Grant Management and a complex financing scenario

[Former Member]

Dear all,

I was hoping someone can shed some light on the cost sharing rules in Grant Management. The requirement is that per WBS element in SAP PS cost sharing between various financing third parties should be possible. In Grant Management, as far as I understand without having seen the module, this would imply that we would need to create a grant per WBS element and set up cost sharing rules. We need to be able to track expenses and commitments against the budget of each financing party as a whole and a financing party can be investing in multiple projects and / or multiple parts of a project (represented by WBS elements in SAP PS).

Is it possible to differentiate financing per WBS element while each WBS element is 'sponsored' by multiple external parties and no internal fund? Is it possible report on totals per sponsored class / sponsor program and have availability control on these Grant Management elements? If not, is Portfolio Management or Fund Management suitable for the sketched requirement?

Kind regards,

Arnold

[sjajodia · Accepted solution]

Arnold,

One grant can only have one sponsor (funding party). So it looks like you will need to create multiple grants. The GM cost sharing rules require an internal fund as the scenario GM assumes is sharing of cost for a grant between the Sponsor's Fund (External) and Company's fund (Internal). Shared cost is then posted to the internal fund. I am not sure GM is a good fit in your scenario.

Instead I suggest you look at creating multiple funds in FM with a rule in the FM Account Assignment Distribution tool (if the shares are known) or override of the fund in derivation rules (FMDERIVE).

Thanks

Shyam

[Former Member · Accepted solution]

Ah okay, I thought Grants Management was designed to deal with external funding and that Funds Management is for internal budgetting.

Is it possible for multiple internal funds to share the costs posted to a single WBS element? Does the FM Account Assignment distribution tool work with multiple account assignment per WBS element, where we can have A) a percentage share of the costs per fund (always a total of 100%) and B) a maximum amount per fund / financing party? Do we need to use FM BCS for this matter and how does this work with the budget addresses?

What do you mean by overriding the fund assignment? Can you partly override the fund determined by FMDERIVE?

Thanks a lot for your directions and help.

[sjajodia · Accepted solution]

Arnold,

Multiple internal funds in GM can share the cost but cannot be attached to a Sponsor as they are internal funds. On the other hand you can have multiple grants each with one external fund.

In the FM Account Assignment distribution tool your scenario A is fully supported. In order to have a maximum amount per fund you will need to configure FM BCS and use it to budget the maximum amount. Budget addresses in FM BCS are the combinations of FM Account Assignments in which you enter a budget. The WBS Element will be represented by a Funded Program.

Yes you can override the Fund assigned by FMDERIVE by setting the field characteristic Do not overwrite if Fld already filled for Fund.

Thanks

Shyam

[Former Member · Accepted solution]

Got it. And this internal fund with a maximum budget, could be a fund for multiple SAP PS Project and/or multiple WBS elements of various projects all exhausting the same Fund budget granted by the financing 3rd party?

[sjajodia · Accepted solution]

Arnold

Yes you can create one fund per party in FM.

Thanks

Shyam

[Former Member · Accepted solution]

Can you have multiple funded programs automatically derived from 1 wbs element?? E.g. cost sharing 50/30/20 percent?

[sjajodia · Accepted solution]

Arnold

I don't think you can do that in the derivation rules. But take a look at the Rule-based Account Assignment distribution tool (FMSPLITMAINT) as this should allow splitting by percentage.

Thanks

Shyam