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Funds Management (PSM-FM) activation and deactivation

July, 12th 2017 – For the latest documentation about this topic, please read SAP Knowledge Base Article number 2503381.




FI-FM is the obsolete name for Funds Management (for old releases such as 30F, 40B, 46C). Now it is called PSM-FM and has the same meaning.

Activation of public sector business function means that you want to use funds management functionality (PSM-FM).

Since release 4.7 it became an add-on and not part of SAP-APPL package anymore.

PSM-FM after this release, needs to be activated in transaction SFW5, under ENTERPRISE_EXTENSIONS.

If EA-PS is active, this means that PSM-FM is activated. EA-PS is also the package for Funds Management, not SAP-APPL anymore.


PSM-FM activation

To activate PSM-FM, you first need to do so in transaction SFW5 as explained above. Then, you should review sap help link below where you will find useful information to guide you about funds management. SAP Library -> SAP ERP Central Component -> Financials -> Public Sector Management -> Funds Management

Direct link:

In addition, I suggest you to read also the documentation available in the following menu inside your system:

Transaction SPRO (IMG) -> Public Sector Management -> Funds Management Government -> Prepare Funds Management Installation

It is only a text document but with links and with all the necessary instructions to start FM in your company.



The menu for Public Sector Government will appear in transaction SPRO after you activate PSM-FM. In EA-PS, Funds Management and other extensions are Extension sets.

In transaction SFW5, only reversible business functions can be deactivated. Usually the activation of a business function should be done
carefully, after a project that shows the need of the Business Function. Any business function activation in transaction SFW5 impacts the entire client and integrated areas. For example, when you have activated PSM-FM (funds management, EA-PS in SFW5) it is also not possible to deactivate it again.

Unfortunately there is no possibility to deactivate PSM-FM after having activated it in the system/client.


How to disable PSM-FM functionalities in a system/client

The activation of PSM-FM is per client, not company code, this means that if you have more than one company code in that system/client, you must customize the minimum for all your company codes otherwise you will receive errors.

As explained above, the activation of EA-PS cannot be reversed in transaction SFW5.

If you want to deactivate funds management functionalities you should go through all your customizing settings in PSM-FM and deactivate it.

You should deactivate some customizing settings to be able to deactivate PSM-FM completely, specially the following:

1. Transaction SPRO -> Public Sector Management -> Funds Management Government -> Actual and Commitment Update/Integration -> Activate/Deactivate Funds Management.



Flags “Account Assignment Derivation” and “Activate Update in Funds Management” should be blank.

2. Transaction SPRO -> Public Sector Management -> General Settings for Public Sector Management -> Basic Settings: Account Assignment Elements -> Activate Account Assignment Elements (_ISPSFM_VV_FMISPS_3)



Make sure to unmark all Account Assignment Elements.

3. If you are using Former Budgeting check the following customizing

Transaction SPRO  -> Public Sector Management   -> Funds Management Government -> Former Budgeting -> Availability Control -> Deactivate/Activate Availability Control




“Always Check” and “Check Revenues” flags should not be marked

4. If you are using BCS, check the following customizing

Transaction SPRO -> Public Sector Management   -> Funds Management Government -> Budget Control System (BCS) -> Availability Control -> Define Activation of Availability Control



Ledger should not be active or line removed from the customizing.

5. As the last step if you do not intend to activate Funds Management, please do so via the following menu:

Transaction SPRO -> Public Sector Management -> Funds Management Government -> Basic Settings -> Activate Global Funds Management Functions (PSM-FM)



Unmark the checkbox.

Bear in mind that maybe other settings must also be deactivated, please review fully your SPRO customizing menu for PSM-FM.


IMPORTANT: Implement PSM-FM means a complete new project since this module affects all the others (SD, MM, PM, PP, CO, FI) after implemented. Every document from every source (MM or SD for example), must have at least the fields funds center and commitment item inserted in all screens in case you activate EA-PS business function. In addition, budget should be created so all the postings will be saved only in case there is budget enough, according the rules defined in PSM-FM customizing.

In case you decide to implement PSM-FM component (by activating EA-PS business function) it is recommended that you consider this a separate project and make sure that areas such as FI, CO, MM, SD and PM are involved in this project.



