Budget Reservation at the time of PR

[Former Member]

Dear Experts,

Client Requirement is to reserve the budget ((either through earmarked or any other way but automatically) at the time of PR and actual commit the budget at the time of PO.

Please help by providing suggestions to meet the requirement.

Regards

Thava

[iklovski]

Hi,

There is either a misunderstanding or some semantic issue here: 'reserved' budget or 'committed' budget equally means budget consumption, if the transaction is not 'statistical'. If there is no data, at the time of PR, which would allow to determine budgetary line (address) for consumption, then no 'reservation' can be made. If the data is, however, sufficient, then there is no need in creating EMF, as PR itself will create commitment, which would be further consumed by PO.

Hence, I agree with previous responses: your business requirement is not clear. Maybe, you can elaborate a bit...

Regards,

Eli

[Former Member]

Hi, I agree with Shyamal... what is the difference between reserve and commit budget?

[Former Member]

Hi,

Commitment can be done only & only when vendor/source of supply is known.

While raising the Purchase Requsition this piece of information is not available & came to know only when sourcing happens which resulted into creation of Purchase Order and then only actual commitment should happen.

Further to stop creation of access PR, we also want to reserve the budget so that it should be within the overall budget cap.

Regards

Rohit Chopra

[Former Member]

Hi, does it mean that you want to split up PR into 'with vendor' and 'without'?

And during PR creation do you want to check AVC?

Frankly speaking I can't understand your logic, in FM the difference between earmarked  and PR(in your example) will be only Value type, so who cares if Value type 50 is called PR or earmarked?

[sjajodia]

Dear Thava

You can create a purchase requisition even when the vendor/source of supply is unknown. Of course if you don't know description, quantity, price etc. and just want to reserve funds you should create a funds reservation (you still need some details).

Thanks

Shyam

[sjajodia]

Dear Thava,

Budget is automatically reserved when a PR is created and committed when a PO is created. This is standard functionality once Funds Management is configured and activated,

Thanks

Shyam

[Former Member]

Dear Shyamal,

At the time of PR, budget is getting committed (value type 50), but the requirement is to reserve the budget not the commitment.

Hope it clears the requirement.

Thava

[sjajodia]

Dear Thava

I am not sure of the difference between reserved and committed in this case. How do you define reserved?

Thanks

Shyam