Budget Consumption at the time of payment to vendor instead of booking expense

[former_member220526]

Hi,

as per my understanding In funds management budget is consumed at the time of booking invoice to vendor. that means that when expense id debited and vendor is credited budget against the commitment item entered or derived in expense line item will be consumed once its been saved. our requirement is to consume the budget at the time of payment to the vendor payment. let say that we have allocated a budget of 5000$ for traveling expense now when we actually book an invoice in the system for this expense system will hit the budget right away but let say i would like to hit this budget at the time when the payment is being made to the vendor. in this case i would like to map this commitment item with the outgoing bank account. the issue is we don't mention any const center in bank line so that system read the combination of cost center and cost element and derive the relevant fund fund center and commitment item. is there a way to handle this?

Regards,

[iklovski · Accepted solution]

Hi,

It is not a question of mapping commitment items. If you use update profile, which works with payment budget, then last phase of budget consumption would be, indeed, the payment. In FM tables it is represented by value type '57'. You have to activate online payment transfer or use manual FM payment transfer (FMF0 transaction) to execute this phase. Obviously, your budget will be already consumed on invoice/GR event (depending on your settings), but 'ultimate' consumption would happen with payment transfer.

Regards,

Eli

[former_member220526]

Hi Eli,

Could you please elaborate what i'll need to do in my configuration to cater my scenario.

Many Thanks

Regards,

[iklovski]

You have to select update profile, which works with payment budget. Secondly, you have to define the settings for payment transfer in OF29 transaction. You should consult the following notes, in order to secure smooth payment transfer procedure:

For online update:

Note 1695556 - Main features of Customizing for onilne payment update

Note 882379 - FMPU_R: Recommendations for the online payment update

In general:

Note 400924 - Recommendations and rules for the payment transfer in FM

Note 1466979 - FM Financial transactions to be used in FI line items

[former_member220526]

Thank you so much Eli. i'll look into it. lets see what i came up next. than you so much for your support every time.