Funds Management Overview: © 2005 Intelligroup, Inc
Funds Management Overview: © 2005 Intelligroup, Inc
Funds Management Overview: © 2005 Intelligroup, Inc
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© 2005 Intelligroup, Inc. Confidential and proprietary
Funds Management
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© 2005 Intelligroup, Inc. Confidential and proprietary
FM Area
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© 2005 Intelligroup, Inc. Confidential and proprietary
Organizational Structures
Organizational Structures
Client
FM area
Controlling Controlling
area 1 area 2
Werk
Werk Einkaufs-
Einkaufs- Personal-
Personal- Verkaufs-
Verkaufs-
Plant Purchasing
organisation Personnel
Bereich Sales
organisation
organisation
organization Bereich
area organisation
organization
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© 2005 Intelligroup, Inc. Confidential and proprietary
Funds Center Hierarchy
FM area #01
Funds center 1
Manager Name
Manager
SAP AG
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Funds Center Hierarchy
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© 2005 Intelligroup, Inc. Confidential and proprietary
Funds Center Hierarchy
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© 2005 Intelligroup, Inc. Confidential and proprietary
Funds Center Hierarchy
Secretarial Services Project group P11 Project group P21 Lab Technical
C11 P11 P21 Z11
Personnel
C13
Security
C14
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© 2005 Intelligroup, Inc. Confidential and proprietary
Commitment Hierarchy
Summarization item
can be budgeted
cannot be posted to
Acct assignment item R
can be budgeted
can be posted to
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© 2005 Intelligroup, Inc. Confidential and proprietary
Commitment Items
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© 2005 Intelligroup, Inc. Confidential and proprietary
Commitment Items
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© 2005 Intelligroup, Inc. Confidential and proprietary
Commitment Items
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© 2005 Intelligroup, Inc. Confidential and proprietary
Commitment Items
FI FM
SAP AG
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© 2005 Intelligroup, Inc. Confidential and proprietary
Commitment Items
Accounts providing the base for a revenue or expenditure must
be linked to a commitment item with financial transaction 30 and
item category 2 or 3.
This is the only way the SAP system can recognize a revenue or
expenditure. Material stocks and asset portfolios require this type
of control too.
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© 2005 Intelligroup, Inc. Confidential and proprietary
Expenditure Hierarchy
SAP AG
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© 2005 Intelligroup, Inc. Confidential and proprietary
Expenditure Hierarchy
You can create only one commitment item hierarchy for each FM
area.
This hierarchy can then consist of various sub-hierarchies
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© 2005 Intelligroup, Inc. Confidential and proprietary
Fund Centers vs Commitment Items
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© 2005 Intelligroup, Inc. Confidential and proprietary
Funds Centers vs Commitment Items
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© 2005 Intelligroup, Inc. Confidential and proprietary
Master Data
SAP AG
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© 2005 Intelligroup, Inc. Confidential and proprietary
Master Data
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© 2005 Intelligroup, Inc. Confidential and proprietary
Postings in Funds Management
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© 2005 Intelligroup, Inc. Confidential and proprietary
Budget
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© 2005 Intelligroup, Inc. Confidential and proprietary
Budget Creation and Maintenance
Creating budgets
Budget adjustments
Budget structures
SAP AG
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© 2005 Intelligroup, Inc. Confidential and proprietary
Budget
• Budget Planning
• Budget Profile
• Creation of Budget
• Top –Down and Bottom-Up budget
• Budget Release
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© 2005 Intelligroup, Inc. Confidential and proprietary
Budget Planning
Budget
model
Budget
Year xx - 1
Requests
Budget
Version 0
(approved)
Budget Plan
Version 01
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© 2005 Intelligroup, Inc. Confidential and proprietary
Budget Versions
Budget Versions
Year-dependent parameters
Budget Versions FM area Year Consistency Avail-
Version Name ability
0 Original budget
IMR 1997
1 Forecast 1
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© 2005 Intelligroup, Inc. Confidential and proprietary
Budgeting & Availability control
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© 2005 Intelligroup, Inc. Confidential and proprietary
Top-Down and Bottom-Up Budgeting
SAP AG
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© 2005 Intelligroup, Inc. Confidential and proprietary
Annual and Overall Budgets
Budget ‘98
Annual and Overall Budgets Budget ‘97
Budget ‘96
Annual Overall 100,000
values values 20,000
...
1. Budget and funds which are
available for one fiscal year X
2. Funds which are available for Fund xy
valid from 05/01/96 to 08/30/98
the total duration of a “project”, X
without specific funds having 10,000
to be allocated at any particular 15,000
65,000
point in time ...
Consistency
R
SAP AG
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© 2005 Intelligroup, Inc. Confidential and proprietary
Periodic Budgeting
Periodic Budgeting
1. You can enter statistical
period budgets for annual Annual Overall Periodic
values. values values values Budget 98
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© 2005 Intelligroup, Inc. Confidential and proprietary
Budget Profile
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© 2005 Intelligroup, Inc. Confidential and proprietary
Budget Release
• The release is based on the current budget - that is, the original
budget as amended by supplements, returns, and transfers
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© 2005 Intelligroup, Inc. Confidential and proprietary
Budget Views
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© 2005 Intelligroup, Inc. Confidential and proprietary
Budget Update
Agenda
• blocking budget
• budget cut R
• supplementary budget
SAP AG
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© 2005 Intelligroup, Inc. Confidential and proprietary
Budget Update
50
100 50 50 300 (+50)
100 50 -50 400
0
100 50
100 +50
100
R
SAP AG
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© 2005 Intelligroup, Inc. Confidential and proprietary
Budget Update
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© 2005 Intelligroup, Inc. Confidential and proprietary
Earmarked Funds
• Funds Block
• Funds Reservation
• Funds Pre-commitment
• Funds Commitment
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© 2005 Intelligroup, Inc. Confidential and proprietary
Earmarked Funds
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© 2005 Intelligroup, Inc. Confidential and proprietary
Funds Management
Closing Operations
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© 2005 Intelligroup, Inc. Confidential and proprietary
Closing Operations
SAP AG
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© 2005 Intelligroup, Inc. Confidential and proprietary
Closing Operations
Closing Operations
Bring forward
Residual budget residual budget
Dec. from old
31 fiscal year
Technical process
SAP AG
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© 2005 Intelligroup, Inc. Confidential and proprietary
Fiscal Year Change
SAP AG
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© 2005 Intelligroup, Inc. Confidential and proprietary
Control Options
Control Options
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© 2005 Intelligroup, Inc. Confidential and proprietary
Closing Operations
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© 2005 Intelligroup, Inc. Confidential and proprietary
Closing operations
Result:
The actual residual budget for the "Secretariat" funds
center is carried forward in full to the "Administration"
funds center, commitment item "Business supplies".
The revenue surplus in funds center "Project P11",
commitment item "Misc.revenues" is carried forward in
full to funds center "Project P11", commitment item
"Project exp.". R
SAP AG
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© 2005 Intelligroup, Inc. Confidential and proprietary
Closing Operations
Purchase
requisitions
Purchase
December requisitions
Purchase
orders
Purchase
Funds
reservations
31 orders
Funds
reservations
Invoices *
Invoices *
* when recording on a payment basis R
SAP AG
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© 2005 Intelligroup, Inc. Confidential and proprietary
Closing Operations
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© 2005 Intelligroup, Inc. Confidential and proprietary
Information System
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© 2005 Intelligroup, Inc. Confidential and proprietary