AC700 4-54

© SAP AG 1999

FM acct assigmt:automatic proposalmanual entry

FM acct assigmt:transfer from SD orderautomatic recomputation

FM acct assigmt:Transfer frompurchase order

Sales order 4711

Item 10 -> FI-FM acct assig.

Item 20 -> FI-FM acct assig.

Item 30 -> FI-FM acct assig.SD Billing FI Invoice

SD Delivery

MM Goodsissue

Funds center A1Commt item A321Fund Y + F

Funds center A2Commitment item E221Fund

Transactions in SD: Sales Order/Credit and Debit Memos

The following SD transactions are currently integrated in FM: - "Pure billing" of credit/debit memos - Sales orders with delivery of goods and billing

These transactions can be relevant for Funds Management, whereby the sales order / billing document is to be regarded as income, the delivery / goods issue as expenditure, in accordance with the FM warehousing concept.

The allocation of the FI-FM account assignment is only carried out on an item level using the sales order and is saved in the FI-CO assignment tables (see next slide). Follow-on documents refer to the FM account assignments (of the order) allocated there, but do not save them in the corresponding document tables.

The maintenance of the FI-FM account assignment is carried out using an account assignment panel. You can set the field control of the FM account assignment fields FISTL, FIPOS and FONDS in Customizing. For the processing of the standard flow, it is recommended that you derive the respective value of the FIPOS in the different postings from the G/L account/cost element affected, that is, not propose them manually in the sales order. You can thereby guarantee that with different cost/revenue postings, the corresponding expenditure/income items will be used by the system.

The processing of the FI-FM account assignment can only take place via the sales order item. In follow-on documents to the sales order (delivery, billing), the account assignment is not accessible.

(C) SAP AG AC700 4-55

© SAP AG 1999

Fds CtrCmmt It.Fund

?

Sales order 4711

Item 10

Item 20

Item 30

Fds CtrCmmt It.Fund

?

Position 10

Fds CtrCmmt It.Fund

A1

FI-FM Account Assignment in the SD Sales Order Item

You enter the allocation between the FI-FM account assignment objects and the SD sales order in the sales document line item. The account assignment information is then transferred to the SD sales order follow-on documents.

If you have maintained a field status, you can maintain the allocations in the sales document via Item data - Account assignment - Maintain FM account assignment. All the functions provided by the incompleteness check can be used for the FM account assignment.

(C) SAP AG AC700 4-56

© SAP AG 1999

Fundscenter

Commtitem

Fund

Hide Optional Required

Hide Optional Required

Fundscenter

Commtitem

Fund

Fundscenter

Fund

?

Order item 10Order item 20

Order item 30

SD order

PM orderFundscenter

Commtitem

Fund

?

Integration of SD and PM Orders

Beginning with Release 4.0A, you can define FM account assignments in customer orders and maintenance orders.

You make the field status settings for these fields in FM Customizing.

(C) SAP AG AC700 4-57

© SAP AG 1999

Introduction

An organization can have many different revenue scenarios. In addition, the further processing options for revenue, with their potential link to the budget, are very important.

Presentation

Revenue Scenarios

(C) SAP AG AC700 4-58

© SAP AG 1999

Salesorder SD Billing

Manual FI invoice

Feedercomponents

FI receivable Revenues

No commtsActual data

SD -> FI transfer

(Bank)

Revenue Scenarios

No revenue arises in Funds Management purely as a result of the sales order. There is no active availability control when postings are made to commitment items of the category "Revenue". Revenue postings are therefore always permitted.

(C) SAP AG AC700 4-59

© SAP AG 1999

Revenues Increasing the Expenditure Budget:Budget Increase / Timeframe Procedure

Budget Budget increase/increase/timeframe timeframe procedureprocedure

Budget increase using:Budget increase using:

Distribution procedureDistribution procedure

Budget increased by:Budget increased by:

PaymentPayment

InvoiceInvoice

Budget increaseBudget increase

Commitment budgetCommitment budget

Payment budgetPayment budgetX

CustomizingCustomizing

In Customizing, it is possible to make different settings for each FM area and year: Budget increase for payment and/or commitment budget Budget increase by incoming payments or invoice receipts Budget increase in the distribution procedure Assigning a surplus account assignment: Residual revenues, that should not directly increase the expenditures FM account assignments, go to this account assignment.

(C) SAP AG AC700 4-60

© SAP AG 1999

Revenues budget memo

Expenditures budget memo

FM area Year

Expenditures budget line

RevenuesCommt itemFunds center

Increase area ExpendituresCommt itemFunds center

DistributionDistributionrulesrules

Revenues Increasing the Expenditure Budget:Distribution Rules

In the framework of revenues increasing the budget, a revenues FM account assignment can increase the budget of more than one expenditures FM account assignment.

You can define a cover interval by entering a minimum revenue or an upper limit. Both the minimum revenue and the upper limit can be defined as a percentage of the current revenue budget.

The maintenance of revenues increasing the budget permits the entry of budget memos: A revenues budget memo relates to the revenues commitment item, while an expenditures budget memo relates to expenditures commitment items.

More than one expenditures FM account assignments can be assigned to a revenues FM account assignment.

(C) SAP AG AC700 4-61

© SAP AG 1999

Revenues Increasing the Expenditure Budget:Distribution Procedure

RevenuesRevenues

ExpenditureExpenditure

Cmmt It. 10010FdsCtr VAmount 100 UNI

Distribution ruleCmmt It.: 10010 FCtr: VCmmt It.: 50010 FCtr: C11Budget increase: 100 %

CmmtCmmt It.It. 5001050010FdsCtrFdsCtr C11C11AmountAmount 100 UNI100 UNI

Original 10 UNI

Revenuesinc. budget 100 UNI

RFFMUD11

RFFMUD11

RFFMUD01RFFMUD01

Budget

Program RFFMUD11 selects revenues documents and increase rules and generates information about the budget increase. In each document, every revenues FM account assignment is assigned as the budget receiver for expenditures FM account assignments.

Program RFFMUD01 generates and posts the budget documents (budget type KBI1). This program carries out the budget increase, generates budget documents and records which budget documents have resulted from each revenue posting.

(C) SAP AG AC700 4-62

© SAP AG 1999

Introduction

During budget execution, errors can occur which must be adjusted. It is also possible that changes have to be made to a transaction after it has been carried out.

The following section explains the options and prerequisites for such activities.

Presentation

Exercises

Solutions

Change and Adjustment Options

(C) SAP AG AC700 4-63

© SAP AG 1999

Procurement process

Reservation


GR to final target

Goods issue to stock GI to target


Actualcash

Changeable until the next sub-process is started orthe document is transferreddue to change of fiscal year.

Payroll accounting

Travel costs

Change possible up to accounting stage

Amount and accountassignment can be changed, as long asno reference to invoice

Transfer postingpossible in FI or FM.No reference to original transaction.

Reqmt

Change and Adjustment Options

Whether you can change the account assignments of the funds center, commitment item and fund for Funds Management in an SAP document after it has been posted depends on two basic factors:

The basic procedure of the application Differences arise here in each application. Financial Accounting, which creates actual data in Funds Management, follows the rules of commercial accounting, according to which, no changes are permitted in a document that has already been posted. Materials Management and Human Resources however permit changes under the second rule.

The further processing status of the document If a Materials Management or Human Resources document has not yet been transferred to the next sub-process, the account assignment in the original document can be changed. The only other opportunity for making changes is in the document of the current sub-process, as long as the financial accounting stage has not yet been reached and the commitment has not become actual data.

The change of fiscal year also constitutes a transfer to a new sub-process, following which, the original data can no longer be changed or extended.

(C) SAP AG AC700 4-64

© SAP AG 1999

MAT 400000

25,00016,0003,000

FMFM

471125,00016,0003,000

8,000

47128,000(MAT1)

Transfer postings in FI or FI-FMare not transaction-based

Changes always affectthe original posting

periodFI-FM transfer postings

do not influence FI

MATMAT

FIFI

Adjustment Option: Transfer

If the Funds Management account assignment can no longer be changed in the document, the display of the accounting transactions in Funds Management can only be changed using adjustment postings. If adjustments refer to the individual accounting transaction, the original transaction must be reversed. This means that the posting always takes place in the original posting period.

Alternatively, an adjustment can only be carried out in Financial Accounting and thus also in Funds Management or only in Funds Management. The following should be taken into consideration:

These postings are not transaction-based, that is, it is not possible when making an adjustment to refer to the document to be adjusted. On the one hand, this makes it possible to change the display of a wide range of original documents via a posting, on the other hand, there is no control in the system to ensure that the correct amount or correct sender and recipient are posted.

If there is no reference, the postings are carried out in the period determined from the transfer posting document.

If transfer postings only take place in Funds Management, you cannot determine the balance of the commitment item in Funds Management for all of the G/L accounts in Financial Accounting assigned to a commitment item by simple totaling.

(C) SAP AG AC700 4-65

© SAP AG 1999

Budget Execution: Summary

This unit explained the expenditures and revenues processes that are integrated in the Funds Management system.The core processes in Purchasing, Payroll and Travel Accounting as well as Asset Accounting were considered.The individual process steps and their integration and value recording were explained in detail.

(C) SAP AG AC700 4-66

© SAP AG 1999

Budget Execution: Summary

In addition, active availability control and its various response options, as well as the existing options for the integration of Controlling and the project system with the Funds Management system were covered.A further topic considered was the integration of Plant Maintenance and Sales and Distribution with Funds Management.Finally, the processing and special features of revenues, as well as the principle and processing of revenues which increase the expenditure budget were examined in more detail.

(C) SAP AG AC700 4-67

Budget Execution Exercises

Unit: Budget Execution Topic: Procurement without Materials Management


• Create and change earmarked funds.

• Respond to changes in the master data hierarchy.

• You are using earmarked funds documents to represent your procurement processes in Funds Management.

As project leader you are aware that an amount of around 10,000 UNI will become due next month for project P12. This money relates to expenditure on physical supplies for additional apparatus. As you do not yet have any detailled entries for the project, you cannot yet order the necessary apparatus. However, you should reserve sufficient funds. Use the EU funding for this.

1-1 Reserve the funds, entering the following data.

Company code: 90XX

Currency: UNI

Due on: 15.MM+1.YYYY

Amount: 10,000

Commitment item: 60040 (lab supplies)

Funds center: P12

Fund: EU

Because of price fluctuations, it is not certain that the required apparatus can be obtained for the amount set aside (10,000 UNI). Enter an overrun tolerance of 20% in detailled control.

Document number:..........................

(C) SAP AG AC700 4-68

1-2 In the report selection, under Info system -> Line items -> Commitments/Actuals -> Commitments and funds transfers, view the funds reservation. Note: You are working with company code 90##.

1-3 Create a funds precommitment of 11,000 UNI with reference to the funds reservation.

1-4 You have chosen supplier (vendor) 5000, who is offering you the apparatus for 10,000 UNI. Post a funds commitment of 10,000 with reference to the funds precommitment. The excess budget values assigned (1000 UNI) should be returned to the FM account assignment.

1-5 The apparatus has been ordered (without entering the purchase order into the R/3 System) and the invoice for 8,000 UNI (including VAT) from Lab Supplies Co. has just arrived. Post the invoice, referencing the funds commitment when you do so.

.

Credit entry (posting key 31): Vendor: 5000

Debit posting (posting key 40): Exp. acct: 403000 lab supplies,

Amount: 8,000 (tax code: V0)

Cost center: L-100

Document number.:.........................

1-6 Display the Financial Accounting posting document in Funds Management reporting.

1-7 Enter another funds commitment:

Company code: 90XX

Currency: UNI

Due on: 15.MM+2.YYYY

Amount: 396,000

Commitment item: 60040 (lab supplies)

Funds center: P12

Fund: EU

Check your inbox for new messages.

