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 und
Configuration
SAP AG
AC700
AC700
Funds Management :
Processes, Organization
und Configuration
Funds Management :
und Configuration

R/3
Release 4.6B
J une 2000
Material number 50038849

SAP AG 1999
Copyright 2000 SAP AG. All rights reserved.
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SAP AG 1999
SAP Public Sector
Level 2 Level 3
Overview of
Financial Accounting
and Reporting
AC010 5 days
Funds and Position
Management Functionality
(Release 4.5)
HR610 3 days
Funds Management:
and Configuration
AC700 5 days
Solution for Germany
IPS920 5 days
Funds and Position
Management Configuration
(Release 4.5)
HR611 1 day
Special Functionalityfor the
Public Sector
IPS910 2 days
HR
FI

SAP AG 1999
Course Prerequisites
Prior to training course AC700, it is
recommended that you attend AC010
Financial Accounting and Reporting

SAP AG 1999
Target group
Participants
Project managers and members of the project
team who are responsible for the introduction
of Funds Management
Duration: 5 Days

SAP AG 1999
Secretary's office
C11
Acctg/Purchasing
C12
HR
C13
Building admin.
C14
Administration
Kelly
C1
Project group P11
P11
Project group P12
P12
Department 1
Cooper
A1
Project group P22
P22
Department 2
Parker
A2
Exec.Board
Hill
V
Lab. equipment
Z11
Computer equi pmt
Z12
Department Z
Stone
Z1
Project group P21
P21
IMR Funds Center Hierarchy

SAP AG 1999
Grants
and subsidies
20000
Revenues from
sponsored research
10010
Other revenues
10020
Revenues
2
Revenues from
general research
20010
Revenues from
research projects
20020
Revenues from
fees/disbursements
10021
Revenues from
disposals
10023
Revenues from
publications
10022
IMR Revenue Hierarchy

SAP AG 1999
Expenditures for
Business supplies
50000
Expenditures for
project groups
60000
Expenditures
3
Materials
60010
Chemicals
60030
Travel costs
60020
Office supplies
50010
Post and
telephone charges
50030
Books and
magazines
50020
Data processing
80010
Fixtures and
fitti ngs
80030
Lab. equipment
80020
Expenditures for
investments
80000
Expenditures for
HR
40000
Employees
remuneration
40010
Payment of removal
costs etc.
40030
Welfare
40020
Laboratory
requirements
60040
Hire of
equi pment
50040
IMR Expenditure Hierarchy (Extract)

(C) SAP AG AC700 1-1
SAP AG 1999
Key Points
Further information via the topic buttons
Exercises
Introduction

SAP AG 1999
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 pl anning 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 Execution Budget Execution
Introduction Introduction
START
Funds Management Reporting Funds Management Reporting
Year-End Closing Year-End Closing
Funds Management Master Data Funds Management Master Data
Budgeting Budgeting
Updating Updating
General Information General 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

SAP AG 1999
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
SAP AG 1999

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
START
Budgeting Budgeting
Updating Updating

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 area
expenditures /
revenues
Company code
expense / revenue
Controlling area
costs / revenues
BUDGET PLAN
BUDGET PLAN
1996
EXP
1995
50.490
362
1.470
23
547
45.145
12
78
. . .
. . .
. . .
. . .
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. . .
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FI FI
FI FI- -FM FM
CO CO
BUDGET PLAN
2000
EXP
50.490
362
1.470
23
547
45.145
12
78
. . .
. . .
. . .
. . .
. . .
. . .
. . .
. . .
. . .
48.320
370
1.470
25
538
42.873
9
70
. . .
. . .
. . .
. . .
. . .
. . .
. . .
. . .
. . .
2001
EXP

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 Purchasing
organization
Personnel
area
Sales
organization
Personnel
area
Sales
organization
FM area
Controlling
area 2
Controlling
area 1
Company
code 1
Company
code 2
Company
code 3
Company
code 4
Client
Plant Purchasing
organization
Personnel
area
Sales
organization

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
01
02
03
04
05
06 07
12
11
10
09
08
Jan.
Feb.
Mar.
Apr.
May
Jun. 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 structure
1996
EXP
50.490
362
1.470
23
547
45.145
12
78
. . .
. . .
. . .
. . .
. . .
. . .
. . .
. . .
. . .
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. . .
. . .
o
r
g
a
n
i
z
a
t
i
o
n
a
l
f
u
n
c
t
i
o
n
a
l
Commitment item
Funds center
1995
EXP
BUDGET PLAN
2000
EXP
50.490
362
1.470
23
547
45.145
12
78
. . .
. . .
. . .
. . .
. . .
. . .
. . .
. . .
. . .
48.320
370
1.470
25
538
42.873
9
70
. . .
. . .
. . .
. . .
. . .
. . .
. . .
. . .
. . .
2001
EXP
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 area
Funds 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
30
2
Expend.
30
3
Goods receipt/
Invoice receipt
clearing
40
3
Customer/
vendor
reconcil.acct
60
2 / 3
Bank
90
1
Summarization item
can be budgeted to
cannot be posted to
Acct assignment item
can be budgeted to
can 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 managed
separately, 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.

(C) SAP AG AC700 2-15
SAP AG 1999
3
2
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.

(C) SAP AG AC700 2-16
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 funds
Applic. 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.

(C) SAP AG AC700 2-17
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.

(C) SAP AG AC700 2-18
SAP AG 1999
Graphical hierarchy selection
Restricting Levels
Budget structure
Classification
Processing Large Volumes of Master Data

(C) SAP AG AC700 2-19
SAP AG 1999
Graphical Hierarchy Selection for Subtrees
FM area IMR
A
A.1
A.1.1
A.1.2
A.1.3
A.2
A.3
-
-
+
+
Graphical hierarchy selection:
The current funds center/commitment
item hierarchy is displayed level by level.
The elements flagged " +" contain other
elements which are not displayed; those
flagged " -" contain other elements which
are displayed.

(C) SAP AG AC700 2-20
SAP AG 1999
Restricting Levels
Restricting level s
The number of levels to be processed after entering a transaction is
determined:
improved overview
fewer blocked objects: objects can be processed by several users
simultaneously
includes defined budget objects
Level
1
2
3
4
5
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.

(C) SAP AG AC700 2-21
SAP AG 1999
Manual Budget Structure
Onl y certain combinations of fund
centers and commitment items should
be available for budgeting
Center Item Budget
S1 A 1.1
S2 A 2.1
S2 A 2.2
S2 A 2.3
The combination of center +
item + fund result in a
unique budget address.
Onl y a complete
combination can be
used for budgeting
Budget structure
definition
Creating original budget
Ctr Item Budget View
S1 A 1.1
S2 A 2.2
S2 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.

(C) SAP AG AC700 2-22
SAP AG 1999
Generating Budget Structures
Budget structure
Funds Cmmt Budget
center item object
IMR EXP
IMR Pers
. .
. .
. .
IMR Funds Center
EXP
EXP 1000
. . . 200
. . . 100
Administration
EXP
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.

