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Configuration Document

Funds Management

Proprietary & Confidential Page 1 of 37

Version No.1.0

Fund Management

BCS


of

Lakshmi Precision Screws Ltd.

Version 1.0

By-
http://www.lpsindia.com/index.aspx


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DOCUMENT INFORMATION

Project Name Document Name Document Location

Fund Management


DOCUMENT HISTORY

Version DocumentName Date Author Reviewed BY ChangeControl

1.0 FundManagement

ConfigurationDocument

06.04.2013 MohitVerma


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TABLE OF CONTENTS1 ORGANISATION STRUCTURE....................................................................................... 5

1.1 Maintain FM Area.................................................................................. 51.2 Assign Company code to FM Area................................................................ 51.3 Assign Fiscal Year variant to FM Area............................................................ 61.4 Activate Global Funds.............................................................................. 71.5 Activate BCS-Budget Control System............................................................. 8

2 MASTER DATA............................................................................................................... 92.1 Create Hierarchy Variant Fund Center........................................................... 92.2 Assign Hierarchy Variant to FM Area........................................................... 102.3 Create Fund Center............................................................................... 112.4 Create Commitment Item......................................................................... 12

3 BCS SETUPBUDGETING............................................................................................133.1 Activate Account Assignment Elements in BCS................................................ 133.2 Define Budget Category.......................................................................... 143.3 Define Budget Type............................................................................... 143.4 Define Budget Type Groups...................................................................... 153.5 Define Document Types.......................................................................... 163.6 Activate Period Control in Budgeting............................................................ 17

4 BCSAVC......................................................................................................................184.1 Tolerance Profile.................................................................................. 184.2 Filter Settings for Budget Values................................................................ 204.3 Filter Settings for Commitment / Actual Values................................................ 204.4 Derivation Strategy............................................................................... 214.5

Select Checking Horizon for Availability Control.............................................. 22

4.6 Activation of Availability Control............................................................... 235 COMMITMENT UPDATES AND INTEGRATION..........................................................24

5.1 Assign Update Profile to FM Area............................................................... 245.2 Make Other Settings.............................................................................. 255.3 Maintain Number Range for FM Area........................................................... 265.4 Assign Number Range to FM Area.............................................................. 275.5 Activate / Deactivate Funds Management....................................................... 28

6 CLOSING OPERATIONS................................................................................................296.1 Commitment Item Carry Forward Payment Budget............................................. 296.2 BCS - Activate Budget Carry Forward for Commitment....................................... 30

7 BUSINESS SPECIFIC REQUIREMENT..........................................................................317.1 Activation of Business Function................................................................. 317.2 Budget Control at customer code label.......................................................... 327.3 LPS specific Derivation Rule..................................................................... 33


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Symbols and their meanings

The standard toolbar contains buttons for performing common actions such asSave andEnter.

Icon Quick info text Function

Enter

Confirms the data you have

selected or entered on the screen.Same function as the Enter key.

Does not save your work.

Command fieldAllows you to enter commands,such as transaction codes.

SaveSaves your work. Same function

as Savein theEditmenu.

Back

Returns you to the previous

screen without saving your data.

If there are required fields on the

screen, these fields must becompleted first.

ExitExits the current function withoutsaving. Returns you to the initialscreen or main menu screen.

Cancel

Exits the current task without

saving. Same function as Cancelin theEditmenu.

Print Prints data from the currentscreen.

FindSearches for data required in the

current screen.


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1 ORGANISATION STRUCTURE

1.1 Maintain FM Area

The Funds Management Area (FM Area) is the primary structural component thatis required to be maintained to implant Public Sector Funds management solution.

To access the activity below is the navigation options:

SproEnterprise Structure Definition Financial Accounting Maintain

FM Area.

Enter FM area, FM area text and FM area currency and then press .

The required FM Area is created and is now available for assignments.

1.2 Assign Company code to FM Area

The Funds Management area must be assigned to the company code.



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Spro Enterprise Structure Assignment Financial Accounting AssignCompany code to Financial Management area

Enter FM area against the company code 1100 then press .

