Funds Management 

Purpose

The Funds Management (FM) component must be active and configured before you can implement Fund Accounting.

Integration

Fund master data in FM is used as the basis to integrate funds between FM, Financial Accounting (FI), Controlling (CO), and Project System (PS). Funds are user-definable and should be created at the lowest level necessary for budgeting requirements, creating balance sheets, and for tracking specific cash balances. Individual funds can then be grouped in various ways for reporting purposes.

Funds are defined for each FM area and can be used by company codes assigned to the FM area.

 

Within a Fund Accounting implementation, FM is required to record, track, report and control budgeted revenues, expenditures, encumbrances, fund transfers, and fund balances on a budgetary accounting basis. You can configure unbudgeted postings to update FM statistically or not at all.

 

For more information on the configuration and use of FM, refer to the Funds Management Government documentation.

Features

For more information on using FM in Fund Accounting, refer to the following:

·        Activating and Defining Functional Areas

·        Creating and Using Fund Groups

·        Creating and Using Functional Area Groups

·        Budgeting in US Fund Accounting

·        Creating and Using Derivations

·        Posting Reserve for Encumbrances to FM

·        Reconciliation of FM to FI and CO