Funds Management

[Former Member]

Hi,

I am configuring Funds Management for the first time, so new to this. I have some doubts:-

1) What is Earmarked Funds. Do we need to do any config setting under ..IMG>>>FM Goverment>>Funds Management-Specific Postings

2) In Override update profile (IMG>>FM Goverment>>Actual and Commitment Update/Integration>>Override Update Profile) we have the option of activating Period based Encumbrance tracking, what is the use of this and what is the difference between period based and year based tracking. I am using Update profile 00102

3) Difference between Payment basis and Invoice basis. what are the advantages of using payment basis update profile (00101)

4) Should I do FM-CO Integration???

5) What is derivation strategy for reassignment - If I don't want to change the current assignment of CI & FC in next year, still I need to configure this?? I mean budget structure in next year would be same ... I m using year independent data, so same CI & FC can be used to carry forward open CI.

I know I have raised many questions.... but I have no option..... Please help me.

Thanks & Regards,

Jyoti

[Former Member · Accepted solution]

Thanks Eli... Some of my issues have been solved.

[iklovski · Accepted solution]

I'm glad to hear it. If you have some open issues left, do not hesitate to mention them.

[Former Member]

Hi Eli,

I have already read the manual on FM.. but still my doubts are not clear.. If possible, please help me in understanding this.

I have seen many of threads answered by you on FM and I feel that you have good experience in FM. Please suggest me.

Thanks & Regards,

Jyoti Gupta

[iklovski]

Hi,

For the earmarked funds, there is nothing I can advice; it's completely up to the business processes your client has.

http://help.sap.com/saphelp_erp60_sp/helpdata/en/8c/2e40c6380811d295750000e835339d/frameset.htm

For the payment/invoice basis, again it's not a question of advantage, but of a functionality: when do you want your budget to be consumed.

In FM (like in CO or PS, not speaking of logistic modules, and opposite to FI), the great deal of the configuration is the right mapping of the internal business processes at your client's site. If you got them, you will have no doubts on these issues.

Regards,

Eli

[iklovski]

Hi Jyoti,

All your questions are on standard functional level and the answers for this could be found in the following link:

http://help.sap.com/saphelp_erp60_sp/helpdata/en/f0/ca5716260211d28a430000e829fbbd/frameset.htm

Just follow the manual for FM and you will find all the info you might need in order to understand the concept of FM issues you've mentioned.

Regarding points 4 and 5, it's totally dependent on your business requirements. If you want internal CO documents to be transferred to certain FM entities, you have define so. If you do not have a reassignment exercise, when, obviously, you do not have to configure it.

Regards,

Eli