FUNDS MANAGEMENT

Configuration Document

AUGUST 5, 2023
VERSION-02

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Contents
Activate Business Functions ....................................................................................... 3
............................................................................................................................................ 3
Maintain FM Area ............................................................................................................ 3
Assign company code to financial management area ............................................ 3
Activate Account Assignment Elements ................................................................... 4
Allow BLANK as Value for Account Assignment Elements ................................... 5
Activate Global Funds Management Functions (PSM-FM) ........................................... 6
Define Global Parameters ............................................................................................. 6
Define Fiscal Year Variants........................................................................................... 7
Assign Fiscal Year Variant to FM Area ............................................................................ 8
Create Variant in FM Area/Fiscal Year ........................................................................ 8
Create/Change Hierarchy Variant ................................................................................... 9
Assign Hierarchy Variant to FM Area ............................................................................ 10
Create FM Fund Types................................................................................................. 10
Activate Account Assignment Elements in Budgeting ......................................... 11
Define Budget Category .............................................................................................. 12
Define Budget Types.................................................................................................... 13
Define Release Scenario ............................................................................................... 16
Define Budget Types for Release .............................................................................. 17
Assign Budget Types for Release to Processes .......................................................... 18
Define Document Types .............................................................................................. 19
Maintain Number Range Interval for Entry Documents ........................................ 20
Maintain Number Range Interval for Budget Change Documents ...................... 21
Define Number Range Interval for Document Family .................................................. 23
Activate Period Control................................................................................................... 24
Edit Status ....................................................................................................................... 25
Check Consistency Rules .............................................................................................. 29
Check Standard Customizing of Availability Control .................................................... 29
Activate/Deactivate Some AVC Messages for Applications ........................................ 30
Edit Tolerance Profiles .................................................................................................... 32
Maintain Customer-Specific Ledger for Availability Check .......................................... 33
Define Derivation Strategy for Control Objects ............................................................ 34

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Define Derivation Strategy for Tolerance Profiles ........................................................ 35
Assign Tolerance Profiles and Strategy for Control Objects ....................................... 36
Define Activation of Availability Control ......................................................................... 37
Maintain Global Settings ................................................................................................ 39
Define Field Status Variant ............................................................................................ 40
Assign Field Status Variant to Company Code ............................................................ 40
Define Field Status Groups ............................................................................................ 41
Define Field Selection String ......................................................................................... 42
Assign Field Selection String ......................................................................................... 43
Maintain Template Types................................................................................................ 44
Define Document Number Ranges ............................................................................... 45
Define Document Types ................................................................................................. 46
Define Rules for Account Assignment Transfer ............................................................ 47
Assign Rules ................................................................................................................... 49
Assign Update Profile to FM Area ................................................................................. 49
Make Other Settings ....................................................................................................... 50
Define Number Ranges for Actual Transactions .......................................................... 54
Assign Number Range to FM Area ............................................................................... 55
Define Settings for Payment Transfer ...................................................................... 55
Use ................................................................................................................................... 56
Maintain Field Status for Assigning FM Account Assignments ................................... 56
Check Company Code ................................................................................................. 57
Activate/Deactivate Funds Management ...................................................................... 58

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Activate Business Functions

Maintain FM Area
In this step, you create your financial management (FM) areas. The financial management area is an
organizational unit within accounting which structures the business organization from the perspective
of Cash Budget Management and Funds Management.

To be able to take advantage of the high degree of integration in the SAP system, you must link the
FM areas with organization units from other applications. For example: if you assign a Financial
Accounting document to a Funds Management object (such as a commitment item or funds center),
the system has to determine an FM area, so that it can record the data in Funds Management. For
this reason, you must specify how the appropriate FM area is to be determined.

The FM area is taken from the company code when you assign a company code to an FM
area. More than one company code can be assigned to an FM area.

Transaction Code: OF01 is to check the FM area

Menu Path:

For example, FM Area is 4021 here instead of FM01

Assign company code to financial management area

In this IMG activity, you assign each company code which is relevant to Cash Budget Management or
Funds Management to a FM area.

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In the case of cross-company-code Cash Budget Management/Funds Management, you can combine
several company codes in a single FM area. You must assign all the company codes in question to the
same FM area.

Further notes

You can only change the assignment if:

 Neither Funds Management nor Cash Budget Management is active

 No actual data has been posted yet

 No commitment items have yet been posted in any of the G/L accounts in the company
code in question

Transaction Code: OF18

Menu Path:

For example, Company code and FM Area are 4021 here.

Activate Account Assignment Elements

In this Customizing (IMG) activity, you activate the Grant, the Fund, the Functional Area and the
Funded Program for your client.

In Funds Management (PSM-FM), in addition to the account assignment elements, commitment item
and funds center, the respective account assignment element

Note the following:

o The grant, the funds, the funded program and the functional area can only be
budgeted if you have activated these account assignment elements for the Budget
Control System in the IMG activity Activate Account Assignment Elements in
Budgeting. The funded program cannot be entered with postings, it must be derived
from the account assignment elements of other components, for example, CO objects
(project and order) instead.

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 o After the activation of functional area, grant, and funded program, you cannot restrict
the selection to individual values in all programs. The corresponding program is then
executed for all values of the respective account assignment element.

Requirements

Please note that you should only activate account assignment elements once certain prerequisites
have been fulfilled.

All company codes that are assigned to a controlling area must also be assigned to one financial
management area or to no financial management area.

Menu Path:

Allow BLANK as Value for Account Assignment Elements

Use

In this step, you can specify that the initial value entry is allowed for account assignment elements
grant, fund, functional area and funded program..

