Fund Management implementation

[Former Member]

Hi, Experts,

We are on ECC6 EHp4 with new GL Activatd, and live sytem with FICO, MM, PM, PS, RE already live in 2009. Now managment want to implement Fund Mangment.We plan to go live on 1st April 2015

We want to use only buget control function of fund management and nothing else. In this scenario,I have few questions ( I have already downloaded few sap notes based on SDN discussions I gone through)

1. Is it necessary/must to have FMGLFLEXT/A in place of FAGLFLEXT/A  althrough we want to use FM only for budget control. I f I do no want to activate FMGLFLEXT and would like to keep FAGLFLEXT/A , how do I do it?

2. We want to make FM- budget controll live from 1st April 2015. Can I just import the reqeust on  31st Mar, Upload budget and make it live on 1st April 15?

Can I get your expert view on the same. or can you guide me to any discussion thread whcih will help me in this?

Regards

Shailesh A Joshi

[Former Member · Accepted solution]

HI,

you can easily use only FM-BCS parrt only we just implement same at my place . you need not to change material ledger from FAGLFLEXT to FMGLFLEXT.

you can transport request on 31,mar and go-live from next day. when you port request to production server same time you have to keep ready budget against commitment items because system will ask budget on every where after transporting. so better to prepare budget ready and lock the user till budget upload.

[Former Member · Accepted solution]

Thanks, Mukesh,

In this scenrio I need not activate "Activate Global Funds Management Functions (PSM-FM)" and activate only "Activate Global Functions for Budgeting"... Am  right?

Regards

Shailesh A Joshi

[Former Member · Accepted solution]

NO, you have to activate function PSM-FM first before activating component "Activate Global Function for BCS"

[Former Member · Accepted solution]

Ok. Thanks.

Can you also guide on below mentioned scenarios, if it is possibel to configure the same and if yes, hwo can I achieve ?

Finance Wants to exclude the monthly provision entries from updating th budget, the logic is, these items are already in committment and as actual bills have not come, it is being provded for in the books of accounts, if budgets gets depleted, it will have double impact once at the time of creation of purchase order as committment and second at the time of provison as well. How do I achieve this, is there any way to to do it?

Can this be done...?

[Former Member · Accepted solution]

yes you can do please make change financial transaction as 50 from FMCIA in cimmitment item against that G/L as in following screen.

[ankit_agarwal8 · Accepted solution]

Hi Shailesh,

This is very common scenario. You can make a different document type for provisional entries. Then create a new derivation rule, for document type defined for provisional entries, CI= Dummy and FC= Dummy. Through this derivation rule, system will not consume any budget.

This will also helpful in finance reporting. Finance can check every month, whether all provisional entries are reversed or not in next month. Because after reversal, reversal document update against original document.

Solution given by Mr Mukesh is correct, but if you do this, system will not consume any budget for any entry for this GL. I think, you need to make changes only for provisional entries.

Check this, and still any doubt please revert.

Regards,

Ankit K. Agarwal

[Former Member · Accepted solution]

Thank you very much... Will ask my doubts as I move forwad in this projct...

Regards

Shailesh A Joshi

[Former Member · Accepted solution]

HI,

I have few more questions:

Once I go live, on 1st April 15, how would I handle my last years committment? Do I need to add this to 14-15 budget or I increase 15-16 budget.

Secondly, in case, I have service order is in 14-15, I have availed the services in the year 14-15, but I received the bills in april 15, and I post the service entry sheet in 15-16. In this case, as a standard, I already had a committment item against this purchase order in 14-15, Will system, consume the 14-15 budget if I carryforward or 15-16 budget.

In case of purhcase orders for consumables,which are charged direcly to cost centers as and when GRN is prepared, our finance wants it be consumed in the financial year of GRN and not when purhcase order is prepared. That is if purhcase order is in Mar 15, and we receive the material in May15, and it is charged off to P &L then system should consume 15-16 budget and not 14-15 budget.

Is there any separte config I have to do?

Basically I am FI consultant, that is why I am asking such a preliminary questions. Please execuse my ignorance..

Thanks for all your help...

