Sap Funds MGT
Sap Funds MGT
Sap Funds MGT
MANAGEMENT
INDEX
• Overview of SAP Funds Management (FM) • Original Budget(FMBBC)
• Availability control in FM
01 SAP FUNDS MANAGEMENT ( FI-FM )
SAP Funds management ( FI-FM ) is another sub component under FI module. As the
name it helps the organization to manage funds
Budgeting all revenues and expenditures
Monitor funds movements in the light of budget available
Prevent budget overruns
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02 ADVANTAGES OF FUNDS MANAGEMENT
Funds Management enables to keep;
A thorough check of the revenues and expenditures and thus the funds-relevant
business transactions of an organization.
A thorough budgetary control, for all areas from Sources of Funds till its application /
Utilization in the Business
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03 ORGANIZATION STRUCTURE OF FM
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03 ORGANIZATION STRUCTURE OF FM (Cont..)
Integration with Financial Accounting
The FM area is derived from Financial Accounting organizational unit, the Company code by
assigning the company code relevant for Funds Management to an FM area.
Business transactions posted in Financial Accounting are updated in Funds Management. The
following business transactions are relevant for the updating:
G/L accounting
Accounts payable accounting
Accounts receivable accounting
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03 ORGANIZATION STRUCTURE OF FM (Cont..)
Integration with Controlling
All other organizational units, such as the plant, purchasing organization, the personnel area,
sales organization are linked to Funds Management via the company code.
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04 Master Data
1.Commitment items
Used to represent functional aspects (expenditure and revenue structures) in a hierarchy.
They are used to split budgets according to contents and business transactions affecting liquidity
into revenue items and expenditure items.
Three important elements in the commitment item master record are,
Financial-transaction
Item-category
Funds centre
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04 Master Data (Cont..)
Commitment item master record
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04 Master Data (Cont..)
Funds Centers
Funds Centers represent an organizational unit within a Financial Management area, which
represents the structure of an organization or an area of responsibility e.g. departments or
projects.
Funds centers in Funds Management are arranged in hierarchies.
There is only one top funds center in a funds center hierarchy. Every other funds center has one
superior funds center.
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04 Master Data (Cont..)
Funds Centers master record.
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04 Master Data (Cont..)
FUND
Funds represent financial resources that are provided for a specific purpose by a sponsor and
managed separately. This enables the exact source of the funds to be determined.
1 2
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04 Master Data (Cont..)
Fund master record.
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05 LINK BETWEEN BASIC DATA ELEMENTS IN FM
Funds center in a commitment item
In the posting transaction, the system derives the funds center from the
commitment item and proposes it as a default value
Fund in the fund center master record
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06 PREREQUISITES OF FUNDS MANAGEMENT
Fiscal year
Budget profile variant
Budget profile enables to control Used to control the
budgeting and availability control parameters of financial
ina a number of different ways year
Number ranges
Predefined document type and
number ranges specifically for
Funds Management posting
Status profile
SAP status management gives
Field Status different option of adding your
own user status to the system
Variant statuses sipplied by SAP.
Enables to control fields in
different ways by making fields
into, suppress, optional, display &
Required.
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07 ACCOUNT ASSIGNMENT DERIVATION
The account assignment derivation consists of a sequence of derivation steps - known as the
derivation strategy.
It is used to sequentially derive the values for FM account assignments from other account
assignments.
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08 AVAILABILITY CONTROL IN FM
Availability control can promptly identify an excessive funds assignment in a Budget
Structure and trigger various actions.
A breach of any of the tolerance limits triggers the action defined in that tolerance limit. Possible actions
are:
1.Warning
2.Warning with Mail to funds center manager
3.Error message
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09 ORGINAL BUDGET (FMBBC)
The budget entry in the system will be combination of Fund center and commitment item.
Other functionalities like budget transfer and budget supplement can be done.
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10 HOW BUDGETING HAPPENS…?
The financial transaction plays a central role in the transfer of data from Funds Management feeder systems to
Funds Management
Only line items containing commitment item with financial transaction 30 are updated in Funds management
GR/IR GL accounts will be in financial transaction 40
Reconciliation GL will be in financial transaction 60
Bank GL will be in financial transaction 90
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11 BUDGET CONSUMED THROUGH FB60
FM document will be created for all postings based on pre defined document type and number ranges
Fund center will be derived automatically in the line item from the account derivation rule in FM
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12 BUDGET REPORT
Budget report can be extracted based on,
1.Fund center 2.Commitment item 3.Fund
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13 YEAR END ACTIVITIES
Fiscal Year End leads to some major decision regarding the carry forward of Commitment, Fund balances &
Budgets.
If at the end of a Financial Year there are unused Budget still remaining for some individual Budget items it
can be carried forward to the next year.
Any budget not used remains in the old year and cannot be used in the new year.
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Thank You
IVL SAP Services Team