1.3 Assign Fiscal Year variant to FM Area

A Fiscal Year variant is needed to define the accounting year and posting periodsfor the company.

To access the activity using below is the navigation options:

Spro Public Sector Management Funds Management Government Basicsettings Fiscal Year Variant Assign Fiscal Year Variant to FM Area


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Enter FM area and then press .

The Company code and the FM Area now have a Fiscal year Variant available tocontrol posting periods as needed.

1.4 Activate Global Funds

Activate Global Funds Management Functions (PSM-FM) if the global

functionality of the Fund Management is to be used. Whether, formal budgeting or

BSC, for both type of budgeting activate PSM-FM. Since Fund Management isbeing implemented, PSMFM functionality is activated.


Spro Public Sector Management Funds Management Government Basic

settings Activate Global Funds Management Functions (PSM-FM)


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Public Sector Management functions are now active in the system.

1.5 Activate BCS-Budget Control System

Activate the Budget Control System (BCS) as an operative budgeting tool of thecomponent Funds Management Government. Define a from-fiscal year for anFM area for this purpose.

To access the activity below is the navigation options:Spro Public Sector Management Funds Management Government Basic

settings > Activate Global Functions for Budget Control System (BCS)


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Enter Hierarchy variant 000 and name of the hierarchy variant and then press .

A custom Hierarchy Variant is now created.

2.2 Assign Hierarchy Variant to FM Area

Here, determine which hierarchy variants are to be assigned to the FM area and

fiscal year as the current valid funds center hierarchy.


Spro Public Sector Management Funds Management Government Master

Data Account Assignment Elements Funds center Hierarchy Variant Assign Hierarchy Variant to FM Area

Leave the fiscal year field and only enter Hierarchy Variant 000 then press .

Hierarchy variant is assigned to the F.M Area.


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2.3 Create Fund Center

SAP defines the Funds Center as an organizational unit within the Funds

Management (FM) module. It represents the lowest level area of responsibility for

budgetary monitoring and controlling costs by area of responsibility.

To create the Fund Center Enter the T. code FMSA in command field

.

Then press Enter key .

Enter Fund Center value and then press enter key.


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In this screen you only need to enter name of the fund center and description of the

fund center, company code and the responsible person user name.

Enter all the require fields value than press .

2.4 Create Commitment Item

It would be explain in the user manual.


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3 BCS SETUPBUDGETING

This component includes all settings and functions in the budget control systemthat is necessary for processing budget data. The functions include entering budgetdata, updating the budget.

3.1 Activate Account Assignment Elements in BCS

We define which account assignment elements should be used in the budget

control system (BCS). At the time of activation of BCS, it is defined that the inputfield of an account assignment element is available in BCS budgeting transactions.

To Access the activities please use below navigation options:

Spro Public Sector Management Funds Management Government Budget

Control System Budgeting Basic settings Use of Master Data Activate

Account Assignment Elements in Budget Control System (BCS)

Enter the value then press .


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3.2 Define Budget Category

Here, thebudget categories are determined to be used for an FM area in theorganization.

To Access the activity use the below navigation options:


Control System (BCS) Budgeting Basic Settings Definition of Budget

Data Define Budget Category

Enter FM area and budget category and then press .

3.3 Define Budget Type

Here, define the BCS budget types that are to be used in the organization. When

setting up the budgeting procedures, several budget types can be defined for theorganization. The combination of budget type and budgeting process represents acustomer-specific definition of budget values.

To Access the activities use below navigation options:


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Control System (BCS) Budgeting Basic Settings Definition of BudgetData Budget Types Define Budget Types

Enter budget type description and then press .

3.4 Define Budget Type Groups

We can bundle different budget types in a budget type group. Budget type groupsenable to define multiple budget types to be used for consumption.

To Access the activities please use below navigation options:


Control System (BCS) Budgeting Basic Settings Definition of Budget

Data

Budget Types

Define Budget Type for Consumable Budget

DefineBudget Type Groups


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Enter FM area, Budget type group and description and then press .