(C) SAP AG AC700 4-69

(C) SAP AG AC700 4-70

Unit: Budget Execution Topic: Procurement Without Warehousing


• Create and change earmarked funds.

• Respond to changes in the master data hierarchy.

• You are using earmarked funds documents to represent your procurement processes in Funds Management.

In addition to the replacement parts already purchased, your group XX must also order test tubes. New test tubes are continually required by your institute.

2-1 To notify the Procurement department of this requirement, enter a purchase requisition. Post this requisition to the cost center.

Document type: NB

Check source determination

Delivery date: 12.MM+1.YYYY

Plant 90##

Storage location 0001

Purchasing group: 009

Material number: RG-1000

Account assignment category: K

Quantity: 1000 units

When you enter the purchase requisition, also enter the additional account assignment.

(C) SAP AG AC700 4-71

G/L account: 403000

Cost center. L-100

Funds center: P12

Fund: EU

Document number:..........................

2-2 Create a purchase order from your purchase requisition.

Document number:..........................

2-3 Use the Reporting function in Funds Management to view the line items belonging to your funds center, and search for your purchase order document.

(C) SAP AG AC700 4-72

(C) SAP AG AC700 4-73

Unit: Budget Execution Topic: Procurement with Warehousing


• Post purchase orders to a warehouse funds center.

• Post goods movements with budget relevance.

• To represent your warehouse procurement, you are using a warehouse funds center, which should be credited when goods are issued.

In addition to requirements of your project, filter papers are constantly needed for the research process in general. These filter papers are stored and financed in advance from the institute's budget.

3-1 To restock the warehouse, order 1000 filter papers from your regular supplier (vendor).

Vendor: 5000

Purch. organization: 90XX

Purchasing group: 009

Delivery date: 15.MM+1.200Y

Plant: 90XX

Storage location: 0001

Material number: PF-2000

Quantity: 1000 units

Net price: 1 UNI

Document number:..........................

(C) SAP AG AC700 4-74

3-2 Post the goods receipt:

Document number.................................

3-3 Issue 100 filter papers for project P12.

Movement type: 201

G/L account: 409000

Cost center: L-100

Commitment item: 60010 (general non-cash resources)

Funds center: P12

Fund: EU

Material: PF2000

Quantity: 100 units

3-4 Check whether the warehouse funds center was credited, and whether your funds center for project 12 was debited.

Warehouse funds center: D1 Fund: Blank

Funds center: P12 Fund: EU

(C) SAP AG AC700 4-75

(C) SAP AG AC700 4-76

Unit: Budget Execution Topic: Integrating Asset Accounting

At the conclusion of these exercises, you will be familiar with:

• Using component Asset Accounting together with Funds Management

• You are a member of the Assets Management division of the financial accounting department. It is your job to enter asset acquisitions and retirements, together with depreciation and valuation adjustments. In so doing, you must monitor the availability of funds for the relevant transactions.

A new PC needs to be purchased for department A1. Budget exists and the asset master record has already been created.

4-1 Post the asset acquisition to the vendor account 5000 Amount: 3,800 UNI Debit posting key 70 Fixed asset account 40000 Transaction type 100

4-2 Check whether a budget relevant transaction exists in the Customizing settings for Asset Accounting.

4-3 Which Funds Management account assignment is debited?

4-4 View the effect of posting in the Funds Management information system. Call up report „Totals records – commitments/actuals overview“.

(C) SAP AG AC700 4-77

(C) SAP AG AC700 4-78

Unit: Budget Execution Topic: Integrating Human Resources with HR

commitments


• Finance a person in component Human Resources using the position the person occupies.

• Create and annotate an HR commitment in Funds Management.

• You are the head of a department and finance your staff in order to set aside the necessary funds for HR expenditures. At the start of the fiscal year, you want to ensure that the budget required for HR expenditures is not used for any other purpose.

In the HR department, employee Susan Smart has the position Gr. XX / C for the entire fiscal year.

5-1 Finance position GR.##/C

5-1.1 Use the matchcode to select your organizational unit. Select the executive board ## as the top node. Change the budget allocation. Branch to position GR.##/C

5-1.2 Finance position GR.##/C: Use the matchcode to select the appropriate object ID. To do this, use entry help "Funds Management account assignment": Fund: Smith Funds center: A1 Commitment item: 40020

5-2 Branch to the Funds Management information system. Call up report "Commitments and funds transfer".

5-3 Finance employee "Susan Smart".To do this, branch to position GR##/C again and use the financing wizards.

5-4 Branch to the Funds Management information system. Call up report "Commitments and funds transfer".

(C) SAP AG AC700 4-79

(C) SAP AG AC700 4-80

Unit: Budget Execution Topic: CO integration


• Show the differences between the view of costs and benefits in component Controlling and the view of revenues and expenditures in Funds Management.

• As a member of the Controlling section of the Finance Department, it is your job to assign costs based on usage using various allocation methods. When doing so, you also have to monitor funds.

Telephone costs of 5000 UNI were incurred in the "Administration" department, and they were collected at cost center CI. At the end of the period, these costs will be distributed to the cost centers C11, C12, C13, and C14 based on the number of "employees" in each center. In order that you can reconstruct the data from the assessment of telephone costs in Funds Management, the assessment cost element 500301 (“Telephone costs”) must be assigned to commitment item 50030 (“Postage and communications expenses”).

6-1 Carry out the assessment in Controlling. (Accounting - Controlling – Cost Center Accounting – Period-end closing – Single functions – Allocations – Assessment) Period: MM (current period) No test run Cycle: Assessment => execute

6-2 Check the transaction in the Funds Management information system. Call up line item report “Commitments/actuals – CO postings”.

6-3 Also call up line item report “Commitments/actuals for assigned annual budget” and explain the effects of the CO posting.

(C) SAP AG AC700 4-81

(C) SAP AG AC700 4-82

Unit: Budget Execution Topic: Funds transfer


• Make corrections in Funds Management using funds transfers.

• A number of account assignments in Funds Management have been erroneously debited. These mistakes need to be corrected.

You have determined that in project P12 expenditures for chemicals instead of expenditures for lab supplies were posted in fund EU by mistake.

7-1 Enter a funds transfer.

Amount: 12,000


Sender funds center: Project P12

Sender fund: EU

Amount: 12,000

Receiver commitment item: 60040

Receiver funds center: Project P12

Receiver fund: EU

Document number:..........................

(C) SAP AG AC700 4-83

(C) SAP AG AC700 4-84

Unit: Budget Execution Topic: Revenues Increasing the Budget

At the conclusion of these exercises, you will be able to: • Fulfil the requirements for the scenario “revenues increasing

the expenditures budget” • Increase the expenditure budget using additional revenues.

• In an attempt to further motivate the workforce, a certain percentage of additional revenues are to be used to increase the expenditure budget.

In project 11 you receive an unexpected incoming invoice of 5000 UNI for publications (commitment item 10022). You want to use this additional revenue to increase the expenditure budget for books and magazines (commitment item 50020).

8-1 Go to Customizing and create a budget memo for revenues increasing the budget. Budget memo: Group-XX Budget memo type: 01 Enter an appropriate short text and a description.

8-2 Determine the global settings for revenues increasing the budget: Procedure: Distribution procedure Budget increase with: Customer invoice Minimum revenue: Budget increase Payment budget and commitment budget should be referenced

(C) SAP AG AC700 4-85

Budget increase: 100% Determine the surplus account assignment: Funds center: B1 Commitment item: 50010 Fund: -

8-3 Define a rule for revenues increasing the budget

Revenue account assignment: Funds center: P11 Commitment item: 10021 Fund: - Expenditure account assignment: Funds center: P11 Commitment item: 50020 Fund: - The budget increase should take place in the payment budget and the commitment budget.

8-4 Post the incoming invoice for 5000 UNI Customer: 1000 G/L account: 800000 Amount: 5000 Commitment item: 10021 Funds center: P11 Fund: -

8-5 Start the reports for increasing the expenditure budget

(C) SAP AG AC700 4-86

Budget Execution Solutions

Unit: Budget Execution Topic: Procurement without Materials Management

1-1 Financial Accounting – Funds Management – Posting – Create funds reservation


Amount 10000


Funds center P12

Fund EU

Due 15.MM+1.YYYY

Goto – Line items details => Overrun tolerance 20%

1-2 Financial Accounting – Funds Management – Information system – Line items - Commitments/Actuals – Commitments and funds transfers

1-3 Financial Accounting – Funds Management – Posting – Earmarked funds - Create funds precommitment


Amount 11000

Reservation Funds reservation number

Due 15.MM+1.YYYY

(C) SAP AG AC700 4-87

1-4 Financial Accounting – Funds Management – Posting – Earmarked funds - Create funds commitment


Amount 10000

Funds precommitment Funds precommitment number

Due 15.MM+1.YYYY

Goto – Line items details– Referenced document – Set to completed

1-5 Accounting – Financial Accounting – Accounts payable – Document entry – Invoice


Company code 90##

Transaction Invoice

Vendor 5000

Amount 8000

Tax code V0

G/L account 403000

Amount 8000

Cost center L-100

Earmarked funds Funds commitment from the task above

1-6 Financial Accounting – Funds Management – Information system – Line items - Commitments/Actuals – FI postings

1-7 Financial Accounting – Funds Management – Posting – Create funds reservation


Amount 396000


Funds center P12

Fund EU

Due 15.MM+1.YYYY

Office – Workplace – Inbox – Unviewed documents

(C) SAP AG AC700 4-88

Unit: Budget Execution Topic: Procurement Without Warehousing

2-1 Logistics – Materials Management – Purchasing – Purchase requisition - Create


Document type NB

Source determination Check

Account assignment category K

Delivery date 15.MM+1.YYYY

Plant 90##


Purchasing group 009

Material RG-1000

Quantity 1000

Cost center L-100

Funds center P12

Fund EU

2-2 Logistics – Materials Management – Purchasing – Purchase order– Create – Via requisition assignment list


Plant 90##



Vendor 5000

Funds center P12

- Edit assignment – Create - Choose – Edit – Copy – Purchase order - Save

(C) SAP AG AC700 4-89

2-3 Financial Accounting – Funds Management – Information system – Line items - Commitments/Actuals – All postings

(C) SAP AG AC700 4-90

Unit: Budget Execution Topic: Procurement with Warehousing

3-1 Logistics – Materials Management – Purchasing – Purchase order– Create – Vendor/Supplying plant known


Transaction Standard purchase order

Vendor 5000

In the tab page view, maintain the organizational data.

Purchasing organization 90##


Material PF-2000

Plant 90##

Quantity 1000

Net price 1 UNI

3-2 Logistics – Material Managements – Inventory Management – Goods movement – Goods receipt – For purchase order – Purchase order number known - Search for purchase order – Select item - Enter amount – Flag item „OK“

3-3 Logistics – Materials Management – Inventory Management – Goods movement – Goods issue


Transaction type 201

Plant 90##

Cost center L-100

Funds center P12


(C) SAP AG AC700 4-91

Fund EU

Material PF-2000

Quantity 100

3-4 Accounting – Financial Accouting – Funds Management – Information system You can call up line items and summary reports. During this check, you should be aware that the warehouse funds center D1 (fund “blank”) is credited in the budget.

(C) SAP AG AC700 4-92

Unit: Budget Execution Topic: Integrating Asset Accounting

4-1 Accounting – Financial accounting – Fixed assets – Postings – Acquisition – External acquisition – With vendor


Vendor 5000

Amount 3800

Posting key 70

Asset account 40000

Transaction type 100

4-2 Tools –Accelerated SAP – Customizing – Project processing – Goto – SAP Reference IMG- Financial Accounting – Asset Accounting – Transactions – Acquisitions – Transaction types for defining acquisitions Transaction 100 to check budget relevance

4-3 Accounting – Financial Accounting – Fixed assets – Asset – Display asset In general data: Double click on account determination => Company code segment of G/L account => Define commitment item In time-dependent data: Cost center. The cost center is linked with a funds center (fund) by the assignment table.

