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Payment & Commitment Budget

former_member220526
Active Participant
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Hi,

We have a requirement at our hand that requires to have two separate budgets. commitment and payment. As per my understanding we have separate commitment and payment budget available in Funds Management. please clarify my confusion about the budget consumption of commitment and payment budget. in following scenario how will system work:


At the time of invoice to vendor which budget will be consumed? commitment or payment? it should be commitment budget right?

when the payment of same invoice is done will system consume payment budget against? if so how will system link it with invoice? as in normal scenario when we only have payment budget there is no budget consumption at the time of payment as both items involved in payment posting are balance sheet items. It would be very helpful if any one can clarify my confusion.


Regards,

1 ACCEPTED SOLUTION

iklovski
Active Contributor

Hi,

Commitment budget is consumed by FM commitments, i.e. EMF and PR/PO. Invoice will convert this commitment to actuals and will not consume additional commitment budget, but will consume payment budget. Payment will revert consumption of payment budget by the invoice (value type 54) and transform it to consumption by payment (value type 57).

Full logic of budget consumption is defined by update profile settings, which could be found in FMPU01 table. If you have some user settings in update profile, they could be found in FMUP02.

Regards,


Eli

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5 REPLIES 5

iklovski
Active Contributor

Hi,

Commitment budget is consumed by FM commitments, i.e. EMF and PR/PO. Invoice will convert this commitment to actuals and will not consume additional commitment budget, but will consume payment budget. Payment will revert consumption of payment budget by the invoice (value type 54) and transform it to consumption by payment (value type 57).

Full logic of budget consumption is defined by update profile settings, which could be found in FMPU01 table. If you have some user settings in update profile, they could be found in FMUP02.

Regards,


Eli

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Thank you for your response Eli. Actually my clients requirement is that they have two separate budgets. Commitment & Payment.. They have a budget of 200 K for commitments but only 100 K for payments. the requirement is that system should allow the invoice postings to a limit of 200 K. But payments of such invoices should be restricted to only 100 K. This means that when i post an invoice to vendor the commitment item derived in that invoice should hit the commitment budget. but when i am going to make the payment of this invoice the payment budget of commitment item derived in invoice should be consumed. Is this possible to achieve through Separate budgets in funds management?


Regards,

iklovski
Active Contributor
0 Kudos

Hi,

Technically speaking, it is possible: you can set statistical indicator for invoices via OF39 or user-exit EXIT_SAPLFMFA_001. However, functionally it does not make much sense. Imagine, that you have created invoices on 200K and your payment budget is only 100K as in your example. What would you do with the rest of unpaid invoices? Pay penalties on them? At the end, you would have to pay them all.

Therefore, if your payment budget is only 100K, invoices should not be allowed to trespass this threshold as well. That's how financial circuit should work: try and explain to your client. Of course, some customers might have strange ideas... Well, technical solution I gave you.

Regards,


Eli

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I have explained it to them like a thousand time but they still stand on the same point that the have contracts with their vendors for partial payments due to which they consider their budget consumption to be the point of payment and not Invoice regardless of the fact that ultimately the'll have to pay it all. Well again thanks allot for your help Eli. Hope i'll find a solution through this.

Regards,

iklovski
Active Contributor
0 Kudos

There are more things in heaven and earth, Horatio, Than are dreamt of in your philosophy.