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SAP FM Introduction

Topics

Introduction to Funds Management


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

Topics

Introduction to Fund Management

Funds Management

Budgets Revenues and Expenditures.


Monitors Fund Movements.
Prevents Budget Over-runs.
Integrates with other SAP Modules

Organisation Structure

Client

FM Area
1

Co Cd 10

FM Area
2

Co Cd 11
5

Co Cd 20

Topics

Master Data

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.

Commitment Items

Commitment Hierarchy

Expense

Operating
Expense

Project
Expense

Revenue

Personal
Expense

Operating
Revenue

Other
Revenue

Research
Revenue

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
Revenue

Operating Revenue

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
FC: B

Dept II
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
Budget

+/-

+Transfer

+ Supplement
- Return

- Transfer

- Supplement

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Current
Budget

Active Availability Control

Postings

Availability
Control

Check
Budget
Exists

Yes

Commitment / Actual
Values

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No
No Postings

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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