(C) SAP AG AC700 4-93

(C) SAP AG AC700 4-94

Solutions

Unit: Budget Execution Topic: Integrating Human Resources with HR commitments

5-1 Human Resources – Personnel Management – HR Funds and Position Management – Organization - Change

5-1.1 Human Resources – Personnel Management – HR Funds and Position Management – Organization – Change => Budget allocation


Organizational unit Via Executive Board##

5-1.2 Human Resources – Personnel Management – HR Funds and Position Management – Organization - Change => Cursor on position => Edit - Financing =>Reservation for position


Object ID Via Matchcode=> FM account assignment input help

Fund Smith

Funds center a1


Check => Save

5-2 Accounting - Financial Accounting – Funds Management – Information system – Line items - Commitments/Actuals – Commitments and funds transfers

(C) SAP AG AC700 4-95

5-3 Human Resources – Personnel Management – HR Funds and Position Management – Organization - Change


Position GR ##/C

Edit - Finance => Susan Smart Use the icon: Financing wizard

=> Check => Save

5-4 Accounting - Financial Accounting – Funds Management – Information system – Line items - Commitments/Actuals – Commitments and funds transfers

(C) SAP AG AC700 4-96

Unit: Budget Execution Topic: CO integration

6-1 Accounting – Financial Accounting – Funds Management – Master data – Assignments – Controlling - Cost elements


Cost element 500301


6-2 Accounting - Controlling – Cost Center Accounting – Period-end closing – Single functions – Allocations – Assessment


Period MM

Cycle Assessment

6-3 Accounting - Financial Accounting – Funds Management – Information system – Line items - Commitments/Actuals – CO postings

6-4 Accounting - Financial Accounting – Funds Management – Information system – Line items - Commitments/Actuals for assigned budget – Annual budget

(C) SAP AG AC700 4-97

Unit: Budget Execution Topic: Funds Transfers

7-1 Accounting - Financial Accounting – Funds Management – Posting – Funds transfer - Create Posting in company code 90##


Sender amount 12000


Sender funds center: P12

Receiver amount 12000

Receiver commitment item 60040

Receiver funds center P12

(C) SAP AG AC700 4-98

Unit: Budget Execution Topic: Revenues Increasing the Budget

8-1 Tools –Accelerated SAP – Customizing – Project processing – Goto – SAP Reference IMG- Financial Accounting – Funds Management – Other functions – Revenues increasing the budget – Maintain budget memos -


Budget memo Group-##

Budget memo type 01

Short text Free entry

Description Free entry

8-2 Tools –Accelerated SAP – Customizing – Project processing – Goto – SAP Reference IMG- Financial Accounting – Funds Management – Other functions – Revenues increasing the budget – Make settings for revenues increasing the budget


FM area 90##

Fiscal year YYYY

Revenues budget memo Group-##

Expenditures budget memo Group-##

Budget increase 100

Surplus account assignment funds center

B1

Surplus account assignment commitment item

50010

Surplus account assignment fund

No entry

Procedure: Distribution procedure Budget increase: Customer invoice Minimum revenue: increasing the budget

(C) SAP AG AC700 4-99

Activate payment budget and commitment budget

8-3 Financial Accounting – Funds Management- Master data – Control data – Revenues increasing the budget – Individual processing


FM area 90##

Fiscal year YYYY


Funds center P11

Fund No entry

Revenues budget memo Group-##

Expenditures budget memo Group-##

Expenditure funds center P11

Expenditure commitment item 50020

Expenditure fund No entry

Payment budget 100

Commitment budget 100

8-4 Accounting – Financial Accounting – Accounts receivable – Document entry – Invoice


Company code 90##

Transaction Invoice

Customer 1000

Amount 5000

G/L account 800000


Funds center P11

Fund No entry

8-5 Accounting – Financial Accounting – Funds Management – Additional functions – Revenues increasing the budget – Generate documents

(C) SAP AG AC700 4-100

Accounting – Financial Accounting – Funds Management – Additional functions – Revenues increasing the budget – Increase budget


© SAP AG 1999

Dialog functions

Basics of updating

Data structure and supplementary account assignment

Technical update control

Updating


© SAP AG 1999


List Funds Management's dialog functions with other application components

Determine the way VAT is handled and how the carryforward level for carried forward commitment documents is used.

Specify the control options when using update profile.

Describe the new table structure in Funds Management

Explain technical updates on the basis of financial transactions and value types

Updating: Unit Objectives


© SAP AG 1999






BudgetingBudgeting

UpdatingUpdating




© SAP AG 1999

Updating

Dialog functions

Basics of updating

Data structure and supplementary account

assignment



© SAP AG 1999

Dialog functions

How can you enter account assignments?

Are the postings relevant to Funds Management?

Travel expenses field statusPayroll field status

Budget relevance of transaction types

G/L account field statusPosting field status

Purchase order field statusBudget relevance ofmovement types

AAAAAA

FIFIFI

MMMMMM

HRHRHR

Acct asst block

The field status setting determines whether the input fields are required, optional, or for display only. You maintain the field statuses for FI, MM and HR in the respective applications.

The Funds Management update determines what account assignment information, if any, is necessary, based on the transaction used and the commitment item control. It does this regardless of the field status definitions.

By defining your own account assignment block, you can bring together all the necessary account assignment information in the sequence best suited to your needs.

Asset and Material Management use movement types. You can define budget relevance separately for each movement type because budget relevant postings are made to the same G/L accounts as non-budget-relevant ones in these application components.

You can change the field status, account assignment block or budget relevance at any time in a productive system. Make sure those using the system are kept informed of any changes in order to avoid any incorrect postings.


© SAP AG 1999

Updating

Dialog functions

Basics of updating

Data structure and supplementary account

assignment



© SAP AG 1999

Basics of updating

Update control Customizing transaction (OFUP) is used for

Warehouse concepts

Dealing with taxCompulsory assignment of CO - FM account assignments or FI - FM account assignments for each FM areaDefining the carryforward level

Additional update control is defined in profiles:Budget category, budget year and period

Date of update


© SAP AG 1999

Posting in FinancialAccounting

Expense

100

VAT

16

Payables

116

FIFIFI Update in Funds Management

VAT gross (Default)

ExpendituresExpense

ExpendituresExpense

ExpendituresExpenseTax

VAT net

VAT separate

116

100

10016

II

IIII

IIIIII

FI-FMFIFI--FMFM

Handling Tax

There is a connection between the form of tax update you choose, budgeting in your organization, and its fiscal situation: If your budget figures include both the expenditures and the corresponding tax, and you are not required to record the tax portion of your expenditures separately, you can enter the values inclusive of tax. The tax amount is then included in the expenditure commitment item. Availability control then makes checks against the gross budget amount for the expenditure item.

If you can receive goods and services without tax, choose the net update. Availability control then checks against the net amount for the expenditure.

If you need to display the taxes separately, select the separate update. In this case, the tax amount in Funds Management is posted to the commitment item defined in the G/L account. Availability control is also carried out for the tax amount. If you do not want the tax checked by availability control, you must enter a separate budget profile for which no such check takes place.

The settings apply to the whole FM area.


© SAP AG 1999

1999 2000 2001

Reservation Reservation 47114711

Reservation Reservation 47114711CarryfwdCarryfwd

Invoice 2011 forres. 4711

Carryfwd

- Carryforward level (CFLEV) selection

Carryforward Level

The carryforward level field allows you to flag follow-on documents (such as invoices) whose preceding documents (earmarked funds, for example) have been carried forward to the following year as a result of fiscal year change. The carryforward level is passed on to all follow-on documents. This makes it possible to display business transactions relating to transactions carried forward from the previous year separately in Reporting.

(C) SAP AG AC700 5-10

© SAP AG 1999

Profile000101

Profile000100

Profile000102

ProfileProfile000350000350

Separate budget Separate budget lineslines

Overview: Update Profiles

Payment budgetPayment budget

Profiles in the FM system: - 000100 Payment budget; Payment basis; Due date - 000101 Payment budget; Payment basis; Posting date - 000102 Payment budget; Invoice basis; Posting date - 000350 Separate budget lines PB/CB ; Standard

(C) SAP AG AC700 5-11

© SAP AG 1999

•• Budget category (PB, CB)Year / Period••

Document type

Parameter / Control

Date

Value typecontrol

AnnualControl

Annualcontrol

Datecontrol

Budgetcontrol

Profile

Controlling Update Profiles

For each document (value type), update profiles determine: - The relevant data for the update in Funds Management (due date or posting date) - The budget category that is updated (payment budget and/or commitment budget) - Whether the update is only statistical (without availability control) - The budget year that is updated.

SAP generates new profiles on demand. The date of the update and the stipulation whether the update is statistical can be set independently of the profiles. This also means that it possible to override the settings in the profile.

(C) SAP AG AC700 5-12

© SAP AG 1999

X(2)X(2) : Update with due date

When there is no differentiation between business transactions, only one budget line is updated.

Update profile000100

Commitmentbudget

PaymentPaymentbudgetbudget

X(2)X(2)

X(2)X(2)

X(2)X(2)

X(2)X(2)

X(2)X(2)

Commt /Actual

PurchaserequisitionPurchase

order

Invoice

Payment

Fundsreservation

Update Profile 000100

The update takes place in Funds Management in the year and period, in which the business transaction is relevant to the budget.

The year and period of the update in Funds Management are derived from the document date. For example, a purchase order posted in 2000 with a due date in 2001 will consume budget in budget year 2001.

(C) SAP AG AC700 5-13

© SAP AG 1999

Update profile000350

Payment budget:Separate foreach fiscal year

Commt budget:Separate foreach fiscal year

X(1) : Update with posting dateX(2)X(2) : Update with due date

Commitmentbudget

PaymentPaymentbudgetbudget

X(1)X(1)

X(2)X(2)

CommtActual

PurchaserequisitionPurchase

order

Fundsreservation

Invoice

Payment

X(1)

X(1)

X(1)

X(1)

Update Profile 000350

The funds assigned for a purchase order are checked against the commitment budget for the year given in the posting date.

The funds assigned for an invoice are checked against the payment budget and the commitment budget for the year given in the posting date.

The payment is checked in the payment budget for the year specified in the due date.

(C) SAP AG AC700 5-14

© SAP AG 1999

Asset postings whose transaction type is flagged as "not budget-relevant"

All CO actual postings selected in Customizing are updated statistically.

Earmarked funds that are defined as statistical in the update profile.

Goods movements whose movement type is flagged as "not budget-relevant"

AAAAAA

MMMMMM

COCOCO

Statistical Update

(C) SAP AG AC700 5-15

© SAP AG 1999

Updating

Dialog functions

Basics of updating



(C) SAP AG AC700 5-16

© SAP AG 1999

Old (< Rel. 4.5A)

Lines items / Header

FCABPFCABK

FMICOITFMICOITFMICOHDFMICOHD

Totals

New (>= Rel. 4.5A)

FMIOI FMIFIITFMIFIHD

FMIAFMIA

FMIT

FM commtsand actuals

FM commts FI docsCO docs

RFFMTRNS

RFFMRC05

CO docs

RFFMRC04

FMSU

FMBO

New Data Structure and Conversion

Starting from Release 4.5A, new data structures are used in Funds Management for actuals and commitments data. The "old" tables are replaced by new ones.

Old tables: FMSU (totals), FCABP, FCABK, FMICOIT, FMICOHD New tables: FMIT (totals), FMIFIIHD, FMIFIIT, FMIOI, FMIA You must convert existing data (except internal CO postings) in a batch run using program RFFMTRNS. (For more information, see the program documentation and note 101778.)