 When selecting values, as a rule, the entry BLANK/SPACE means that all values for an
account assignment element are selected.

If after live date of the account assignment elements grant, fund, functional area or funded program for
the first time with this release, you can allow the initial value (BLANK/SPACE) as value for these
account assignment elements for your FM area in the transition period. This means that you will not
have to make supplement account assignments for documents posted that are in old fiscal years.

Menu Path:

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Activate Global Funds Management Functions (PSM-FM)
In this step you can activate/deactivate specific functions in the system for the component Funds
Management (PSM-FM).

Activities

Set the indicator to use the functions in this system.

Menu Path:

Define Global Parameters

In this step, you can check whether you have maintained the required parameters and assignments for
each of your FM areas .

For each of your FM areas, you must have maintained the following parameters at different points in
the Implementation Guide:

 Fiscal year variant

 Number ranges for actual transactions.

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Menu Path:

Define Fiscal Year Variants

In this step, you define fiscal year variants for your FM area.

You use a fiscal year variant to specify:

 The number of posting periods in a fiscal year

 The number of special periods you need

 How the system is to determine the posting periods when making postings

Note

You can define fiscal year variants for Funds Management that differ from Cash Budget Management
and/or Financial Accounting.

Note the following:

If you use fiscal year variants with special periods, the variants in Funds Management and Financial
Accounting must match. Otherwise, the FI postings are transferred to the period of the posting date
instead of the special period of Funds Management.

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Menu Path:

Note: here we are using the same fiscal year variant K4 as of financial accounting.

Assign Fiscal Year Variant to FM Area

In this step, you assign fiscal year variants to your FM areas.

Menu Path:

Create Variant in FM Area/Fiscal Year

In this step, you create variants for maintaining commitment item hierarchies.

In addition to the standard variant "000", you can create additional variants to use alternative
commitment item hierarchies.

Standard settings

You do not have to create the standard variant "000". It is generated automatically as soon as you
create or import new commitment items in an FM area/fiscal year.

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If you want to import an alternative commitment item hierarchy into the new fiscal year, then you have
to first create the variant in the new fiscal year. Unlike the standard variant, the variants of alternative
commitment items are not automatically transferred on export/import.

Activities

1. Create the alphanumeric code and the name of the variant for an FM area/fiscal year.
2. Save your entry.

Menu Path:

Create/Change Hierarchy Variant

You create new hierarchy variants in this section. These are then used to define a funds center
hierarchy in master data maintenance.

Beyond that, you can also delete hierarchy variants in this section and in existing hierarchy variants
carry out changes in the textual name. Changing an alphanumeric key is not possible in an existing
hierarchy variant.

.Menu Path:

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Assign Hierarchy Variant to FM Area
In this section, you determine which hierarchy variants are to be assigned to the FM area and fiscal
year as the current valid funds center hierarchy.

Menu Path:

Create FM Fund Types

You create fund types in this step.

You can classify and group a fund by defining fund types in the funds master records.

Activities

1. Create a six-digit alphanumeric key for the FM area and enter a name for the fund type.
2. Save your entry.

Further notes

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The assignment of the corresponding fund type is entered in the master data maintenance for each
fund.

Menu Path:

Activate Account Assignment Elements in Budgeting

Use

In this Customizing activity, you define which account assignment elements should be used in the
budget control system (BCS). When you activate BCS, you define that the input field of an account
assignment element is available in BCS budgeting transactions.

You can define the following statuses for activating or deactivating the account assignment elements:

 Not Used
The account assignment element is not active for budgeting. The input field of the account
assignment element is not displayed in the budgeting transactions.

 Optional
The account assignment element is activated for budgeting. The input field of the account
assignment element is ready for input as an optional field entry in the budgeting
transactions. Initial is also a possible entry value.

 Mandatory
The account assignment element is activated for budgeting. The input field of the account
assignment element is a Required Entry Field.

The following account assignment elements are available:

o Funds center

o Commitment item

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 o Fund

o Functional area

o Grant

o Funded program

Standard settings

The account assignment elements "funds center" and "commitment item" are generally activated as
mandatory entry fields in Funds Management and you cannot change them.

Menu Path:

Define Budget Category

In this IMG activity, you determine the budget categories you want to use for an FM area in your
organization.

You can define the number of years or time horizon that should be used for budgeting for each budget
category. You also define the year of cash effectivity and whether the time horizon should start from
the following year or not.

Example

You want to use the commitment budget with the following values:

 Time horizon three years

 Indicator set for the start of the time horizon from the next year

Result: The commitment entitlement is valid for the cash effectivity years 2005, 2006 and 2007 in fiscal
year 2004.

Standard settings

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When using budget categories, the following ledgers are available:

 9F for the Payment Budget

 9G for the Commitment Budget

 9J for the Financial budget.

Activities

1. Define which budget category should be used for your FM area and which time horizon
should be used for the year of cash effectivity.
2. If you want to manage the year of cash effectivity as "valid from next year", set the indicator
in the corresponding column.
3. Save your entries.

Menu Path:

Define Budget Types

Use

In this IMG activity, you define the BCS budget types that you want to use in your organization.

You use budget types to differentiate a characteristic of the budget values according to its use:

 In BCS budgeting, you can define for which budget types a budgeting process is allowed.
There are two options for this:

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 o You can do it directly in this IMG activity for an individual budget type (individual
maintenance of budget type). You can assign different budgeting processes to each
budget type. You can assign all budgeting processes with * (asterisk).

o or for all budget types for mass maintenance in IMG activity Assign Budget Types
to Processes

 In the BCS availability control, you can define which budget type is "released" as consumable
budget and updated in the availability control. You do this in IMG activity Define AVC Filter
Settings for Budget Values.

