SAP PSM-FM (Fund Management-BCS) Integration with other SAP Module
Financial and Asset Accounting Integration
LESSON OVERVIEW
This lesson will explain the process to integrate Funds Management, core processes within purchasing and the uses of Asset Accounting components.
LESSON OBJECTIVES After completing this lesson, you will be able to:
- Define the business processes that are integrated in Funds Management
- Explain the ways in which the Controlling, Project System, Asset Accounting, Plant
Maintenance, and Sales and Distribution application components can be integrated with Funds Management
- Compare the different core processes that take place within purchasing, and within payroll and trip cost accounting
- Troubleshoot the individual steps to be followed and a detailed explanation of how they are inter-linked and how assessed value is adjusted
Figure 146: Financial and Asset Accounting Integration |
Figure 147: Integration FI - Funds Management |
A commitment item must be defined in each line item of an FI document for integration with FI. You can enter the commitment item manually during posting or derive the commitment item when posting.
Derivation rules which derive commitment items from other account assignments can be defined using the derivation tool:
- Commitment items can be defined in the G/L account master record.
- Definition of derivation rules which derive commitment items from other account assignments.
The derived account assignment can also be overwritten depending on the system settings.
When you post requests, the G/L account is derived from the commitment item. This assignment between commitment item and G/L account is maintained in an account determination table.
Other FM account assignments can be entered manually, or derived using derivation rules.
Whether they are updated in FM depends on the financial transaction of the commitment item used during posting.
Figure 148: Integration FI - AA - Funds Management |
Lesson: Financial and Asset AccountingIntegration
Since EA-PS 5.0,
- All transaction types are relevant to budget by default
- Assign a statistical commitment item for every transaction type (statistical postings)
You define whether a transaction type is relevant to the budget in the Customizing of FMDERIVE.
Please find detailed information in SAP Note No. 736914
You can define FM account assignments in the Asset master record. You have to make settings in Customizing of Asset Accounting for this (Financial Accounting→ Asset Accounting→ Integration with G/L Account).
The FM account assignments can also be derived from the CO objects cost center, CO order or WBS element assigned in the Asset master record. In this case, the appropriate rules must be created in the account assignment derivation tool.
To prevent data inconsistency, you should not overwrite the derived Funds Management account assignment in the document.
Figure 149: Transaction Types Relevant to the Budget |
- Define the business processes that are integrated in Funds Management
- Explain the ways in which the Controlling, Project System, Asset Accounting, Plant
Maintenance, and Sales and Distribution application components can be integrated with Funds Management
- Compare the different core processes that take place within purchasing, and within payroll and trip cost accounting
- Troubleshoot the individual steps to be followed and a detailed explanation of how they are inter-linked and how assessed value is adjusted
Funds Management and Controlling
LESSON OVERVIEW
This lesson will explain different CO - FM integration options.
LESSON OBJECTIVES After completing this lesson, you will be able to:
- Explain CO - FM integration options
- Explain the differences between the costs and benefits view in the controlling, revenues and expenditures view in Funds Management
- Explain the differences between the costs and benefits view in the controlling, revenues and expenditures view in Funds Management
Figure 150: Funds Management and Controlling |
Examples of different updates in FM and CO:
- Different master data structure
- Budget consumption (actual) principally for due date in Funds Management versus costs in Controlling for posting date.
- Budget consumption (commitment) principally for the posting date in Funds Management versus costs in Controlling for delivery date.
- Non-input tax deductible administrations must use gross budgeting (gross tax in FM versus net tax in Controlling).
- Normally, asset acquisitions are updated in Funds Management but not in Controlling. In contrast, depreciation is updated in Controlling but not in Funds Management.
- Different goods receipt updates: The goods receipt is updated in Controlling. In Funds Management, you can decide whether the goods receipt is updated or not.
Figure 151: CO - FM Integration Options |
Controlling and Funds Management comprise different views of the same business processes. If the structures required in both modules have similarities, then integration is possible between the modules for certain functions.
If the structures are completely parallel, the FM account assignment elements can be derived from the CO objects using derivation rules. This means that manual entry is not required. Nevertheless, Funds Management remains unaffected by activities within internal cost accounting, such as general cost surcharges or cost assessments.
If you also require parallel contents, then the cost accounting activities must be reflected in Funds Management.