SAP recommends the following procedure: - Make a note of the current settings for the update date of documents (transaction ofup) - Clear old totals/line items (program RFFMS012) - Convert data (program RFFMTRNS) - Reconstruct internal CO postings, if CO posting integration is active. (Transaction FMBO) - Construct totals (program RFFMRC04) - Reconstruct assigned values (program BPINDX03) - Compare data totals (program RFFMRC05)

(C) SAP AG AC700 5-17

© SAP AG 1999

Supplementary Account Assignments and Subsequent Postings

Starting from Release 4.5, supplementary account assignments can be made for documents from other components with incomplete FM account assignments.The documents for which supplementary account assignments have been made can then automatically be subsequently posted. Thus, replacing the programs that until now have been used to reconstruct actual data.Advantages of the new programs:

Consistent screen structureMany selection criteriaDocuments that need to be subsequently posted can be deleted before the subsequent posting in order to avoid duplicate postings.

(C) SAP AG AC700 5-18

© SAP AG 1999

Dialog functions

Basics of updating



Updating

(C) SAP AG AC700 5-19

© SAP AG 1999

Financial Transactions and Value Types

Financial transactions

Value types

UpdatingUpdating

Only:

30

30

60

30

90

66

Transfer

54

Invoice

57

Payment

RFFMS200Have invoices been cleared?

57

Payment

30

90

Down payment

The value type determines how a posting is displayed in Reporting. A posting with a value type 54 for example will be displayed as an invoice.

The financial transactions of the commitment items involved in a posting determine with which value type a posting is updated.

(C) SAP AG AC700 5-20

© SAP AG 1999

Value types

Funds commitment 65

Funds precmmt 81

Funds reservation 82

Purchase order 51

Purchase requisition 50

CO actual postings 95

UpdatingUpdating

Fixed assignment

Value types

Postings to MM, CO and earmarked funds each affect only one commitment item. The system recognizes the transaction and updates the accounting transaction to the respective value type.

There is a fixed allocation of value types for purchase requisitions, purchase orders and earmarked funds.

(C) SAP AG AC700 5-21

© SAP AG 1999

Updating: Irrelevant Documents

Entry of a purchase requisition / purchase order with a commitment item whose transaction is not "30"

Posting lines with a commitment item whose transaction is not "30".FIFIFI

MMMMMM

(C) SAP AG AC700 5-22

© SAP AG 1999

Updating: Summary (1)

Update control is carried out in accordance with the settings in Customizing for warehouse concepts, tax handling and so on, and the settings in the update profile.The carryforward level flags carried forward documents. They pass on this flag to follow-on documents.Update profiles specify the relevant update date, budget category and budget year, and determine whether update is only statistical.Important changes have occurred to the data structures as of Release 4.5. A clear procedure has been defined for conversion.New programs are available for making supplementary account assignments and subsequent postings of external documents.

(C) SAP AG AC700 5-23

© SAP AG 1999

Updating: Summary (2)

Technical updating is controlled by means of business transactions and value types.If no posting lines exist containing a commitment item with business transaction 30, no update is carried out.


© SAP AG 1999

Overview

Closing Operations Monitor

Carryforward Parameter and Carryforward Type

Carryforward rules

Year-End Closing: Procedure

Carrying Forward Fund Values

Year-End Closing

From a technical system viewpoint, it is not necessary to carry out year-end closing. But, it has an effect on: - The budgets - Budget usage - The way in which commitments, actuals and budget are dislayed in reporting

If you do not carry out closing operations: - Actual values are not carried forward for funds with annual values - Open commitments documents remain in the old year - Residual budget in the old year is not available for activities in the new year. It is simply forfeited.

Result (example): A funds reservation from 1998 is reduced by a purchase order in 1999. The purchase order only consumes budget for 1999.


© SAP AG 1999

Describe the functionality of carryforward parametersand carryforward typeCopy carryforward rulesOutline the procedure for a reversal of a commitment carryforwardUse the monitor to oversee fiscal year change / carryforwards

At the conclusion of this unit, you will be able to:

Year-End Closing: Unit Objectives


© SAP AG 1999






BudgetingBudgeting

UpdatingUpdating




© SAP AG 1999

31.12.

Old fiscal year New fiscal year

Residualbudget

Open commitments

Carry forwardresidual budgetfrom old fiscal year

Carry forwardopen commitments

Maintain carryforward rulesTreatment of special casesTechnical process

Closing Operations

The year-end activities in Funds Management must not simply be started on the last day of the fiscal year. It is much more advisable:

- To define the rules to be used as early as possible - That when it becomes known that open items are no longer going to be cleared in the current year

not are they to be carried over to the next year, you start reversing transactions (such as deleting purchase requisitions, canceling reservations, resetting purchase orders and notifying the vendors).

Year-end processing is not necessary from a technical system point of view. It is used simply in order that the budget and commitments are correctly displayed in reporting. If you do not carry out the activities, then:

- Any unused budget remains in the old year and cannot be used in the new year - Open items are reduced correctly in the old year as soon as they are processed in the new year

Since Funds Management is integrated with other modules, you should consider the year-end activities of these other modules and the effects they have on Funds Management when you are planning the fiscal year change in Funds Management. There is no link to the activities of the other modules from a technical system point of view.


© SAP AG 1999

Report for funds center: Institute for Medical Research as of 31.12.98Period 01 - Period 12

Actual residual budget

Open commitments (+ associated budget)

Resid. bdgt

1000500 0

Actual

300065002000

Commt

1000

1000

Curr. bdgt

50007000 3000

Item

MATHREDP

Fiscal Year Change

When carrying out fiscal year change, you must process both open commitments with the associated budget and actual residual budgets.

Open commitments include: - Purchase requisitions from Materials Management - Purchase orders from Materials Management - Earmarked funds from Funds Management - Invoices (only when updating on a payment basis)

A budget is linked to these commitments in each case. It is known as an associated budget. As opposed to the associated budget, an actual residual budget is not linked to any kind of commitment. This means that: Actual residual budget = current budget - assigned budget (by actuals) - budget associated with the current commitments.

Fiscal year change only processes the effects Funds Management has on commitments belonging to the other modules. The original documents are not changed nor do they provide an explanation as to the fiscal year change activities which have taken place in Funds Management.


© SAP AG 1999

Display and maintain:

• Parameters• Customizing settings for each

FM area, year, value type• Rules

Commitment

Budget forcommitment

Residual budget

Default settings

Information:

For which objects are closing operations permitted?

Monitor

The closing operations monitor - offers a quick overview of all relevant system settings - allows the settings to be displayed in detail and you can also branch directly from the monitor to the

relevant Customizing or area menu settings You can display and maintain entries. Information is provided regarding: whether the default settings allow the carryforward for commitments and budgets carryforwards of commitments and budget for commitments (for payment and commitment budget, depending on the update profile) that are permitted for each value type and those that are not permitted as well as any carryforward parameters that apply

carryforwards of residual budget permitted / not permitted and the underlying parameters - Displaying and maintaining assignments of parameters to rules (Customizing)

The functionality of the monitor will be extended in further releases.


© SAP AG 1999

Param. 1: Residualpayment bdgt

Param. 1: Residual commt bdgt

Parameters: Fundsreservations

Change acct asst?

No

Permitted

Permitted

Permitted

Change acct asst?

No

Permitted

Sender / Receiver

1 Receiver

1 Receiver

1 Receiver

n Receivers

Sender / Receiver

1 Receiver

1 Receiver

% carryfwd

100 or 0%

100 or 0%

Arbitrary

Arbitrary

% carryfwd

100 or 0%

100 or 0%

10

20

30

40

10

20

Type

Carryforward budget

Commitment Carryforward

Type

Definition:Do you want to work withpredefinedparameters for- Commitments- Budgetduring closingoperations?

Carryforward Parameter and Carryforward Type

At first the carryforward parameter is simply a name that must be entered in the application itself. It does not have any effect until a carryforward type is assigned to it in Customizing.

Example scenario: A parameter is created for each value type. As a result, a carryforward type can be individually assigned to each value type and therefore carried forward individually. (For example, it is possible to change the account assignment of funds reservations, however you cannot do so for purchase orders)

There are four carryforward types: Types 10 and 20 can be used for commitment carryforwards and budget carryforwards. Types 30 and 40 can only be selected for budget carryforwards Therefore, only when you are handling budget carryforwards, is it possible to:

- select an arbitrary percentage for carryforward - specify any number of recipients (type 40)


© SAP AG 1999

Carryforward budgetTo be able to set special carryforward rules, a carryforward parameter must already existDefine the final percentage of the carryforward of budget for commitments and residual budget Define sender/receiver relationship

Commitment CarryforwardTo be able to set special carryforward rules, a carryforward parameter must already existDefine carryforward as 100% or 0%Define sender/receiver relationship

Carryforward Rules

Carryforward rules can be determined both for budget carryforwards and commitment carryforwards. If you want to work with rules, but do not want to make a 1:1 carryforward or transfer, carryforward parameters must already exist. You must have previously defined these parameters in the system.

Sender and recipient addresses must be valid in their respective years (sender in the old year, recipient in the subsequent year)


© SAP AG 1999

Sub Lvl Funds center / Commt item Percentage

+ 1 * * 100%

+ S * 100%

+ * 40000 . . .

...

This level is subdivided

*.* - Entry only appears if you have not restricted the selection in any way

All commitment items in center S All funds centers in

commitment item 40000

You are in level 1

All funds centersand commitmentitems

Maintaining Carryforward Rules

Carryforward rules are valid for: �œeach fund �œeach fiscal year

Depending on the carryforward parameter, percentages of between zero (meaning nothing is carried forward) and 100 (meaning everything is carried forward) are permitted.

The last two lines indicate the need for you to regulate priorities for the fiscal-year change. You can do this for each FM area in Customizing.

(C) SAP AG AC700 6-10

© SAP AG 1999

Copy rules

FM area

Copy fromParameterYear

Copy toParameterYear

?

Copy rules• for each parameter• to a subsequent year

??

1998

FMA1

Copying Carryforward Rules

You can copy the carryforward rules for a budget from one year to another. This makes year-end closing operations easier if you have made fundamental changes to your structures.

The carryforward rules for each parameter and FM area are copied. The set of rules defined is copied from the parameter of a previous year to a parameter of a subsequent year. Therefore, that parameter must already have been defined in the subsequent year.

Copied values can be overwritten. A test run can be executed.

(C) SAP AG AC700 6-11

© SAP AG 1999

Default:

Is carryfwdpermitted?

for eachFM area

1999

Maintain rulesfor each:

FM area

Year

Parameter

Define parametertype: 10, 20, 30,

40

Definition:

permitted for each FM area and year

assign parameter

Budget2000

2000•Prepare

•Define

•Execute

Carryfwd

Specific alternative

General alternative:1 : 1, 100%

Budget Carryforward Process

Budget1999

One of the fundamental settings that must be made for each FM area in Customizing is whether closing operations should be carried out for commitments, budget for commitment and residual budget in an FM area (FMA).

Budget carryforward: General rule: If you do not need a specific set of rules for year-end closing and the general rule for a 100%, 1:1 carryforward meets your requirements, you can carry out the carryforward following the menu options "Prepare carryforward", "Determine carryforward" and "Execute carryforward". Specific rules: If you require special rules such as those outlined in the above slide (for example, you want to change the sender/receiver relationship and only 50% of the residual budget can be carried forward), then you proceed as follows:

- Maintain the carryforward parameters in the FM application menu. You can decide whether you want to carry out the carryforward entirely on the basis of the parameters or entirely without the parameters.

- Enter carryforward as allowed for each FM area and each fiscal year in Customizing and, if necessary, define the appropriate parameters. For the budget for commitment, you can specify the carryforward separately according to value type.

- Each special system setting overwrites any general rules that may exist. - Maintain carryforward rules and the final carryforward of documents.