Different budget types can be used for the budgeting process, amongst other things, for mass
transactions in budgeting for example.

Recommendation

You cannot use special characters in the technical name of a budget type.

Activities

1. Define the budget types used in your organization for each FM area.
2. If necessary, define the budget type as eligible for cover by setting the indicator in the
corresponding column.
3. Save your entries.

Menu Path:

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Process Assignment

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Define Release Scenario
Use

In this IMG activity, you activate the release functionality for your FM area.

Standard settings

SAP does not provide any default settings. Therefore, in the default, the release functionality is not
activated.

Activities

In this IMG activity you specify whether you want to use a release scenario to release budget for an
FM area of your organization. If you choose the release scenario, budget is released following a one-
step procedure. The budget release is carried out for the same account assignment elements as the

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ones to which budget has been assigned. Only one release value is then checked by availability
control (for standard ledgers defined according to BCS settings).

You can also use the release function for releasing revenues in your organization. For this, checkmark
the column called "Release on Revenues".

Menu Path:

Define Budget Types for Release

Use

In this IMG activity you define the budget type to use for carrying out budget releases in your
organization.

Standard settings

SAP does not provide any default settings.

Activities

1. For your FM area, enter the budget type to be used for budget releases. You can enter a
short, medium-length and long text for this combination.
2. Save your entry.

Further notes

Please note that you can define only one budget type for releases for your FM area.

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Menu Path:

Assign Budget Types for Release to Processes

Use

In this IMG activity you determine the budgeting processes to be used in combination with the budget
type defined for release.

SAP only supports some processes for the release: Enter, Return, Supplement. You can decide which
of these are relevant for your organization.

Note that when you are doing an automatic release, a budget transfer will lead to a return (for the
sender) and a supplement (for the receiver) on the release side. The same rule applies to budget
carryovers.

Menu Path:

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Define Document Types
Use

In this IMG activity, you define the document types you want to use for budget postings in Funds
Management.

You can use different document types to classify your budget entry documents. By using different
document types, you can classify budget entry documents according to your user-specific criteria, by
assigning meaningful names to the individual document types used within your organization.

Workflow

Using the entry document type, you also control whether the budget posted provisionally in a budget
entry document is to be used in a workflow-controlled approval procedure or not. If you want to use a
workflow for provisionally posted budget, set the Workflow indicator for this document type in this IMG
activity.

Using the document type, you also control the scenario to be supported within an entry document. You
can choose between the following scenarios:

 Budget only - only budgeted amounts are contained in the entry document

 Release only - only released amounts are contained in the entry document

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  Budget with automatic release - you can restrict the entry document to specific budgeting
processes: enter, return, supplement, transfer. In the specific case of a transfer process (send
/ receive), the following applies:

o If the sender side is chosen, only released budget can be transferred. Budget will be
updated on the receiver side.

o If the receiver side is chosen, only unreleased budget can be transferred. Budget will
be released on the receiver side.

 Statistical only - only statistical values are contained in the entry document.

Standard settings

SAP does not provide any predefined settings.

Menu Path:

Maintain Number Range Interval for Entry Documents

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In this IMG activity, you define the number range interval for budget entry documents of an FM area for
each fiscal year for the industry-specific component Funds Management.

When you post budget values directly or temporarily in the budgeting workbench, the system
generates automatically numbered entry documents according to the number range interval you define
here.

Requirements

Only internal number allocations are permitted. You must not set the Ext (external number allocation)
indicator.

Activities

1. Define a Number range and number range interval for an FM area for each fiscal year.
2. Save your entry.

Transaction code: FMEDNR

Menu Path:

Maintain Number Range Interval for Budget Change Documents

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Use

In this IMG activity, you define the number range interval of budget change documents in an FM area
for each fiscal year in the component Funds Management.

Change documents are always generated, when changes are made to the total records for existing
budget values. Change documents provide a complete history of the changes made to budget values.

Requirements

 Use Number range 01 for Funds Management budget change documents.

Enter 01 and not 1 as the number range.

 Only internal number allocations are valid. You must not set the Ext (external number
allocation) indicator.

Activities

1. Define number range 01 and the number interval for an FM area for each fiscal year.
2. Save your entry.
Transaction code: FMLINR

Menu Path:

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Define Number Range Interval for Document Family
Use

In this IMG activity, you define the number range interval to assign document family numbers. Several
budget entry documents are grouped together under one document family which were created at the
same time in a mass activity.

For example, for mass activities whereby a document family number is automatically assigned to an
entry document:

The document family number references all the budget entry documents generated at the same time in
a mass run and makes drilldown reporting and further processing easier (such as a mass reversal with
the program Reverse documents). In this way, an entry document also gets a document family
number as well as the individual budget entry-document number. The respective document family is
displayed in the budgeting workbench in the header data of a budget entry document. For entry
documents without a family document, the Document Family field in the budgeting workbench is
hidden.

Requirements

 If you use the Number range 0 1 for the budget change documents of Funds Management.
Enter 01 for the number range and not 1.

 Only internal number assignment is allowed. You are not allowed to set the Ext indicator
(external number assignment).

Standard settings

SAP does not deliver any default settings.

Activities

1. Define number range 01 and the number range interval for an FM area and for each fiscal
year.

2. Save your entries.

Transaction code: FMEDFAMNR

Menu Path:

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Activate Period Control
Use

In this IMG activity, you activate period control for budgeting per FM area and budget version. You can
also specify all versions by entering an asterisk (*) in the corresponding column.

