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Author's profile photo Pulak Das

Conversion to SAP S/4HANA with Funds Management module active in SAP ECC system

About the Blogpost:

This blogpost is to help customer and partners of SAP to understand the detail of the impact due to the below listed SAP Funds Management specific simplification items and the way forward in their transition/conversion to SAP S/4HANA solution.

  • S4TWL – Former Budgeting System (FBS) in Funds Management
  • S4TWL – Functionality Average Daily Balance-based Distribution
  • S4TWL – Fund Accounting based on Special Ledger
  • S4TWL – Specific fields on Business Partner

As part of your transition to SAP S/4HANA, you have installed the readiness check related programme and executed the readiness check report using programme /SDF/RC_START_CHECK. The readiness check report out put provided you the list of simplification items. After analyzing the list of simplification items, you have identified the above simplification items which are related to SAP Funds Management module.

Why the above Simplification Items displayed in your report?

The above simplification items are displayed due to the active status of the business function EA-PS in your system. EA-PS business function is an SAP Enterprise Extension Public Services functionality generally activated and used by Public Sector Industry customers. For more information on SAP Funds Management, you can refer the link here and here.

To check your system and verify if the above business function EA-PS is active or not, you need to execute transaction code SWF5 and check the below highlighted details of EA-PS. Icon  indicates that the business function is active. Please note – Transaction code SFW5 is a very sensitive transaction. Please do not activate any business function unintendedly in a productive landscape.

(Pic-1: Overview of Business Function Status)

(The above picture is from a reference system and may differ from your system status)

I am not using EA-PS or PSM-FM functionality in my system and solution. What I need to do?

If you are sure that you are not using the above functionality as part of your solution, then there is no impact on your transition or conversion process. You can ignore the simplification items and proceed with rest of your activities for transition to SAP S/4HANA.

How can I check if I am using the EA-PS functionality? And what does it mean “S4TWL – Former Budgeting System (FBS) in Funds Management”?

Before I explain on “How to check if you are using the EA-PS or PSM-FM functionality?”, let me explain about the Former Budgeting System (FBS) and Budgetary Control System (BCS) in brief.

  • Former Budgetary System in Fund Management: Former Budgeting Control system is the initial solution of Funds Management which is widely called as classic Funds Management too. With the invention of new Funds Management solution i.e., Budgetary Control System during the year 2003-04, Former Budgeting System solution has become redundant. Though the FBS solution became redundant, it has been supported in SAP ECC version
  • Budgetary Control System: The Budget Control System (BCS) in Funds Management is an alternative to former budgeting. BCS is designed to allow flexible customer-specific adjustments to all important functions. To know more about the Budgetary Control system, you may read the details here.

The Former Budgeting tool is deprecated for all SAP S/4HANA releases, you may refer SAP Note 2226048. Any budgeting function for Former Budgeting is blocked by message BP498. All Former Budgeting transactions were removed from the SAP menu, and all related customizing activities were removed from the IMG. If you use budgeting in Funds Management, you must customize and use the Budget Control System (BCS). If you want to convert old budgeting data from Former Budgeting to BCS, it is strongly recommended that you perform the migration from FBS to BCS before you transition to SAP S/4HANA.

We will be publishing another blogpost on the migration of FM-FBS to FM-BCS in near future. Please watch out for this space.

Checking if you are using the EA-PS functionality?

Please follow the below defined steps to know if you have active Funds Management in your system

Step-1: Business Function: check if business function EA-PS active (T Code SFW5) as explained above

(Pic-2: Overview of Business Function Status with highlighting EA-PS function)

(The above picture is from a reference system and may differ from your system status)

Step-2: Check system configuration:

Please check the system configuration using Path: SPRO > Public Sector Management > Funds Management Government > Basic Settings > Activate Global Funds Management Functions (PSM-FM)


(Pic-3: Activation of PSM-FM)

Step-3: Check if FM-BCS is already active in system using the configuration path:

Use the configuration path SPRO > Public Sector Management > Funds Management Government > Budget Control System (BCS) > Budgeting > Basic Settings > Use of Master Data > Activate Account Assignment Elements in Budgeting to check if you have the configuration available. If the below configuration is available, you have active BCS in the system.

(Pic-4: Assignment of FM area in PSM-FM)

(FM area code configured may differ as per the system configuration in your system. The picture displayed here is for reference purpose only)

Step-4: Check Availability Control Configuration as per BCS:

Use the configuration path SPRO > Public Sector Management > Funds Management Government > Budget Control System (BCS) > Availability Control > Define Activation of Availability Control

(Pic-5: Checking AVC ledger)

Enter your FM area

(Pic-6: Checking AVC ledger status)

Step-5: Check if data is available in table FMBH & FMBL which is a FM-BCS solution table. If data is available in these tables, then FM-BCS transaction is posted and active in your system.

(Pic-7: Table entries in FMBH table)

(Pic-8: Table entries in FMBL table)

(The above pictures are from a reference system and may differ from your system status)

Conclusion: To conclude here, if the simplification items are displayed in your Readiness Check report, you have below 3 action points.

  1. If you are not using funds management – Ignore the simplification items
  2. If you are using the Funds Management and the solution is FM-Budgetary Control System (as you checked using the steps above) – Ignore the simplification items as FM-BCS is recommended and compatible in SAP S/4HANA. However, you need to analyze and understand the impact of SI items S4TWL – Functionality Average Daily Balance-based Distribution, S4TWL – Fund Accounting based on Special Ledger and S4TWL – Specific fields on Business Partner as part of your functional workshop during the conversion project.
  3. If you are using the Funds Management solution, however you are using the Former Budgeting System solution (classic solution) – Plan for mandatory migration from FM-FBS to FM-BCS before you convert your SAP ECC system to SAP S/4HANA system.

This blogpost is brought to you by the SAP S/4HANA RIG (Regional Implementation Group) with support from SAP Product Support.

(Dear reader, we appreciate your time and thank you for reading the blog post. Please feel free to share your feedback (if any) from your experience in your project to add more details to the content).

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      5 Comments
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      Author's profile photo Pradeep Reddy Donthireddy
      Pradeep Reddy Donthireddy

      Thank you Pulak for the detailed explanation. It is very informative and useful.

      Author's profile photo Pulak Das
      Pulak Das
      Blog Post Author

      Thank you Pradeep. Appreciate your feedback.

      Author's profile photo Sandeep Panwar
      Sandeep Panwar

      very good explanation

      Author's profile photo Sandeep Panwar
      Sandeep Panwar

      very good information

      Author's profile photo Chetan Prakash Tripathi
      Chetan Prakash Tripathi

      Thank You Pulak very useful information during solutioning stage to provide the right guidance to customer