Fellow SAP Experts,
If you are interested in a comprehensive configuration guide to SAP Funds Management Module for SAP in Public Sector I have good news for you: with Rheinwerk Publishing we are about to release a new book "Funds Management for the Public Sector with SAP". Compared to the previous version, published in a form of E-Bite, this book has more content (over 250 pages) covering the subjects, which were not described before, such as closure of fiscal year, carry-forward exercise, workflows, power user transactions for data reconstructions, etc. You can see the table of contents below.
The purpose of this book is to give the maximum coverage of configuration aspects of funds management module (PSM-FM) with an additional overview of business and key users transactions related to this topic. It should close the informational gap which currently exists on the market for SAP literature regarding technical material which would assist consultants in configuring PSM-FM and assessing various challenges, both from functional and technical perspective, one could face while working with this SAP module.
The book is mainly intended to the attention of PSM-FM consultants, who don’t have much of practical experience in implementing funds management module. It would be equally useful to the key users within an organization, where funds management is already implemented, and some questions about integration with other modules or usage of a particular business flow is being analysed. If there is a task for reworking the budget management module implementation due to structural reorganization or revision of core business procedures, the material you will find in this book could be beneficial. Finally, consultants specializing on other SAP domains, who are interested in the way PSM-FM is integrated with other modules, would find some useful information.
This book consists of nine chapters, out of which seven will cover configuration points for funds management. Such unequal repartition has its reasons. First of all, for user activities there is plenty of available material, including official manual from SAP available online. It is true that this material doesn’t always come with explicit screenshots and instructions, but yet it is sufficient to be able to start operating with user transactions. Secondly, as you would further see in our book, user transactions, belonging directly to funds management module, are not that numerous. PSM-FM, apart from budget planning and entry, is mainly about integration with other modules, and we will elaborate on this subject in detail. Therefore, you would find only two chapters dedicated to user transactions, which are, nevertheless, cover all principal activities, whether they are performed by business or technical users. Below you will find the brief description of each chapter.
This chapter will depict the basic configuration essential for comprehension of funds management in public sector management module of SAP, as we are going to outline main business activities linked to this module and give you a perspective what processes can be managed within it. We will describe the main integration points between various organizational units (company code, controlling area) with their peers in PSM-FM and list all configuration activities which are classified by SAP as ‘General Settings’ in the customization tree.
This chapter introduces basic objects of SAP funds management module master data and their functional meaning realized through configuration settings. This is a major step which should not be taken lightly, as it will have an impact on the entire process of budget management. A wrong approach to the meaning of FM master data objects could lead to malfunctioning of budget control routines. Though, PSM-FM allows reorganization of business data, as we would show in the final chapter of this book, and it does provide more flexibility for this than other financial components of SAP, this exercise could be rather complicated; hence, the importance of scrupulous definition of FM objects fully aligned to their functional connotation.
Budget management chapter will focus on all necessary configuration to ensure budget entry documents flows. Contrary to other funds management documents, mainly related to the budget consumption, budget operations are not cross-component transactions and they are stored exclusively in FM tables. We can distinguish two major processes in this domain: budget planning and actual budgeting. Both these activities are registered at the level of funds management master data objects which are described in the previous chapter.
This chapter will focus on two topics: necessary configuration points to integrate the business data from other SAP components to register budget consumption and the documents, defined as funds management specific postings, e.g., earmarked funds. Integration with other components ensures correct registry of actuals and commitments with eventual impact on available budget. Funds management specific documents are transactions, having potential effect on budget consumption and, in some cases, with an integration to other financial modules, e.g., Controlling and/or Financial Accounting.
This chapter would explain the logic of availability control ledgers which constitute an instrument to integrate budget system setup with transaction data updates in PSM-FM. After all, the ultimate goal in most implementations of budget management functionality is not only be able to enter budgetary figures in the system for reporting purposes, but equally apply budget availability controls and thereby commit to budgetary discipline. This chapter presents availability control objects, derivation strategies and tolerance profiles for budget exceed scenarios and shows how to set them up in various business situations.
This chapter will focus on the necessary customization to ensure smooth year-end exercise in your organization, with an operational Funds Management module. Most of the customization settings will be related to carry-forward of open commitments. Closing a fiscal year is a business procedure applicable both in annual and multi-annual regime. We will describe the approach in both cases and explain the difference between them.
Workflows are an integrated part of almost any financial corporate system, implemented in organizations who use budget management functionalities. The role of workflows is difficult to underestimate, as inability to define a workflow in compliance with user requirements, could lead to stalling a business procedure. Therefore, we will present you information about workflows in PSM-FM, even if the standard customization settings related to this topic are very limited.
In this chapter we will present main activities which are used by business users in funds management module. We won’t be describing all the transactions, neither will we provide multiple screenshots to illustrate them. Even if we intend to list most of relevant user transactions, we will present them in detail, only if there is essential information to underline for more efficient and correct usage of PSM-FM functionalities. Additionally, we will briefly introduce the information system concept in funds management, giving an example of couple of reports.
As a completion to previous chapter, in this final section of the book, we are going to present you some of funds management functionalities, which are not done on day-to-day basis. The transactions we are going to describe refer to mass data changes, deletions, and data reconstruction in case of inconsistency in the database tables. Most of these activities, apart, maybe, from ‘reassignment’, described further in this chapter, are usually performed by IT team consultants, and not by the business users.
_____________________
I want to thank the Community for reading this blog and my other posts on this platform. For any business or professional connection, feel free to send me an invitation on LinkedIn.