Shailesh A Joshi

[Former Member · Accepted solution]

first: you have to run two program for reconstructing for PR and PO 

for PR: FMN3N and for PO FMN4N

Second: when you run reconstruction then i think your second issue will also be solved.

you may configure these setting first in test system and test then in development .

[Former Member · Accepted solution]

Hi Mukesh,

Can you please explan it in details?

Regards

Shailesh A Joshi

[Former Member · Accepted solution]

these two program for reconstruction of open PR since you will process Open PR and PO after golive FM-BCS then system will ask for commitment if these material will liable to budget tracking. SO after these program run system automatically update commitment item to those PR and PO after that you can process after GOlive . you can read the following document for more information:

[Former Member · Accepted solution]

Thanks Mukesh, you are mking my life easy....will get back to you as and when I get new scenarios..

Thanks once again

[Former Member · Accepted solution]

Hi,

In our scenario, we have activated only Fund and Functional Area. We budget based on GL items+ Cost center. In the account assignment element, we have activated only Fund and Functional area. Can I use functional area for the departments we budget? Will all the standard report or budget vs actual will work with arrangement?

Regards

Shailesh A Joshi

[Former Member · Accepted solution]

why you want to activate Fund and functional area as per my understanding if you want to track budget on cost center/AUCs - G/L wise then no need to activate fund and functional area.

[Former Member · Accepted solution]

Is it so?  There is no need to activate fund and functonal area?

As explined above, we will make the budget with the combination of GL + Cost center and it will be only operational cost budget. How would I get department in this combintion? That will be easy reporting and monitoring as well. Can you guide on that?

We plan to give buget vs actual for each department, every month, with their committment amounts, so that they can plan better, How can I achieve this? please advise...

Regards

Shailesh A Joshi

[Former Member · Accepted solution]

We are tracking based on cost center because every department has their own cost center so we tracking based on that. for this no need to activate FUND and FUND CENTER. You are on ECC6 or EHP6 or EHP7 ??

[Former Member · Accepted solution]

We are on Ecc6 EHp4.

[Former Member · Accepted solution]

HI,

you can try the above tracking structure, create cost center as fund center if you have separate cost center for every department and G/L as commitment item.

I think in EHP4 periodic budgeting not available means you can not plan monthly. as per my knowledge Periodic budgeting is available form EHP5 onward please check.

[Former Member · Accepted solution]

Hi, Mukesh, Thanks

Yes, we have cost centers represeting each department. Secondly, at present we are on EHP 4 and planning to migrate to EHP 6 from 1st April 2015,  will it have an impact on this?

Secondly Can I budget capex as well with FM-BCS?

Regards

Shailesh A Joshi

[Former Member · Accepted solution]

Yes when you will move from EHP4 to EHP6 then if you required periodic budgeting then you have to reconfigure the BCS some parts. yes you can also track AUCs budget on the basis of Asset. You have to create every AUC as Fund center and respective G/L as commitment item.

[Former Member · Accepted solution]

Hi,

more insigt after my discussion with finance team. The budget wil be made in Genereal LedgerAccount+ Cost Center + Acivitiy.

For Example:

Repais and Maintenance Building (GL) + Landside (Cost Center) + ARC Civil Others (Acivitiy)

Now I have GL + Cost Center, for the Activity can I get any field where in I can crate the activities and use the same for budgeting. Wth this the user department as well as finance will know the budget itmes, each activity wise. This field should get cature at the time of capturiing actuals at vairous levels.

Please advise... Thanks for all your guidance.

Shailesh A Joshi

[Former Member · Accepted solution]

you can only assign budget on Funnd center(Plant/Division/AUCs/Cost center) with G/L and when you see you can track one of the report as follows there are so many reports available.

ARC civil work how you can define this- what is mean by  activity ( i think this is your Contract /PR/PO)

on first column - commitment(G/L) and budget details - then ASSIGNED      CONSUMED      AVAILABLE BUDGET

[Former Member · Accepted solution]

Hi, Mukesh,

I will explain it in more details.

