Fund Management – Summary
The purpose of Fund Management is to have the control on the expenditure done by the Company and also it can be used for budgeting the revenues & to have a clear check on all the required areas of business.
The functions in this component support you in creating and executing budgets. The purpose of Funds Management is to budget all revenues and expenditures for individual areas of responsibility, to control future funds transactions in accordance with the distributed budget, and to stop the budget being exceeded. You can adapt the budget to changes in conditions by entering releases, supplements, returns, and transfers.
In Fund management there are mainly three important things to be considered. They are Fund, Fund Center and Commitment Item.
Kindly note that the Funds Management will be activated only if the Global Funds Management Functions is activated for the Company Code.
- Access the activity using the following navigation options :
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Transaction Code
SPRO
IMG Menu
Public Sector Management ® Funds Management Government ® Basic Settings ® Activate Global Funds Management Functions (PSM-FM)
- On the Change View “Activate Additional Functions”: Details screen, set the indicator.
- ChooseSave to save the data.
Once above activity is done then only the Fund Management will work for Company Code.
Every configuration is to be done from the above path only with each nodes.
The budget check in case of Fund management can be done at any point of time, but in majority cases its kept at the point of PO creation, wherein the configuration is done in such a way that if the combination of Fund, Fund Center and Commitment Item is more then 90% of allotted budget, then system will start throwing the Warning Message whereas when the above combination is reached to the 100% of Budget available then system will throw an error and system won’t allow to book the PO. So in such case either the combination of Fund, Fund Centre and Commitment Items need to be changed or further budget has to allotted or transferred.
Now let’s understand the creation of all the masters (Fund, Fund Centre, Commitment Items & Fund Group).
- Create / Change / Display Fund Master:(T-Code: FM5I / FM5U / FM5S): You can keep any characteristics as Fund depending on your requirement and on which thing you want to have budget but In my case we chose Storage Location as Fund. So all the Storage Location’s created are termed as Fund for the purpose of Budgeting as Client wanted the Budget check on the Sloc.
Enter the Fund Management Area and press Enter
Enter the SLoc for which the Fund is to be created as shown below:
Enter the required details for the creation of Fund like Name, Description, Validity Period, Fund Type, Etc. Once entered all the data then save so the Fund will be created. Similarly after entering the details of Fund and the FM Area any Fund can be changed or displayed as per the T-Code mentioned above.
- Create / Change / Display Fund Group:(T-Code: FM_SETS_FUND1 / FM_SETS_FUND2 / FM_SETS_FUND3): Fund Group contains a list of many Funds. Like a Fund Group is named as ‘MAH’ then all the Funds under Maharashtra Group will be assigned to the MAH Fund Group.
Provide group name ‘MAH’. Press Enter.
Click on Continue tab.
From above we can make the changes to the Funds in the different Fund Group as per the state in case of my Client requirements. The Changes and Display of the Fund Group can be done by the T-Codes mentioned above.
- Create / Change / Display Fund Centre Master:(T-Code: FMSA / FMSB / FMSC): Fund Center in case of my Client is mapped with the Cost Center for the purpose of derivation. So all the Cost Centers are created as Fund Centers.
Enter the required details for creating the Fund Center like Name, Validity Period and the FM Area.
As seen above all the details are available which are to be filled like the Fund Centre name, Validity, Description, Company Code, Business Area, etc.
The changes and the display of Fund Centre can be done through T-Code FMSB & FMSC respectively.
- Create / Change / Display Commitment Item:(T-Code: FMCIA / FMCIA / FMCIC): Commitment Item is the third base on which the budget is dependent. The Commitment Item is assigned to the G/L Master in T-Code ‘FS00’. Note that Commitment Item is created at a time only for a particular year. So if the Commitment Item is to be extended then the same has to be created again for the next fiscal year.
Enter the Commitment Item and the Fiscal Year for which you want to create the Commitment Item.
The above Commitment Item is created only for the Fiscal Year 2010 so if the same Commitment Item is to be created for Fiscal Year 2011 then the same has to be created using T-Code FMCIA.
From above it can be seen that many things are to be mentioned while creating Commitment Items like Name, Description, Fiscal Year, Commitment Item Category (for the purpose of bifurcating the Commitment Items), etc.
- Process Account Assignment Derivation (T-Code: FMDERIVER):
Here the derivation things are mentioned that which are the prerequisites and if fulfilled then automatically some field will get captured. This fields are to be decided on the requirement of Client.
Provide Derivation Strategy ‘SAP’.
Select “Acct determination for FI-Revenue Postings-Storage Location”
Provide following Information:
Company Code: XXXX
Business Area: ANP
Plant: 1100
Storage Location: 1005
G/L Account Number: 313004
Valid From: 01.04.2010
Fund Center: APOPS06DMU
From below its showing that if system is finding combination of Company Code, Business Area, Plant, Storage Location, G/L Account Number, Valid from so after this combination system will automatically derive the values of Fund Centre as ‘APOPS06DMU’ if the as above conditions are sufficed.
Upload Budget (T-Code: FMBBC): The budget is to be uploaded on the combination of Fund, Fund Center and Commitment Item through above T-Code. It can be Original Budget or Transfer. We have four document types for different purpose.
1000: Planned Budget
2000: Original Budget
3000: Transfer Budget
4000: Supplement Budget
- Budget Utilization Report (T-Code: FMRP_RW_BUDCON): This is the report in which the actual as well as budgeted data is available with actual allotted and also with available budget. So whenever any issue turns up for the purpose of less budget, the details can be checked in this report where the check can be made on the available budget on the combination of Fund, Fund Center and Commitment Item with the further allocation required.
So this all the main things which is to be considered for implementing Fund Management in your client. Its very useful tool for Budgeting purpose.