Commitments not reduced correctly for service PO's during confirmation.

[Former Member]

Hi Experts,

In SRM 5.5 Server with R/3 4.7, when PO (service) is created with mupliple items (say 3 items), with multiple cost distributions (say 70% on WBS1 and 30% on WBS2). It creates the necessary commitments and fund allocation in R/3

Note:we are using SAP Funds management for budget creation and allocation, our budget are handled through funded program not through traditional FI budgeting.

when we do confirmation/Service entry, the commitments are reduced on first account assignment (WBS1). which leads to pending commitments even when the PO is closed the WBS2 project remains with few commitments.

is there is standard settings in r/3 that controls commitments? when our development team debugged it, there is no trace/hint where the issue occurs

Any help/hint will be greatly appreciated.

Cheers, Renga

[imthiaz_ahmed · Accepted solution]

Ramesh made a valid point. Refer this link

http://help.sap.com/erp2005_ehp_02/helpdata/en/ac/74a8374d4d6f5ee10000009b38f8cf/frameset.htm

Regards, IA

[Former Member]

Hi Renga,

Closing of the PO doesnt, make the commitment on the WBS to zero. Because you are allocating a amount to the WBS (either through FM or FI budgeting) which is used by the PO when you do a cost assignment. To release the funds remaining on the WBS the excess amount it needs to be released and the WBS element should be logically closed. I am not aware of the transaction with releases the excess funds in the WBS. But you can verify that.

Hope this helps.

Regards

Ramesh.

[Former Member]

Hi Ramesh,

i do agree with you, but what i mean by PO closing is by confirming and invoice.

Say if PO is confirmed fully and invoiced, which must reduce the commitment (if you have paid invoice to vendor, the amount you obligated/owe for vendor is done/complete) hence the commitment should be made to "ZERO". but in our case WBS1 commitment is reduced by 100% the other commitment (WBS2) remains the same. strange thing is adjustment of commitments automatically take place

I know work around to close the commitment in "SAP Funds Management". but my point is standard program should/must reduce it right?.

Cheers, Renga

[Former Member]

Imithiaz,

we use "Funds Management" to maintain funds and budget. of course the budget profile has to be maintained as explained in help.sap.com, which i tried here as well. but no luck.

i tried budget tolerance in SAP BCS as well.

Thanks, Renga

[Former Member]

Hi Renga,

If I understood the problem right :

You have a PO item with multiple account/cost assignment ie to WBS1 and WBS2, But when the PO is settled the whole amount is settled in WBS1 and WBS2 doesnt get any cost.

ideally this should automatically happen. its a standard process.

For me something looks fishy with the replication of the cost assignment in the PO while transfering to R3. Please check if the cost assignments are same in SRM and R3.

Regards,

Ramesh

[Former Member]

Hi Ramesh,

They are same, if there is any difference, my PO wont be created.

This is because of funds management integration, not sure many client use funds management integrated with SRM and R/3.

Cheers, Renga

[imthiaz_ahmed]

Refer to this note

Note 1001218 - Corrections to PO creation for service items in backend.

I think something is wrong in the initial itself.

[Former Member]

Imithiaz,

i have checked this OSS message already our service PO % distribution are done correctly though.

Cheers, Renga