It is not possible to reverse a budget carryforward from a subsequent year to the previous year. However, you can make corrections by maintaining rules and carrying out the carryforward for a second time.

(C) SAP AG AC700 6-12

© SAP AG 1999

December

31

* When updating on a payment basis


Purchase orders

Earmarked funds

Invoices*


Purchase orders

Earmarked funds

Invoices

Carrying Forward Open Commitments

Since the budget linked to commitments is included when calculating the actual residual budget, you should carry forward the commitments before carrying forward the budget. Otherwise you have to repeat the calculation and carrying forward of the budget so as to display the budget carried forward correctly.

(C) SAP AG AC700 6-13

© SAP AG 1999

Maintain:

Rules for each

FM acct assignmtParameter

Assign:

Parameterfor each

FM areaYearVal. type

Reversal

By Default:Is carryfwdallowed?

for eachFM area

Maintain parameters,type: 10, 20

1999

CommtSelect

documents and carry forward

2000

Commt

Define:Carryfwd allowed for

FM areaYearVal. type

Specific alternative

General alternative:1 : 1, 100%

Carryforward Procedure for Commitments

If, according to the default settings in Customizing, the yearly carryforward is permitted, then commitments can be carried forward to the following year.

General rule: If a general carryforward of 1:1 is sufficient for your requirements, documents can be selected directly and carried forward.

Specific rules: In Customizing, the carryforward can be restricted on the basis of FM area, year and value type (for example, in your organization, only commitments can be carried forward in Materials Management and not funds reservations). If you are not working with carryforward parameters, you can now proceed directly to document selection. If you are working with parameters, you must create the parameters and assign the FM area, year and value types. After rule maintenance, you can execute the carryforward using selection program RFFMC001 and carryforward program RFFMC010. Data is carried forward to period 001 of the following year.

It is possible to reverse a carryforward (RFFMC040), as long as the carried forward document has not been involved in any further processes.

(C) SAP AG AC700 6-14

© SAP AG 1999

Introduction

The life of funds from secondary sources generally covers several fiscal years. It is thus of interest to have the total values of several budget years available.

Unlike the year-end activities for commitments and budget values, the carrying forward of funds values processes actual revenues and actual expenditures and updates such total values.


(C) SAP AG AC700 6-15

© SAP AG 1999

Actual 97 Actual 98 Actual 99

C/fw 01 02 . . . C/fw 01 02 . . . C/fw 01 02 . . . C/fw 01 02 . . .

1005080

200150

60

640000

702010

804090

Mat1Mat2Mat3

Inv1Inv2

. . .

ExpenditureMat

Commtitem: Mat3C/fwd: Mat

Cap.Inv.

. . .

. . .

Actual 2000

Life of the fund


In contrast to the fiscal year change activities which affect commitments and budgeted values, the balance carried forward for fund values processes actual revenues and actual expenditures.

By carrying forward the actual data, even in the case of long-term funds, it is only necessary to access data from the current fiscal year so as to be able to make an accumulated report of the total life of the fund.

By totaling at carry-forward commitment item level, it is possible to summarize at the level of detail required. It also means that the dataset required for a full report is further reduced without causing the data from previous years to be mixed up with data from the current year.

Since funds centers (without funds) basically display year-related data, it is neither possible nor does it make sense to carry forward a balance for them.

(C) SAP AG AC700 6-16

© SAP AG 1999

1. Define the carry-forward items in the commitment item master record (master data maintenance)

1.1. Define the carryDefine the carry--forward items in the forward items in the commitment item master record commitment item master record (master data maintenance)(master data maintenance)

2. Flag a fund as carry-forward relevant(master data maintenance)

2.2. Flag a fund as carryFlag a fund as carry--forward relevantforward relevant(master data maintenance)(master data maintenance)

3. Post the balance carryforward (SAPFMVT1)

3.3. Post the balance carryforward Post the balance carryforward (SAPFMVT1)(SAPFMVT1)

Closing Operations: Carry Forward Fund Balance

In contrast to the commitment carryforward, this procedure involves summarizing and carrying forward actual data.

If you make any postings in the old fiscal year after you have run SAPFMVT1, you must run it again. The system does not automatically adjust the data.

(C) SAP AG AC700 6-17

© SAP AG 1999

Actual residual budgets, budget for commitments and open commitments can be taken into consideration when carrying forward data from one year to another.Carryforward parameters are substantiated by carryforward types. There are four carryforward types for commitments and budget.Carryforward rules can be defined for budgetcarryforwards and commitment carryforwards.

Year-End Closing: Summary (1)

(C) SAP AG AC700 6-18

© SAP AG 1999

Carryforward rules can be copied from oneyear to another.The closing operations monitor enables you to obtain a quick overview of all relevantsystem settings and allows you to branch directly to the settings in Customizing and in the area menu.Carrying forward funds allows you to generatea view of the actual revenues/expendituresfor several years.

Year-End Closing: Summary (2)

(C) SAP AG AC700 6-19

Year End Closing Exercises

Unit: Year-End Closing Topic: Carryforward Parameters and Rules


• Define carryforward parameters for the carryforward of commitments and budget values

• Define and copy carryforward rules

• At fiscal year change, budget and commitments should be carried forward into the next fiscal year according to special rules.

1-1 Define the following carryforward parameters for the fiscal year change: For budget carryforward: “Budget XX” with carryforward type 20 For commitment carryforward: “Commitment XX” with carryforward type 20

1-2 Define the following rules for the carryforward of budget values: FM acct assigmt: Sender FM area P12 Sender fund EU Sender commitment item 60040 Receiver funds center P12 Receiver fund EU Receiver commitment item 60010 The budget values should be carried forward in their entirety (100%).

(C) SAP AG AC700 6-20

1-3 Branch to rule maintenance again and change the percentage to 80%. Explain the system’s reaction.

1-4 Define carryforward rules for carryforward parameter “commitment XX”. Since they should correspond to the rules of the budget carryforward, use the copy option.

(C) SAP AG AC700 6-21

Unit: Year-End Closing Topic: Carrying Forward Commitments


• Explain the settings in Customizing for the carryforward of open commitment values.

• Execute the carryforward of commitments values.

• A number of open commitment values are to be carried forward into the next fiscal year.

2-1 Ascertain whether the carryforward of commitment values is permitted.

2-2 Define special rules for the carryforward of funds commitments, purchase orders and invoices that allow these value types to be carried forward and assign them carryforward parameter “commitment XX”. Use the maintenance option in the closing operations monitor.

2-3 Carry forward all open commitment values to the next financial year. The selection should only apply to the payment budget. Take note of the the order of execution for the programs required for carried forward.

(C) SAP AG AC700 6-22

Unit: Year-End Closing Topic: Budget Carryforward


• Explain the settings in Customizing for the carryforward of budget values.

• Execute the carryforward of residual budgets and budget for commitments.

• Economical operations should be rewarded. Therefore the executive board has decided that budget values can be carried forward from one financial year to the next.

3-1 Ascertain whether the carryforward of budget values is permitted.

3-2 Although carryforward rules have already been maintained, the generic alternative (1:1, 100%) should be used for the carryforward. Carry forward “real” residual budgets and budget for commitments for the EU fund to the next fiscal year, both for the commitment budget and the payment budget. Take note of the the order of execution for the programs required for carried forward.

(C) SAP AG AC700 6-23

Year-End Closing Solutions

Unit: Year-End ClosingTopic: Carryforward Parameters and Rules

1-1 Accounting – Financial Accounting – Funds Management – Additional Functions – Closing Operations – Maintain Carryforward Parameter


FM area 90##

Carryforward parameter Budget XX

Carryforward type 20


FM area 90##

Carryforward parameter Commitment XX

Carryforward type 20

1-2 Accounting – Financial Accounting – Funds Management – Additional Functions – Closing Operations – Carryforward Rules – Maintain


FM area 90##

Fiscal year 200Y

Funds center P12


Fund EU


(C) SAP AG AC700 6-24

Choose sender => Maintain rule => Create new rule

(Receiver) funds center P12

(Receiver) commitment item: 60010

(Receiver) Fund EU

Percentage 100

=> Back => Save

1-3 Accounting – Financial Accounting – Funds Management – Additional Functions – Closing Operations – Carryforward Rules – Maintain Carryforward type 20 only allows a percentage rate of 0 or 100 to be entered.

1-4 Accounting – Financial Accounting – Funds Management – Additional Functions – Closing Operations – Carryforward Rules – Copy


FM area 90##


Fiscal year 200Y

(Destination) Carryforward parameter

Commitment XX

(Destination) Fiscal year 200Y

Only copy if everything OK X

(C) SAP AG AC700 6-25

Unit: Year-End Closing Topic: Carrying Forward Commitments

2-1 Accounting – Financial Accounting – Funds Management – Additional Functions – Closing Operations – Closing Operations Monitor



FM area 90XX

Year 200Y

Value type 51, 54, 65

Carryforward allowed Check

Assignment of carryforward parameter:

Click on Carryforward parameter => Assign carryforward parameter


FM area 90XX

Year 200Y

Value type 51, 54, 65

Carryforward parameter Commitment XX

Customizing:

Tools – Customizing – Project processing – Goto – SAP Reference IMG- Financial Accounting – Funds Management– Additional Functions – Closing Operations – Make Settings for Commitment Carryforward Payment / Commitment Budget Tools – Customizing – Project processing – Goto – SAP Reference IMG- Financial Accounting – Funds Management– Additional Functions – Closing Operations –Assign carryforward parameter for commitment carryforward

2-3 Accounting – Financial Accouting – Funds Management – Additional Functions – Closing Operations – Commitment Carryforward – Select Documents Accounting -Financial Accouting – Funds Management – Additional Functions –

(C) SAP AG AC700 6-26

Closing Operations – Commitment Carryforward – Carry Forward Documents

(C) SAP AG AC700 6-27

Unit: Year-End Closing Topic: Budget Carryforward


3-2 Accounting – Financial Accounting – Funds Management – Additional Functions – Closing Operations – Budget Carryforward – Prepare

Accounting – Financial Accounting – Funds Management – Additional Functions – Closing Operations – Budget Carryforward – Determine

Select residual budget and budget for commitments.

Accounting – Financial Accounting – Funds Management – Additional Functions – Closing Operations – Budget Carryforward – Execute


© SAP AG 1999

Information system architecture

Master data reporting

Line item reporting

Totals records

Drilldown concept

Creating formulas for drilldown reports

Defining drilldown reports

Defining line item reports

Accessing user-defined reports

Funds Management Reporting


© SAP AG 1999

Navigate through the line item reports in Funds Management

Prepare user-specific line item reports

Explain the principle of drilldown reporting

Create drilldown reports

Integrate new reports in the menu

At the conclusion of this unit, you will be able to:

Funds Management Reporting: Unit Objectives


© SAP AG 1999






BudgetingBudgeting

UpdatingUpdating




© SAP AG 1999

Data collection / summarization

R/3R/3R/2R/2 Externalsources

NonNon--SAPSAPsystemssystems

Overall organization

Departmental level

Day-to-dayactivities

SAP BWSAP BWSAP BW

Business Information WarehouseBusiness Information Warehouse

Report / analysis structuresReport / analysis structures

Functional information systemsFunctional information systems

Information System Architecture

Each individual component is responsible for application-specific reporting Only FM specific data is evaluated in Funds Management. In contrast to this, the BW supports reporting functions across applications and has its own data collection and data retention tools

You can use various tools in FM reporting (such as drilldown reporting and list viewer)


© SAP AG 1999

BW

Operational systems

LogisticsLogistics ControllingControlling BudgetBudget

Overall view

Funds center 100

Commt item 20

Commt item 80

Funds center 120

Commt item 60

Commt item 20

Commt item 40

Total expenditures 220

Overall view of the organization using summarizationIntegration of different applicationsProvides detailed information

Advantages of the Architecture


© SAP AG 1999

Administrative Reporting

Master Data Reporting


© SAP AG 1999

What does my current funds center structurelook like???

