FM is a process that allows classification and tracking of revenues and expenditures in terms of a budget structure

The FM module contains several core master data elements:

Fund – Source and use of financing Fund Center – Organizational Structure Commitment Item – Expenses and Revenues Functional Area – Program or Activity Fund Type – Description Funded Program – Lower level internal programs or activity

Fund: Represent the lowest level source of funding used for tracking, controlling and reporting on available financial resources. A full set of financial reports is possible for each fund.Funds Center: Represent the lowest level areas of responsibility for budgetary assignment, monitoring and control. Can be one to one with cost centers.Commitment Items: Represent the categories or classifications of fund equity, revenues, expenses and encumbrances at the lowest level of detail necessary for internal and external reporting. These have a one to one relationship with GL accounts.Functional Area: Structures that identify and classify financial transactions by overall purpose, objective, function and/or mission for accomplishing major services or regulatory responsibilities.

Fund Types: Determine Budget scope. Some assignments are Overall budget, Annual budget and Not Assigned

Funded Programs: Represent lower-level internal programs or initiatives, which represent a plan or system under which actions may be taken to achieve specific goals.

SAP "fund" Transaction codes PACE - Pension fund : Postings  Personnel Mgmt - Pension fund: General Parts FMZ1 - Create Funds Commitment  FI - Funds Management FMX1 - Create Funds Reservation  FI - Funds Management PACK - HR-CH: Pension fund  Personnel Mgmt - Pension fund: General Parts OFUP - Funds Management Control  PP - Funds Management FMZ3 - Display Funds Commitment  FI - Funds Management FMMEASURE - Funded Program: Maintain  FI - Master Data FMX2 - Change Funds Reservation  FI - Funds Management PC00_M40_EPF - Provident Fund Reports - India  Payroll - India FMN5N - Reconstruction of Earmarked Funds  Financials - Funds Management FMX3 - Display Funds Reservation  FI - Funds Management FMWA - Create Funds Transfer  FI - Funds Management FMYC - Funds Management Control  PP - Funds Management

FMN5 - Transfer Funds Reservation Documents  Logistics Execution - Funds Management FMY3 - Display Funds Precommitment  FI - Funds Management FMSY - Create Funds Center Using UNIX  FI - Master Data FMSC - Display Funds Center in FM Area  Basis - Master Data FMZ6 - Reduce Funds Commitment Manually  FI - Funds Management FMSB - Change Funds Center in FM Area  MM - Master Data OF16 - Activate/Deactivate Funds Management  FI - Funds Management PUCK - Entity copier for funds  Personnel Mgmt - Pension fund: General Parts FMWC - Display Funds Transfer  FI - Funds Management FMVT - Fund Balance Carryforward  SD - Funds Management FMZ2 - Change Funds Commitment  FI - Funds Management FMSA - Create Funds Center in FM Area  FI - Master Data

 Funds Management (FI-FM)

“allows management to set budgets for revenues and expenses within your company as well as track these to the area of responsibility”

Features: enables to keep:

A thorough check of the revenues and expenditures and thus the funds-relevant business transactions of an organization.

A thorough budgetary control, with the following questions in mind:

o What funds will the responsibility areas receive?o Where do these funds come from (source of funds)?o What are the funds used for? (use of funds)

A control of the financial equilibrium of your business, by comparing commitment and actual values with the current budget values.

Master Data

-Master data elements in Funds Management:         Commitment items: represent the functional grouping of expenditures

and revenues within a financial management area (FM area).

         Funds centers:  represent the structural grouping in departments, responsibility areas, projects etc. within the organizational unit.

- Hierarchy variants are initially fiscal year non-dependent. Only the assignment of the hierarchy variant to a fiscal year causes the defined funds center hierarchy in it to become valid for the respective year.

- Funds center postings are only possible in the existence interval. Create the existence interval and the validity period for the funds center in the FM area, the system automatically generates sub-intervals.

the difference of funds center data sets in the existence interval and in the sub-interval

         Fund: provided for a specific purpose by a sponsor and managed separately to further subdivide budgets.  In contrast to the account assignment elements, funds center and commitment item, you can also use the fund in Controlling, Asset Accounting and in Human Resources as an independent object.

         Functional Area: to subdivide organization using functional criteria (such as public safety, town planning and so on), especially the expenditures, of an organization (FM area). It describes the application of funds.

-Integration: In order to take advantage of the integration in the SAP system, you must link the organizational units of different components with each other.  The functional area can

be budgeted and assigned to the commitment item, funds center and fund in Funds Management.

be assigned also to the CO objects and the cost center in Controlling be defined in the master data of Asset Accounting

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