SAP PSM-FM (Fund Management - BCS) Master Data and Derivation Tool

Organizational Structures

LESSON OVERVIEW

The lesson will explain the organize structures in Funds Management.

LESSON OBJECTIVES After completing this lesson, you will be able to:

Organize structures in Funds Management

Figure 6: Organizational Elements Within Accounting

Depending on the level at which accounting data is viewed, the organization is represented in the SAP 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 take precedence over the company code.

Figure 7: Organizational Structures

Figure 8: Organizational Structures - Scenario 1

Scenario 1: Funds/Functional Area/Funded Program/Grants Management are not active .

The organizational unit for Funds Management is the financial management area (FM area).
You can assign one or more financial accounting organizational units (company codes) to an FM area.
The CO area is assigned via the company code.
In this scenario it is possible to assign a company code which is not FM-relevant to a CO area.
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 by the financial accounting organizational unit, that is, the company code.
Figure 9: Organizational Structures Scenario 2

Scenario 2: Fund/Functional Area/Funded Program/Grants are active or Budgeting planning and control is used. The organizational unit for Funds Management is the financial management area (FM area).

You can assign one or more financial organizational units (company codes) to an FM area.
The CO area is assigned using the company code.
In this scenario it is not possible to assign a company code which is not FM-relevant to a CO area. All company codes which are assigned to one CO area need to be assigned to the same FM area or there is no assignment between company code and FM area.
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 by the financial accounting organizational unit, that is, the company code.

Organize structures in Funds Management

Account Assignment Elements

LESSON OVERVIEW

The lesson will explain how to maintain account assignment elements: funds center, commitment item, fund, functional area, and funded program.

LESSON OBJECTIVES After completing this lesson, you will be able to:

● Explain the relationship between the account assignment elements: funds center, commitment item, fund, functional area, and funded program

Figure 10: Master Data Overview

Any master data can be used for the budget- or posting address.

You can also create hierarchies and groups (such as fund groups).

Commitment item: revenues and expenditures.

Funds centers set up the organizational units hierarchically.

Funded Program: project and organizational related activities.

Functional area: program- and subprogram-oriented.

The usage of the Grant requires an activated Grantee Management.

With ERP 6.0, Enhancement Package 3 it is possible to generate FM Master data from CO master data using report RFFMMD_AUTOCREATION.

Figure 11: Activating Account Assignment Elements

If the account assignments fund, functional area, funded program or grant are used in Funds Management, they must be activated in the Customizing of Public Sector Management.

Note:

Activation is client dependent.
If the account assignment elements should also be used in Asset Accounting, the account assignment elements must also be activated in Asset Accounting.
If the account assignment elements should also be used in Controlling, program RKALPSCR must be started.
The activation of account assignment elements is not available for German customers (local authorities flag set).
The activation of fund and functional area in Funds Management is the same as the activation of “Enhanced Fund Accounting”, an integrated solution developed for the US market.
SAP Note 518610 contains a description of the prerequisites for using

“Enhanced Fund Accounting” or parts of the available functions.

Lesson: Account Assignment Elements

Figure 12: Activating the Fund and Functional Area

Activating the fund has the following effects:

In Controlling, in addition to posting to CO objects and cost element, the fund can also be posted to.
In Asset Accounting, the fund can be defined in the master data.

Activating the functional area has the following effects:

In Controlling, in addition to posting to CO objects and cost element, the functional area can also be posted to.
In Asset Accounting, the functional area can also be defined in the master data.
In Funds Management, the functional area can be budgeted and assigned to an account.

Note:

If you use HR, you must assign the fund and functional area in HR as well.

Figure 13: Activating the Funded Program

Activating the funded program has the following effect:

Funded programs can be created and budgeted in Funds Management if the Budget Control System (BCS) is used.
During posting, the funded program is always derived from a nother account assignment object such as the CO order or WBS element. It is not possible to assign the funded program directly to an account.
This means that you can use the funded program to group expenditures according to functional aspects.

Note:

If you use HR, the funded program must be derived to an account in HR as well.

Figure 14: Activating the Grant

Lesson: Account Assignment Elements

With Grants Management, grants are managed that have been provided from governments or other institutes for commercial or scientific research.

Activating the grant has the following effect:

The grant can be used as an additional account assignment element in the following components:

Funds Management Government, excepting Former Budgeting (you must use BCS).
Financial Accounting
Asset Accounting
Controlling
Material Management
HR

Figure 15: Account Assignment Element BLANK

Account assignment elements must always have a concrete value. SPACE/BLANK is no longer accepted as a value by the system. This is because of the new account assignment logic, that allows you to define account assignments for a functional area in CO and Asset Accounting. In CO, this is Fund, Functional Area, and Grant and in Asset Accounting, it is Fund, Functional Area, Grant, and Funded Program. A clear assignment must be possible, in order to avoid problems when deriving a functional area. This is only possible using concrete values.