(C) SAP AG AC700 2-23
SAP AG 1999
Budget Structure with Commitment Item Group
CI 2
CI 1
CI 3
CI 1
CI 3
Commt item Commt Item
group
Funds center
Budget
structure
FC 1
FC 2
Assignmt
CI 1
CI 3
Budget Posting
object object
x
x x
Maintain
Indicator
CI 1
CI 3
Budget Assig.
object object
x
x x
FC 2
FC 2
Funds Cmmt
center 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.

(C) SAP AG AC700 2-24
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.

(C) SAP AG AC700 2-25
SAP AG 1999
Concepts in Classification
A class is a group of objects
which share identical or similar features.
Class Class
An object is a unit which can be classified.
Examples: commitment item, fund
Object Object
A characteristic describes features of an object,
such as who is processing it or how the tax is to be
treated.
Characteristic Characteristic
Feature of a characteristic, such as special note or
public.
Characteristic Characteristic
value value

(C) SAP AG AC700 2-26
SAP AG 1999
Functions in Classification
Object search
in the class
Object Search Object Search
Assignment
Object: Fund 10217
Class: Fund origin
Char. valuation
Country: Germany
Type: Private
Classification Classification Class Class Maint Maint . .
Fund: 10217
Country: Germany
Type: Private
Characteristics Characteristics
Object Maintenance Object Maintenance
- Country
- Type of financing
Characteristics Characteristics
Characteristics Characteristics Maint Maint . .
Class Fund Origin Class 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.

(C) SAP AG AC700 2-27
SAP AG 1999
Changing the Master Record
Changing Hierarchies
Changing Master Data

(C) SAP AG AC700 2-28
SAP AG 1999
Example: Changing the Master Record
Changing Account Assignment Item Changing 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.

(C) SAP AG AC700 2-29
SAP AG 1999
Changing Master Data Structures and
Hierarchies (1)
1
Possible scenarios :
Only hierarchy data exists
Changes present no problem
Hierarchy data + budget object
definition exist
Changes must be taken into account in budget
object 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).

(C) SAP AG AC700 2-30
SAP AG 1999
Changing Master Data Structures and
Hierarchies(2)
4
Possible scenarios :
Hierarchy data + budget objects +
budget values + actual postings
exist
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).

(C) SAP AG AC700 2-31
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

(C) SAP AG AC700 2-32
SAP AG 1999
Example: Assigning G/L Account
to Commitment Item
FI-FM
FI FI- -FM FM FI
FI FI
Financial transaction Item category
Bank Bank 90 1
Assets Assets 30 3
Assets goods movement Not relvnt 50 3
Material stock Material 30 3
Vendor reconciliation acct Payable 60 3
Input tax Input tax 30 3
GR/IR GR/IR 40 3
Down payments made DPs 30 3
Raw 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.

(C) SAP AG AC700 2-33
SAP AG 1999
Commitment Item Assignment Program
G/L account
Company code
Commitment item
FM area
G/L account with commt item
G/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.

(C) SAP AG AC700 2-34
SAP AG 1999
Assigning CO Objects to FM Objects (1)
Assign cost element/cost element group to commitment item
Controlling area IMR
Cost element
Cost element group IMR-KOAGR-01
FM 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/cost
element 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.

(C) SAP AG AC700 2-35
SAP AG 1999
Kostenstelle MANAGEMT
Cost center group
FM area IMR
Assignment
Cost element
Cost element Group Funds center Commitment itemFund
IMR-KOAGR.01 GEN.MGMT OFFICEMAT
IMR-KOAGR.02 GEN.MGMT TELEPHONE
: : : : :
Order / order group depending on cost element / cost element groups to
funds center / commitment item / fund
3.
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 / cost
element group to funds center / commitment item / fund
Profit center / profit center group depending on cost element / cost

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.

(C) SAP AG AC700 2-36
SAP AG 1999
Assign cost element/cost element group to commitment item
Cost element
Cost element group IMR-KOAGR-01
FM 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 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/cost
element 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.

(C) SAP AG AC700 2-37
SAP AG 1999
Cost center MANAGEMT
Cost center group
FM area IMR
Assignment
Cost element
Cost element Group Funds center Commt item Fund
IMR-KOAGR.01 GEN.MGMT OFFICEMAT
IMR-KOAGR.02 GEN.MGMT TELEPHONE
: : : : :
Order / order group depending on cost element / cost element groups to
funds center / commitment item / fund
3.
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 / cost
Profit center / profit center group depending on cost element / cost

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.

(C) SAP AG AC700 2-38
SAP AG 1999
Assignment Report for FM Account Assignments
Cost object
Controlling 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.

(C) SAP AG AC700 2-39
SAP AG 1999
HR/FM Object Assignment for Wages and Salaries
1.
1. 1.
Assignment of cost distribution for wages/salaries (infotype
0027/01) to funds center/fund
2.
2. 2.
Organizational assignment of an employee (infotype 0001) to funds
center/fund
3.
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).

(C) SAP AG AC700 2-40
SAP AG 1999
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/fund
1.
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 pri vileges (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.

(C) SAP AG AC700 2-41
SAP AG 1999
Default Account Assignments: Priorities
created in
Default
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.

(C) SAP AG AC700 2-42
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)

(C) SAP AG AC700 2-43
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

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: From01.01.200Y 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

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, IMRs 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

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

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

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. J ohn

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

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

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

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

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 pl anning 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.

SAP AG 1999
Budgeting: Unit Objectives (2)
SAP AG 1999
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.

SAP AG 1999
START
Budgeting Budgeting
Updating Updating

SAP AG 1999
Budget Creation
Introduction
You 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.

SAP AG 1999
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
Releases Releases
5% 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.

SAP AG 1999
Budget Values - Budget Categories
Overall and annual values
Period view
Payment budget and commitment budget

SAP AG 1999
Annual and Overall Budgets
1. Budget and funds from
secondary sources
available 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
Annual
values
Overall
values
X
X
X
X
Budget 99
100,000
20,000
. . .
Fund xy
valid from 01/05/99 to 30/08/02
100,000
15,000
65,000
. . .
Fund xy
valid from . . . to . . .
100,000
99 30,000
00 20,000
01 50,000
. . .
Consistency!!
Budget 00
Budget 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.

SAP AG 1999
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
X
Budget 98
100.000
Budget 98
Periods
100.000
1 8.000
2 8.000
3 10.000
4 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.

(C) SAP AG AC700 3-10
SAP AG 1999
Payment Budget and Commitment Budget (1)
Two independent budget categories
Payment budget
Commitment budget
Various application scenarios
Budget 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.

(C) SAP AG AC700 3-11
SAP AG 1999
Payment Budget and Commitment Budget (2)
2000
500
250
250
Payment
budget
FC/CI
V/5
V/50010
V/50020
2000
200
100
100
Commitment
budget
FC/CI
V/5
V/50010
V/50020
Original
budget
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.

(C) SAP AG AC700 3-12
SAP AG 1999
Budgeting techniques
Entry transactions
Entry variants
Budgeting scenarios
Budget versions

(C) SAP AG AC700 3-13
SAP AG 1999
Top-Down Budgeting
Expenditures
Project expenditures
Travel
Training
Material
100,000
70,000
10,000
70,000
10,000
Distributed budget
Original 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.

