The functional area represents the functional structure (such as public safety, town planning and so on), especially the expenditures, of an organization (FM area). It describes the application of funds.
You can also use this functional grouping, if the organizational grouping (FM area), functional grouping (commitment item) or sponsor (fund) is insufficient, for example, in order to meet the legal requirements for reporting from a functional viewpoint.
In contrast to the account assignment elements, funds center and commitment item, you can use the functional area in Controlling, Asset Accounting and in Human Resources as an independent account assignment object, as soon as the functional area is activated in Customizing of Public Sector Management. For more information, see the IMG under Public Sector Management ® Global Settings ® Activate Account Assignment Elements.
Asset Accounting Usage
Activating the functional area enables you to handle the assets with the correct function in asset accounting. By defining a functional area in each asset master record, asset acquisitions can be posted according to the correct function; depreciation postings can also be carried out in Controlling according to the correct function and the asset history sheet can be displayed according to the correct function. For more information on prerequisites and features of the functional area as a account assignment object in asset accounting, seeFund/Functional Area as Account Assignment Object in Asset Accounting.
Activating the fund ensures that costs and revenues are assigned to the correct fund in cost center accounting. The functional area then, along with controlling objects, is another account assignment object and can be specified as sender and receiver for all types of internal clearing.
Activating the fund ensures that personnel expenses, time sheet and travel expenses are assigned to the correct fund in cost center accounting.
From a functional perspective, the functional area is passed through the whole organizational and functional grouping structure (funds center and commitment item hierarchies) of your organization as well as funds.
The functional area master record consists of a 4-figure key and a name.
As soon as the functional area in Customizing of Funds Management Government is activated and the appropriate master data has been created, the functional area can
- be budgeted and assigned to the commitment item, funds center and fund in Funds Management.
- be assigned also to the CO objects and the cost center in Controlling
- be defined in the master data of Asset Accounting
Budget usage results from postings made using the FM account assignment containing the functional area. Funds reservations, earmarked funds and business transactions entered in the feeder components (such as Financial Accounting and Materials Management) also affect the budget.
For posting data from the feeder systems to be updated in Funds Management, you must always specify a complete Funds Management account assignment (funds center, commitment item, and, if required, fund and functional area) in the posting transaction. You can minimize manual entry expenditure by assigning the fund to other account assignment elements. Then the system automatically derives the functional area from these assignments. For more information on account assignment derivation, seeDeriving the Functional Area.
Note that for account assignment derivation, the commitment item and the funds center must always be derived from different account assignments for the clearing in Controlling, as they cannot be assigned directly in Controlling. With postings in Asset Accounting, the funds center and the commitment item can be entered either manually (using the coding block) or derived from other account assignments. The functional area is always transferred automatically from the master asset.
Note that there are restrictions in both Funds Management and with the integration of other components when you use the functional area. For more information on these restrictions, see the IMG under Public Sector Management ® Global Settings ® Activate Account Assignment Elements.