GL - Repairs and Maintenance - Buildings

Cost Center Or Fund Center - Terminal Building

Now under this comibination, there are more than 1 ARC contracts. egs

ARC  for Glass Doors Budget Rs.15 Lacs

ARC for Tank Clearning Budget Rs.10Lacs

Now if I upload budget for R&M Building - with Fund Center Terminal Budiling will it get uploaded as total Rs, 25 Lacs or I can see ARC for Glass Door Rs.15 Lacs, ARC for Tank Clearning Rs.10Lacs.

I want to track it individually that is I should know, against ARC for Glass door of Rs.15 Lacs what are the acuals and what is pending.

How do I achieve it? Please advise.... Thanks for all your time and your inputs are of great help to me...

Best Regards

Shailesh A Joshi

[ankit_agarwal8 · Accepted solution]

Hi Shaliesh,

Please try to understand the concept. You can assign and track the budget at Fund centre+ Commitment item level.

Now question is how you define your fund centres and commitment items. It depends on your business requirement. For your situation as described above, you can define your fund centre at the cost centre + contract level also. It means multiple fund centre for a single cost centre. You need to define derivation rules accordingly.

Through this you can assign and track budget project wise.

Regards,

Ankit K. Agarwal

[Former Member · Accepted solution]

This is not possible in standard that you can track budget on ARC/PO based/Contract based.

You can track budget on the basis of fund center/ commitment item(G/L) and FUND center can be cost center/ profit center/AUCs etc.

So for your requirement you can do one think that you create cost center for every ARCs and create it as fund center and assign budget then track. When you create ARC please make with account assignment 'K' and enter respective cost center.

But this is not recommended because you have to create cost center for every ARCs.

[Former Member · Accepted solution]

Hi, Ankit,

Can you please elaborate, how can I create more than one fnd center to one cost center and achieve what I need that is contract wise budgeting, which is a must for my fund implementation.

Thanks

Regards

Shailesh A Joshi

[Former Member · Accepted solution]

Mukesh,

We already have one field, we created at the time of implementation, that field is "Department". Can I derive rule one cost center to multiple fund center using "Department" field?

Please advise

Regards

ShaileshA Joshi

[Former Member · Accepted solution]

no you can not assign one cost center to multiple Fund center . Where you created department ? this is customized field ?

[Former Member · Accepted solution]

it is a customized field, created with coding block functionality.

Is there any other way to achieve my requirement, that is budgeting at line item level.

Please advise..

Shailesh A Joshi

[Former Member · Accepted solution]

Hi,

Is there any solution for itemwise budgeting in FM?

Regards

Shailesh A Joshi

[Former Member · Accepted solution]

Hi,

item wise budgeting means? could you explain little more.

[Former Member · Accepted solution]

Hi Mukesh,

Itemwise budgeting means, I would like to budget for each line item under GL+Cost center and it should be visible in the reporting.

GL- Repairs and Maintenance Civil

Cost Center or fund center- Building Mainteancne

there are multiple line items under this category like:

ARC for GLass clearning

ARC for Term Blding

Now I would like to budget for ARC for Glass cleaning , ARC for Term building and would like to track the actuals as well monthwise.

Please advise as I am stuck here and not able to go ahed.

Regards

Shailesh A Joshi

[Former Member · Accepted solution]

Mukesh,

As we discssed earlier, I need only budget part of this module for control purpose & as we discussed earlier in his thread, I need not change for "FMGLFLEXT/A .

Now, as I activate "Activate Global Funds Management Functions (PSM-FM)" once I tick there I get message that "GL Accounting customizing must be adjusted".

I do not want to shift from "FAGL*** to FMGL*** and would like to use the sme New General Ledger "0L" configurd in the system, I do not want to disturb the current set up of my new GL.

How do I prevent the conversion to FMGL**.

Please advise..

Shailesh A Joshi

[ankit_agarwal8 · Accepted solution]

hi,

Try to use program FMGL_CHANGE_APPL_IN_LEDGER .

Regards,

Ankit k. agarwal

[Former Member · Accepted solution]

As per my understanding, I don't think you can configure as such item wise budget in standard.

you can assign budget on basis of

Cost Center(fund center) - G/L

Profit Center(fund center)-G/L

AUCs(Fund center)- G/L

etc.

so when you will create budget system will derive details on the basis of above details.

you may do some Z code/BADI/User Exit program for your requirement