When using parallel structures, note that reconciliation between Controlling and Funds Management will always vary for internal cost accounting activities. On the other hand, costbased figures appear in Funds Management because of the parallel contents and are placed next to expenditure-based figures. This is to be taken into consideration when comparing them.
For Controlling, the integration described here includes cost elements, cost centers, orders, and projects.
Lesson: Funds Management and Controlling
Figure 152: Possible Entries and Automatic Account Assignment Derivation |
The account assignment derivation tool is used for deriving FM account assignments from CO objects.
You should therefore set the derivation rules so that funds center and commitment item must be derived from a CO object and cost center. This ensures that a funds center or commitment item other than one from the derivation logic is not assigned to an account by manual entry. For this reason, the funds center and commitment item should not be ready for input on the posting screen. You can do this by hiding the fields in the field status control in the Customizing of Financial Accounting.
Fund, functional area and grant can be activated as additional account assignment elements in Controlling at client level. In this case, the account assignment elements can be directly assigned to an account and are transferred to Funds Management unchanged. A derivation from other account assignments is not necessary in this case.
Figure 153: CO - FM Posting Integration |
You can control whether “real” or statistical integration is carried out per CO internal transaction. Real integration means that assigned values are written in Funds Management. You make this setting in Customizing of FM.
Availability control checks are carried out on manual postings and on periodic postings such as assessment and settlement which are executed using programs. The tolerance limits defined in Customizing of Funds Management apply.
For statistical updates, no assigned values are generated and there is no check by the active availability control.
You can activate CO integration in a separate FM Customizing step.
Lesson: Funds Management and Controlling
Figure 154: CO - FM Posting Integration |
You use Funds Management Customizing to choose which business transactions from Controlling are to be recorded for an FM area.
Update Customizing for the posting integration should be entered as shown. They will then match the process by which business transactions are updated in Controlling.
- Purchase order period: Delivery date
- Invoice period: Posting date
- GR/IR update: MM goods receipt
- Goods receipt: Update is necessary
- VAT display: VAT net
- Payment display: Do not activate payment conversion
SAP Note 195122 contains a more detailed description of how to make settings for posting integration if you want to be able to compare all data.
You can make different Funds Management settings, but this will mean that data is recorded differently to how it is recorded in CO, making direct comparison difficult. When you enter the CO business transactions to be recorded, the system warns you that the settings are different.
In Funds Management, you must create number ranges for each FM area for the documents generated by the business transactions in Controlling.
LESSON SUMMARY You should now be able to:
- Explain CO - FM integration options
- Explain the differences between the costs and benefits view in the controlling, revenues and expenditures view in Funds Management
- Explain the differences between the costs and benefits view in the controlling, revenues and expenditures view in Funds Management
Purchasing
LESSON OVERVIEW
This lesson will explain the MM integration of Purchasing with and without warehousing.
LESSON OBJECTIVES After completing this lesson, you will be able to:
- Explain MM integration of Purchasing with and without warehousing.
- Map a procurement process when using the Materials Management component, but without including stockholding
- Map a procurement process when using the Materials Management component, but without including stockholding.
Figure 155: MM Integration: Commitment Documents |
MM integration allows you to reference a funds reservation from a purchase order/purchase requisition and break down the available amount. A message is issued if this amount is exceeded.
Warning: This reference (purchase requisition/purchase order) to a funds reservation is only possible for purchase requisitions/purchase orders with CO account assignments! It is not possible to reference a warehouse from a purchase requisition/purchase order!
Figure 156: Scenario: Procurement With MM Without Warehouse Management |
The second variant of the procurement process from a Funds Management viewpoint is purchasing using an integrated purchase order but without warehouse management.
The funds reservation (FM) and/or purchase requisition (MM) can be used as a preliminary step for processing purchase orders. In this case, the component MM can be used alone or in combination with FM for the ordering process.
If only the component Materials Management is used, the account assignments relevant for
Funds Management can be entered at the time of the purchase requisition or purchase order. The commitment amount resulting from this can be then displayed in Funds Management. When doing so, the final FM account assignment should already be known at the time of the purchase order/purchase requisition since this FM account assignment is debited with the commitment.
