Funds Management for PO with reference to a PR

[Former Member]

Hello,

I'd like to check the system's behavior on the next issue:

Letu2019s say I have a funds reservation for $18,000,000.00 and I create a purchase requisition with one item with reference to this funds reservation for an amount of $17,000,000.00.

Then I create a purchase order with one item, making reference to the purchase requisition for $10,000,000.00.

At the moment I have availability in the reserve of $1,000,000.00 and a commitment (also pre-commitment) of $17,000,000.00 ($10,000,000.00 from the purchase order and $7,000,000 from the requisition).

If I later (after I had saved) try to update the purchase order item increasing its net value, for example in more than one million (exceding the reserve's available amount), the systems generates an availability control error indicating that I donu2019t have enough funds in the funds reservation (which its true).

My question concerning the systemu2019s behavior is, doesnu2019t it recognize the fact that the PO is referenced to a PR, therefore being able to consider also the remaining amount of the PR as a funds source for the increased value of the PO item (instead of only the reservation available amount)?

If I make a new PO with reference to the same position of the PR, I can do it for the whole available value (funds reservation + PR), and the system makes the necessary reduction for the PR at funds level.

However, as I mentioned before, if I increase the value of the PO item it only recognizes the available amount in the funds reservation as a funds source to AVC check.

Iu2019d like to know if this is a right behavior and if there's a way to make the system use the amount commited in the Purchase requisition, to be able to increase the item in the PO, making the necessary reduction in the PR and funds reservation (BUT RECONIZING BOTH FUNDS RESERVATION AND PURCHASE REQUISITION AS POSSIBLE SOURCE OF FUNDS FOR THE INCREASE, INSTEAD OF ONLY THE AMOUNT AVAILABLE IN THE RESERVATION, DURING THE AVC CHECK).

In the activity "Define Activation of Availability Control" is specified "Active with usual check logic".

Kind regards,

Edited by: Víctor Domínguez on Mar 9, 2009 7:20 PM

Edited by: Víctor Domínguez on Mar 9, 2009 7:21 PM

Edited by: Víctor Domínguez on Mar 9, 2009 7:21 PM

[former_member184992 · Accepted solution]

Hello,

The behaviour depends on your customizing settings in the following IMG path:

Public Sector Management -> Funds Management Government -> Budget Control System (BCS) ->

Availability Control -> Define Activation of Availability Control

In this IMG activity, you activate availability control by assigning an activity status for each ledger and fiscal year (from year). You can choose between five activation statuses for each availability control

ledger.

As per your description, it seems to be that you used "Active with strict check logic for document chains" option which represents the same behaviour as you reported.

Please try to change it to one of the other 4 options and let me know the results.

Best Regards,

Vanessa.

[Former Member]

Thanks for your answer, but I'm using type C (Active with usual check logic) for the fiscal year in question (2009).

But the system is only checking the available amount in the funds reservation when I increase the value in the purchase orde item, it doesn't try to decrease the value of the purchase requisition, which still has a $7,000,000 commitment, in order to be able to use that as funds to be able to increase the value in the PO. That's what I don't know if it's a normal system behavior or it could be something in the customizing to help me solve this issue (bear in mind that I'm updating the purchase order, because when I create the PO there's no problem or even creating a new one with reference to the PR, it let's me use not only the amount available in the funds reservation, but also the commitment in the PR as available funds for my PO).

I wouldn't want to decrease the value of the purchase requisition to be able to increase the availability in the funds reservation (so I could increase the PO item value), because it has been released and approved. And I can't either fix the "closed" indicator on the requisition to release commitment, because the remaining value of the requisition could be used to create other purchase orders.

Edited by: Víctor Domínguez on Mar 9, 2009 10:04 PM

[CesarCarreno]

Hi Victor

How are you doing?

One question, are you getting an AVC error or RE 164?

If you use funds reservation in the follow up documents: PR, PO, Invoices (FI not LO), the tolerance limits are checked. So the normal behavior is as you have described, the tolerance is controlled for the sum of each documents that are not reduced for the previous one.

Also you have to be sure that in transaction CUNI the unit of measurement has the value based commitment check active.

If you do not have this indicator active and if you have already used all the quantity of the PR in the PO there will be no additional reduction when you change the value (not the quantity) so the tolerance is checked against the funds reservation.

So for your scenario check CUNI and the tolerance limits:

Funds Management Government -> Funds Management-Specific Postings -> Earmarked Funds and Funds Transfers -> Tolerance Limits

I hope this helps you

Regards

Cesar