Note
If period control is not activated (no entry), all periods are open for budgeting by default.

You can open and close periods by specifying a period range in the menu of Funds Management ->
Additional Functions -> Closing Operations -> Open and Close Posting Periods -> Budget (BCS) ->
Individual Processing (Transaction FMOPER).

You can only use Transaction FMOPER to open and close budgeting periods if period control has
been activated in this IMG activity.

Standard settings

SAP does not deliver any default settings.

Activities

Activate period control for each FM area and version according to your requirements and save the
entries.

If you want to implement fund-based period control, call up transaction FMOPER and select a
budgeting period line. Then double-click on the left node Open Budgeting Periods per Fund in order to
make the corresponding entries.

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Menu Path:

FMOPER is front end activity. For back-end activity we use – code FMIR

Edit Status
Use

In this IMG activity, you define which phases the budgeting contains during the course of a fiscal year.
You define a budget status here for each phase.

The budgeting typically runs through a sequence of different phases such as:

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  Budget planning

 Budget entry

 Budget consumption

 Changes to the approved budget

 Budget block

Each phase of budgeting is thereby distinguished by the fact that only certain processes should be
performed. To define these different phases, proceed as follows:

1. You define a budget status for each phase.

2. You define which combination of budget category, process, and budget type are allowed for
each phase.

3. You define an authorization group for each phase.

The statuses defined here are available in the menu of Funds Management for defining the individual
budgeting phases, under Budgeting -> Budget Control System (BCS) -> Version -> Assign Status to
Version.

If you maintain a status for budgeting, you can assign all of the budgeting processes to the relevant
budget types using the placeholder *. Depending on the budget type or budget type group, it is
possible that * does not correspond to the same processes. For example, if you use the budget type
financial budget, * means all statistical processes (in other words, processes such as carryover,
revenues increasing the budget and cover eligibility) are not supported.

If the status is assigned to a combination of budget type, process, and budget type group, all the
budget types in the group will have the same combination for the status.

Example:

The budget type group BG01 is defined as follows:

 It contains the budget types BT01 and BT02

 It uses a combination of payment budget type and process ENTR

 It is assigned to status STAT01

This means that the following two combinations are relevant for STAT01:

 Payment budget/Process ENTR/Budget type BT01

 Payment budget/Process ENTR/Budget type BT02

Requirements

You can only select those budget types for a process whose combination was defined beforehand in
IMG activity Assign Budget Types to Processes.

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You can only select those budget types for the release for a process whose combinations were defined
beforehand in IMG activity Assign Budget Type for Release to Processes .

You can only select those budget types for a process whose combinations were defined beforehand in
IMG activity Assign Statistical Budget for Budgeting Process.

You can only select those budget type groups for a process whose combinations were defined
beforehand in IMG activity Assign Budget Type Groups to Processes (Mass Maintenance)

You can only select those statistical budget type groups for a process whose combinations have been
defined in IMG activity Assign Statistical Budget Type Group to Budgeting Processes.

Standard settings

As an example, SAP provides status STAT02 for the phases budget planning (process PREP) and
entry (process ENTR). You can change this status to suit your requirements.

Menu Path:

If the status is assigned to a combination of budget type, process, and budget type group, all the
budget types in the group will have the same combination for the status.

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Check Consistency Rules
Use

With this report, you can verify active or inactive rules that have been defined in the Consistency
Check tool.

Standard settings

SAP does not deliver any standard settings.

Further notes

For more information, please see the documentation for Consistency Check Report.

Menu Path:

Result: No Errors occur

Check Standard Customizing of Availability Control

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Use

In this IMG activity check whether the standard Customizing delivered by SAP required for activating
availability control exists in the current client.

The missing setting can be transferred from client 000 if required.

Note

Missing Customizing Settings are not automatically transferred to a transport request. Therefore, it is
recommended that you also execute this IMG activity in your target system or in your target client.

Menu Path:

Activate/Deactivate Some AVC Messages for Applications

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Use

In this IMG activity, you can selectively deactivate availability control (AVC) messages for certain
Applications of BCS Budgeting.

Note:

 Even if you deactivate the AVC messages for the applications of BCS budgeting, the Funds
Management update of posting data for this area still takes place using the control objects of
the AVC. You cannot deactivate the AVC here.

 With the deactivation, you suppress only the messages that are triggered by AVC because of
a budget overrun, which are issued by the system during posting. Messages that are not
suppressed are those related to incorrect functions (for example, incorrect Customizing
settings). You cannot deactivate these messages - they will still be issued.

Standard settings

By default, the AVC messages are already activated for a number applications of BCS budgeting.

You should not deactivate the applications activated by SAP.

Activities

If necessary, activate or deactivate the AVC messages selectively for individual applications by setting
or deleting the AVC active indicator.

Menu Path:

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Edit Tolerance Profiles
Use

In this IMG activity, you define the tolerance profile for the active availability control in the budgeting
of Funds Management (FM).

For each tolerance profile, you define whether you only want to work with percentage usage rates or
also with maximum permissible absolute differences. If you allow absolute variances as tolerance
limits, you must assign a currency to the tolerance profile - this currency must match your FM area
currency.

In a tolerance profile you group together the tolerance limits for the different activity groups. You can
define one or more tolerance limits for each activity group by specifying different usage rates or also
absolute variances. You also define the check sequence of the different tolerance limits. Assign a
message type to each of these defined check events. As message type, an error message, a warning,
or an information can be issued.