Which funds are fed by the IBM source of financing ?

What does my budget structure in the area of personnel costs look like ?

Administrative Reporting

Master data reports enable you to always have an overview of all basic structures and their link to Funds Management. This means that in addition to a list of funds centers sorted alphabetically, you can also generate a hierarchical display. The same applies for commitment items.

Where there are links to other master data such as application of funds, as is the case in the fund area, you can also view the funds from secondary sources area by limiting selection to your needs.


© SAP AG 1999

Question: What does my current funds center structure look like ?

Display funds center hierarchy

+

-

+

-

Institute for Medical Research

Administration . . . . . . . . . . . . . . . . . .

Human Resources . . . . . . . . . . . . . . . . . . . . . . .

Secretary's office. . . . . . . . . . . . . . . . . . . . . .

Accounting / Purchasing. . . . . . . .

TOP

+ . . .

. . .

Administrative Reporting: Example


© SAP AG 1999

Basics of line item reporting

Logical database: Concept and use

Using the ABAP list viewer

Selection functions

Working with display variants

Line Item Reporting

(C) SAP AG AC700 7-10

© SAP AG 1999

Summarizing using the logical database

- To have access to a clear view of the various sources of data

- To be able to offer a centrally optimizedread-only access

Using a presentation tool

- To enable uniform presentations

- To enable user-specific layouts within the tool

Selection Presentation

Logical Database ABAP List Viewer

Basics of Line Item Reporting

Database delivered with standard system F1F (master data and transaction data)

Structures The structure of the logical database (LDB) indicates the sequence in which the individual segments of the LDB are imported and made available for further processing

F1F: first master data is imported, followed by transaction data The set-up of segments does not correspond to the table set-up

Used in line item reporting Can be used for totals records reports The segments of the logical database are not displayed They now include:

Master data Budget data Commitment/Actual Year-end closing (in part)

(C) SAP AG AC700 7-11

© SAP AG 1999

FKRS

FFNDFCTR

FPOSFVSN

EPBTVEPT

BPBYEPBY

VEPY

BPBT

ABAPABAP-- EditorEditor

Program

ZZ...Logical Database

F1F

Logical Database: F1F

The logical database offers a logical overview of data irrespective of the structure of a database If you use the logical database in SAP Query or in your own reports:

You should choose dynamic selection from the logical database over the possible selection fields in the query, since it has a direct effect on the database and network load whereas the query filters out fields afterwards.

Similarly, you should define exactly which fields you require and which selection you need in your reports

Advantages: Easier access to the data for the report Standardised selection screen Can be used with the ABAP List Viewer, SAP Query, and your own reports

"Dynamic selection" All fields can be used to restrict your selection The standard selection offers the fields that are most commonly used

Classification Selection of the master data to be evaluated using the classification tool

When creating your own reports, you should restrict the selection to the segment you require Not all data is imported

(C) SAP AG AC700 7-12

© SAP AG 1999

Standard selectionFM areaFundFunds centersCommitment items

Financial trans.Item category

Dynamic selectionDynamic selection

+

List

...

Selection Functions

Dynamic selection Enhanced selection options for all fields that are available in the database Advantage: The selection is passed on to the database

Classification Alternative selection option using user-defined grouping terms. The master data selected for each classification is passed on to the appropriate follow-on program, just as if it had been entered there

(C) SAP AG AC700 7-13

© SAP AG 1999

Totals

Display variants

Doc.no. Pstg date Val. type text Amount ...

50000009685000001038

5000000969

50000019705000001980

02.01.9705.02.97

18.02.97

24.02.9724.02.97

Funds reserv.Funds reserv. ∑ Invoices∑

InvoicesInvoices∑

∑

1,000.00 -500.00 -

1,600.00 -150.00150.00250.00100.00350.00

1,100.00 -

Subtotals

Individual document displayDetail view

Filter

Functions in the Executed Report

(C) SAP AG AC700 7-14

© SAP AG 1999

Display fieldsItem Length Total12

3466

1010

4101010

Column Document number

Available fieldsColumn contentApplication of funds

Fund name

Version

Value type

Created by

Text

Date of entry

Length

1020721012

50

Posting lines

Fiscal year

Value type text

Transaction textTransaction text

save

Doc. No. Posting lines Year Value type text .........

Customer fund 55 22

Working with Display Variants

You can use display variants to prepare report lists according to your own specific requirements. Additional fields can be displayed and fields that are already shown can be hidden. You can select the item and

length for each field. Display variants can be saved and set as default variants.

(C) SAP AG AC700 7-15

© SAP AG 1999

Basics of Drilldown ReportingForm report typesForm layout settingsCreating reportsWorking with drilldown reportsFurther processing

Drilldown Reporting

(C) SAP AG AC700 7-16

© SAP AG 1999

Principle of Drilldown Reporting

Value t

ype

Fund

Fund

s ce

nter A1

P12

C12

Fund:Funds center:Value type:

YFP12All

BudgetCommt

ActualBudget EU YF

Characteristics:Funds centerFundCustomer for fundValue type

Commitment itemTrans. currencyApplic. of funds...

Only FM specific data can be evaluated in Funds Management. When using drilldown reports, you can define your own specific "views" of FM data.

By choosing characteristics and key figures for the FM data, you can have the system generate a multidimensional data cube. The user can then freely navigate through the dataset for this data cube when executing reports. By swapping characteristics interactively, you can specify any sequence you require.

Only one of the many possible dimensions is ever displayed for the report that is being executed. A combination of several dimensions is only possible through navigation.

Drilldown reporting is a reporting tool in which the different characteristics of the application have "equal status" and can be combined (together with the appropriate data) according to your needs.

For drilldown reporting, you must define: - how many "characteristics" are to be viewed - the sequence in which the report output should be totalled.

By swapping characteristics interactively, you can specify any sequence you require.

(C) SAP AG AC700 7-17

© SAP AG 1999

Architecture of Drilldown Reporting

Key figuresForms

Key figures

StartStartonlineonline

Start in Start in backgroundbackground

Drilldown reportDrilldown report• Commitment/Actual• Commt/Actual and budget

Lists Graphics Navigation/Drilldown

save

Characteristics

Characteristics, key figures and forms are passed on to the definitions of form reports. The result of a report is a large number of lists that can be selected interactively and displayed on screen. Reports can be printed out, transferred to Excel or saved for future processing.

The form describes the contents and structure of reports. You can consider it as a partly completed report, which is finished off later during report definition.

Characteristics predetermine the options for classifying the dataset. Examples include FM area, funds center, period, value type.

You can select characteristics in the form and also in the report itself. Key figures indicate amount fields from the database in the form of values and amounts. Calculated values can also be represented according to user defined formulas, such as budget utilization.

Key figures can be selected in either the form or the report. A drilldown report always consists of a combination of a form and a report. Forms cannot be executed themselves, that is why a report is always required.

(C) SAP AG AC700 7-18

© SAP AG 1999

Report Functions

Realizes a drilldown report on the basis of a form

Restricting selectionDetermining list of characteristics for drilldown listDefining default sorting of characteristic listfor navigation

Activates hierarchy display for funds center, commitment item or budget structure elementsDetermines print layoutDefines sender-receiver reportsConfigures basic list (how detailled/drilldown list is displayed when calling up a report)

A drilldown report always consists of a combination of a form and a report. Forms cannot be executed themselves, that is why a report is always required.

(C) SAP AG AC700 7-19

© SAP AG 1999

Two Coordinates (Matrix)

Form definition:

FY - 1FYFY +1

Budget Commt Actual

Execute PB02-xx: DetailsReport Edit Goto Navigate

NavigationFunds centerCommt itemFundValue type

Lead column Annual budget Commt/Actual

199920002001

0.001,015,143.00-

0.00

0.00393,143.48-

0.00

Current Data 25.06.2000 15:17:24

Report definition:

Characteristics:Funds centerCustomer for fundValue type

Commt item Applic. of funds.....

FundTrans. curr.

In the "two coordinates (matrix)" form, you define both rows and columns. You can include key figures in the rows or the columns of the form according to your requirements. If you display key figures in the columns, you will have an overview of the future report layout during form definition.

During report definition, you can only select drilldown characteristics. This form type is especially suitable if you want to make a comparison between characteristics displayed in columns.

In the drilldown list, there is a two-line column header, which includes the key figures and all the columns defined in forms lying under these key figures. The values of the drilldown characteristics are displayed in the rows.

In the detail list, you see the layout defined in the form. The detail list reports on a specific profitability segment.

You can change all the settings of a form, except for form type and budget structure use, at any subsequent point in time.

There is a form overview, in which all characteristics of a form are listed. In transaction "Change form", it is possible to generate a where-used list, which shows all the reports to which the form is linked.

(C) SAP AG AC700 7-20

© SAP AG 1999

One Coordinate with Key Figure

PB01-xx: Execute: OverviewReport Edit Goto Navigate

Navigation

Funds centerDisplayed in

Commt itemFundValue typeFiscal year

Period

Annual bdgt1 UNI

Commitment/Actual1 UNI

9010/ V9010/ V9010/ A1

9030/ V9030/ V9030/ A1

Total

1,015,143.48-0.00

1,015,143.48-0.000.000.00

1,015,143,48-

0.000.000.00

393,143.48-0.00

393,143.48-393,143.48-

Exec.BoardExec.BoardDepartment 1Exec.BoardExec.BoardDepartment 1

Form definition:Annual bdgt Commt/Act. Resid. bdgt Usage %

Current Data 25.06.2000 03:04:00 PM

Characteristics:Funds centerCustomer for fundValue type

Commt itemApplic. of funds...

FundTrans. curr.

Report definition:

Note: Before processing the form, you should change the display variant for the form. In the column display (Goto -> Column display) you can get an instant overview of the layout of the report. When defining a form, make sure that you specify the detail list. Key figures are then defined in the rows for a single-coordinate form with key figure. You can change from row display to column display at any time.

In the columns of the form, you define the key figures. The key figures can be linked to characteristics. You can also enter formulas in the columns. Calculations can then be made using key figures (such as budget utilization in %).

During report definition, you then only have to select drilldown characteristics, that is the characteristics whose characteristic values you want to navigate through in a report.

If key figures are linked to characteristics in a form, you will not be able to change the characteristics in the report executed. This contrasts with characteristic definition in the report.

The key figures make up the columns of the form in the drilldown list, while the characteristics are in rows.

The detail list consists of a single column. It contains a combination of specific drilldown characteristics about which you want to report. The selected key figures are displayed in rows.

(C) SAP AG AC700 7-21

© SAP AG 1999

One Coordinate Without Key Figure

Execute PB02-xx: Overview

FM area 9030 IMR reportingNavigation

Commt item

Funds centerDisplayed in

Annual budget available

VVA1

Total

Budget ´971 UNI

Budget ´961 UNI

630,000.00-0.00

630,000.00-630,000.00-

0.000.000.000.00

Report Edit Goto Navigate

Exec.BoardExec.BoardDepartment 1

Zahlenformat..

Report definition:

Key figures:

Characteristics:

Annual budget available Commt/Actual trans. curr.Commt/Actual FM area curr.Overall budget available

...

Funds centerCustomer for fund

Commt itemApplic. of funds

FundTrans. curr.

...

Form definition:Val. type / FY Val. type / FY -1 Val. type / FY -2

In principle, you can use the "One coordinate without key figure" form in Funds Management. It may be that certain tasks that can you encounter are best represented using this form.

You only select characteristics in the "One coordinate without key figure" form. The characteristics selected in the form, such as value type, fiscal year or period from/to, summarize the contents of the columns.

You select key figures and drilldown characteristics during report definition. In the drilldown list, there is a two-line column header, which includes the key figures and all the columns defined in forms lying under these key figures. The values of the drilldown characteristics are displayed in the rows.