(C) SAP AG AC700 3-14
SAP AG 1999
Bottom-Up Budgeting
Expenditures
Travel
Training
Material
31,000
31,000
10,000
31,000
31,000
Distributed budget
Original 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.

(C) SAP AG AC700 3-15
SAP AG 1999
Budgeting: Entry transaction
Change original budget: Budget structure overview
FM area Funds center
Commt 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 area
Fund
Currency:
Funds center Commt item
Year
Commt budget
2000
UNI
A
1,500,000
1,000,000 V
A1
700,000
500,000 V1
A12
63,000
70,000 V11
A1
500,000
500,000 V2
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).

(C) SAP AG AC700 3-16
SAP AG 1999
Local Budgeting
Budget structure
Level Funds Cmmt Budget Posting
center item object object
1 IMR Expenditures x
2 IMR Human resources x
2 IMR Office suppl ies x
1 Admi n Expenditures x
2 Admi n Human resources x
2 Admi n Office suppl ies x
1 Dept. 1 Expenditures x
2 Dept. 1 Human resources x
2 Dept. 1 Office suppl ies
2 Dept. 2 Expenditures
2 Dept. 2 Human resources
IMR
HR HR SUPP. SUPP.
Expenditures Expenditures
HR HR SUPP. SUPP.
HR HR 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.

(C) SAP AG AC700 3-17
SAP AG 1999
IMR
HR HR SUPP. SUPP.
HR HR SUPP. SUPP.
HR HR SUPP. SUPP.
Administration Department 1
Budget structure
Level Funds Cmmt Budget Posting
center item object object
1 IMR Expenditures x
2 IMR Human resources x
2 IMR Office suppl ies x
1 Admi n Expenditures
2 Admi n Human resources x
2 Admi n Office suppl ies x
2 Dept. 1 Human resources x
2 Dept. 2 Human resources
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.

(C) SAP AG AC700 3-18
SAP AG 1999
Budgeting: Budget Versions
Commt item
Fund
1 V A 1,000,000
Distributed
2 V1 A1 500,000
3 V11 A12 70,000
Version 1
Commt item
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.

(C) SAP AG AC700 3-19
SAP AG 1999
Budgeting Tools
Utilities
Total up / roll up
Transfer to CO planning

(C) SAP AG AC700 3-20
SAP AG 1999
Utilities for Processing Budgets
Scaling
e.g. UNI (000)
Ctr Item Budget View
C1 I11
C1 I12
C2 I11
C2 I12
View Copy budget
Revaluate
- amount
- % rate
bottom up
Total up
Possible views
Distributed Distributed
Distributable Distributable
Assigned Assigned
Current budget Current budget
Release Release
Previous year Previous 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.

(C) SAP AG AC700 3-21
SAP AG 1999
Types of Budget Update Entry
Budget
Admin
HR
Projects
Budget
Admin 1000
HR 700
Projects 100
Addi ti ve Not additi ve
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.

(C) SAP AG AC700 3-22
SAP AG 1999
Total Up / Additive (1)
100
10
10
10
101
11
11
11
11
11
11
11
Not additive Not additive
Save original
V3
C3
60000
60010
X
Add changed values
Change 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.

(C) SAP AG AC700 3-23
SAP AG 1999
Total Up / Additive (2)
100
10
10
10
11
11
11
11
-79
11
11
11
111
21
21
21
21
21
21
21
Additive Additive Not additive Not additive
Save original
V3
C3
60000
60010
X X
Add changed values
Change budget
by 11
1
2

Scenario
Changing budget with "additive" activated
Step 1
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.

(C) SAP AG AC700 3-24
SAP AG 1999
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 values
Change budget
to 75
1 2
3
Without budget
consistency

Scenario
Totaling up a version
Step 1
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.

(C) SAP AG AC700 3-25
SAP AG 1999
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.

(C) SAP AG AC700 3-26
SAP AG 1999
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

(C) SAP AG AC700 3-27
SAP AG 1999
Releases and Budget Updates
Releases
Budget updates

(C) SAP AG AC700 3-28
SAP AG 1999
Releases
E 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

(C) SAP AG AC700 3-29
SAP AG 1999
Updating Budgets
Agenda
blocking budget
cutting budget
supplementary budget
R
Supplements
Transfers
Returns
Budget
plan 2001
= current budget Budget plan
2000
Supplements
Transfers
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.

(C) SAP AG AC700 3-30
SAP AG 1999
Example: Updating Budgets
Supplement
Transfer
Expenditures
Travel
Training
Material
31,000
31,000
10,000
36,000
36,000
Current budget
Original 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.

(C) SAP AG AC700 3-31
SAP AG 1999
Budget profile
Budget consistency check
Budgeting Control

(C) SAP AG AC700 3-32
SAP AG 1999
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
Format
View 11
Decimal places 2
Scaling 0
Time horizon
Past 1
Future 5
Start 0
Overall value
X Annual value
Period values
Avai labi lity control
Releases
Overall
FM area IMR
Fonds SOURCE1
Name . .
.
.
.
Budget profile FM0003
. . . . . .
Format defaults for the Format defaults for the
budgeting transactions budgeting transactions
Against releases or Against releases or
current budget and current budget and
against overall or against overall or
annual values annual values
Permitted Permitted
budgeting budgeting
timeframe timeframe
You can choose overall You can choose overall
values and/or annual values values and/or annual values
and period values; and period values;
overall values can only overall values can only
be selected for funds be selected for funds
Distributi on key
1
Key for automatically distributing Key for automatically distributing
annual values to individual periods annual 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.

(C) SAP AG AC700 3-33
SAP AG 1999
Budget Consistency Check
Year-dependent parameters
FM area Year Consistency Availability
IMR 2000
Availability control Availability control
is only possible if is only possible if
budget consistency is budget consistency is
active. active.
FM area
Funds center
Commitment 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.

(C) SAP AG AC700 3-34
SAP AG 1999
Active Availability Control
Overview
Searching for budget bearing elements
Control of availability control
Tolerance limits
Reconstructing availability control

(C) SAP AG AC700 3-35
SAP AG 1999
Overview: Active Availability Control
An important function in the Funds Management
system is the monitoring of avail able funds.
Acti ve availability control determi nes:
Which budget structure elements have budget, and
Which 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:
Warning Warning Warning + Mail Warning + Mail Error message Error message
Warning
to the user
Warning to the
user and automatic
mail to the funds
center manager
The system rejects
the posting

(C) SAP AG AC700 3-36
SAP AG 1999
Overview: Budget Bearing Element
The determination of the budget bearing element is i ndependent
from the building of the budget structure:
Without special budget structure
With special budget structure, but without dynami c
budget objects
With special budget structure and dynamic budget objects

(C) SAP AG AC700 3-37
SAP AG 1999
Determining the Budget Bearing Element (1)
Without special budget structure
Funds
commitment
V
A1
P12
4711
4712
4711
4712
4711
4712
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.

(C) SAP AG AC700 3-38
SAP AG 1999
With special budget structure, but without dynamic
budget objects
Funds
commitment
V
A1
P12
4711
4712
4711
4712
4711
4712
Budget values
x Budget object
x
x
x
x
x
x


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.

