SAP FM Introduction

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Topics

Introduction to Funds Management

Master Data
Budget Structure & Execution
Integration with Other Modules
Closing Operations-Carry Forward

Other Functionality
Reports
Questions

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Topics

Introduction to Fund Management

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Funds Management

Budgets Revenues and Expenditures.

Monitors Fund Movements.

Prevents Budget Over-runs.

Integrates with other SAP Modules

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Organisation Structure

Client

FM Area FM Area
1 2

Co Cd 10 Co Cd 11 Co Cd 20

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Topics

Master Data

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Master Data Design

In FM an organization is represented by three Master Data

Commitment Item,
Fund Center and
Revenue
Fund.

Factors While finalizing Master Data Design

way to set up the Revenue / Expenditure hierarchies
responsibility for budgets.
budget values and the Actual values assign to FC /CI.

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Commitment Items

Commitment Hierarchy

Expense Revenue

Operating Project Personal Operating Other Research

Expense Expense Expense Revenue Revenue Revenue

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Types of Commitment Items

There are Two types of Commitment Item:-

Account Assignment Items (= lowest level in the Hierarchy).

Revenue

Summarization Items ( = Hierarchy Nodes)

Other Operating Revenue

Revenue

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Commitment Items Master Record

The Commitment Item Master record contains important information:-

Financial-Transaction
Revenue
Item- Category

Fund Center

Other
Revenue

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Fund Center

Fund Center
One funds center hierarchy per FM Area.
Executive
Board
FC: A Assign budget to Funds centers.

Postings are made to Fund Centers.

Dept I Dept II
FC: B FC: C

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Fund

Fund can be defined as a further sub-division of the commitment

Item or Fund Center and can be useful for reporting.

Funds are used to Track Sources and Application of Funding.

Revenue

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Topics

Budget Structure & Execution

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Budget Introduction

Budget structure.

Budget Execution.
Revenue
Messages based on Budget Utilized.

Warning

Warning + Mail

Error

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Budget Types

Budget Types

Budget Updates
Revenue
Original Current
+Transfer + Supplement
Budget Budget
+/- - Return =
- Transfer - Supplement

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Active Availability Control

Postings Availability
Control

Check

Budget No
Exists No Postings

Yes

Commitment / Actual
Values

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Topics

Integration with Other Modules

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Integration: Material managements

Following Business Transactions posted in Material Management

Can be updated in fund Management:

Purchasing
o Purchase Requisition.
o Purchase Order / Scheduling Agreement

Inventory Management
o Goods Receipt
o Goods Issue
o Transfer

Invoice Verification
o Invoice receipt, Logistics invoice verification

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FI Transaction Update in FM

Following Business Transactions posted in Financial Accounting are

Relevant for update in fund Management.

GL Accounting
o GL Account Posting.

Account Payable
o Invoices
o Debit Memos

Account Receivable
o Invoices
o Credit Memos

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PO / PS / PM Transaction Update in FM

Following Business Transactions posted in Production Order / WBS /

Network are Relevant for update in fund Management.

Direct FI Posting

Material Consumption

Direct Posting to Cost elements

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Topics

Closing Operations-Carry Forward

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Year End Activities:

Fiscal Year Change.

Open New posting period.

Maintain Number Ranges.

Create / Extend Fund Center / Commitment Items for the year.

Carry Forward of
Open PRs / POs.

Unused Budgets.

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Topics

Other Functionality

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Other Functionality

Period wise Budgeting

Budget Release.
Revenue
Earmarked Funds.

Functional Area.

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Topics

Reports

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Reports

Budget Overview.

Line Item wise Budget Report (All Postings).

Revenue
Budget view by Budget Type.

Display Document.

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Topics

Questions

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Question and Answers

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