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Overview Funds Management Organization Structure Masters Budgeting in Funds Management Availability Control Reports
Funds Management
Overview Funds Management Organization Structure Masters Budgeting in Funds Management Availability Control Reports
FM Component is used for creating and executing budgets for an organization. To budget all revenues and expenditures for individual areas of responsibility. To control future funds transactions in accordance with the budget, and to stop the budget being exceeded. You can adapt the budget to changes in conditions by entering releases, supplements, returns, and transfers.
Funds Management
Overview Funds Management Organization Structure Masters Budgeting in Funds Management Availability Control Reports
Organization Structure
Organizational Units
Financial Management Area in FM Module Company Code in FI Module Controlling Area in CO Module Plant in Logistics Module
Organization Structure
Organizational Unit
Financial Management Area: Organization unit used to represent similar budgetary accounting and control rules. A financial management area contains settings that impact master data and/or transactions within that area
Organization Structure
Organizational Assignment
Relevant Company Codes are assigned to FM Area. Relevant Company Codes are assigned to Controlling area also in CO. FM Area is derived from the FI Organizational unit Company Code. All Other Organizational units, such as Plant and Purchasing organization in MM & Personnel Area in HR Module are linked to Funds Management via the Company Code
Organization Structures
CONTROLLING AREA FM AREA
COMPANY CODE
PLANT
Funds Management
Overview Funds Management Organization Structure Masters Budgeting in Funds Management Availability Control Reports
Master Data - FM
Fund Center Fund Center Hierarchy Commitment Item Commitment Item Hierarchy
Fund Center
Fund Centers represent the structural grouping into departments, areas of responsibility, projects. Organizational unit within FM Area to which budget can be assigned. 1:1 or M:1 relationship between Cost Centers and Fund Centers. Fund Center can also be derived from Orders, WBS Elements. Fund Center has its own Hierarchy structure
INVESTMENT S
ROADS
AVIATION
ENERGY
PROPERTY
VARLAKSHMI
AGRO
GTTEPL
GTAEPL
GPEPL
GMR PG DIPLOMA
SGSCR COLLEGE
SITE ADMIN
CORPORATE ADMIN
BUILIDNG
VEHICLES
COURSES
DEPEARTMEN TS
COMMON EXPENSES
Commitment Item
Commitment items represent the functional grouping of expenditures and revenues within a financial management area (FM area). Commitment Items can be Created as budget relevant or not relevant for budget. 1:1 or M:1 relationship between GL Account or Cost Element with Commitment Item. Commitment Item has its own Hierarchy structure
Funds Management
Overview Funds Management Organization Structure Masters Budgeting in Funds Management Availability Control Reports
Budget Structure
Budget Structure is created to specify the budget objects (fund center, commitment item) which can be budgeted & posted.
Budget
There are mainly two types of budgets: Overall Budget is budget which is available for more than one fiscal year but is not distributed to individual fiscal years. Annual Budget is budget which is available for an individual fiscal year. Though you can distribute your annual budget period wise i.e., monthly but the availability control would be on the annual budget only.
Process FM Budgeting
Original Budget entry for the combination of Fund Center & Commitment Item. Budget Updates in terms of Supplements Additions to the original budget Returns Reduction in the original budget Transfers Transfer from one budget object to another budget object.
Budget Release is used to release the budget bit by bit as per the business requirement. Budget Release functionality can also be used for releasing the annual budget period wise if an organization requires the availability control on the amount released (for the period) which itself would be a separate transaction/activity on the user part.
Process FM Budgeting
The current budget in system is equal to: Original budget + Supplements - Returns +/- Transfers + Year-end closing budget transfer --------------------------------------------------------------= Current budget Availability Control is carried out on the Current Budget.
Master data maintenance will include Commitment Item master Commitment item hierarchy Fund Center master Fund Center hierarchy Derivation Strategy at Company Code level Derivation Rules to derive the FM objects through FI/CO/MM etc.. Objects. Change in Budget Structure due to master data changes.
Assignment/derivation will include GL accounts to Commitment item Cost elements to Commitment item Cost Center to Fund Centers Orders (Internal & Plant Maintenance) to Fund Centers WBS Element to Fund Centers. Creation of any new master for the above mentioned objects would also require the creation/update of derivation of FM objects.
Procurement budget would be based on the Fund Center and Commitment Item & would be for transactions -purchase requisitions and purchase orders. Items relevant for the procurement budget would derive the fund center from the Plant Budget for those items would be at Plant Level basically which would be the lowest level org. element for budget as per the business requirement. Purchase budget would be altogether a separate budget from consumption budget. Budget Revision will be made via FM Supplement, Transfer and Return Transactions.
Operating expenses budget would be based on the Fund Center and commitment item. Department wise operating expenses can be planned at Cost Center. The cost center plan would be transferred to FM. Fund Center and commitment item would be derived from CO assignments. Budget Revisions will be made via FM supplement, Transfer and Return Transactions.
Budget for acquisition/commissioning of Fixed Assets via Projects would be controlled in PS Module. Budget for acquisition of ready to use assets via PR and PO would be controlled through FM budgets/Internal Order.
Open commitments relating to Purchase Requisitions, Purchase Order postings to be reviewed at year end. Reviewed open commitments will then be carried forward to the new financial year. Relevant transactions in the new financial year e.g. Goods / Invoice Receipt, Payments, Cancelled orders will be posted against open commitments carried forward. There will be no impact on current year budget. Year end change to carried out..
Funds Management
Overview Funds Management Organization Structure Masters Budgeting in Funds Management Availability Control Reports
Availability Control
Passive control Funds overview in the information system Active Control Prevent budget overruns which includes Setting the degree of budget usage (percentage or absolute) from which the system reacts How the system reacts: With a warning, with a warning and a mail to the person responsible for the Fund Center, with an error message which rejects the posting.
Funds Management
Overview Funds Management Organization Structure Masters Budgeting in Funds Management Availability Control Reports
Reports
The standard Reports in Funds Management relate to: Master Data-Fund Center, Commitment Items, Assignments Budget Values Actual Values Comparison of Commitment and Actual values And many more..
Control revenues and expenditures and thus control the funding of business transactions of an organization. Closely control your budget with respect to funds assigned to the areas of responsibility. Funds availability control at the transaction level. Control the finances of your organization by comparing commitment and actual values with current budget values. Repetitive data entry done away with online update.