(C) SAP AG AC700 3-39
SAP AG 1999
With special budget structure and dynamic budget objects
Funds
commitment
V
A1
P12
4711
4712
4711
4712
4711
4712
Budget values
x Budget object
x
x
x
x
x
x


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.

(C) SAP AG AC700 3-40
SAP AG 1999
Availability Control (1)
1. Posting with account assignment
2. Year-independent control
of 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.
active active
Not active Not active
I. Which profile applies?

(C) SAP AG AC700 3-41
SAP AG 1999
5. Calculate available budget
according to budget profile
6. Find tolerance definition:
1. Using the profile from
specific tolerance
2. Using the budget profile
a. for special activity
b. for general activity (++)
Overall / annual value
current budget / releases
Posting within tolerance; Posting within tolerance;
Tolerance found not active; Tolerance found not active;
No tolerance found No tolerance found
Posting and assigned
value update
Posting would exceed an Posting would exceed an
active tolerance limit active 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.

(C) SAP AG AC700 3-42
SAP AG 1999
III. How should the system react?
7. Action according to tolerance definition
Warning Warning
Warning and MAIL to person responsible for funds center Warning and MAIL to person responsible for funds center
Error message Error message

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

(C) SAP AG AC700 3-43
SAP AG 1999
Availability Control Tolerance Limits
FM area Profile Transaction Action Rel. Var. Abs. var Inactive
IMR FM0001 ++ 2 90% 1000 UNI
Control dependi ng on FM area and budget profile. Control dependi ng on FM area and budget profile. Dependi ng on the Depending on the
budget profi le, you can disti nguish 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 particul ar transactions, s Restricts defined tolerance limits to particular transactions, such as uch as
funds reservations, purchase orders, actual postings, and so on. funds reservations, purchase orders, actual posti ngs, and so on.
Intended system reaction: Intended system reaction:
1 Warning 1 Warni ng
2 Warning and mail 2 Warni ng and mail
3 Error message 3 Error message
Definition of relative or Definiti on of relative or
absolute variance from absolute variance from
budget value budget value
Deactivation Deactivation
indicator indicator

(C) SAP AG AC700 3-44
SAP AG 1999
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 search
After reconstructing actual data in FM
After 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.

(C) SAP AG AC700 3-45
SAP AG 1999
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.

(C) SAP AG AC700 3-46
SAP AG 1999
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
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
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 handl ed using Funds
Management
Different core processes that take place within
purchasing, and within payroll accounting and trip
cost accounting
Individual 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 made
Ways 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 objects
How to process revenues and points to be borne in
mind when so doing
The 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 relationships
Use of enhancements to integrate Cost Controlling
and Proj ect Controlling
Entering commitments postings in Funds
Management using trip receipts
Statistical postings options
New functions for revenues increasing the budget

SAP AG 1999
START
Budgeting Budgeting
Updating Updating

SAP AG 1999
Overview: Budget Execution
FM
budget
CO CO
FI FI
MM MM
SD SD
FI FI- -FM FM
HR HR
PM PM

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
Usage
MM
GI to target
Using the different SAP modules allows for different scenarios
when processing procurement transactions
Commitment Actual
accrual
Actual
cash
MM not used MM not used
Reqmt Reqmt
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
Funds
reservation
Funds
precommt
Funds Funds
commt commt
Invoice
Expenditures budget Expenditures budget
Funds
block
Funds
transfer
Revenues budget Revenues budget
Forecast
of
revenues
Customer
invoice
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
Commitments Commitments
document document
Document types:
Funds transfer
Funds block
Funds reservation
Funds precommitment
Funds commitment
Forecast 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
Overrun
tolerance
Completed
indicator
CO integration
(only funds
commitments)
Acct assgmt
can be changed
Statistical
indicator
No carryforward at
fiscal year change
Item
blocked
Budget Execution:
Special Settings for Commitments Documents
Funds reservation/ Funds reservation/
funds funds precommt precommt / /
funds funds commt commt / /
forecast of forecast of
revenues revenues

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
Customizing Customizing
Level 1
Level 3
Level 2
FM FM
Funds reservation/ Funds reservation/
funds funds precommt precommt / /
funds funds commt commt / /
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
Institute
for Medical
Research
Current
budget
Funds
reservation
Invoice Payment
Available
budget
HR
50010
50020
50030
Office
supplies
40010
1000
100
-
-
100 100
-
-
-
100 100
900
900 900
900 900
. . .
. . .
. . .
Commt Invoice Invoice Payment Payment
online batch
FI FI
FI FI- -
FM FM
FI FI- -FM FM
1000
1000
online
Funds
precommt
Funds
commt
Precommt Precommt
online
Reservation
900 900
900
100 100
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 if
invoice >
reservation
Availability
always
checked
Result of budget
check
Budget
usage
> 80 % > 95 % >100 %
Reservation Warning Warning
+Mail
Error
Purc.order Warning
Warning
+Mail
Error
Invoice Warning Warning Error
Trans.
Budget Execution
Payment Payment Invoice Earmarked funds Earmarked 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
SAP AG 1999
SAP AG
Financial Accounting Funds Management
Accounts payable
G/L accounting
Vendor
100 = 100
Balance sheet
Bank
97
Payables
100 = 100
P&L
Physical supplies
100
Disc.received
3
Funds center: Administration
Commitment item: Physical supplies
Budget FndsCmt Invoice Payment Resid. bdgt
1000
1000
1000
1000
1000
1000
100
100
100
100
97
1000
900
900
900
900
903
C
C
C
C
C
RFFMS200
SAPF181
C C
CC C
C C
C
C
C
C
C
= Budget
= Funds commitment
= Invoice with reference to funds reservation
= Payment with cash discount
= Payment conversion
= Subsequent adjustment of automatic posting
FI FI- -FM FM
FI FI
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 in
conjunction 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
Commitment Actual
accrual
Actual
cash
Reqmt Reqmt
Usage
MM
Usage
MM
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
Invoice Invoice Invoice Payment Payment Payment POrd. POrd POrd. .
Institute
for Medical
Research
Current
budget
PurReq. Invoice Payment
Available
budget
HR
50010
50020
Business
requirement
40010
100
-
-
-
100 100 100
-
-
-
100 100 100
900
900 900 900
900 900 900
. . .
. . .
PurReq.
online batch
Purc.order
900 900 900 100 100 100
-
FI FI- -FM FM MM MM FI FI FI FI- -FM FM
1000
1000 1000
1000
1000 1000
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
Item
010 . . . . . . . . . . . .
020 . . . . . . . . . . . .
030 . . . . . . . . . . . .
040 . . . . . . . . . . . .
050 . . . . . . . . . . . .
. . .
. . .
Purchase order
FM account assignment
Funds Commt Fund Share
center item
. . . . . . . . . 40 %
. . . . . . . . . 30 %
. . . . . . . . . 30 %
Funds Commt Fund Share
center 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
Commitment Actual
accrual
Actual
cash
Reqmt Reqmt
Usage
MM
Usage
MM
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 assgt
default
No update
Warehouse
funds center
Warehouse
funds center
No update
default
No inventory
lines
Credit to
funds center
No inventory
management
+ Define warehouse
funds center in system
Customizing
update control
Switch 1
Unassigned
purc.ord./
purch.req.
Switch 2
Goods issue
Subprocesses
Functi ons i n
operati ve
modules
Goods issued to consumer Goods issued to consumer Goods receipt Goods receipt Purc.order
Purc.req./
Purc.order
GR (or IR) Goods
issue
I
II
III
IV
Commitment values Actual values
Scenario
Debit consumi ng funds center Debit consumi ng funds center Consump. fnds ctr
Consumi ng funds center No val ue update No val ue update No val ue update No val ue update
Credit Credit whse whse+debit consump. FC Warehouse funds Warehouse funds ctr ctr Warehouse funds Warehouse funds ctr ctr
Consumi ng funds center Warehouse funds Warehouse funds ctr ctr Warehouse funds Warehouse funds ctr ctr
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
Invoice
receipt Goods receipt
Reservation
GR to final target
MM not used
Reqmt Reqmt
Usage Usage
MM MM
GI to target
Commitment Actual
accrual
Actual
cash
The update can take place at the time of the goods receipt or at the time
of 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 account
Expenditures
475,000
476,000
430,000
Office supplies
EDP cons.material
Personnel costs
Other 191,100
160,000
113,100
191,100 191,100
160,000 160,000
113,100 113,100
GR/IR clearing
Vendor reconc. acct
Bank
Vendor rec. acct
160,000
Commt
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
Commt
item
Material
HR
. . .
GR/IR
Invoice
Bank
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
FI FI FI FI- -FM FM
Invoice
Payment
Invoice
Payment
RFFMS200 RFFMS200
Payment
Payment
RFFMS201 RFFMS201
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
FI FI- -AA AA
Asset Asset
acquisition acquisition
Asset Asset
retirement retirement
FI FI- -FM FM
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.
FI FI- -FM FM
FI FI- -AA AA
FI
FI FI
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 transaction
of commt item
Transaction type Accounts

