Professional Documents
Culture Documents
Sap FM
Sap FM
MANAGEMENT
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SAP FUNDS MANAGEMENT ( FI-FM )
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ADVANTAGES OF FM:
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
A control of the financial equilibrium of your business, by comparing
commitment and actual values with the current budget values
Funds Management is more flexible than Controlling
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ORGANIZATION STRUCTURE OF FM:
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ORGANIZATION STRUCTURE OF FM (Cont...)
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ORGANIZATION STRUCTURE OF FM (Cont...)
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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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 center
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MASTER DATA (Cont…)
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MASTER DATA (Cont…)
2.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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MASTER DATA (Cont…)
Fund center master record
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MASTER DATA (Cont…)
3.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.
Two important elements in the fund master record are:
Funds type
Budget profile
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MASTER DATA (Cont…)
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LINK BETWEEN BASIC DATA ELEMENTS IN FUNDS MANAGEMENT:
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AVAILABILITY CONTROL IN FM:
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
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3.Error message
ORIGINAL 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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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
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Bank GL will be in financial transaction 90
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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BUDGET REPORT:
Budget report can be extracted based on,
Fund center
Commitment item
Fund
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YEAR END ACTIVITIES:
Fiscal Year End leads to some major decision regarding the carry forward of
Commitment, Fund balances & Budgets.
For Year-end activities in Funds Management Following Activities require to be
defined:
Carry forward rules must be defined.
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.
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SAP Service Team – FICO
ivlservices@ivldsp.com
www.ivldsp.com
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