Ceiling Type
You can use the ceiling type to control whether the availability control should limit expenditures
(outgoing amounts and/or revenues (incoming amounts) from bottom to top.

Normally the availability control checks only expenditures (for example, outgoing payments). Under the
revenues ceiling type, you can also maintain tolerance limits to check revenues (for example,
incoming payments).

Usage Type for Tolerance Limits

If you allow both percentage usage rates and absolute variances in your tolerance profile, you can use
indicator Usage Type for Tolerance Limits to control whether the tolerance limit is derived only from
the usage rate or whether the tolerance rate is determined as minimum or maximum value from both
values.

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Note

Note that all tolerance limits for each activity group must be entered in order of the check events (with
increasing values).

Menu Path:

Maintain Customer-Specific Ledger for Availability Check

Use

In this IMG activity, you maintain the list of availability control ledgers (AVC ledgers). You can define
new (customer-defined) availability control ledgers, modify some of their attributes, or delete ledgers,
providing some conditions are fulfilled.

When creating a new AVC ledger, you can have most of its attributes copied from a reference ledger
taken as template. The following settings and assignments are copied from the reference ledger:

 Filter settings for budget values

 Assignment of tolerance profiles and derivation strategy for control objects

 Assignment of checking horizon for availability control

Note
The copying of AVC ledgers is only supported within an FM area. The keys of your new ledger are
entered with the copy process and cannot be changed.

By default, the activation status of a newly created AVC ledger is set at "not active" .

Activities

If you want to use a new customer-defined AVC ledger for your FM area, carry out the activities in the
following order:

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 1. Create a new AVC ledger in this IMG activity.

2. Activate the new AVC ledger by setting the appropriate activation status in the IMG activity
Define Activation of Availability Control.

3. Reconstruct availability control in the new AVC ledger using transaction Re-Initialize AVC
Ledgers.

Menu Path:

Define Derivation Strategy for Control Objects

Use

In this IMG activity, you can define your own strategies for deriving Funds Management account
assignments (FM account assignments) for availability control.

Each FM account assignment in which you create budget or to which you post budget consumption is
assigned an account assignment in the availability control ledger.

Standard settings

SAP provides standard strategy 9HSAP000, which contains examples of how to use different step
types.

Menu Path:

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Define Derivation Strategy for Tolerance Profiles
Use

In this IMG activity you define the derivation rules with which you can replace the standard tolerance
profile by an alternative tolerance profile.

You normally assign a standard tolerance profile to the availability control ledger for each fiscal year
and FM area. This defines the tolerance limits for all postings.
If you want to make the tolerance limits valid for postings to certain FM account assignments or users,
you can define a derivation rule which derives an overriding tolerance profile with different tolerance
limits for the relevant FM account assignments.

Standard settings

Availability control will work with the standard tolerance profile of the ledger, in case the derivation rule
does not find an alternative tolerance profile.

Activities

1. Create a strategy for your tolerance profile by copying the strategy delivered by SAP.

2. Maintain your strategy by including further derivation steps in your strategy if necessary.

3. Save your strategy.

Menu Path:

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Assign Tolerance Profiles and Strategy for Control Objects
Use

In this IMG activity you define the derivation of availability control objects and the assignment of the
tolerance profile for each availability control ledger.

You define these attributes for each FM area, ledger and fiscal year (from fiscal year). Derivation and
summarization of FM postings to availability control objects

If you want to define your own derivation strategy for deriving FM account assignments to the
availability control ledgers, you assign this in the field Strategy for Deriving Control Objects.

If you do not enter a strategy, the account assignment of the availability control object is always
identical to the posting or budget address that is either assigned as the FM account assignment of a
budget transaction or that is derived from the posting address of a posting transaction (possibly with
the exception of the value of the account assignment element "grant").

Assigning and overriding the standard tolerance profile

You must assign a standard profile to the availability control ledger by entering a profile in the field
Tolerance Profile. If you do not make an entry in the field Strategy for deriving a tolerance profile the
tolerance limits of this profile are used for all postings.

However, if you want to use different tolerance limits for particular posting activities, you can override
the tolerance limits defined in the standard tolerance profile by assigning one of the strategies you
defined for determining a tolerance profile to be overridden in the field Strategy for deriving a tolerance
profile.

Recommendation

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Maintain entries for all availability control ledgers that you want to activate.

Menu Path

Define Activation of Availability Control

Use

In this IMG activity, you activate availability control by assigning an activity status for each ledger and
fiscal year (from year). You can choose between five activation statuses for each availability control
ledger:

 Ledger not active

Posting values (including budget values) are not updated in the availability control ledger and
no availability control takes place.

 Active without availability checks

Posting values are updated in the availability control ledger. No availability control takes place.

 Active with usual check logic

Posting values are updated in the availability control ledger. The usual availability control
takes place. In the usual availability control, the error messages of AVC checks are always
issued as warning messages if the available amount (= difference between the consumable
budget and consumed amounts) is not reduced by the posting activity for each availability
control object.

 Active with soft check logic

Posting values are updated in the availability control ledger and an availability control check is

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 carried out. During this check, the system stops all AVC messages if the available amount for
the availability control object is not reduced by the posting.

 Active with strict check logic for document chains

Posting values are updated in the availability control ledger. The usual availability control
takes place, except for document chains. Strict availability control applies to document chains.
This means that each document of a document chain is checked again and can be rejected by
an error message of the availability control, even if the new document does not contain any
additional budget consumption.
This means, for example, that the posting of an invoice must always undergo this strict check
again even though availability control has already taken place for the commitment of the
corresponding purchase order.