(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 request
before trip
Travel
expenses
Approval
before trip
HR
HR HR HR
HR HR
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 2
OR
FM acct assignment
30 % Destination 1
70 % Destination 2 Entire trip
30 % Destination 1
70 % Destination 2
30 % Destination 1
30 % Destination 2
40 % 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
Without
using
HR
Parallel
structure
in CO
and
FI-FM
HR
commt
in FI-FM
Acct assignments
in HR derived from
CO acct assignmts
FM master data
entered in HR
Pos.management
integration with CO
acct assignmt
derivation
Pos. management
integration without
CO acct assignmt
derivation
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
derived in position management
and are visible in HR
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 postings
FM: Posting of expenditures
and availability control
CO: Cost center postings
Org. unit / Position /
Employee
Defining an account
assignment
Validation of the master data
objects
= No commitments = No commitments
Transfer of account
assignments to
payroll data
Payroll
accounting
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 Funds
Management.
HR Funds and Position
Management controls and
administrates the budget
for HR expenditures
HR FPM represents a
detailed subsidiary ledger
for Funds Management
Funds Management
Budget for all revenues
and expenditures
(including HR expenditures)
HR Funds and Position
Management
Budget for HR
expenditures

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
assignment assignment
Position Position 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
Position Position
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
Position Position
Evaluation of
Default value
Funds precommitment
Budget is assigned
Person Person
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 result Posting of payroll result
Actual values
Referenced /
reduced funds
commitment
HR Funds Management
Position Position
Evaluation of
Default value
Funds precommitment
Budget is assigned
Person Person
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
assignment 5 assignment 5
Position Person 1 Person 1
Person 2 Person 2
finances
occupies
finances finances
o
ccu
pies
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
Without
CO
Parallel
structure
in CO
and
FI-FM
Parallel
contents
in CO
and
FI-FM
Input help +
acct assgmnt
derivation
Posting
integration
Input help
+
account assignment derived automaticall y
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
FI FI
CstCtr
Order
WBS elem.
Profit Ctr
Cost
element
Funds Commt Fund
center item
A1 Mat. -
A1 Mat. Work
Assignment table
Account 400000
Amount 1000 UNI
CstCtr 4711
FndsCtr
FI - CO
integration
Collective cost center
1000
Funds center: A1
Item: MAT
Fund: Work
1000
FI FI- -FM FM
CO CO
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
SAP AG 1999
SAP AG
Collective Cost Ctr Administration I Administration II Research field ABC
1000 1000 400 300 300
Example: Assessment cycle
Funds center A1
MAT Funds center ADM I Funds center ADM II
Funds center
ResFld ABC
1000 1000 400 300 300
FM FM
Assignment table
CO 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
CO CO
Cost center hierarchy
Expenditure Expenditure
item item
A1 A1
P11 P11 P12 P12
A1 A1
P11 P11 P12 P12
Updating
1
Updating
1
Posting
integration
2
FI FI
FI FI- -FM FM
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
FI FI- -FM FM
Project
Phase 1
. . .
App. EDP
PS PS
can be used in parallel
no automatic budget
integration
Availability control
takes place twice,in
project system
and in FI-FM
commitment items
have same structure,
if using CO cash
budget management
Update of costs Update of costs
Optional update of payments (CO Optional update of payments (CO
cash budget management) cash budget management)
Update on cash or accrual Update on cash or accrual
basis basis
Phase 2
PS and FI-FM: Structures and Functions

(C) SAP AG AC700 4-49
SAP AG 1999
Field of research XY
. . .
FI FI- -FM FM
Project
App. EDP
PS PS
WBS CstEl. Ctr Item Fund
EDP 400,000 Project 2 ... ...
Account Account 400000 400000
UNI UNI 2000 2000
WBS WBS EDP
FCtr FCtr //
CmtItem CmtItem //
Fund Fund //
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 byplant
maintenance orders as well as internal processing operations.
Presentation
Exercises
Solutions
Integrating Plant Maintenance

(C) SAP AG AC700 4-51
SAP AG 1999
Technical
object
Technical place
Equipment
Purchase
requisitions
Material
reservation
Time
confirmation
(internal)
Cost center Cost center
WBS element WBS element
... ...
Order
settlement
Plant Maintenance Plant Maintenance
order order
Goods
issue
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 and
Distribution 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 proposal
manual entry
FM acct assigmt:
transfer from SD order
automatic recomputation
FM acct assigmt:
Transfer from
purchase order
Sales order 4711
Item 10 -> FI-FM acct assig.
SD Billing FI Invoice
SD Delivery
MM Goods
issue
Funds center A1
Commt item A321
Fund Y + F
Funds center A2
Commitment item E221
Fund
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 Ctr
Cmmt It.
Fund
?
Sales order 4711
Item 10
Item 20
Item 30
Fds Ctr
Cmmt It.
Fund
?
Position 10
Fds Ctr
Cmmt 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
Funds
center
Commt
item
Fund
Hide Optional Required
Hide Optional Required
Funds
center
Commt
item
Fund
Funds
center
Fund
?
Order item 10
Order item 20
Order item 30
SD order
PM order
Funds
center
Commt
item
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
Sales
order
SD Billing
Manual
FI invoice
Feeder
components
FI receivable
Revenues
No commts
Actual
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
procedure procedure
Budget increase using: Budget increase using:
Distribution procedure Distribution procedure
Budget increased by: Budget increased by:
Payment Payment
Invoice Invoice
Budget increase Budget increase
Commitment budget Commitment budget
Payment budget Payment budget X
Customizing Customizing