If you are already working with the value “blank”, you should convert to a concrete value for the account assignment in the next fiscal year. This is not necessary during the year.

In the transition period, it is possible to allow the value BLANK/SPACE in Customizing for

Public Sector Management for an account assignment element Fund, Functional Area, Funded

Program, or Grant. Note that with this setting, no allocation or distribution for the BLANK/

SPACE functional area can be defined separately in Controlling. This means that you cannot allocate the BLANK fund to another fund. The BLANK fund is only passed on from the sender to the receiver.

Figure 16: Master Data Activation in Budgeting BCS

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

Not UsedThe account assignment element is not active for budgeting. The input field of the account assignment element is not displayed in the budgeting transactions.
OptionalThe 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.
MandatoryThe account assignment element is activated for budgeting. This means that the input field of the account assignment element is mandatory!

Note:

Although the settings defined here are somewhat more flexible than the other Funds Management Customizing settings, the settings for BCS budgeting defined here must take the other Funds Management settings into account.

LESSON SUMMARY

You should now be able to:

● Explain the relationship between the account assignment elements: funds center, commitment item, fund, functional area, and funded program

Funds Centers

LESSON OVERVIEW

The lesson will explain the organizational unit within an FM area which represents the structure of an organization (areas of responsibility, departments, projects) in the form of a hierarchy.

LESSON OBJECTIVES After completing this lesson, you will be able to:

● Manage organizational units within an FM area which represents the structure of an organization (areas of responsibility, departments, projects) in the form of a hierarchy.

Figure 17: Organizational Elements

Funds centers are used to represent organizational units (areas of responsibility, departments) and are arranged in a hierarchy.

Every funds center, that is not a top 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.

Figure 18: Hierarchy Variant: Time-Dependent Funds Center Assignment

The hierarchy variant corresponds to the hierarchical funds center structure. This hierarchy can be designated as either year-dependent or year-independent.

If you want to work year-dependently, organizational changes between individual fiscal years are easy to map out.

Individual funds centers or complete substructures can be reassigned from one year to another.
The existence of a funds center can be limited to a specific number of fiscal years.
New funds centers can be defined as valid from a specific fiscal year.

When you create hierarchy variants, at first, they are year-independent (fiscal year “0000”). Once you assign a variant to a fiscal year, the funds center hierarchy becomes valid for the relevant period.

Only one variant is permitted for a fiscal year.

Lesson: Funds Centers

Figure 19: Funds Center: Period of Validity

If you are working with year-dependent funds centers, you can enter a validity period for the funds centers. This period of validity specifies the “life-span” of the funds center. If you are working year-independently, the system automatically fills these fields with the period 1900 to 9999 and it is not possible to change these values.

When working year-dependently, the validity period can be extended at any time. The value for the “to-year” (and consequently the “life-span”) can therefore always be moved back.

It is also possible to make the existence interval smaller. The prerequisites for this are:

There is no posting data such as actual data or budget in the period affected.
The funds center has no subordinate funds centers.

If you want to assign a funds center to a year-dependent hierarchy variant, you need to ensure that the validity period for the funds center covers the fiscal year for which the hierarchy variant is assigned.

LESSON SUMMARY You should now be able to:

Manage organizational units within an FM area which represents the structure of an organization (areas of responsibility, departments, projects) in the form of a hierarcy.

Commitment Items

LESSON OVERVIEW

The lesson will explain how commitment items represent the functional grouping of expenditures and revenues within a financial management area (FM area).

LESSON OBJECTIVES After completing this lesson, you will be able to:

● Define commitment items that represent the functional grouping of expenditures and revenues within a financial management area (FM area)

Figure 20: Commitment Items

Figure 21: Revenues and Expenditure Account Assignments

Figure 22: Commitment item: Attributes I

The commitment item's key has 24 digits. In addition to the header data, all other master data parameters are available in tab pages on a screen.

You can define the control of entry fields (field status) in Customizing using a customerspecific field string. You should hide function entry fields that you cannot use.

You can define several posting object levels. This means that under one postable commitment item you can have further postable commitment items.

You can refer to data on commitment items already created by clicking on the Create with Template button.

You create commitment items and commitment item hierarchies in an FM area. If you use year-dependent master data, create commitment items and commitment item hierarchies in an FM Area for a fiscal year.

If a commitment item is flagged as statistical:

The commitment item cannot be budgeted directly.
Postings that contain this commitment item are updated but do not take part in the active availability control.
Postings can be displayed separately in Reporting.

The “Negative Budget” indicator is only relevant for FB, Former Budgeting System. If negative budget is not allowed, a customer check must be implemented.

