In-Scope:

The following activities in Fund Management is considered as in scope for

activating FM at HCC:
1. Set up planning solution for Sales / Manufacturing Costs / Manpower / Indirect Costs
2. Configure and develop reports to facilitate Budget planning
3. FM relevant master data and its assignment such as Fund Centers, Commitment items, Hierarchies, Functional areas will be
created as per the business requirements and blue print design
4. Derivation rules, validations, substitutions relevant for fund management
5. Standard processes for budget release using custom workflow
6. Support Budgeting scenarios –Budget entry / Budget Movement / Budget closure / Supplement / Carry forward with
Availability Controls
7. Alerts for Budget utilization –Tolerances
8. Budget Reporting
9. BOM integration, customized input template for Budget (if required), BO Reporting, Workflow and 5 customized reports
will deliver in phase-II
Solution
The detailed process within FM are listed down below:
Fund Management Area Org Structure & master data

Client

FM Area
1000

Co Cd
1000

Financial Management Area :

The financial management area is an organizational unit within accounting, which structures the
business organization from the perspective Funds Management.
FM Area FM Area Description Assign Co Code Co Code Description
1000 HCC 1000 HCC

Note: One FM Area (1000) will be used for HCC

Budget Preparation process in SAP
Budget Preparation is totals-oriented, and contains an aggregation of the amounts per FM account assignment. For less complex
situations, planning can be done directly in BCS.
Following Planning tools available for Budget Planning
a) Planning Tools I - CO
b) Planning Tools II - Planning in FM

a) Planning Tools I - CO

Program FMCYCOPI_CO copies plan version data from Controlling (CO) into a budget version in Funds Management (FM). You use this
program to create the same budgets in FM by transferring CO planning data. This data transfer can take place as often as desired. Please
note that this transfer will overwrite all manual changes made in BCS. However, even if manual changes are overwritten, CO and BCS are
still synchronized. CO acts as the reference in this case. In this respect, the budget in Funds Management is therefore independent of the
CO planning data. The program determines the recipient in Funds Management based on the assignments from FM account assignments
to CO account assignments using the account assignment derivation tool. If
You make changes to the assignment, the planning data transferred into Funds Management until now will be transferred automatically to
the new recipient with the next planning data transfer. The program considers the primary CO planning data in table COSP and the
secondary CO planning data in table COSS. As you can assign the fund and functional area directly in CO planning starting from Release
4.62A, you can use program FMCYCOPI_CO and execute the entire budget planning process in Controlling. You can only generate budget
data in the target version using the internal budgeting process ENTR.
b) Planning Tools II - Planning in FM
BCS planning is based on planning functions of the Special Ledger component that were adjusted to suit the requirements of Funds
Management. BCS planning data is fully part of your budget data, and is based on BCS features like: Budget Type, Status Management,
Process. All the BCS planning data is created with process PREP, without entry documents. It is a totals-based process in contrast to a
delta-based process as used in the Budgeting Workbench.

Budget Control System in SAP provides process for supplementing, return or transfer of the budgets.
Budget Supplement: There might be occasions that the original budgets is consumed and it needs to be supplemented. Budget
supplement increases the original budget that is posted into FM module.
Budget Return: Where the cost center owner finds that the budget planned for his cost center is in excess or if there are requirements
that the budgets needs to be reduced, SAP provides standard processes to return the budget. The cost center owner then will have to
work within the reduced budget levels.
Budget Transfer: SAP provides mechanism to transfer the budget from one fund center to another fund center as per the business /
operation requirements.
Financial Postings and Availability check
HCC Business processes integration points
 Financial and Asset Accounting (Capex)
GL And Internal order
Integration
 Integrating BCS & FI Planning - Planning Program
Tools I – CO FMCYCOPI_CO
 Integrating Controlling Objects Cost Element/Cost
Center/CO
 Integrating Human Resource
a. Position Fund Pre-commitment
a. Perion Fund commitment
a. Posting of payroll result Actual Value
 Integrating Material Management Purchase order
 Integrating Plant Maintenance Order
 Integrating Sales and Distribution Sales Order