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
Revenues
Commt item
Funds center
Increase area
Expenditures
Commt item
Funds center
Distribution Distribution
rules rules
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
Distribution Procedure
Revenues Revenues
Expenditure Expenditure
Cmmt It. 10010
FdsCtr V
Amount 100 UNI
Distribution rule
Cmmt It.: 10010 FCtr: V
Cmmt It.: 50010 FCtr: C11
Budget increase: 100 %
Cmmt Cmmt It. It. 50010 50010
FdsCtr FdsCtr C11 C11
Amount Amount 100 UNI 100 UNI
Original 10 UNI
Revenues
inc. budget 100 UNI
R
F
F
M
U
D
1
1
R
F
F
M
U
D
1
1
RFFMUD01 RFFMUD01
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
Commitment Actual
accrual
Actual
cash
Changeable until the next
sub-process is started or
the document is transferred
due to change of fiscal year.
Payroll accounting
Travel costs
Change possible up
to accounting stage
Amount and account
assignment can be
changed, as long as
no reference to invoice
Transfer posting
possible 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
25,000
16,000
3,000
FM FM
4711
25,000
16,000
3,000
8,000
4712
8,000 (MAT1)
Transfer postings in FI or FI-FM
are not transaction-based
Changes always affect
the original posting
period
FI-FM transfer postings
do not influence FI
MAT MAT
FI FI
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

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

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

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

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

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

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

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

Topic: Revenues Increasing the Budget

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
Fund: -

8-3 Define a rule for revenues increasing the budget

Revenue account assignment:
Funds center: P11
Fund: -

Expenditure account assignment:
Funds center: P11
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
Funds center: P11
Fund: -

8-5 Start the reports for increasing the expenditure budget

(C) SAP AG AC700 4-86
Budget Execution Solutions

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
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

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
Commitments/Actuals All postings

(C) SAP AG AC700 4-90

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

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

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

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

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
=>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
Position GR ##/C
Edit - Finance => Susan Smart
Use the icon: Financing wizard
=> Check => Save
items - Commitments/Actuals Commitments and funds transfers

(C) SAP AG AC700 4-96

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
items - Commitments/Actuals CO postings
items - Commitments/Actuals for assigned budget Annual budget

(C) SAP AG AC700 4-97

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

Topic: Revenues Increasing the Budget
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

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
commitment item
50010
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
START
Budgeting Budgeting
Updating Updating

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 status
Payroll field status
Budget relevance of
transaction types
G/L account field status
Posting field status
Purchase order field status
Budget relevance of
movement types
AA
AA AA
FI
FI FI
MM
MM MM
HR
HR HR
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 tax
Compulsory assignment of CO - FM account assignments or
FI - FM account assignments for each FM area
Defining the carryforward level
Additional update control i s defined in profiles:
Budget category, budget year and period
Date of update

SAP AG 1999
Posting in Financial
Accounting
Expense
100
VAT
16
Payables
116
FI
FI FI
Update in Funds Management
VAT gross (Default)
Expenditures
Expense
Expenditures
Expense
Expenditures
Expense
Tax
VAT net
VAT separate
116
100
100
16
I I
II II
III III
FI-FM
FI FI- -FM FM
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
4711 4711
Reservation Reservation
4711 4711
Carryfwd Carryfwd
Invoice 2011 for
res. 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
Profile
000101
Profile
000100
Profile
000102
Profile Profile
000350 000350
Separate budget Separate budget
lines lines
Overview: Update Profiles
Payment budget Payment 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 type
control
Annual
Control
Annual
control
Date
control
Budget
control
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
profile
000100
Commitment
budget
Payment Payment
budget budget
X(2) X(2)
X(2) X(2)
X(2) X(2)
X(2) X(2)
X(2) X(2)
Commt /
Actual
Purchase
requisition
Purchase
order
Invoice
Payment
Funds
reservation
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
profile
000350
Payment budget:
Separate for
each fiscal year
Commt budget:
Separate for
each fiscal year
X(1) : Update with posting date
X(2) X(2) : Update with due date
Commitment
budget
Payment Payment
budget budget
X(1) X(1)
X(2) X(2)
Commt
Actual
Purchase
requisition
Purchase
order
Funds
reservation
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"
AA
AA AA
MM MM MM
CO
CO CO
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
FCABP
FCABK
FMICOIT FMICOIT
FMICOHD FMICOHD
Totals
New (>= Rel. 4.5A)
FMIOI
FMIFIIT
FMIFIHD
FMIA FMIA
FMIT
FM commts
and actuals
FM commts FI docs
CO 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 structure
Many selection criteria
Documents 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
Updating Updating
Onl y:
30
30
60
30
90
66
Transfer
54
Invoice
57
Payment
RFFMS200
Have 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
Updating Updating
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" .
FI
FI FI
MM
MM MM

(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 parameters
and carryforward type
Copy carryforward rules
Outline the procedure for a reversal of a commitment
carryforward
Use 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
START
Budgeting Budgeting
Updating Updating

SAP AG 1999
31.12.
Old fiscal year New fiscal year
Residual
budget
Open commitments
Carry forward
residual budget
from old fiscal year
Carry forward
open commitments
Maintain carryforward rules
Treatment of special cases
Technical 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 31.12.98
Period 01 - Period 12
Actual residual
budget
Open commitments
(+ associated budget)
Resid. bdgt
1000
500
0
Actual
3000
6500
2000
Commt
1000
1000
Curr. bdgt
5000
7000
3000
Item
MAT
HR
EDP
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 for
commitment
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: Residual
payment bdgt
Param. 1: Residual
commt bdgt
Parameters: Funds
reservations
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 with
predefined
parameters for
- Commitments
- Budget
during closing
operations?
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 budget
To be able to set special carryforward rules, a
carryforward parameter must already exist
Define the final percentage of the carryforward
of budget for commitments and residual budget
Define sender/receiver relationship
Commitment Carryforward
To be able to set special carryforward rules, a
carryforward parameter must already exist
Define 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 onl y
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 centers
and commitment
items
Maintaining Carryforward Rules

Carryforward rules are valid for:
each fund
each 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 from
Parameter
Year
Copy to
Parameter
Year
?
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 carryfwd
permitted?
for each
FM area
1999
Maintain rules
for each:
FM area
Year
Parameter
Define parameter
type: 10, 20, 30,
40
Definition:
permitted
for each
FM area
and year
assign
parameter
Budget
2000
2000
Prepare
Define
Execute
Carryfwd
Specific alternative
General alternative:
1 : 1, 100%
Budget Carryforward Process
Budget
1999