Figure 23: Commitment item: Financial Transaction and Item Category

The commitment item category defines the order according to balances, revenues or expenditure: All commitment items are divided into different categories: revenue items (category 2), expenditure items (category 3), balance items (category 1), balance commitment items (category 4) and the clarification work list from IS-PS-CA, Contract Accounting, (category 5).

You can create one or more hierarchies for each category of commitment item.The financial transaction and the commitment item category are identical for all commitment items within a hierarchy.

The financial transaction represents business transactions from the feeder application components (for example Materials Management) and plays the central role in passing on data from these components to Funds Management.

There are also technical commitment items which play an important role in integration that are outsourced with financial transaction 30 and item category 2 or 3, as well as the expenditure and revenue commitment items of the budget. For example, commitment items for reconciliation accounts (financial transaction 60, item category 2/3), commitment items for the payment transaction (financial transaction 90, item category 1), commitment items for the clarification work list from IS-PS-CD (financial transaction 90, item category 5) or commitment items for the goods issue/goods receipt (financial transaction 40, item category 2/3).

Figure 24: Commitment Item Hierarchy

Commitment items classify the budget according to revenues and expenditures.

The financial transaction and item category are the control parameters used to define the meaning of a commitment item.

The financial transaction represents the business transaction from upstream application components.
The item category stipulates whether you are working with:

A revenue item
An expenditure item
A cash balance item

All commitment items representing the budget structure as revenues and expenditures types have 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.

Unit 2: Master Data

Figure 25: Example of Customer Enhancement: Commitment Item

Customer enhancements are structured the same for all master data (funds center, commitment item, fund). Taking the commitment item as an example, you can see that there are three options for implementing customer enhancements in master data maintenance.

Creating and Changing Commitment Items (EXIT_SAPLFMCI2_001): Fields can be predefined when you create or change commitment items. You can determine whether these fields have default values that can be overwritten or fixed values that are displayed and cannot be edited. You can also exclude certain commitment item keys and commitment item types from being created or changed.

Commitment Item Consistency Check (EXIT_SAPLFMCI2_002): After all data entry, you can have field contents checked against customer-specific rules and, if necessary, have the system output error messages (exception).

Add Additional Master Data Fields for Commitment Items (EXIT_SAPLFMCI2_003 and EXIT_SAPLFMCI2_004): This enhancement makes it possible to include your own additional fields in the master data master record.

Figure 26: FM Account Assignment

FM account assignment is set up by integrating organizational and structural posting elements.

LESSON SUMMARY

You should now be able to:

● Define commitment items that represent the functional grouping of expenditures and revenues within a financial management area (FM area)

Fund

LESSON OVERVIEW

The lesson will explain how to maintain funds master records.

LESSON OBJECTIVES After completing this lesson, you will be able to:

● Maintain funds master records.

Figure 27: Fund

Funds represent own/external funds that are limited time-wise (financing period) and functionally (application of funds), which have been designated for a specific expenditure.

Lesson: Fund

Figure 28: Fund

Budgets and funds from secondary sources are managed as funds.

A fund allows you to map the origin of funds.

Secondary funds can be managed as completely separate from the operational budget, which is usually managed according to strict rules. These secondary funds are often available for projects.

Technically, there is no difference between funds and funds from secondary funds.

Figure 29: Fund Master Record: Overall Fund

LESSON SUMMARY You should now be able to:

● Maintain funds master records.

Budget Period

LESSON OVERVIEW

The lesson explains the budget period which is the period of available budget authority.

LESSON OBJECTIVES After completing this lesson, you will be able to:

● Demonstrate how budget period is the period of available budget authority

Figure 30: Budget Period

With ERP 6.0, Enhancement Package 4 the account assignment element Budget Period is available.

The Budget Period allows recording the time of budget and its execution, independent of fiscal year considerations. The Budget Period account assignment element is always used with the account assignment element Fund.

Any given budget period can be assigned to any number of funds to create budget-perioddependent combinations of funds. There is a mass assignment mechanism you can use to create such combinations.

The budget period appears as an account assignment element in all transactions integrated with FM.

The time span for which a budget is approved for consumption need not coincide with a fiscal year.

An active Business Function PSM_GEN_BUDPER_1 is a prerequisite for the use of the Budget Period.

LESSON SUMMARY You should now be able to:

● Demonstrate how budget period is the period of available budget authority.

Functional Area

LESSON OVERVIEW

The lesson will explain how to maintain functional area.