3.5 Define Document Types

Here, define the document types that are to be used for budget postings in Funds

Management. Different document types can be used to classify the budget entry

documents. By using different document types, it is possible to classify budgetentry documents according to the user-specific criteria, by assigning meaningfulnames to the individual document types used within the organization.



Control System (BCS) Budgeting Budget entry Budget entry Documents

Document definition Define Document Types


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Enter Document type, text, number range and scenario for value type and then

press .

3.6 Activate Period Control in Budgeting

Here, activate period control for budgeting per FM area and budget version. Also

specify all versions by entering an asterisk (*) in the corresponding column. Ifperiod control is not activated (no entry), all periods are open for budgeting by

default entries.



Control System (BCS) Budgeting Control Budget Flow Activate Period

Control


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Enter FM area, version and tick on the period control check box and then press .

4 BCSAVC

Using the AVC component, the availability of funds can be monitored in the

Budget Control System ofFunds Management.Availability control andBCS budgeting are flexible tools that can be used to check

consumable budget (budget or releases) against consumed amounts (commitmentor actual postings) within a budget process. If budget consumption reaches one of

the tolerance limits specified in customizing, this can trigger system activities, forexample, additional postings are prevented.

4.1 Tolerance Profile

Here, define thetolerance profile for the active availability control in the budgeting

of Funds Management (FM).

For each tolerance profile, define whether to work only withpercentage usage rates

or also with maximum permissible absolute differences. If absolute variance as

tolerance limits is to be allowed, then it is must to assign a currency to thetolerance profile - this currency must match with FM area currency.

http://help.sap.com/saphelp_erp60_sp/helpdata/en/4f/19f53b5415f249e10000000a11402f/content.htmhttp://help.sap.com/saphelp_erp60_sp/helpdata/en/4f/19f53b5415f249e10000000a11402f/content.htm


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Control System (BCS) Budgeting Availability Control Edit ToleranceProfiles

Enter tolerance profile name, text and currency and then press .

Now select the newly created tolerance profile line and click on the maintain

tolerance limit on the left side of the screen.

Here fill the require values and press .


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4.2 Filter Settings for Budget Values

Here, define which budget values should be included in active availability control.

Generally the total consumable budgetagainst which consumable budget

(commitment or actual values) is defined and is checked using the AVC filtersettings.



Control System (BCS) Availability Control Setting for Availability

ControlDefine filter setting for budget value

Enter the FM area, control ledger, fiscal year, BCS value type and Budget type and

then press .

4.3 Filter Settings for Commitment / Actual Values

Here, define the actual and commitment values that should be excluded from active

availability control. Usually all posting records containing such actual and


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commitment values that are updated to Funds Management in a non-statistical

manner define the consumed amount, which AVC checks against the consumablebudget.


Enter the control ledger and FM Area and then press .

4.4 Derivation Strategy

FM Derivation Strategy

If no entries are made for FM account assignments when creating a document, thesystem follows the derivation steps defined for account assignment determination

in customizing. We define the relationship between source field entry values andautomatic assignments to target fields for each derivation step. Target fields are the

FM account assignment elements commitment item, funds center, fundandfunctional area.In addition to the FM account assignment elements, the following

source fields can also be used: company code, business area, and profit center, costcenter, plant, etc.

To Access the activities use transaction code FMDERIVE.


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Enter the derivation strategy name and description and then press .

Now assign the newly created derivation strategy to the company codes. So click

on the company code assignment on the left hand side of the screen.

Enter the company code and derivation strategy and then press .

4.5 Select Checking Horizon for Availability Control

Here, define how thechecking horizon is selected for availability checks in aspecifiedcontrol ledger.



Control System (BCS) Availability Control Settings for Availability Control


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Enter control ledger, from fiscal year and select the active with strict check logic

option and then press .

5 COMMITMENT UPDATES AND INTEGRATION

In the following sections we find out:

Which system settings are required for updating commitment and actualdata?

How to set the Funds Management integration to other SAP components

according to the requirements.