 Active with strict check logic

Posting values are updated in the availability ledger. All postings undergo the strict check
logic. This strict check logic can also stop postings if the available amount of a control object
is increased. This activation is only used in special situations.

SAP recommends that you use the normal check logic or the check logic with strict check for
document chains.

Note

In this activity you can also define whether you want to exclude revenue items from the availability
control in the chosen Availability Control Ledger. Set indicator Ignore Revenue Items for this. In
this case, budget values and commitment/actual values of revenue account assignments are neither
checked nor updated in the availability control ledger.

Menu Path:

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Maintain Global Settings
In this step you can activate or deactivate specific functions for Earmarked funds.

 Check in Local Currency

If this function is active, a check in Local currency takes place when reducing earmarked
funds with other documents.

 Value adjustment required

If this function is active, no amount changes may be performed on an earmarked funds
document. An additional document, a value adjustment document, must be entered in order to
change the amount of earmarked funds.

Standard settings

In the standard delivery the functions Check in local currency are active.

Activities

Deactivate or activate the function(s) required.

Menu Path:

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Define Field Status Variant
You can create and delete field status variants in this step.

You must then assign a field status variant to each FM area. You can enter a field status variant to as
many FM areas as you want.

By assigning a field status variant and field status group to a field selection string, you can control the
document entry for the various business transactions very differently in your FM areas. The field
selection string determines which fields are optional, required or hidden when you enter documents.

Menu Path:

Assign Field Status Variant to Company Code

In this work step you assign a field status variant to your company codes. You can assign a field status
variant to as many company codes as you want.

Activities

Make the assignments.

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Menu Path:

Define Field Status Groups

In this step, you define field status groups. You must assign the field status groups, along with a field
status variant, to a field selection string, and enter them when defining document types.

By defining the field selection string, you determine which fields are optional, required or hidden when
you enter documents. The document types classify the business transactions (such as funds blocking
and funds commitments) in Funds Management.

You can define separate field status groups for the various business transactions and control
document entry by defining the field selection and document type accordingly.

Standard settings

There are field status groups defined in the standard.

Activities

1. Check the field status groups delivered in the standard system.

2. Choose Edit -> New entries to create new field status groups. There is a copy function
available. To use it, select an entry in the standard list and choose Edit -> Copy as.

3. In the step Define field selection string, assign the field status group and the field status
variant to a field selection string.

4. Remember to specify the field status group you need in the step Define document types.

Menu Path:

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Define Field Selection String
In this step, you can define the field selection strings - that is, you can specify which fields are ready
for entry, required or hidden during Earmarked funds and transfers. In another step, you must assign
a field status variant and field status group to the field selection string.

Activities

1. Determine which fields on the doucment entry screen are

o ready for input

o required

o to be hidden

o displayed only

2. Use the New entries option to create a field selection string, then choose Maintain field
status for field selection string.
3. Choose a desired field status for each field.
If you mark the following fields as required entry, the fields are preassigned when entering an
FM document and cannot be changed by the user:

a) FM account assignment changeable in the follow-on document

b) Use may exceed reserved amount without limit

c) Reduction only in local currency

d) Statistics indicators Funds Management

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 4. Subsequently, assign a field status variant and a field status group to the field selection
string in the step "Define Field Selection String".

Menu Path:

Assign Field Selection String

In this step, you assign a field status variant and field status group to a field selection string you want
to use.

Menu Path:

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Maintain Template Types
In this step you define reference types. The reference type specifies for which fields the values from
the reference document should be copied into the new document.

You need reference types if you want to use an existing document as a reference when creating
earmarked funds and funds transfers.

Standard settings

Reference types are defined in the standard.

Activities

1. Check whether you want to use the reference types distributed with the standard.

2. If necessary, create your own reference documents and, for each document type, select the
fields that should be copied from the reference document into the new document.

3. Specify your preferred reference type in IMG activity Define Document Types.

Menu Path:

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Define Document Number Ranges
In this work step you create number ranges for the documents. For every Number range you state
among other things the following:

 a number interval, from which document numbers are chosen

 the type of Number assignment (internal or external). You assign every number range in a
further work step to one or several document categories. The number range takes effect via
the document type when entering and posting a document.

Menu Path:

Transaction Code: OK60

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Define Document Types
In this IMG activity, you create the document types for the documents in Funds Management.
Document types are used to classify the documents. You can define characteristics for each document
type which control how the document is entered or they may be recorded in the document itself.

Menu Path:

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Define Rules for Account Assignment Transfer
In this step you define which account assignments are to be transferred from the earmarked fund to
the follow-on document when posting a document with reference to an Earmarked fund.

You can define different rules for particular activities (e.g. G/L account posting, purchase orders, funds
commitments).

You can group together several account assignments in a group. This has the effect that all account
assignments of a group are transferred into the follow-on document.

However, if the indicator Account assignment changeable is set in the earmarked fund, the group
assignment of the account assignments has the following effect:

 If no account assignment is entered in addition to the earmarked funds all account

assignments are transferred from the earmarked funds.

 If an account assignment is entered manually, all other account assignments belonging to the
group must be entered manually. Or assignments must exist for these account assignments,
from which a derivation can take place (e.g. funds center is defined in the commitment item).

Standard settings

SAP delivers a rule in the standard that groups together the FM account assignments, the CO account
assignments and the assignments to sub-ledger accounts.

If you do not change the standard setting, these account assignments are automatically transferred
together into the follow-on document. Manual entries in the follow-on document are automatically
overwritten by the automatic derivation.