Figure 157: Purchasing Without Warehouse Management |
The above slide shows the purchasing process using a purchase requisition and purchase order (MM).
The current budget does not change with commitment/actual postings (changes only take place in the current budget if postings are made in the budgeted values themselves).
The available budget is recalculated and displayed for each individual step until the time of payment. No AVC takes place at time of payment.
Until the invoice is posted an online update of each process step is carried out in Funds Management.
The payment is updated in Funds Management using the program RFFMS200.
The commitment originating from Materials Management can be displayed separately according to whether it relates to a purchase order or purchase requisition so as to take the different degree of commitment into account.
The process for a scheduling agreement is the same as for a purchase order. For a contract, on the other hand, no commitment data is set up since the reference in terms of time is missing. Only once a purchase order has a reference to a contract are the corresponding funds committed and displayed in Funds Management.
Figure 158: Purchasing with Warehousing |
From a Funds Management perspective, the third variant of the procurement process is purchasing using an integrated purchase order with warehouse management.
You use the Materials Management (MM) component for representing purchase orders and warehouse management from the point of view of the system.
The funds reservation can also be used in combination with purchase requisition and purchase order.
In addition, a funds reservation can be created on the final account assignment which is reduced at target in goods issue.
There are four scenarios within Warehouse Management which will be explained in more detail.
Figure 159: Warehouse Processing Scenario |
You can choose one of the following four scenarios for warehouse processing in each FM area.
- Consuming funds center known at time of purchase requisition/purchase order You enter the consuming funds center when you create the purchase order or purchase requisition.
The funds center is debited immediately, setting up a commitment for the purchase order.
When you post the invoice, the commitment value is converted into an actual value. Warehouse postings are not made.
- Warehouse not subject to budgetWhen you post the purchase order and goods receipt, no Funds Management-relevant account assignment is entered and no commitment data created. No account assignment or debit to the consuming funds center is entered until the goods are issued.
- Debits and credits automatically posted to warehouse funds center You create a warehouse funds center in Customizing. For purchase orders and goods receipts, the warehouse funds is determined automatically using the derivation strategy. The goods issue itself is debited to the consuming funds center and credited to the warehouse funds center.
- No credit to warehouse funds centerPurchase order and warehouse processing is as described in scenario 3. When the goods are issued, the debit is posted to the chosen funds center, but no credit posting is made to the warehouse funds center.
Note: Please find detailed information in SAP Note No. 700485 |
The following options are available:
- Evaluated goods receipt: the system saves the line items relevant for FM at the time of goods receipt
- Non-evaluated goods receipt: the system saves the line items at the time of invoice receipt
The update is always made under value type “invoice” (54).
Figure 160: GR/IR Update |
In addition you can also update the goods receipt (GR) and the invoice receipt (IR).
The reduction between goods receipt and invoice receipt depends on the quantity also with price
differences. The reduction of the purchase order depends on whether the commitment is updated
by value or by quantity. For value-based commitments the reduction takes place from goods receipt / invoice receipt value. For quantity-based commitments, the reduction takes place from the maximum goods receipt / invoice receipt quantity.
Note: In Customizing, you define whether the update is value- or quantity-based under General Settings→ Check Unit of Measure. |
Figure 161: Multiple Account Assignment for a Purchase Order |
The multiple account assignment for a purchase order item enables the order value for each purchase order item to be divided out as a percentage to FM account assignments (funds center, commitment item, fund, functional area, funded program, grant).
Figure 162: Rule Based Account Assignment Distribution |
Tool to distribute the amount and quantity of one document line into multiple document lines with different account assignments.
Distributed account assignments are dependent on predefined rules. Document is distributed at time of posting.
The Rule Based splitting tool is also available for the following applications:
- Earmarked Fund
- Purchase Order
- CATS: Transfer to CO and PS
- Real Estate Integration
- Explain MM integration of Purchasing with and without warehousing.
- Map a procurement process when using the Materials Management component, but without including stockholding
- Map a procurement process when using the Materials Management component, but without including stockholding.
Business Trip Accounting
LESSON OVERVIEW
This lesson will explain travel management process.
LESSON OBJECTIVES After completing this lesson, you will be able to:
- Explain Travel Management Process.
- Post purchase orders to a warehouse funds center.
- Post goods movements with budget relevance.