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
requisitions
Purchase
orders
Earmarked
funds
Invoices
*
Purchase
requisitions
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
assignmt
Parameter
Assign:
Parameter
for each
FM area
Year
Val. type
Reversal
By Default:
Is carryfwd
allowed?
for each
FM area
Maintain
parameters,
type: 10, 20
1999
C
o
m
m
t
Select
documents
and carry
forward
2000
C
o
m
m
t
Define:
Carryfwd
allowed for
FM area
Year
Val. 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 . . .
100
50
80
200
150
60
640
0
0
0
70
20
10
80
40
90
Mat1
Mat2
Mat3
Inv1
Inv2
. . .
Expenditure
Mat
Commt
item: Mat3
C/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 carry Define 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 carry Flag a fund as carry- -forward relevant forward 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 budget
carryforwards and commitment carryforwards.
Year-End Closing: Summary (1)

(C) SAP AG AC700 6-18
SAP AG 1999
Carryforward rules can be copied from one
year to another.
The closing operations monitor enables you
to obtain a quick overview of all relevant
system settings and allows you to branch
directly to the settings in Customizing and
in the area menu.
Carrying forward funds allows you to generate
a view of the actual revenues/expenditures
for 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 systems
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

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

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

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

Closing Operations Carryforward Rules Maintain

Carryforward type 20 only allows a percentage rate of 0 or 100 to be entered.
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

Topic: Carrying Forward Commitments
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

Topic: Budget Carryforward
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 i tem 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
START
Budgeting Budgeting
Updating Updating

SAP AG 1999
Data coll ection / summarization
R/3 R/3 R/2 R/2
External
sources
Non Non- -SAP SAP
systems systems
Overall
organization
Departmental
level
Day-to-day
activities
SAP BW
SAP BW SAP BW
Business Information Warehouse Business Information Warehouse
Report / analysis structures Report / analysis structures
Functional information systems Functional 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
Logistics Logistics Controlling Controlling
Budget Budget
Overall vi ew
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 summarization
Integration of different applications
Provides detailed information
Advantages of the Architecture

SAP AG 1999
Administrati ve Reporting
Master Data Reporting

SAP AG 1999
What does my
current funds
center structure
look 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 vari ants
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 optimized
read-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
FFND
FCTR
FPOS
FVSN
EPBT
VEPT
BPBY
EPBY
VEPY
BPBT
ABAP ABAP- - Editor Editor
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 selection
FM area
Fund
Funds centers
Commitment items
Financial trans.
Item category
Dynamic selection Dynamic 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 ...
5000000968
5000001038
5000000969
5000001970
5000001980
02.01.97
05.02.97

18.02.97
24.02.97
24.02.97
Funds reserv.
Funds reserv.

Invoices

Invoices
Invoices

1,000.00 -
500.00 -
1,600.00 -
150.00
150.00
250.00
100.00
350.00
1,100.00 -
Subtotals
Individual document display
Detail view
Filter
Functions in the Executed Report

(C) SAP AG AC700 7-14
SAP AG 1999
Display fields
Item Length Total
1
2
3
4
6 6
10
10
4
10
10 10
Column
Document number
Available fields
Column content
Appli cation of funds
Fund name
Version
Value type
Created by
Text
Date of entry
Length
10
20
7
2
10
12
50
Posting lines
Fiscal year
Value type text
Transaction text Transaction text
save
Doc. No. Posting lines Year Value type text
.........
Customer fund
5 5 2 2
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
Basi cs of Drilldown Reporting
Form report types
Form layout settings
Creating reports
Working with drilldown reports
Further processing
Drilldown Reporting

(C) SAP AG AC700 7-16
SAP AG 1999
Principle of Drilldown Reporting
V
a
l
u
e

t
y
p
e
Fund
F
u
n
d
s

c
e
n
t
e
r
A1
P12
C12
Fund:
Funds center:
Value type:
YF
P12
All
Budget
Commt
Actual
Budget EU YF
Characteristics:
Funds center
Fund
Customer for fund
Value type
Commitment item
Trans. currency
Applic. 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 figures
Forms
Key figures
Start Start
online online
Start in Start in
background background
Drilldown report Drilldown 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 selection
Determining list of characteristics for drilldown list
Defining default sorting of characteristic list
for navigation
Acti vates hierarchy display for funds center,
commitment item or budget structure elements
Determines print layout
Defines sender-receiver reports
Configures 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 - 1
FY
FY +1
Budget Commt Actual
Execute PB02-xx: Detail s
Report Edit Goto Navigate
Navigation
Funds center
Commt item
Fund
Value type
Lead column Annual budget Commt/Actual
1999
2000
2001
0.00
1,015,143.00-
0.00
0.00
393,143.48-
0.00
Current Data 25.06.2000 15:17:24
Report definition:
Characteristics:
Funds center
Customer for fund
Value type
Commt item
Applic. of funds
.....
Fund
Trans. 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: Overview
Navigation
Funds center
Displayed in
Commt item
Fund
Value type
Fiscal year
Period
Annual bdgt
1 UNI
Commitment/Actual
1 UNI
9010/ V
9010/ V
9010/ A1
9030/ V
9030/ V
9030/ A1
Total
1,015,143.48-
0.00
1,015,143.48-
0.00
0.00
0.00
1,015,143,48-
0.00
0.00
0.00
393,143.48-
0.00
393,143.48-
393,143.48-
Exec.Board
Exec.Board
Department 1
Exec.Board
Exec.Board
Department 1
Form definition:
Annual bdgt Commt/Act. Resid. bdgt Usage %
Current Data 25.06.2000 03:04:00 PM
Characteristics:
Funds center
Customer for fund
Value type
Commt item
Applic. of funds
...
Fund
Trans. 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 reporting
Navigation
Commt item
Funds center
Displayed in
Annual budget available
V
V
A1
Total
Budget 97
1 UNI
Budget 96
1 UNI
630,000.00-
0.00
630,000.00-
630,000.00-
0.00
0.00
0.00
0.00
Exec.Board
Exec.Board
Department 1
Zahlenformat..
Report definition:
Key figures:
Characteristics:
Annual budget available
Commt/Actual trans. curr.
Commt/Actual FM area curr.
Overall budget available
...
Funds center
Customer for fund
Commt item
Applic. of funds
Fund
Trans. 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 figure
char.
Predefined
column
General
selection
Formula
Char.
Char.
Char.
Formula
Formula editor
X001 + X002
X001 X001
X002 X002
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
Order
2.
3.
1.
4.
Drilldown list
2. Funds center
3. Commt item
4. Value type
Sort characteristics
Characteristics: Characteristics:
Funds center
Customer for fund
Value type
Commitment item
Applic. of funds
1. Fund
Funds center
Commt item
Fund
Value type
Selected characteristics Available characteristics
Application of funds
Fund