Activities

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 1. Check if you want to use the rule delivered in the standard.

2. Create additional rules if required.

Menu Path:

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Assign Rules
In this IMG activity, you assign the rules for the account assignment transfer from the earmarked
funds to individual activities (such as purchase order, G/L account posting).

Standard settings

SAP delivers a rule in the standard that is assigned to all activities.

Activities

1. Check if you want to transfer the rule delivered in the standard for all activities.

2. If desired, create additional rules and assign them to the activities.

If you have defined a rule for "All activities", but another rule is to apply for a particular activity,
then make another entry. This entry overwrites the rule for "All activities".

Menu Path:

Assign Update Profile to FM Area

In this step you define your update profile per FM area.

You make the following specifications in the existing update profiles:

 With which budget categories you want to work

o Payment budget

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 o Payment budget and commitment budget

 Which document date (such as purchase order, invoice, payment) is to be used when
assigning commitment/actual data to a period in Funds Management, that is in which period
the actual data is displayed in the information system for the payment budget and/or the
commitment budtget

o Update period from posting date/document date.

o Update period from due date

 Whether the commitments and budget are allowed to be carried forward at the fiscal year
change and for which value types.

Activities

1. Check to see which update profile you want to work with in the "Funds Management
Government" document.

2. Assign an update profile per FM area.

Menu Path:

Make Other Settings

When you post business transactions to other components, such as Materials Management and
Financial Accounting components, the system passes on the data to Funds Management (FM). The
actual data is updated there and displayed in the information system.

In this IMG activity, you can define:

 When the goods receipt should be included in Funds Management

 The process by which tax should be displayed

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  Whether the derivation of FM Account Assignments only occurs for real Controlling
Objects or also for statistical Controlling objects.

 Which documents should be used for determining the Carryforward Level

 Which Currency Type is used for currency integration (see section "Define Currency Type for
Currency Integration")

 Whether sales orders should be updated in FM

Note the following:

 GR/IR Updating

o If you choose Goods Receipt, the actual data is displayed in Invoice column in the
information system, per the goods receipt date.

If you work on payment basis ( RFFMS200) and have chosen a corresponding

update profile, you cannot set this indicator, you must choose either MM Invoice
Receipt or GR and IR for the GR/IR update.

o If you choose Invoice Receipt, the actual data is displayed in the Invoice column in
the information system, per the invoice receipt date.

o If you choose GR and IR, both the goods receipt and the invoice receipt are
displayed in the Invoice column according to the period, however with the
corresponding activity Goods Receipt Purchase Order (RMWE) and Invoice Receipt
(RMRP).

Additional postings to expense accounts, such as price differences, are also included in the
GR/IR updating.

 Tax Display

o If you choose Net, the information system on the commitment item shows no value
added tax but only the net tax.

o If you choose Gross, the information system on the same commitment item shows, in
addition to the line with the net amount, a further line with the corresponding tax
amount.

o If you choose Separate, all the VAT amounts are updated in their own commitment
item. Precondition: Create a commitment item for the input tax and another for the
output tax (financial transaction 30 for both and item category 2 (revenues) or 3
(expenditures)) in the Funds Management menu and store them in the input/output
tax account.

 Define Currency Type for Currency Integration

The local currency is not recalculated in the FM area currency when amounts are transferred
from Financial Accounting to Funds Management. The currency of each company code
assigned to the FM area must therefore match the FM area currency.
If the first local currency (currency type 10 = company code currency) of all company codes
assigned to a FM area does not match the FM area currency, you have to use an additional
local currency in these company codes. The additional local currencies must each have the

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 same currency type and the same currency as the FM area currency.
You create additional local currencies in the Customizing of Financial Accounting in IMG
activity "Define Additional Local Currencies". Then you define the currency type in this IMG
activity.
Examples

o Company code 1: 1. local currency (currency type 10); currency EUR

Company code 2: 1. local currency (currency type 10); currency EUR FM area:
Currency EUR
You do not have to define any settings in this IMG activity because the FM area
currency corresponds to the company code currency.

o Company code 1: 1. local currency (currency type 10); currency EUR

Company code 1: 2. local currency (currency type 40); currency US$
Company code 2: 1. local currency (currency type 10); currency US$
FM area: Currency EUR
You have to define an additional local currency for both company codes.
Company code 1: 3. local currency (currency type 30); currency EUR Company code
2: 2. local currency (currency type 30); currency EUR
and define currency type 30 in this IMG activity.

Requirements

If no automatic derivation of FM account assignments takes place from other components, then the
prerequisite for including posting data from other components is that the fields for the additional
account assignments Commitment Item, Funds Center and Fund and Functional Area are ready for
input when posting transactions. This applies to all assigned activities in Financial Accounting and
Materials Management (e.g. purchase orders, goods issue). You enter the required settings in the
Customizing for Financial Accounting and Materials Management.

For more information:

 for postings in Financial Accounting, go to the Financial Accounting implementation guide

(IMG) Accounting Basic Settings under Define Field Status Variants.

 for posting purchase requisitions and purchase orders which do not go to the warehouse, the
IMG Purchasing under "Maintain Account Assignment Categories"

 for posting Goods Issues and Goods Receipts in the IMG for Inventory Management under
"Specify Screen Layout".

Standard settings

If you do not enter any settings in this IMG activity, the system updates the posting data from the
feeder components as follows:

o GR/IR updating: MM Invoice Receipt

o Goods issues: WA not relevant for budget

o Value-added Tax display: Gross Value-Added Tax

o Currency type for currency integration: 10 company code currency

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 o Sales orders: are updated

Activities

Read the documentation on the relevant IMG activity and define the settings you need.