If you are interested in a comprehensive configuration guide to SAP Funds Management Module for SAP in Public Sector I have good news for you: with Rheinwerk Publishing we are about to release a new book "Funds Management for the Public Sector with SAP". Compared to the previous version, published in a form of E-Bite, this book has more content (over 250 pages) covering the subjects, which were not described before, such as closure of fiscal year, carry-forward exercise, workflows, power user transactions for data reconstructions, etc. You can see the table of contents below.
The Objective of This Book
The purpose of this book is to give the maximum coverage of configuration aspects of funds management module (PSM-FM) with an additional overview of business and key users transactions related to this topic. It should close the informational gap which currently exists on the market for SAP literature regarding technical material which would assist consultants in configuring PSM-FM and assessing various challenges, both from functional and technical perspective, one could face while working with this SAP module.
Target Audience
The book is mainly intended to the attention of PSM-FM consultants, who don’t have much of practical experience in implementing funds management module. It would be equally useful to the key users within an organization, where funds management is already implemented, and some questions about integration with other modules or usage of a particular business flow is being analysed. If there is a task for reworking the budget management module implementation due to structural reorganization or revision of core business procedures, the material you will find in this book could be beneficial. Finally, consultants specializing on other SAP domains, who are interested in the way PSM-FM is integrated with other modules, would find some useful information.
Structure of This Book
This book consists of nine chapters, out of which seven will cover configuration points for funds management. Such unequal repartition has its reasons. First of all, for user activities there is plenty of available material, including official manual from SAP available online. It is true that this material doesn’t always come with explicit screenshots and instructions, but yet it is sufficient to be able to start operating with user transactions. Secondly, as you would further see in our book, user transactions, belonging directly to funds management module, are not that numerous. PSM-FM, apart from budget planning and entry, is mainly about integration with other modules, and we will elaborate on this subject in detail. Therefore, you would find only two chapters dedicated to user transactions, which are, nevertheless, cover all principal activities, whether they are performed by business or technical users. Below you will find the brief description of each chapter.
- General Settings
This chapter will depict the basic configuration essential for comprehension of funds management in public sector management module of SAP, as we are going to outline main business activities linked to this module and give you a perspective what processes can be managed within it. We will describe the main integration points between various organizational units (company code, controlling area) with their peers in PSM-FM and list all configuration activities which are classified by SAP as ‘General Settings’ in the customization tree.
- Master Data
This chapter introduces basic objects of SAP funds management module master data and their functional meaning realized through configuration settings. This is a major step which should not be taken lightly, as it will have an impact on the entire process of budget management. A wrong approach to the meaning of FM master data objects could lead to malfunctioning of budget control routines. Though, PSM-FM allows reorganization of business data, as we would show in the final chapter of this book, and it does provide more flexibility for this than other financial components of SAP, this exercise could be rather complicated; hence, the importance of scrupulous definition of FM objects fully aligned to their functional connotation.
- Budget Management
Budget management chapter will focus on all necessary configuration to ensure budget entry documents flows. Contrary to other funds management documents, mainly related to the budget consumption, budget operations are not cross-component transactions and they are stored exclusively in FM tables. We can distinguish two major processes in this domain: budget planning and actual budgeting. Both these activities are registered at the level of funds management master data objects which are described in the previous chapter.
- Actuals, Commitments and Integration
This chapter will focus on two topics: necessary configuration points to integrate the business data from other SAP components to register budget consumption and the documents, defined as funds management specific postings, e.g., earmarked funds. Integration with other components ensures correct registry of actuals and commitments with eventual impact on available budget. Funds management specific documents are transactions, having potential effect on budget consumption and, in some cases, with an integration to other financial modules, e.g., Controlling and/or Financial Accounting.
- Availability Control
This chapter would explain the logic of availability control ledgers which constitute an instrument to integrate budget system setup with transaction data updates in PSM-FM. After all, the ultimate goal in most implementations of budget management functionality is not only be able to enter budgetary figures in the system for reporting purposes, but equally apply budget availability controls and thereby commit to budgetary discipline. This chapter presents availability control objects, derivation strategies and tolerance profiles for budget exceed scenarios and shows how to set them up in various business situations.
- Fiscal Year Closing
This chapter will focus on the necessary customization to ensure smooth year-end exercise in your organization, with an operational Funds Management module. Most of the customization settings will be related to carry-forward of open commitments. Closing a fiscal year is a business procedure applicable both in annual and multi-annual regime. We will describe the approach in both cases and explain the difference between them.
- Workflows
Workflows are an integrated part of almost any financial corporate system, implemented in organizations who use budget management functionalities. The role of workflows is difficult to underestimate, as inability to define a workflow in compliance with user requirements, could lead to stalling a business procedure. Therefore, we will present you information about workflows in PSM-FM, even if the standard customization settings related to this topic are very limited.
- Business User Transactions
In this chapter we will present main activities which are used by business users in funds management module. We won’t be describing all the transactions, neither will we provide multiple screenshots to illustrate them. Even if we intend to list most of relevant user transactions, we will present them in detail, only if there is essential information to underline for more efficient and correct usage of PSM-FM functionalities. Additionally, we will briefly introduce the information system concept in funds management, giving an example of couple of reports.
- Power User Transactions
As a completion to previous chapter, in this final section of the book, we are going to present you some of funds management functionalities, which are not done on day-to-day basis. The transactions we are going to describe refer to mass data changes, deletions, and data reconstruction in case of inconsistency in the database tables. Most of these activities, apart, maybe, from ‘reassignment’, described further in this chapter, are usually performed by IT team consultants, and not by the business users.
_____________________
I want to thank the Community for reading this blog and my other posts on this platform. For any business or professional connection, feel free to send me an invitation on LinkedIn.
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