In the detail list, you see the columns defined in the form, while the key figures selected during report definition are displayed in the rows. The detail list displays the selected key figures for a specific combination of characteristics.

(C) SAP AG AC700 7-22

© SAP AG 1999

Key figurechar.

Predefinedcolumn

General selection

Formula

Char.

Char.

Char.

Formula

Formula editor

X001 + X002

X001X001

X002X002

Budget

Commt/Act.

Forms: Rows and Columns/Formulas

You can define a row either by combining characteristic values or by using a formula. Columns contain a combination of a key figure and, optionally, extra characteristic values. You can also use predefined columns which represent feasible combinations of key figures and characteristics, such as actuals from the current period or budget from the current fiscal year.

The general selections restrict the dataset without being linked to a column/row. With the "predefined column" option, you can use column definitions from other forms. Columns from the same form are only available once you have saved them.

You can use the formula editor to define formulas, which describe columns, rows or cells. In addition to basic arithmetical operations, many other options are also available. You can gain an overview of these operations if you call up F1 help for the formula entry field.

(C) SAP AG AC700 7-23

© SAP AG 1999

Maintaining Characteristics in Reports

Order2.3.1.4.

Drilldown list2. Funds center3. Commt item4. Value type

Sort characteristics

Characteristics:Characteristics:

Funds centerCustomer for fundValue typeCommitment itemApplic. of funds

1. FundFunds centerCommt itemFundValue type

Selected characteristics Available characteristics

Application of fundsFund

The drilldown sequence in the executed report is always in the order of the characteristic sorting in the report definition. If you do not specify a sequence, the system automatically generates a sequence - from right to left and from bottom to top - from the list of selected characteristics.

Since this sequence will rarely be the one that you require, we recommend that you always maintain the sequence in the report using the "Sort characteristics" function.

(C) SAP AG AC700 7-24

© SAP AG 1999

Working with Drilldown Reports

Selection PhaseNavigating Within Drilldown ReportsDrilldown Report FunctionsExceptionsFurther Processing Options

Defining variants and starting reports in the background are functions that only specific users should be able to carry out.

Classification offers an alternative to master data object selection (as has already been demonstrated in line item reporting).

(C) SAP AG AC700 7-25

© SAP AG 1999

Selection Phase

The selection screen for FM drilldown reporting is always made up of two parts

Standard selection with the three FM master datadimensions of fund, funds center, and commitmentitemVariables which were defined in the form or report

Background processing can only be defined using report executionDynamic selection is not necessary. You can createvariables in the report for all selected characteristics.

Defining variants and starting reports in the background are functions that only specific users should be able to carry out.

Classification offers an alternative to master data object selection (as is the case in line item reporting).

(C) SAP AG AC700 7-26

© SAP AG 1999

Report and drilldownstructures

Fund

s ce

nter

A1

P12

C1

Budget EU

Value t

ype

Fund

ActualCommt

Budget

Analysis of EU fund

Analysis of YF fund

Analysis of YF fundFunds center: P12

33

FM datasetYF

22

11

Fund

s ce

nter

A1P1

2C

1

Budget EU YF Value t

ype

Fund

ActualCommt

Budget

11 22

33

FM areaPeriodApplic. of fundsValue type

Commt itemFunds centerFundDebit type

Navigation in Drilldown Reports

The selection screen for FM drilldown reporting is always made up of two parts Standard selection with the three FM master data dimensions of fund, funds center, and commitment item

Variables which were defined in the form or report Variants can only be defined using report execution (transaction SE38). Background processing can only be defined using report execution Dynamic selection is not necessary. You can create variables in the report for all selected characteristics.

(C) SAP AG AC700 7-27

© SAP AG 1999

Switchdimensions

Insert texts

Display:000s UNIDecimals

Footers

Funds ctrFund

Text

Text

Hide columns

Line items

Currencyconversion

Budget Commt Actual Avail. Usage

Expend. 10000 2000 7000 1000 90%Cap.Inv.

I1. . . . .. . . . .

Current expend.

HR 22000 5000 17000 0 100%

P1P2

18000 1000 14000 3000 85%

Supplies

. . . . .

. .

Print Mail Graphics MS Word XXL List Viewer Excel

Drilldown Report Functions

Header lines

Drilldown reporting functions are subdivided into three groups so that different users can use one of the function levels defined depending on their information requirements and their tasks.

Level 1 contains the basic functions of drilldown reporting (printing, sorting, restricted navigation, detail list) and the connection to SAP mail. This level is for users who do not need the full functionality of drilldown reporting.

Level 2 contains the remaining drilldown reporting functions (connection to Microsoft Excel, graphics functions and downloading to PC).

All functions also contains the functions for print formatting, saving reports and defining exceptions. This level is intended for users who also want to maintain reports or set up print formatting in addition to having the full drilldown reporting functions.

The individual function levels are subject to an authorization check. The authorization object is K_KA_RPT.

In order to be able to use the currency conversion function, you must first define a conversion rule.

(C) SAP AG AC700 7-28

© SAP AG 1999

Exceptions

BackgroundDefinition of threshold values for reportcolumns or individual report cellsDifferent colors for corresponding valuesSearch can be made for "unusual" objects and values in the report

ObjectiveOptimal warning of serious deviations

An exception determines whether an object is distinctive. You can create an exception in a report for a particular key figure in a row or column.

These exceptions consist of a maximum of two thresholds which mark the top and bottom tolerance limits. If a corresponding number value exceeds or falls below a particular threshold, it is highlighted in an appropriate color (red or green).

There are two types of exceptions. You can define an exception either for cells (related to characteristics) or for columns.

You can create an exception if you are in the drilldown list display variant in the executed report. Once you have defined an exception, it is also displayed in the detail list and you can change it there.

You can save exceptions so that they are still valid when you next call up the report.

(C) SAP AG AC700 7-29

© SAP AG 1999

Budget Commt /Actual

Fundscenter

Utilization > 80 %Utilization < 20 %

Budget Utilization%

Funds center: P12Utilization%

VC1C11C13A1P12A2P21P22Z1Z11

100,00040,000

5,00021,00030,00020,00020,00010,00010,00010,000

8,000

41,60012,100

40011,70018,00018,00010,500

9,0001,5001,0001,000

41.6030.25

8.0055.7160.0090.0052.5090.0015.0010.0012.50

Fundsitem

Commt /Actual

340000400105000050010500306000060010600206003060040

20,0008,0005,0002,000

500800

10,0004,0001,0002,0003,000

9,8004,5004,500

500400100

4,8002,000

3001,5001,000

49.0056.2590.0025.0080.0012.5048.0050.0030.0075.0033.33

Exceptions for Columns

Relative key figures, such as variances, can normally be compared even if they are on different drilldown levels. It therefore makes sense to define a separate exception for the column. This means that the exception is evaluated in each list within the report and independently of the drilldown level.

In the above example, budget and commitments/actuals are compared to one another for different funds centers and the resulting budget utilization is determined. An exception has been defined for the ”Utilization %” column. If funds center P12 is then drilled down to, the corresponding commitment items, their budget, the total of commitment and actual postings, and the budget utilization in % are displayed there. The exception defined in the third column is also evaluated in the second list, that is the exception is evaluated both in the funds center list and in the commitment item list.

(C) SAP AG AC700 7-30

© SAP AG 1999

41,60012,100

40011,70018,00018,00010,500

9,0001,5001,0001,000

Budget utilization A1 < 90 %Budget utilization A1 > 70 %

==============================================

Exception cannot be seen

Fundscenter

Budget Commt /Actual

Utilization%

VC1C11C13A1P12A2P21P22Z1Z11

100,00040,000

5,00021,00030,00020,00020,00010,00010,00010,000

8,000

41.6030.25

8.0055.7160.0090.0052.5090.0015.0010.0012.50

Budget Utilization%

Funds center: A 1

Commtitem

Commt /Actual

3400004001050000500105003060000............

9,8004,5004,500

500400100

4,800............

49.0056.2590.0025.0080.0012.5048.00

...

...

...

...

Exceptions for Cells

The second type of exception relates to individual cells and is therefore advisable for absolute key figures such as budget utilization. In the slide above, an exception is defined for cell "A1" (row) and "Utilization %" (column) in the same report. If you then open up the funds center further, the exception is not displayed in the second list.

You can view all of the exceptions that have been defined for a report. You can also delete or change exceptions at any time.

If a cell has more than one exception defined for it, they apply according to their priority - red, green, normal.

(C) SAP AG AC700 7-31

© SAP AG 1999

Defining an Exception

Active

Colour below threshold

Threshold val. 80

RedGreen

Active

Colour below threshold

Threshold val. 20

RedGreen

ColumnBudget utilization %

Exception not yet available

Lower threshold Upper threshold

Status

Validity area

You can create an exception from display variant "drilldown list". Once you have defined an exception, it is also displayed in the detail list and can be redefined there.

You can define either one or two thresholds. To define a threshold, enter the relevant value, activate the threshold and select the appropriate colour. If you do not wish to define a threshold, ensure that the corresponding indicator is not active.

The report cells appear in the colour corresponding to the key figure value. You can create any number of exceptions in a report. Exceptions are created in the report that is currently running, but only apply the next time the report is executed after they have been saved.

(C) SAP AG AC700 7-32

© SAP AG 1999

Print

XXL List Viewer Excel

Graphics

MS WORD

Mail

Further Processing Options

The executed drilldown report can be processed further using the following interfaces: Print: SAP, MS Word 6.0 or Excel Mail: SAP Office Graphics: Using menu option "Graphics", you can call up SAP Business Graphics (2D or 3D) and statistical

graphics (line charts). It is possible to save graphics settings (excluding window size and position). MS Word: Print, further editing XXL List Viewer Excel: Print MS EXCEL: Further processing

(C) SAP AG AC700 7-33

© SAP AG 1999

User roles

Each user works with their own role-based menuRole-based menus contain the transaction andreports that are relevant for the tasks of a userSAP supplies over 150 predefined general rolesRole-based menus can apply across a wholesystem and contain Internet/Intranet scenarios

(C) SAP AG AC700 7-34

© SAP AG 1999

Activity Groups

Role-based menus can be broken down into hierarchical activity groupsAn individual activity group is made up of:

TransactionsReportsWeb addressesR/3 menus...

Individual activity groups can be put togetherto form collective groups

(C) SAP AG AC700 7-35

© SAP AG 1999

Activity group

SAP_FM...

FM_MANAGERCopy

MenuFinancial Accounting

G/L AccountingFunds Management

Master DataBudgeting

Change

Creating Activity Groups

In the activity groups menu view, you select the components that are to be assigned to activity groups; List of transaction codes List of reports Menu paths can be included Web addresses can be included You can carry out maintenance using drag and drop You can create new folders

(C) SAP AG AC700 7-36

© SAP AG 1999

Navigate through the line item reports in Funds Management

Prepare user-specific line item reports

Explain the principle of drilldown reporting

Create drilldown reports

Integrate new reports in the menu

You are now able to:

Funds Management Reporting: Unit Summary

(C) SAP AG AC700 7-37

Funds Management Reporting Exercises

Unit: Funds Management Reporting Topic: Line Item Reports


• Edit and display line item reports.

• You need to extend the line item report variants delivered with the standard system to create variants specific for your project.

1-1 Call up line item report “Commitments/Actuals – All postings” and change the current display variant. Hide field “Statistical indicator”. Show field “Value type” and have it displayed as the 4th item in your display variant. Save your personal display variant as GR-XX.

1-2 Call up line item report “Commitments/actuals – CO postings” again. Select your personal display variant. Show the subtotal for each value type and resave your variant.

(C) SAP AG AC700 7-38

Unit: Funds Management Reporting Topic: Drilldown Reporting


• Navigate through drilldown reports in Funds Management

• Create drilldown reports

• You are to add drilldown reports suited to the requirements of your organization to those that are delivered with the standard system.