Further notes

You should not change the settings for update control after production startup because this may
negatively influence the data in the information system.

Integration Cost and Project Controlling

If you have activated the integration for the CO business transaction in IMG activity Choose Business
Transactions for Integration, you can find more information on the effects of this on the update in
Funds Management in the SAP Library under SAP ERP Central Component -> Accounting -> Public
Sector Management -> Funds Management -> Actual and Commitment Update -> Integration Costs
and Project Controlling.

Menu Path:

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Define Number Ranges for Actual Transactions
In this step, you define number ranges in each FM area for the actual data documents in Funds
Management.

You can define as many number ranges as you want for each FM area. However, one number range is
usually enough. If you define more than one number range, make sure that they do not overlap.

Activities

1. Specify the FM area for which you want to maintain number ranges.

2. Choose Interval ->Change.

3. Choose Edit -> Add interval.

4. In the dialog box, enter all the necessary information on the number range.

5. Save your input.

Menu Path:

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Assign Number Range to FM Area
In this step, you store a number range interval for actual data documents for each FM area.

Standard settings

In the standard system, there is no number range key assigned to the standard FM area 0001. You
must, therefore, define and assign at least one number range interval.

Menu Path:

Define Settings for Payment Transfer

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Use
In this IMG activity you define the settings for the payment transfer. Depending on your system
requirements, this activity provides the following input options:

 If the enhanced or original function of the payment conversion was active, you have the same
input options as before.

 If no payment conversion was active in the system until now, you can only activate the online
For more information on payment matching and payment transfers, see SAP Library under
Accounting -> Public Sector Management -> Funds Management -> Actual and Commitment
Update -> Financial Accounting Integration.

Menu Path:

Maintain Field Status for Assigning FM Account Assignments

In order for data from other components to be updated in Funds Management, you must specify the
Funds Management account assignment elements when making a posting to another component
(additional account assignment).

Recommendation

If you want to integrate Plant Maintenance, Sales and Distribution or Project System with Funds
Management, flag funds center and, if necessary, fund as required entry fields. Account Assignment
Derivation can be used to derive the commitment item either from the G/L account or the cost element
for automatically generated purchase requisitions, material reservations, goods issues or revenue
postings.

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Activities

1. Enter the required object type for each FM area.

2. Choose New entries and define the field status for the FM account assignment elements.

Menu Path:

Check Company Code

In this step, you can subject the company codes, which are relevant to Funds Management, to
particular consistency checks.

The checks are carried out in the following order:

 is an FM area assigned to the company code?

 does the FM area actually exist?

 does the currency key for the FM area exist?

 is there a fiscal year variant for the FM area?

 is there a budget profile for the FM area (only if you use former budgeting)?

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  is there a budget profile for funds for the FM area? (only if you use former budgeting and have
defined a budget profile for funds in the FM area)

 is there a status profile for the FM area? (if you have defined a status profile in the FM area)

 is there a number range interval (for FM line items) for the FM area?

 is there an update profile for the FM area?

 is cost of sales accounting active for all the company codes that are assigned to the FM area?
(if you have activated the functional area for the assigned FM area)

Activities

Enter a company code and choose Company code -> Check. If any errors are found, choose Extras ->
Display error log to access the error log. Double click on the error message to access the long text,
which directs you how to proceed.

Menu Path:

Activate/Deactivate Funds Management

In this step, you activate the Funds Management (FM) account assignment derivation and update of
documents from the feeder components for FM to FM for specific company codes. If you have
combined a number of company codes under an FM area, you have the option of activating specific
company codes only or of leaving other company codes deactivated.

If you only activate the account assignment derivation, the documents are given an FM account
assignment in accordance with the assignment in the account assignment derivation during posting in
the feeder components for FM. If you also activate the update, the documents are also updated in FM.

You can implement Funds Management in two steps if you only activate account assignment
derivation. In the first step, you only activate account assignment derivation. If you want to activate the

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update of documents at a later time, you can activate the update in a second step and reconstruct the
documents.

You can deactivate the update again in FM if necessary. No checks are carried out on postings in the
feeder components for FM after the update has been deactivated. The prerequisite is that the
corresponding assignments from company codes to FM areas are not removed. If you want to stop the
update and account assignment derivation, you have to deactivate the account assignment derivation
as well.

If you do not want to use FM anymore, you can delete all master data and transaction data as soon as
you have deactivated the account assignment derivation and update.

Note
If you only activate the update, the account assignment derivation is activated automatically.

For Funds Management, you can activate/deactivate the availability control in step
Activate/Deactivate Availability Control.

Menu Path:

Define Account Assignment Derivation

Menu Path: Spro>Public sector management>Funds management Government>Master
Data>Allocations to Account Assignments from Other Components>Define Account Assignment
Derivation
Transaction code: FMDERIVE

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FUND CENTER =COST CENTER (Mapping 1=1)

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GL and Commitment item assignment

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FUND is taken as default but it is not mandatory. Fund can be entered manually .to enter
any other fund manually, remove default setting first

Some other activities to perform

T-Code SNRO> Objects RF_BELEG & FM_BELEGCO

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T-code: GLPLINSTALL
Run this Program

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T-code: Se38 run program FMGL_CHANGE_APPL_IN_LEDGER , RGZZGLUX
, RKTKA04C , RFFMRC01
T-code: Sm30 table TRWCA and activate indicator of component EAFM

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