LESSON OBJECTIVES After completing this lesson, you will be able to:

Maintain the functional area

Figure 31: Functional Area - General Objectives

Figure 32: Processing Screens for the Functional Area

Maintenance of functional area in the master data menu

Long text
Change documents
Create with template
Function module
Substring function

LESSON SUMMARY You should now be able to:

Maintain the functional area

Funded Program

LESSON OVERVIEW

This lesson will explain funded programs which are programs within Funds Management (FM) with an operational purpose and defined time frame.

LESSON OBJECTIVES After completing this lesson, you will be able to:

Explain funded programs within Funds Management (FM).

Figure 33: Funded Program - General Objectives

Funded programs are programs with an operational purpose and a defined time frame.

Facility modernization
Financial system replacement
Park beautification
Street and highway safety

Figure 34: Funded Program

Figure 35: Funded Program

LESSON SUMMARY You should now be able to:
Explain funded programs within Funds Management (FM).

General Settings

LESSON OVERVIEW

This lesson will show how to define the key settings for the master data.

LESSON OBJECTIVES After completing this lesson, you will be able to:

● Make general settings

Figure 36: FM Area Global Settings

The FM area currency and a fiscal year variant must be defined as global parameters.

The FM area and company code currencies do not have to be identical.

The fiscal year variant for a company code and FM area must be identical for payment matching to be possible (use of payment view).

Figure 37: Year-Dependency of Master Data

The year-dependency of funds center and commitment item is set by a special Customizing point.

This means you can make changes to suit your needs for any fiscal year in the master data maintenance without unintentionally affecting previous or future years.

By default, the master data is defined as year-independent (year “0000”), which means it is valid for the whole Funds Management term.

Using the Customizing program RFFMMDACT, the master data can be converted to “yeardependent”.

Figure 38: Mask for Commitment Item Key

You can define a mask for the commitment item key which controls the output of the commitment item on the screen using the special characters you defined.

Figure 39: Subdivide Master Data

Different special characters can be used for the masking.

The special characters are inserted into the commitment item key and displayed in the commitment item output in the screen. The special characters are not stored in the commitment item key in the database.

You can subdivide master data into a number of substrings, in order to reproduce a “naming structure”, for example.
This function is useful for customers who want to save different types of information in the master record, such as the region ID and the purpose in commitment item.
Commitment items can be divided into 5 substrings.
Funds can be divided into 2 substrings.
Funds centers can be divided into 3 substrings.
Functional areas can be divided into 3 substrings.
Funded program cannot be divided.

Figure 40: Field Selection Strings for Master Data

Figure 41: Mass Selection Master Data

Figure 42: Example of Mass Maintenance

Figure 43: Authorization Groups

There are authorization groups for all Funds Management master data (funds center, commitment item, fund, functional area, funded program and grant).

If an authorization group has not been defined for an object, it will not be subject to authorization checks!

The authorization assigned must not just relate to the given authorization object (for example, a commitment item), but to a whole authorization group. You can jointly manage a group of commitment items, such as all commitment items representing HR expenditures which are grouped together in the “HR” group.

In contrast to assigning authorization without using groups, the advantages of using groupings include:

Individual users do not need to be assigned each individual authorization object (such as commitment item, funds center, fund, functional area, grant, funded program, grant), instead they can be assigned a single group. When these groups contain several objects, the effort involved in maintaining them is reduced.
If a new object is created (such, the “Moving Expenses” commitment item above), it is assigned to the “HR” authorization group. No additional maintenance needs to be carried out for user authorizations. If there were no groups, you would have had to maintain the new object individually for all users.

Figure 44: Authorization Groups for Commitment Items

The authorization assigned does not directly relate to the given commitment item, instead it refers to the authorization group.

To make it possible for an authorization check for commitment items to be carried out, you must define an authorization group in the FM area in the master record of the commitment item. No authorization check is carried out for commitment items in which no authorization groups are defined.

To be able to define an authorization group in the master record, commitment item activity “Create” or “Change” must be permitted.

Note:

The functional area is checked in Budgeting and in evaluations in the logical database. The functional area is not checked during posting.
The funded program is only checked in evaluations.
The grant is checked in BCS and Grants Management.

LESSON SUMMARY

You should now be able to:

● Make general settings

Derivation Tool

LESSON OVERVIEW

This lesson will explain how to activate the predefined derivation rules and integration between other components controlled by derivation rules, CO/FI and FM.

LESSON OBJECTIVES After completing this lesson, you will be able to:

● Prepare the derivation tool to derive FM account assignments

Figure 54: Aim of the Derivation Strategy

For each business transaction that is relevant for Funds Management, account assignment derivation attempts to determine values for the FM account assignment elements from other account assignment objects. These are either objects from other components or, if necessary, from FM account assignment elements.

By deriving account assignments automatically, you can reduce the expenditure of manual entries for postings in which account assignment elements can be entered. The derived values appear as default values, which can be overwritten if necessary.