Figure 163: Travel Management Process |
Business trip commitments are updated in Funds Management with value type 52. In this way, business trip commitments can be displayed separately in the information system.
An individual tolerance group (tolerance group 70) for the active availability control can be assigned for business trip commitments.
Business trip advances are not updated in Funds Management.
Figure 164: Account Assignment Options for Trips |
Trip costs can be assigned to accounts in one of two ways:
Assigning the entire trip to an account:If you assign the entire trip to an account, you can break down the amounts on a percentage basis and distribute these to a number of FM account assignments.The account assignment can be made at the time of the travel request. A default value can be defined for this in the HR master record. When you enter the trip, the system automatically adopts any account assignment entered in the travel request.
Assigning each document to an account individually:If you choose this option, you can still break down the amount of each document on a percentage basis. Since documents are not generated until the trip itself takes place, you cannot enter documents at the same time you enter the travel request. The account assignment defined in the HR master record is not used because the account assignment per document is only required if the trip cannot be assigned generically.
LESSON SUMMARY
You should now be able to:
- Explain Travel Management Process.
- Post purchase orders to a warehouse funds center.
- Post goods movements with budget relevance.
Integrating Human Capital Management
LESSON OVERVIEW This lesson will explain the HR - FM Integration.
Business Example
In most cases, human resources expenditures constitute the largest block of expenditures in a budget. Different integration scenarios are possible depending on the structural similarities between FM and CO.
A solution “Position Budgeting and Control” for the integration of the personnel commitment in FM is available.
LESSON OBJECTIVES After completing this lesson, you will be able to:
● Explain HR - FM Integration
Figure 165: HR - FM Integration Options |
Using Position “Budgeting and Control” you can represent the personnel commitment in SAP system.
Figure 166: 'Integrating Human Resources Without Commitments' |
The procedure depicted above applies for a) the derivation of account assignments from CO in HR and b) the entry of FM master data in organizational management and HR master data. In the case of b) FM account assignments are contained in the HR posting document.
Although the scenario above does not contain any HR commitments, the separation of the payment and update of expenditures ensures that HR payments are not delayed or prevented by problems resulting from availability control.
Figure 167: Time-Dependent FM Assignment |
Lesson: Integrating Human Capital Management
The funds center and fund can be defined for the organizational unit / position / person. If a funds center and a fund are entered for the organizational unit, then these entries are passed onto the positions within an organizational unit. If no further funds centers/funds are defined for the positions, they are passed on to the people who occupy the positions.If a funds center and fund are entered for the position, these entries are valid for the person who is assigned to a position, if a funds center and fund are not directly maintained for that person.
Personnel expenses are structurally divided in the HR integration scenarios by linking HR wage types to FI G/L accounts and assigning G/L accounts to commitment items.
In addition to defining a funds center and fund, you can define a commitment item for the infotypes that have account assignment blocks (infotypes 0014, 0015, 2001-2005, 2010). A commitment item entered manually overrides a commitment item defined in a G/L account or a cost element.
Figure 168: Encumbrances for Personnel |
For further information please refer to workshop IPS030 PBC “commitment processor”
Figure 169: Determining financing requirements |
Figure 170: HR Payroll Accounting PSM - Integration |
All relevant changes in HR are reflected immediately in finance, including the updating and availability control functionality.
The integrated budget function for budgets and payroll accounting provides a commitment module that controls commitments. This allows you to calculate and check the amounts required for items or employees and create commitments by using the active availability control function in Funds Management.
Commitments are updated using an event trigger when you make changes to the relevant HR infotypes.
LESSON SUMMARY You should now be able to:
● Explain HR - FM Integration
Integrating Project System
LESSON OVERVIEW This lesson will explain intergrating project systems and funds management.
Business Example
The project system is suitable for certain areas, such as the representation of capital investment measures and planned research.
Depending on the degree of similarity, it may be useful to integrate the transactions and functions of these areas.
LESSON OBJECTIVES
After completing this lesson, you will be able to:
- Explain integration of project systems and funds management.
- Explain project systems and funds management structures and functions and updating commitments and actuals.
Figure 171: Project System and FM: Structures and Functions |
In theory, it is possible to have parallel availability control in PS and FM, however it is not recommended as it causes performance problems.
