FM-SD Integration Issue

[Former Member]

Dear Sir/Madam,

We have implemented FM-PSM with BCS. We have integrated MM, PP and SD.

As far as MM and PP is concerned everything is going fine. But in case of SD, at PGI stage COGS gets involved. Here system is reducing Budget value properly from available budget amount for COGS Commitment Item and Fund Center, Fund.

Now at Billing stage total sales value is getting added in the same COGS Commitment Item and Fund Center, Fund though it is an expense account. Budget should only be shown for COGS.

Note: 1)We dont want budget control for revenue commitment items.

          2) And at Sales Order stage we enter Fund, Fund Center and Commitment Item i.e; COGS Commitment Item.

Are we missing something in customisation?  Please help.

- Nilesh

[iklovski]

Hi,

To skip budget control for revenue items, create a tolerance profile in your AVC, with no check on budget. Then, define a strategy for deriving a tolerance profile, based on commitment item ctaegory (POTYP); if it's '2' - derive the tolerance profile with no budget check. Don't forget to set 'overwrite' option when defining the strategy rule.

Regards,

Eli

[Former Member]

Dear Eli,

Many thanks for reply.

We already have maintained 1 Tolerence profile for outgoing payment and assigned it to 9H AVC ledger. Budget check is with usual logic. So should i create a new tolerence profile to skip budget control for revenue items.

If yes then how to mentain "with no check on budget." for the same AVC Ledger 9H ?

- Nilesh

[iklovski]

Hi,

Exactly, define a new tolerance profile. Call it whatever 'revenue- no budget control'. Define a derivation strategy for it, based on the explanantion I gave before, and assign the strategy to your ledger in  'Assign Tolerance Profiles and Strategy for Control Objects activity'.

Regards,

Eli

[Former Member]

Sir,

I have maintained strategy. but as I have already assigned our first Tolerence Profile to 9H ledger, system not allowing to assign 2nd Tolerence profile to the same ledger i.e; 9H. (Entry with the same key is not allowed).

Also in "Define Activation for Availability Control" setting entry with same key i.e; 9H is not allowed.

Is there any other way to do it?

- Nilesh

[Former Member]

Dear Eli,

What will be the effect if I assign your suggested strategy and tolerence profile to another ledger 9I (Commitment Budgt Ledger)? But our Update profile is 101 (Based on Payment Budget).

Please help.

- Nilesh

[Former Member]

Hi

Create separate tolerance profile for revenue and expenses in 'Edit tolerance' menu after that revenue tolerance profile need to be assigned in 'define derivation strategy for tolerance profile' settings (budget exclude commitment items menu).

If u maintain two different profiles for expense and revenue, you can able to exclude revenue commitments from Budget AVC check.

Regards

Rao

[iklovski]

If you work with payment budgte, then 9I ledger will be irrelevant. Why won't you assign it to 9H? If you have already a strategy assigned to it, just add another step in this strategy with the definitions I gave.

[Former Member]

Dear Eli,

I can assign the strategy to same tolerence profile. But there is one more step in between "Define Activation for Availability Control" . Here for 9H ledger, for the fiscal year we need to give activation status of Availability Ledger. Here If i make it as "Active without Availability Check" then this will get applicable to first Tolerence Profile also.

So is there any way to define that no Budget for revenue at STRATEGY level?

- Nilesh

[Former Member]

Dear Sir,

Thanks for the reply.

I did all these settings. Bud how to make sure that this Tolerence profile of Revenue is not active for budgeting? In "Define Activation for Availability Control" I can set the Activation property for 9H ledger only once.

- Nilesh

[iklovski]

Hi,

You are mixing things. You don't assign strategy to profile, but to a ledger. There, you have to define a step deriving the profile, based on POTYP field. The activation logic of AVC should not be 'without check'; this will have an impact on all the transactions.

Regards,

Eli

[Former Member]

Hi

In 'Define Activation of Availability Control' you need to mention ledger is 9h From fiscal Year say for example 2012, Activation status of availability control is 'Define Activation of Availability Control'. You need not to give one more ledger here, since you are using payment budget only as Eli clearly said.

In 'Edit Tolerance profile' menu create  tolerance profiles say example ABCD and for ceilling type revenue click on Inactivate check box, so that budget AVC check will not work  for revenue commitment items. This is enough.

Regards

Rao

[Former Member]

Sir,

In the "Define Derivation Strategy for Tolerence Profile" I have mentained the rule and derived the new Tolerence profile also.

Just to clarify that, how system will get that for this Tolerence profile there is no AVC budget control required. ?

- Nilesh

[iklovski]

That's the definition of your profile: you have to set it in this way.

[Former Member]

Dear Eli,

Thanks a lot Sir. I got the logic. And made those settings.

But as I said still in the COGS GL<> Commitment Item sales value is getting added. Actually COGS is an expense account, it should consume only budget alloted for COGS. Why system is adding revenue value in that item?

System gets FM Account Assignments only once at Sales Order Level. And hence I think picking that assignments for revenue amount. I am not sure how to resolve this?

Please Help.

- Nilesh

[Former Member]

Any Suggestions Please?

[Former Member]

Hi

Budget consumption depends on your commitment item financial category and its Profile.

Suppose if expense account  gets created then budget will get increase. If it is debited budget will get consumed.Thats why in your case budget increased in COGS case. its totally depedents on commitment item category and its tolerance profile.

Hope now u can understand the concept?

Regards

Rao

[Former Member]

Dear Sir,

In Sales Order, we provide Fund, Fund Center & Commitment Item manually. Here we are providing COGS Commitment Item and relevant Fund, Fund Center.

In PGI Entry is:

COGS A/c ------- Dr.

Finished Product ------ Cr.

(Thats why, From Finished Product's Commitment Item Budget is reducing and in COGS also Budget is getting reduced.)

In Billing Accounting entries are as below:

Customer A/c  ---- Dr

Domestic Sales A/c----- --- Cr

VAT A/c  ---------------------- Cr

Now value of Domestic Sales (Credit) is getting added in same commitment Item of COGS. Actually we dont want Budget Control for Revenue, we want only for COGS. Actually no COGS Account is hitting in Billing Stage.

Are we missing something? Is any FM derivation rule required for SD Integration?

- Nilesh

[Former Member]

Hi

If u maintain same commitment items for both COGS and Domestic sales then obviously budget will get increased (revenue nature).

As u mentioned 'Actually we dont want Budget Control for Revenue'' - the process was explained clearly by Mr Eli and me in this threat (tolerance profile - ceiling type revenue inactive). Please read the complete document. 

Regards

Rao

[Former Member]

Sir,

Actually in Billing there is no option to derive FM account assignments. If i want to assign Domestic Sale (Revenue) Commitment Item at Billing stage where I can do that or I need to define any Derivation Rule for that?

System is automatically picking COGS commitment Item which we have mentained in Sales Order.

I have already done all the settings for "No Budget for Revenues" as guided by Eli and you.

- Nilesh