2-1 Create a new drilldown reporting form for the “FM account assignment elements hierarchy”. Use structure “Coordinate with key figure”.

Form GR-XX

Name: Group XX

The form should contain 3 elements. The global characteristic “FM area” should be used for each element:

Element 1 Key figure “current annual budget”

Element 2 Key figure “Commitments/Actuals (payment budget) in FM area currency”

Element 3 Formula for residual budget

Save the form.

2-2 Create a drilldown report for the “FM account assignment elements hierarchy” with reference to your form. Report: RGR-XX Select the following characteristics: Company code – Fund – Funds center – Commitment item – Value type – Fiscal year – Period – Version Save the report.

2-3 Execute the report using transaction “Change report”.

(C) SAP AG AC700 7-39

Unit: Funds Management Reporting Topic: Report Selection


• Change the report selection using activity groups

• You should add the drilldown reports you have created to the user menu.

3-1 Change activity group “FM-Manager” which already exists in the system. Change the activity group menu as follows: In Funds Management select nodes “Information system – Totals records” and add your drilldown report.

3-2 Go to the start menu and from there, use the “Other menu” pushbutton to proceed to activity group “FM-Manager”. Execute the new drilldown report.

(C) SAP AG AC700 7-40

Funds Management Reporting Solutions

Unit: Funds Management Reporting Topic: Line Item Reports

1-1 Financial Accounting – Funds Management – Information system – Line items – Commitments/Actuals – All postings Execute report => Settings – Display variants - Current


Statistical indicator Hide

Value type Show

=> Save display variant as “GR-XX“

1-2 Financial Accounting – Funds Management – Information system – Line items – Commitments/Actuals – All postings Execute report => Settings – Display variants – Select => Select value type column => Edit => Subtotal => Save

(C) SAP AG AC700 7-41

Unit: Funds Management Reporting Topic: Drilldown Reporting

2-1 Tools- Customizing – Project processing – Goto – SAP Reference IMG – Financial Accounting – Funds Management – Information system – Drilldown reporting – Reports – Form – Create form FM account assignments hierarchy

=> Coordinate with key figure


Form Gr-XX (Group number)

Double click on element

FM area Use variable for FM area

Element 1 Current annual budget

Element 2 Commitments/Actuals (payment budget) in FM area currency

Element 3 Residual budget =

Element 1 - Element 2 => save

2-2 Tools- Customizing – Project processing – Goto – SAP Reference IMG – Financial Accounting – Funds Management – Information system – Drilldown reporting – Reports – Create report

(C) SAP AG AC700 7-42


Report type FM account assignments hierarchy

Report RGr-XX

Form GR-XX

Characteristics Company code – Fund – Funds center – Commitment item – Value type – Fiscal year – Period - Version

2-3 Tools- Customizing – Project processing – Goto – SAP Reference IMG – Financial Accounting – Funds Management – Information system – Drilldown reporting – Reports – Create report => Execute report

(C) SAP AG AC700 7-43

Unit: Funds Management Reporting Topic: Report Selection

3-1 Menu – Create menu from activity groups => Change activity group – Menu => Add report


Report type Drilldown Reporting

Application class TR - Funds Management

Hierarchical FM account assignment elements

Current annual budget

=> Select report – Save as local object

3-2 Menu – Display activity group menu Execute report


© SAP AG 1999

Checking authorizationsTransferring data within the R/3 systemEntering budget in EuroStatus management

General Information


© SAP AG 1999

The authorizations that are checked in Funds Managementand the order in which they are checkedPreparing for production startupMaking supplementary account assignments andsubsequent postings when you start using Funds Management dataThe functions that are available by default in Funds Management and those functions that must be activatedby the userBudgeting in Euro in the dual currency phaseUsing status management

In this unit, you will learn about:

General Information: Unit Objectives


© SAP AG 1999






BudgetingBudgeting

UpdatingUpdating




© SAP AG 1999

1. Activity allowed for version xxxYesYes

NoNo RefusedRefused

2. Activity allowed for FM acct assignmentNoNo

YesYes Allowed without further checksAllowed without further checks

3. Activity allowed for FM areaYesYes

NoNo RefusedRefused

4. Activity allowed for fundYesYes

NoNo RefusedRefused

5. Activity allowed for funds centerYesYes

NoNo RefusedRefused

6. Activity affects Activity internal whole funds within funds centercenter (top (not top item)item)

NoNo RefusedRefused

YesYesNoNo RefusedRefused

7. Activity allowed for commitment itemYesYes

NoNo RefusedRefused

Processing allowedProcessing allowed

Checking Authorizations

If you have no authorization for FM account assignment, the system reacts as follows: Master data You cannot create, change, or display the master data.

Budgeting The combination in question is merely displayed (if you have display authorization). You can make entries in all other combinations you have selected

Posting commitment and actual values You cannot enter the posting in Materials Management, Financial Accounting, or Funds Management.

Reporting - Drilldown

The report is not displayed for combinations for which you are not fully authorized. - Line item reports

Reports based on the logical database (such as line-item reports in Funds Management) do not show the data records for which you are not authorized. Other combinations selected at the same time are displayed as normal.


© SAP AG 1999

Preparing for Production Startup

Objective: Delete test data(transaction data)

Means: Delete actual data Delete budget data(Delete budget structure)

Result: Posting is possible as before -that is, master data and Customizing are not deleted

Objective: Reset Funds Management to the beginning of the project (master data and transaction data)

Means: Delete actual data Delete budget dataDelete master dataDelete commitment item from G/L account(Delete budget structure)

Result: Customizing not deletedYou cannot make postings untilyou create the master data again

Objective: Prepare an additional company code for Funds Management

Means: Copy the commitment item in the G/L account

Result: You can attach the company code to Funds Management by activating the company code

Before starting productive use of an FM area, you may need to reset data created in the test phase. Depending on how far this reset is to go, you will need to work through a number of steps:

If your structure is OK and you only want to delete the budget, commitment, and actual data posted, you must delete the test data. You can make postings as soon as this has been done.

You delete master data if the funds center/commitment item structure is not sufficient for your requirements. You must create new structures before you can use Funds Management again. Since transaction data is always based on the current structure, you must delete that too.

If you want to create an additional company code with the same commitment item control setup, you can copy the commitment item-G/L account assignment.

When the reset process is finished, you can use the data migration tools to re-enter any existing data into Funds Management.


© SAP AG 1999

Supplementary Account Assignments and Subsequent Postings

Starting from Release 4.5, supplementary account assignmentscan be made for documents from other components with incompleteFM account assignments.The documents for which supplementary account assignmentshave been made can then automatically be subsequently posted.Thus, replacing the programs that until now have been used toreconstruct actual data.Advantages of the new programs:

Consistent screen structureMany selection criteriaDocuments that need to be subsequently posted can be deleted before the subsequent posting in order to avoid duplicate postings.


© SAP AG 1999

Active•Postings

• Materials Management• Financial Accounting• Manual reservation

Not active•Master data maintenance•Budgeting

Activating Funds Management

As you can see from the overview, certain Funds Management functions need to be activated. You can then set up the structures in Funds Management in parallel with ongoing posting activities in a further company code and, once preparations are complete, activate the Funds Management functions for this new company code.

Activation is not dependent on time. It applies to all future postings, regardless of whether the period affected is in the past or the future.


© SAP AG 1999

Budget Planning in Euro

Funds centerCommitment item

Hierarchy 1999 UNI

Fund

Distrib.

70,000

70,000

90,000

70,000

Euro FM area Euro


Hierarchy 1999 EURO

Fund

Distrib.

35,000

35,000

45,000

35,000

Copy master data

Copy budget data

Version 1 Version 1

Current FM area 9000Current FM area 9000

1 V 3

3 A1 3

3 A1 50000

3 A1 50010

35,000

35,000

35,000

70,000

70,000

70,000

1 V 3

3 A1 3

3 A1 50000

3 A1 50010

A euro FM area is required because the system only supports one local currency for each FM area, but the budgeting process must be carried out before the currency is converted to the local currency, the Euro.

Up until the point when you execute the currency conversion, you can continue to work in the original FM area with the previous local currency, at the same time as generating a budget version in euros for the year of local currency conversion in the euro FM area.

When you create a euro FM area, all the master data and Customizing settings are copied from the original FM area. All the data relevant for budgeting is copied to the euro FM area and the currency key and local currency amounts are converted to the euro.

Changes to the master data are still carried out in the original FM areas, but can be copied to the euro FM area.


© SAP AG 1999

Adjusting Budget in Euro

Euro FM area Euro


Hierarchy 1999 EURO

Fund

Distrib.

35,000

35,000

55,000

35,000

ExportExport UNIX file

PC file

ImportImport

Version 1

FM area 9000

New Version in

UNI

35,000

35,000

35,000

1 V 3

3 A1 3

3 A1 50000

3 A1 50010

The budget data for a euro FM area can be exported to an external data medium. If the data is to be used for planning in the local currency of the original FM area, it can be imported into a budget version without values. During this import, the difference between the values in the original FM area currency and the euro FM area currency is evaluated.

(C) SAP AG AC700 8-10

© SAP AG 1999

Status management not in use Status management in use

FM area Profile

IMR . . . . .

FM area Profile

IMR FM001

All transactions permitted Transactions regulated bystatus

Status Management

Use of status management is optional. If you do not create a status profile for an FM area, status management is not active and all commercial transactions are permitted in that FM area.

If you do define a status profile, transactions are permitted as defined in that profile. You can activate and deactivate status management at any time.

(C) SAP AG AC700 8-11

© SAP AG 1999

Commercial transactions, all modules

Grouped by SAP

User status

G/L account postingInvoiceReservationPayment transferFind goods receiptFind goods issueSet statusReset status

CreatedReservationPayment transferSet status "Released"

CompletedReset everything except status

ReleasedReservationTransferPost invoiceG/L account postingPost GR/GIReset status "Released"Set status "Completed"

21

3

ReleasedReservationTransferPost invoiceG/L account postingPost GR/GI

Status Management: Basic Concept

SAP defines all the commercial transactions. No user activities are possible. SAP groups the transactions into four system statuses. Only one system status applies at any time. It determines which transactions are permitted. A user status is a collection of transactions that need to be forbidden. One or more user statuses can be active at any time, or none at all. The transactions permitted are those that are not prohibited by either the system status or the user status.

(C) SAP AG AC700 8-12

© SAP AG 1999

FM areaFM area YearYear Fds CtrFds Ctr CmmtCmmt It.It. FundFund System statusSystem status User statusUser status

IMR 1996 * * * Released -IMR 1996 Purch. Books - Created E1IMR 1996 Purch. * * Released -

More than one user status may apply.

There can only be one system status.

Masked entries are possible. If more than one is possible, the closest match will apply. Account is also taken of the ranking in the FM area.

Statuses are assigned for one year. This year is not a "From year" entry.

Status Assignment

(C) SAP AG AC700 8-13

© SAP AG 1999

Status Maintenance

Selection

FM area

All entriesMultiple entriesSingle entries

Funds center

Commitment item

Fund

Fiscal year

FM areaFunds centerCommitment itemFund

What to maintain

All those which are suitable

For each selection screen Selects the entries for

which statuses are already maintained

Maintain status for selected combinations- Individually, one after the

other- All together

(C) SAP AG AC700 8-14

© SAP AG 1999

General Information: Summary

The authorization concept allows you to control access to Funds Management data according to your needs.Using the production startup tools, you can reset FundsManagement to various levels of the system setting and usageYou can use supplementary account assignments and subsequent postings to transfer data from other systemsto Funds ManagementFunds Management must be activated for you to carry out commitment data and actual data postingsIn the dual currency phase, an FM area can be processed in parallel with the euro as its currencyStatus management controls the business transactions that are permitted from an FM account assignment perspective.

Good Luck!