Figure 172: PS and FM: Updating Commitment and Actuals |
A 1:1 representation of project and funds center is technically possible but not recommended, since the funds center structure should represent the company structure and is not created for representing time-related measures.
LESSON SUMMARY You should now be able to:- Explain integration of project systems and funds management.
- Explain project systems and funds management structures and functions and updating commitments and actuals.
Integrating Plant Maintenance
LESSON OVERVIEW This lesson will explain integrating plant maintenance and funds management.
Business Example
The integration of the R/3 component Plant Maintenance (PM) with Funds Management allows the monitoring of budget-relevant plant maintenance processes in Funds Management.
Above all, this affects the external procurement procedures (MM Purchasing) and material withdrawals from an internal warehouse triggered by plant maintenance orders as well as internal processing operations.
LESSON OBJECTIVES After completing this lesson, you will be able to:
- Explain the integation of plant management and funds management.
- Explain PM Transactions Relevant to FM.
- Explain FM Account Assignment in the Maintenance Order.
Figure 173: PM Transactions Relevant to Funds Management |
Lesson: Integrating Plant Maintenance
The connection of plant maintenance processes to funds management is made with the related account assignment of the plant maintenance order to the FM account assignments funds center, commitment items, fund, functional area, and grant.
It is not necessary to manually assign all account assignments funds center, commitment item, fund, functional area and grant to the order. You can create derivation rules in the derivation tool. FM account assignments are derived from these rules so it is usually enough to assign a funds center or a fund to the order and the other account assignments are derived by the derivation tool
Figure 174: FM Account Assignment in the Maintenance Order |
You can maintain an assignment between a maintenance order and FM objects. Follow-on documents of the maintenance order (reservation, purchase requisition, CO settlement) are then provided automatically with the FM account assignment. Follow-on documents refer to the FM account assignments (of the order) allocated there, but do not save them in the corresponding document tables yourself.
If the field status is maintained, you can enter the assignment in the menu:
Goto→ Assignment→ Funds Management. You do not have to enter all of the FM account assignments, you can also derive them from other account assignments using the derivation tool.
Once the FM account assignment is not complete according to the field control, the order has the following status:
- HMKU (Funds Management Account Assignment) is incomplete.
This status prevents the automatic generation of purchase requisitions for components and services procured externally and also the release of the order.
Once a follow-on document has been generated you cannot make any changes to the FM account assignment.
LESSON SUMMARY You should now be able to:
- Explain the integation of plant management and funds management.
- Explain PM Transactions Relevant to FM.
- Explain FM Account Assignment in the Maintenance Order.
Integrating Sales and Distribution
LESSON OVERVIEW This lesson will explain integrating sales and distribution with funds management.
Business Example
Sales revenue which must be shown as income in Funds Management can be posted using invoices in the Sales and Distribution component.
The following section shows how the integration of the Sales and Distribution component with Funds Management is carried out.
LESSON OBJECTIVES
After completing this lesson, you will be able to:
- Explain integration of sales and distrbution with funds management and SD with PM Orders.
- Explain transactions in SD.
Figure 175: Transactions in SD: Sales Order / Credit and Debit Memos |
The following SD transactions are currently integrated in FM:
- “Pure billing” of credit/debit memos
- Sales orders with delivery of goods and billing
These transactions can be relevant for Funds Management, whereby the sales order / billing document is to be regarded as income, the delivery / goods issue as expenditure, in accordance with the FM warehousing concept.
The assignment of the FM account assignment is only carried out on an item level using the sales order and is saved in the FM assignment tables (see next slide). Follow-on documents refer to the FM account assignments (of the order) assigned there, but do not save them in the corresponding document tables.
The maintenance of the FM account assignment is carried out using an account assignment panel. You can set the field control of the FM account assignment fields, Funds Center, Commitment Item, Fund, Functional Area and Grant in Customizing.For the processing of the standard flow, it is recommended that you derive the respective value of the commitment item in the different postings from the commitment item assignment to the G/L account/cost element affected, that is, not enter them manually in the sales order. You can thereby guarantee that with different cost/revenue postings, the corresponding expenditure/income items will be used by the system.
The processing of the FM account assignment can only take place via the sales order item. In follow-on documents to the sales order (delivery, billing), the account assignment is not accessible.
