The functions in this component support you in creating and executing budgets. The functions in this component support you in creating and executing budgets. You can adapt the budget to changes in conditions by entering releases, supplements, returns, and transfers.

The component Funds Management cannot be used simultaneously with application components Cash Budget Management and or Project Cash Management if you use year-dependent master data in Funds Management.

If you want to use Funds Management simultaneously with Cash Budget Management and Project Cash Management, note that Cash Budget Management and Project Cash Management can only process ten-digit commitment items.

Funds Management is fully integrated with other components in the R/3 System. The components that are integrated depend on the specific requirements of your organization. A basic requirement for use of Funds Management is integration with the General Ledger Accounting (FI-GL) component.

Integrating the components Materials Management and Funds Management means that you can, for example, reproduce and monitor procurement transactions from the purchase requisition to the invoice.

Integration also ensures that all the data you need for budget execution is available as and when you need it.

Funds Management enables you to keep:

• A thorough check of the revenues and expenditures and thus the funds-relevant business transactions of an organization.
• A thorough budgetary control, with the following questions in mind:

• What funds will the responsibility areas receive?
• Where do these funds come from (source of funds)?
• What are the funds used for? (use of funds)

• A control of the financial equilibrium of your business, by comparing commitment and actual values with the current budget values.