Funds Mangement - Closing Operations ( Commitment /Budget Carry forward)

[Former Member]

SAP Help says - It is not necessary to carry out closing operations with the fiscal year change in the system if you do not use period-based encumbrance tracking or, whilst using the Budget Control System, have activated multi-year budget execution. If you therefore decide not to carry out closing operations, budget already used remains in the old fiscal year and cannot be used in the new fiscal year. Open commitments are correctly reduced in the old fiscal year if you process them further in the new. (For example, a purchase order from 2005 can be reduced by an invoice arriving in 2006.).

Question1: I have a purchase requisition in F.Y 2007, now i am creating PO in 2008, it is reducing the commitment of 2007' PR but the PO is consuming 2008 budget only ( thats what budget consumption report shows), why is this ?

The carryforward of commitment and budget depends on the Update Profile chosen. It is specified in the update profile whether a carryforward is possible and for which value types (e.g. purchase orders, earmarked funds, invoices) a carryforward may take place.

Question2 I cant really see what is there in a Update Profile ( I can only choose one of the standard profile). How can i see whats there in the update profile ?

Thanks in advance

Chris

[CesarCarreno]

Hi Chris

Question1: I have a purchase requisition in F.Y 2007, now i am creating PO in 2008, it is reducing the commitment of 2007' PR but the PO is consuming 2008 budget only ( thats what budget consumption report shows), why is this ?

The reduction of the PR is done with the posting date or delivery date (defined in the update profile), that´s why the reduction is posted in year 2007. If you need the PR reduction to be posted in the new fiscal year you have to carryforward the PR.

If you have PBET active it is mandatory to carryforward the document, because the date to be used in the reduction is the current date (2008 in your example) or the date defined in FMOD.

Question2

Report RMFMMONI or table FMUP01

I hope this helps you

Regards

César

[Former Member · Accepted solution]

Hi Chris,

For your question 1, I think it is caused by the Update Profile. Are you using Update Profile 351?

For your question 2, you can kind of figure out what's in those profiles by playing with 'Override Update Profile' (Spro > Public sector management > Funds management gernment > Actual and commitment update > General setting > Override update profile). You create a new entry and choose 'By value type'; you can play around with different profile and value type. For example, if you choose profile 351 VT 50, you do not see any options for PB while for VT 51 there are options for both CB and PB (by the way, I believe that is why your PO's update both CB commitments and PB commitments).

Regards,

Ming

[Former Member]

Thank you so much Ming and Cesar -

I've looked in to the table FMUP01, but didnt find any field relating to carry forward.

But in config.. Spro -> actual and commitment update /integraiton - >general settings -> Make other settings-> I see two check boxes for carry forward level one fro 'Use commiment Item' and other is for ' Use Invoice' We are usign ECC 6.0 EA-PS 6. Please clarify if these are the settings you are referring to.

I was using update profile 350 and i didnt perform the closing operaitons ( rather i didnt want to coz we dont have PBET activated. As did not carry forwarded the commitment items to 2008 i am expecting the system to consume the budget of 2007 when i create a PO in 2008. thats what i have understood from the help doc.Am i missing logic some where?

Further questions:

1) If I carry forwarded the commitments and the budget associated with them, what happens when a subsequent document consumes more budget. e.g. I have PR of 2007 for $ 500, i have carried forwarded this to 2008 along with budget, Now If I post a PO with $600, does the system consume the extra $100 from 2008 budget ?

2) When I define budget entry document for carry forward I have to select budget type (sender) and budget type (receiver) , If I give release budget type I am getting an error in FMJ2 - Combination of Carry frwd & release budget type is not allowed. How can i come over this ? I want the carried forwarded budget to be automatically released, I have defined the document type with automatic release as well.

Thanks

Chris

[Former Member]

Hi Chris,

I believe, because you have BCS, it is the second condition - 'whilst using the Budget Control System, have activated multi-year budget execution' that gives you the option of not carring out the closing operation. Your scenario will update FM as:

PR Original -$X 2007

PR Reduction $X 2007

PO Original $X 2007

If multi-year budget execution is not active, the PO will just reduce the PR and free 2007's budget and create a new commitment in 2008:

PR Original -$X 2007

PR Reduction $X 2007

PO Original -$X 2008

The following document gives a better explanation:

http://help.sap.com/saphelp_erp2005/helpdata/en/83/985505ee314bfda57dedbc7f06cab7/frameset.htm

Regards,

Ming

[Former Member]

Hi Ming -

Thank you so much, Looks like Multi year budgeting would fit into our requirement - But this has raised some concerns after going through the link you have sent -

1) PBET must be active - I am not able to foresee the possible complications other than increase in volume of data - Moreover the statement ' Once PBET active, it cant be reversed' makes me more skeptical to think about it. Can we have Multiyear budgetting with PBET active, is there any work around ?

2) FM account assignment ' Fund' is obligatiory - Didnt really understand this, we dont really have the concept of Fund.

Please advice

Thanks

Chris