A forecast of revenue is generated in FM when a sales order is created.
Figure 176: FM Account Assignment in the SD Sales Order Item |
You maintain the assignment between the FM account assignment objects and the SD sales order in the sales document line item. The account assignment information is then transferred to the SD sales order follow-on documents.
If you have maintained a field status, you can maintain the assignments in the sales document under, Item data - Account assignment - FM account assignment. All the functions provided by the incompleteness check can be used for the FM account assignment.
Figure 177: Integration of SD and PM Orders |
Lesson: Integrating Sales and Distribution
You can define FM account assignments in customer orders and maintenance orders.
You make the field status settings for these fields in FM Customizing.
Figure 178: Revenue Scenarios |
A revenue commitment occurs in Funds Management as a result of the sales order.
You can define whether the active availability control (AVC) should also check postings to revenue items. If it should, the total of revenues cannot be smaller than zero, through transfers for example. If you have defined absolute tolerance limits when defining tolerance limits in the step 'Tolerances for the Availability Control', the revenues total cannot be smaller than these.
If negative budget values were entered for a revenue commitment item, the AVC checks the debit on the revenue position against this budget. This debit cannot be bigger than the negative budget. The check logic for revenue items therefore is the same as that for expenditure items with the opposite +/- sign.
The check for revenue items is only active when the AVC is active. If you deactivate the AVC, by not setting the flag actively, no check for revenue items takes place.
LESSON SUMMARY You should now be able to:
- Explain integration of sales and distrbution with funds management and SD with PM Orders.
- Explain transactions in SD.
Integrating PSCD
LESSON OVERVIEW This lesson will explain the intergration of Public Sector Contract Accounting (PSCD) with FM.
Business Example
You can use the industry component Public Sector Contract Accounting (PSCD) to manage taxes, charges, and applications from /for business partners, citizens, students, and tax payers.
PSCD is suitable for supporting mass processing due to its system architecture.
Details are explained in the “Cash Desk” unit.
LESSON OBJECTIVES After completing this lesson, you will be able to:
- Explain the requirements of integrating PSCD.
If you want to use the special FM functions for budgeting, availability control and so on, you can integrate both solutions.
Figure 179: Requirements |
FM
- Activation switch SAP R/3 Enterprise Extension Set
Public Sector Contract Accounting
- FM table fields for PSCD are activated
- Tables DFKKOP and DFKKOPK have been enhanced
- FM area, commitment item, funds center
Customer includes are available for this
Derivation Strategy
- Public Sector Contract Accounting uses the PSM derivation strategy
- More details in Cash Desk section:
- Explain the requirements of integrating PSCD.
Integrating Real Estate
LESSON OVERVIEW
This lesson will explain the integration of Real Estate and FM.
LESSON OBJECTIVES After completing this lesson, you will be able to:
- Explain Real Estate Contract to FM integration.
- Explain enhancements for Real Estate integration.
Figure 180: RE Contract to Funds Management Integration |
With Business Function RE_FM_EARMARKED_FUND in ERP 6.0, Enhancement Package 3 it is possible to create an Earmarked Funds Document from the RE Contract (Transaction RECN):
- Lease-in: Funds Commitment (VT65)
- Lease-out: Funds Reservation (VT83)
Subsequently, when periodic invoice is created und posted to Financial Accounting (Transaction RERAPP), the Earmarked Funds document is reduced.
Earmarked Fund is only created for the current fiscal year. Follow-on documents are created using program for Generation of Cash Flows for Contract (Transaction RECDCGOL)
Figure 181: Enhancements for RE integration: FMDERIVE |
When Real Estate (RE) objects are posted within budget execution, the account assignments stored on the RE Master data objects can be retrieved. This is done through the use of new function modules for FMDERIVE.
- Business entity (FMDT_READ_MD_BUSINESS_ENTITY)
- Land (FMDT_READ_MD_LAND)
- Building (FMDT_READ_BUILDING)
- Pooled Space (FMDT_READ_MD_POOLED_SPACE)
- Rental Space (FMDT_READ_MD_RENTAL_SPACE )
- Rental Unit (FMDT_READ_MD_RENTAL_UNIT)
- Settlement Unit/Service Charge Key (FMDT_READ_MD_SETTLEMENT_UNIT)
- Explain Real Estate Contract to FM integration.
