Payment Budget Consumption?

[atif_amin]

Hi,

I’ve been searching the forum for a solution in funds management where payment budget is consumed when actual payment is being made to vendor or received from customers. I came to know that this can be achieved through online payment transfer in funds management but the problem is that I haven’t worked with this function in Funds Management so I have absolutely no idea how this will work. I have some queries regarding this. Let’s assume that I booked an invoice to vendor by debiting rent expense. Now at this point the budget for rent commitment item gets consumed. Then payment is being made to vendor and this posts no impact in funds management. But when I activate online payment transfer what will happened then? At the time of invoice will budget get consumed? Or will it get consumed at the time of payment? How will this be shown in budget consumption report on both (invoice and payment) levels? Can anyone please guide me through process of configuring online payment process? What options should be activated in OF29 and what further settings will be required? Really appreciate your help as I am in real need of it.

Regards,

Atif amin

[iklovski · Accepted solution]

Hi,

Budget is consumed at the time of the invoice, but if payment transfer is active (on-line or manual), then the consumption of invoice would be reduced and the consumption of payment would happen instead. Similar to reduction of commitment consumption by invoice.

In reports the distinction could be done by value type: invoices are '54', while payments are '57'. For more info on payment transfer you can consult these notes:

Note 1695556 - Main features of Customizing for onilne payment update

Note 882379 - FMPU_R: Recommendations for the online payment update

Regards,

Eli

[atif_amin]

Hi Eli,

As per client scenario, the budget should be committed at the time of payment. Client requirement is budgeting of payables.

If an invoice is posted with an amount of 10000$, the budget will be consumed at this point. Vendor is paid partially. The first payment made to vendor is of amount 5000$, at this point payment budget is consumed and invoice budget consumption is reduced by the same amount i-e 5000$.

I have activated the online payment update in tcode OF29. I posted the invoice and made payment as mentioned above. But the budget report gives an overview of the budget overall i-e the total budget available and total budget consumed.

From which report I can view invoice and payment budget consumption separately?

Also, Please mention the steps involved in configuring the online payment transfer and how to execute it.

Thank you

Regards,

Atif amin

[iklovski]

Hi,

1) For report, you have to build your own, as there is no standard report for totals base don value type. You can use Report Painter, 4FM library. For line items, you can use FMRP_RFFMEP1FX report filtering on value type ('54' - invoices, '57' - payments)

2) For correct configuration of online payment update, please, refer to OSS notes I provided.

Regards,

Eli

[atif_amin]

Hi Eli,

Thank you.

One last thing i forgot to ask is that will budget get consumed in case of advances to vendors and customers?or is it mandatory to post payments with reference to invoices for budget to be consumed at the time of payment?

Regards,

Atif

[iklovski]

Payments should have reference to invoice; otherwise, payment transfer won't be registered. For down payments, consult note 1838093.

[atif_amin]

Thank you.

[atif_amin]

Hi Eli,

I've been looking to the process you advised during the process i came across another situation it would be of great help if you could please guide me in this. let say i have assigned budget to commitment item "A" for 20,000. now i post an invoice of 20,000 afterwards i post its payment for 1000 and execute payment transfer to get actual consumption at the time of payment. now the situation of my budget will be:

Total Budget     Committed     Consumed          Remaining

20,000               19,000          1,000                   19,000

Now will the system allow me to post invoices for 19,000 as my actual consumption is the amount paid to vendor and not whats been invoiced?

Regards,

[iklovski]

Your budget is already consumed. by whole 20K.