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 Phase
Navigating Within Drilldown Reports
Drilldown Report Functions
Exceptions
Further 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 data
dimensions of fund, funds center, and commitment
item
Variables which were defined in the form or report
Background processing can only be defined using
report execution
Dynami c selection is not necessary. You can create
vari ables 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 drilldown
structures
F
u
n
d
s

c
e
n
t
e
r
A
1
P
1
2
C
1
Budget EU
V
a
l
u
e

t
y
p
e
Fund
Act ual
Commt
Budget
Anal ysis of
EU fund
Anal ysis of
YF fund
Anal ysis of
YF fund
Funds center: P12
3 3
FM dataset
YF
2 2
1 1
F
u
n
d
s

c
e
n
t
e
r
A
1
P
1
2
C
1
Budget EU YF
V
a
l
u
e

t
y
p
e
Fund
Actual
Commt
Budget
1 1 2 2
3 3
FM area
Period
Applic. of funds
Value type
Commt item
Funds center
Fund
Debit 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
Switch
dimensions
Insert texts
Display:
000s UNI
Decimals
Footers
Funds ctr
Fund
Text
Text
Hide columns
Line items
Currency
conversion
Budget Commt Actual Avail. Usage
Expend. 10000 2000 7000 1000 90%
Cap.Inv.
I1
. .
. . .
. . . . .
Current expend.
HR 22000 5000 17000 0 100%
P1
P2
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
Background
Definition of threshold values for report
columns or individual report cells
Different colors for corresponding values
Search can be made for " unusual" objects
and values in the report
Objective
Optimal 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
Funds
center
Utilization >80 %
Utilization <20 %
Budget
Utilization
%
Funds center: P12
Utilization
%
V
C1
C11
C13
A1
P12
A2
P21
P22
Z1
Z11
100,000
40,000
5,000
21,000
30,000
20,000
20,000
10,000
10,000
10,000
8,000
41,600
12,100
400
11,700
18,000
18,000
10,500
9,000
1,500
1,000
1,000
41.60
30.25
8.00
55.71
60.00
90.00
52.50
90.00
15.00
10.00
12.50
Funds
item
Commt /
Actual
3
40000
40010
50000
50010
50030
60000
60010
60020
60030
60040
20,000
8,000
5,000
2,000
500
800
10,000
4,000
1,000
2,000
3,000
9,800
4,500
4,500
500
400
100
4,800
2,000
300
1,500
1,000
49.00
56.25
90.00
25.00
80.00
12.50
48.00
50.00
30.00
75.00
33.33
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
41,600
12,100
400
11,700
18,000
18,000
10,500
9,000
1,500
1,000
1,000
Budget utilization A1 <90 %
Budget utilization A1 >70 %
==============================================
Exception cannot be
seen
Funds
center
Budget Commt /
Actual
Utilization
%
V
C1
C11
C13
A1
P12
A2
P21
P22
Z1
Z11
100,000
40,000
5,000
21,000
30,000
20,000
20,000
10,000
10,000
10,000
8,000
41.60
30.25
8.00
55.71
60.00
90.00
52.50
90.00
15.00
10.00
12.50
Budget Utilization
%
Funds center: A 1
Commt
item
Commt /
Actual
3
40000
40010
50000
50010
50030
60000
...
...
...
...
9,800
4,500
4,500
500
400
100
4,800
...
...
...
...
49.00
56.25
90.00
25.00
80.00
12.50
48.00
...
...
...
...
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
Acti ve
Colour below threshold
Threshold val. 80
Red
Green
Acti ve
Colour below threshold
Threshold val. 20
Red
Green
Column
Budget 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 menu
Role-based menus contain the transaction and
reports that are relevant for the tasks of a user
SAP supplies over 150 predefined general roles
Role-based menus can apply across a whole
system 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 groups
An individual acti vity group is made up of:
Transactions
Reports
Web addresses
R/3 menus
...
Individual activity groups can be put together
to form collective groups

(C) SAP AG AC700 7-35
SAP AG 1999
Activity group
SAP_FM...
FM_MANAGER
Copy
Menu
G/L Accounting
Funds Management
Master Data
Budgeting
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 i tem reports in Funds
Management
Prepare user-specific line item reports
Explain the principle of drilldown reporting
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 4
th
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

Topic: Drilldown Reporting

Navigate through drilldown reports in Funds Management

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

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

Topic: Line Item Reports
1-1 Financial Accounting Funds Management Information system Line items

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

Execute report => Settings Display variants Select

=>Select value type column =>Edit =>Subtotal =>Save

(C) SAP AG AC700 7-41

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
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
Create report
=>Execute report

(C) SAP AG AC700 7-43

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 authorizations
Transferring data within the R/3 system
Entering budget in Euro
Status management
General Information

SAP AG 1999
The authorizations that are checked in Funds Management
and the order in which they are checked
Preparing for production startup
Making supplementary account assignments and
subsequent postings when you start using Funds
Management data
The functions that are available by default in Funds
Management and those functions that must be activated
by the user
Budgeting in Euro in the dual currency phase
Using status management
In this unit, you will learn about:
General Information: Unit Objectives

SAP AG 1999
START
Budgeting Budgeting
Updating Updating

SAP AG 1999
1. Acti vity allowed for version xxx
Yes Yes
No No
Refused Refused
2. Acti vity allowed for FM acct assignment
No No
Yes Yes
Allowed without further checks Allowed without further checks
3. Acti vity allowed for FM area
Yes Yes
No No
Refused Refused
4. Acti vity allowed for fund
Yes Yes
No No
Refused Refused
5. Acti vity allowed for funds center
Yes Yes
No No
Refused Refused
6. Acti vity affects Acti vity internal
whole funds within funds center
center (top (not top item)
item)
No No
Refused Refused
Yes Yes
No No
Refused Refused
7. Acti vity allowed for commitment item
Yes Yes
No No
Refused Refused
Processing allowed Processing 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 data
Delete master data
Delete commitment item
from G/L account
(Delete budget structure)
Result: Customizing not deleted
You cannot make postings until
you 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 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 structure
Many selection criteria
Documents 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
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 center
Commitment item
Hierarchy 1999 UNI
Fund
Distrib.
70,000
70,000
90,000
70,000
Euro FM area Euro
Funds center
Commitment item
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 9000
Current 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
Funds center
Commitment item
Hierarchy 1999 EURO
Fund
Distrib.
35,000
35,000
55,000
35,000
Export Export UNIX file
PC file
Import Import
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 by
status
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 posting
Invoice
Reservation
Payment transfer
Find goods receipt
Find goods issue
Set status
Reset status
Created
Reservation
Payment transfer
Set status " Released"
Completed
Reset everything
except status
Released
Reservation
Transfer
Post invoice
G/L account posting
Post GR/GI
Reset status " Released"
Set status " Completed"
2
1
3
Released
Reservation
Transfer
Post invoice
G/L account posting
Post 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 area FM area Year Year Fds Ctr Fds Ctr Cmmt Cmmt It. It. Fund Fund System status System status User status User status
IMR 1996 * * * Released -
IMR 1996 Purch. Books - Created E1
IMR 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 entries
Multiple entries
Single entries
Funds center
Commitment item
Fund
Fiscal year
FM area
Funds center
Commitment item
Fund
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
- Individuall y, 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 Funds
Management to various levels of the system setting and
usage
You can use supplementary account assignments and
subsequent postings to transfer data from other systems
to Funds Management
Funds Management must be activated for you to carry out
commitment data and actual data postings
In the dual currency phase, an FM area can be processed
in parallel with the euro as its currency
Status management controls the business transactions that
are permitted from an FM account assignment perspective.

Good Luck!

AC700 - Funds Management

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Funds Management: Processes, Organization

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