- Explain enhancements for Real Estate integration.
Integrating Treasury and Risk Management/ CashManagement
LESSON OVERVIEW
This lesson will give an overview of the integration between TRM, CM, and FM.
LESSON OBJECTIVES After completing this lesson, you will be able to:
- Explain TRM and CM.
Explain intergration points between TRM, CM and FM.
Figure 182: SAP Treasury & Risk Management Overview |
SAP Treasury and Risk Management (TRM) is a suite of solutions geared towards analyzing and optimizing business processes in the finance area of a corporation.
It provides a wide array of instruments to process the related financial transactions from deal capture through to transferring the relevant data to Financial Accounting.
They are divided into 5 groups:
- Money Market for the short term investments and day to day borrowings
- Foreign Exchange for all the FX deals whether spot or forwards or options. Apart from the plain vanilla options many types of exotic options are also covered such as knock-in and knock-out or average-rate.
- Debt management coves both bilateral agreements such as bank loans as well as syndicated agreements such as Debt Issue Programs and facilities.
- The derivatives cover many types of OTP derivatives such as Caps and swaps as well as listed futures and options.
- ecurities cover both bonds and shares.
Figure 183: SAP Treasury & Risk Management Overview II |
With Business Functions “FIN_TRM_CM_DIMENSIONS” and “FIN_TRM_PSM_INTEGRATION” in ERP 6.0, Enhancement Package 4 the integration of the TRM/CM to the Public Sector Management is available.
Listed above are examples of the instruments supported by Transaction Manager which are relevant for Public Sector clients. Transaction Manager is the tool to record all Investments (Money Market and Securities trades such as Fixed Term Deposits, Commercial paper, Certificate of Deposits, Stock, Bonds, Derivatives etc.).
In the Transaction Manager with improvements in Enhancement Pack 4 the following is possible: Fund (and Grant) can be entered when creating or maintaining a deal A transaction can be assigned to one or more Funds/GrantsInvestment portfolio are recorded on Funds/
Grants levelCash flows can be tracked by Funds/GrantsEnhancement of FM Account Assignment Derivation in order to derive FM Account Assignments from Treasury characteristics Funds transfer – ability to change the distribution among participating funds during transaction term without changing the external cashBonds Issue – Possible to create bonds issue and track by Funds
Lesson: Integrating Treasury and Risk Management/CashManagement
Figure 184: Integration Points between TRM, CM and FM |
Several account assignment elements are of particular importance in the Public Sector Management. These are Fund, Funded program, Functional area, Fund center, Cost center, Commitment item and Grant.
Fund and grant are particularly important to the Transaction Manager as well, because the system distinguishes positions by these terms. For some product types you can assign several funds to a single deal. The system will then take care of attributing condition based flows like interest or repayments accordingly.
Aside from fund and grant, you can assign functional area and cost center to positions as well. The other account assignment elements, i.e. funded program, fund center and commitment item, do not appear in the Transaction Manager. They have to be derived from other entities within the customizing of Public Sector Management.
The derivation of these terms can depend on many things. Among those terms are a few new ones, which are typical to financial transactions: Update type, Business transaction category,
Portfolio and Product type
Note: Functionality for ‘Average Daily Balance’ included in Business Function PSM_FA_CI (EHP4). |
- Explain TRM and CM.
- Explain intergration points between TRM, CM and FM.
New General Ledger in Public Sector
LESSON OVERVIEW
This lesson will give an overview of the New General Ledger in Public Sector.
LESSON OBJECTIVES After completing this lesson, you will be able to:
- Explain New General Ledger in Public Sector.
Figure 185: The new General Ledger |
Figure 186: The New General Ledger – Motivation |
Figure 187: New G/L in Public Sector: Overview & Advantages |
The new general ledger in SAP ERP has the following advantages compared to the conventional general ledger in R/3 Enterprise:
- The new general ledger has an extended data structure by default. Customer fields can also be added to the general ledger.
- The (real-time) document split (online split) makes balance sheets for entities possible, such as “Fund”.
- Reconciliation between Auxiliary Accounting (→CO) and Financial Accounting ( →FI) can occur in real time – thanks to “Real-Time Integration CO →FI” – Time-consuming reconciliation activities are omitted.