I recommend the reading of the following documentation related to the same topic:

SAP Knowledge Base Articles:

2162501    PSM-FM Roadmap I – Activating Funds Management subsequently on a live system
1867318    Leading ledger 0L disappears after Funds Management activation
1718975    Activate/Deactivate FM: errors ZZ003 and SV044, or dump PERFORM_NOT_FOUND
1680281    Error FI011: Company Code XXXX is not assigned to an FM Area
1666046    Activating Funds Management subsequently: Transferring PRs and POs

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  • Thanks vanessa.... This blog is very helpful...


    i was also looking for an article regarding implementation considerations for activating PSM-FM after already going live with other modules such as FI, CO, MM, SD , HR, PP, PS, PM 3 yrs ago. I wud be more than happy if you can share your experience regarding it..

    • Hi Sayeed, Thank you, I am trying to find an answer that I did in a thread here in SCN some years ago about how to implement PSM and the effect in the other modules. I couldn't find it yet. I will update you here as soon as I find it and I will transform it in a blog post to make it easier to find for the future.

  • Very helpful document Vanessa..


    Does PSM-FM activation has any dependency on industry specific solution activation. I mean I have a system wherein IS-Retail is active. It is possible and advisable to activate PSM-FM into same system.





      • Thanks Elena for the confirmation.


        I will try it with one of my client now and will let you know in case of any queries.




        Rahul Vilas Kulkarni

    • Hello Rahul, Sorry for the delay to answer you. There is no dependency on them and I do not see any issue to have both in the same system. Best Regards, Vanessa.

      • Thanks Vanessa for the confirmation.


        I will try it with one of my client now and will let you know in case of any queries.




        Rahul Vilas Kulkarni

  • Please Vanessa, let me know something about requirements to implements PSM-FM.

    I’m using FI CO SD and MM. Are we starting by completing the implementation of FI CO MM SD modules before activating / parameter FM or it can be done  simultaneously, all the 5 ???

    In advance thank you




    • Hi Ebibendé,


      I was having troubles to access my account in the last months. Probably you got this answer already somehow but anyway, I thought better to respond to you in case not.

      PSM-FM activation must happen first so you can actually see the PSM-FM customizing menu in transaction SPRO. The integration customizing (with the other modules) is part of this customizing menu.

      Be careful to activate PSM-FM in an integrated system/client because this will affect the other areas until you finish to customize PSM-FM.

      While I worked implementing PSM-FM, I asked for some days just to finalize PSM-FM customizing before everyone else could work in the system/client.

      I hope this helps, if not too late.


      Best Regards,


  • Hi Vanessa,

    I read your topic about PSM-FM activation and deactivation. I implemented PSM-FM BCS on S/4 Hana 1709 afterwards we gave up to use BCS. I execute to deactivation steps which are mention about your topic. But i couldn't unmark Fund Management activation check box. When we unmark this check box, our ledgers (0L and IFRS) disappears.

    I'm waiting your apply

    Have a nice day.


    • Hi,

      Please read instructions available in my Wiki page:

      You should unmark the table FMGLFLEXT as the WIKI shows and mark table FAGLFLEXT.

      Then you should run the report as the WIKI pages explains. This should work.

      You can read also the instructions available in this Note:

      1867318 - Leading ledger 0L disappears after Funds Management activation

      Best Regards,


    • Hi Periandro Vaz,


      Internal Order AVC belongs to CO (Controlling) not PSM-FM (Funds Management).

      Both areas have AVC checks but they are different, with different customizing settings.

      I recommend you to post your question in CO area in this community. I believe it is possible what you want but I recommend you to get more opinions in CO space in this community.

      You mentioned rule, if you were talking about derivation rules in FMDERIVE, I believe is important to mention that FMDERIVE is a transaction built to have only PSM-FM fields as TARGET fields and cost centers (or internal order) are not a PSM-FM field, but a CO one.

      As SOURCE fields you can use CO fields but not as target field. If you want more details on this, you can read the following SAP Documentation that explains this:

      ##881202 FM derivation tool: Derivation of foreign acct assignments

      FMDERIVE is a PSM-FM transaction and it was not built to work with any other TARGET fields than PSM-FM account assignment fields. For CO account assignments you can use OKC9, OBBH and so on.

      The Funds Management derivation tool (FMDERIVE) can only be used to derive Funds Management account assignments.  These are the PSM-FM fields that can be TARGET fields in FMDERIVE:

      Commitment item
      Funds center
      Functional area
      Funded program.


      Best Regards,