Enmarked funds and FM-BCS

[atif_farooq]

Hi:

I have not yet configured enmarked fund that are used to create fund reservation, fund precommitments e.t.c Do we need to use them in payment budget scenario. For me in AP we can control budgeting using standard future offered by FM-BCS , what difference does it make to use enmarked funds. I am not able to understand the concept despite i went through the sap help. Have they anything to do with FM-BCS?

Please guide.

Regards

[iklovski · Accepted solution]

Hi Atif,

Earmarked funds (EMF) is commitment documents and as such have nothing to do with FM-BCS, which is a budgetary system. They even could be used without activation of FM (some of them). Whether you need them or not depends on your business scenario: please, read carefulle the expense flow on help.sap.com

Regards,

Eli

[atif_farooq]

Hi Eli:

I read that but fund reservation, funds precommitment and funds commitments causing confusion in my mind. I can differentiate among them. Funds gets reserved in fund center and committed to commitment items when you post budget in FMBB, then what are these terminologies for ?

Regards

[iklovski]

FMBB has nothing to do with EMF. FMBB is to post budgetary documents. EMFs (FMX1, FMZ1, etc.) are to consume the budget by creating a commitment.