- The “new GL” makes it possible to manage multiple “books” (→ledgers) within the general ledger. This is a possible display option to model parallel accounting in the SAP System. This is useful if a Public Sector customer is asking for cash based accounting and full accrual accounting
In summary: The new general ledger contains functions that unify the conventional general ledger with the Special Ledgers components.
Important: Despite all the new features, the “interfaces” for entering the data and postings are nearly identical with the previous release.
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The new general ledger with Release SAP ERP 6.0 up to and including Enhancement Package (EhP) 3 provides the following functions or scenarios that are specific to the public sector:
- You can use the fund, grant or business area to create balance sheets.
- You can create profit and loss statements (P&L statement) for the fund, grant or functional area.
- You can update payments in Funds Management in real time (Online Payment Update).
You no longer have to work with the background program RFFMS200. Important: You can
use the online payment update only if you are not already using the program RFFMS200, that is, if you execute a new installation.
The new general ledger as of Release SAP ERP 6.0 Enhancement Package (EhP) 4 provides among others the following functions or scenarios that are specific to the public sector:
- Cash-basis accounting and cash flow reporting (Cash Flow):
- Cash-basis accounting: A separate cash ledger in the general ledger in which expenditure and revenue take place only at the time when the money is paid out or is incoming.
- Cash Flow Reporting: Provides information about the payment flow (origin of money and usage) for a selected period (cash flow, direct method).
- Partial payment using general ledger account assignment: You can use this function to partially pay your open binding types for each fund or each other clearing general ledger account assignment.
- Functional area as document splitting characteristic of general ledger accounting. You can define the functional area as the document splitting characteristic for general ledger accounting so that you can create financial statements according to functional area.
The new general ledger as of Release SAP ERP 6.0 Enhancement Package (EhP) 5 provides among others the following function that is specific to the public sector:
- Cash Control: Availability control based on available cash balance. It offers an ability to monitor available cash according to customer-specific criteria (for example, cash by fund) and to check the available cash during the payment process
For more information see SAP note 1030497 and the workshop “New General Ledger in Public Sector”.
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Unit 5: Integration
For “standard” customers only FAGLFLEXT table is available. If a customer uses Public Sector Management, he has to decide depending on his requirement which totals table to select.
- The totals table created for Public Sector of the new general ledger ( →FMGLFLEXT/ PSGLFLEXT) updates more characteristics/ data elements than was possible in the classic totals table (-> GLT0).
- Examples of the new standard fields include:
- Fund
- Grant
- Revenue Expense Account
- Budget Period
- Totals tables can be extended with additional fields – both predefined SAP fields and entirely new customer fields. To add customer fields to totals tables, they have to be added to the account assignment block (-> Function: Edit Account Assignment Block) first.
- In Release mySAP ERP2004 only totals table FAGLFLEXT is available. As this table does not contain any Public Sector specific fields like Fund, Grant, Budget Period or Revenue Expense Account these fields have to be added to the table if needed. Please check out note 832362 for details on how to enhance the totals table FAGLFLEXT.
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In case new GL with document splitting is used, Public Sector need to take care of the following settings to ensure or correct integration with Funds Management:
The FM account assignments need to be defined as split characteristics for technical reasons which are related to:
- online distribution of follow-up costs in FM
- Backdated tax update in FM (example: invoice with tax, payment with discount →tax amount has to be adjusted in FM on original FM account assignments. Therefore the split information based on FM account assignments need to be available.)
IMPORTANT: Even if the table is called “General Ledger Split Characteristic” only Fund, Fund and Budget Period (EhP4), Functional Area or Grant can be really updated in General Ledger Tables (this depends on the Scenario Assignment Fund Accounting/Grant Management/ (Budget Period and Fund (EhP4)). For Commitment item (Fund Center is in that case always linked to the Commitment Item) and Funded Program only the split information table FAGL_SPLINFO is updated with the split information relevant for updating FM.
For Customers who do not need to have Fund, Functional Area, Grant or Budget Period and Fund (EhP4) in General Ledger do not need to assign a scenario to the ledger.
Hint: Please also check note 1227207. |
Note: Up to EhP3 Functional needs to be defined as CO splitting characteristic. |
LESSON SUMMARY You should now be able to:
- Explain New General Ledger in Public Sector.
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