5.1 Assign Update Profile to FM Area

In update profiles, parameters are grouped together to control commitment and

actual data updates in Funds Management. Update profiles support systemconfiguration because they contain logical management and executable features forcontrol updates.

Here, define the update profile to FM area.



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Spro Public Sector Management Funds Management Government Actual

and Commitment Update / Integration General Settings Assign UpdateProfile to FM Area

Enter FM area and Update profile and then press .

5.2 Make Other Settings

When posting business transactions to other components, such as Materials

Management and Financial Accounting components, the system passes on the datato Funds Management (FM). The actual data is updated there and displayed in theinformation system.



and Commitment Update / Integration General Settings Make other Settings


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Allow the value as above and then press .

5.3 Maintain Number Range for FM Area

In this step, definenumber ranges in each FM area for the actual data documents inFunds Management.



and Commitment Update / Integration Basic Settings FM Line Items

Define Number Range for Actual transaction


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Enter the FM area and click on the Intervals button.

Here maintain the number range 01 and press .

5.4 Assign Number Range to FM Area

In this step, store a number range interval for actual data documents for each FMarea.



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and Commitment Update / Integration Basic Settings FM Line Items Assign Number Range to FM Area

Enter the number range 01 against the FM area and then press .

5.5 Activate / Deactivate Funds Management

In this step, the Funds Management (FM) account assignment derivation isactivated and update of documents from the feeder components for FM to FM forspecific company codes. If number of company codes has been combined under an

FM area, there is also the option of activating specific company codes only or ofleaving other company codes deactivated.



and Commitment Update / Integration Activate / Deactivate Funds management


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Tick on the both check box and then press .

The Account Assignment Derivation and FM Update are now activated forCompany Code 1100.

6 CLOSING OPERATIONS

This component enables to prepare and execute all activities for year-end closing:the transfer of open commitments (commitment carry forward) and a different

transfer of budget that was not consumed (budget carry forward of residualbudgets) from old fiscal years into the new. Closing operations are used to displaybudgets and assigned values by period.

6.1 Commitment Item Carry Forward Payment Budget

We specify per FM area, fiscal year, and value type (such as purchase orders or

invoices), and whether carrying forward commitments for the payment budget tothe new fiscal year is allowed or not.



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SproPublic Sector Management Funds Management Government Closing

Operations Commitment Closing Operations Enter Settings for CommitmentItem carry Forward Payment Budget

Enter FM area, fiscal year, value type, and tick on the carry forward Allowed

check box and then press .

6.2 BCS - Activate Budget Carry Forward for Commitment

Here, define for which value type and budget category the carry forward of budget

for commitment should be activated or deactivated for each FM area/fiscal year.The settings can be defined for individual value types or for all value types that are

used in the field value type.


SproPublic Sector Management Funds Management Government Closing

Operations Closing Operations for BCS Activate Budget carry forward for

Commitment


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Enter FM area, fiscal year, value type, budget category and activate the status and

then press .

7 BUSINESS SPECIFIC REQUIREMENT

We had to do some additional work around to meet LPS requirement.

7.1 Activation of Business Function

In LPS business function of Fund Management was not activated so, we had to

activate the business function first and then make a transport request to move intodifferent client. A workbench request will be created and you will have to move

this TR request first of all in PRD.


SproActivate SAP ECC Extensions


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7.2 Budget Control at customer code label

In LPS there was a requirement to consume the budget at customer code label to

achieve this; we had to write a Substitution rule to consume the budget at the time

of releasing the Billing document for accounting (t code VF02) in Sales andDistribution module.

Below is the substitution rule maintain-


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7.3 LPS specific Derivation Rule

We had to maintain some derivation rule to achieve the business requirement ofLPS.

To access this use t code FMDERIVER


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Rule 1- TO derive the fund center against the cost center.

Rule 2- To derive the fund center against the plant, this rule work especially forPR/PO creation.


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Rule 3 - This rule especially made for avoids the reversal of original budget at the

time of scraping of asset.


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Rule 4

This rule has been made for derive fund Center in Vendor Advance entry.


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