Object documentation Functional Area 

Definition

The functional area maps the functional structure (such as public safety, town planning and so on), especially the expenditures of an organization (FM area). It describes how the funds are used.

Use

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.

 

Provided you have maintained the corresponding settings in Customizing, you can use the function subdividing master data to subdivide the naming of individual elements of your functional area into comprehensive sections. When calling the transaction for processing the functional area, you are requested to specify a subdivision ID. You can then enter the individual substring on the initial screen defined in Customizing. After saving, you will see the “names” you defined in the field Functional Area.

In contrast to the account assignment elements, funds center and commitment item, you can also use the functional area in Controlling, Asset Accounting and in Human Resources as an independent object.

If you want to use the functional area, you must activate it in the Customizing of Public Sector Management. For more information, see the IMG under Public Sector Management Global Settings Activate Account Assignment Elements.

Using Asset Accounting

By activating the functional area, you can handle 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 an account assignment object in Asset Accounting, see Fund/Functional Area as Account Assignment Object in Asset Accounting.

Controlling

Activating the fund ensures that costs and revenues are assigned to the correct fund in cost center accounting. The functional area is then, along with controlling objects, an extra account assignment object and can be specified as sender and receiver for all types of internal clearing.

Human Resources

Activating the fund ensures that personnel expenses, time sheet and travel expenses are assigned to the correct fund in cost center accounting.

Funds Management

The functional area runs through the whole organizational/ functional structure (funds center and commitment item hierarchies) of your organization as well as the fund.

Funds and Functional Areas

This graphic is explained in the accompanying text

Structure

The functional area master record consists of a 4-figure key and a name.

Integration

As soon as the functional area is activated in the Customizing of Public Sector Management and the corresponding 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 of Funds Management (such as Financial Accounting and Materials Management) also affect the budget.

For posting data from the feeder components 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, see Deriving the Functional Area.

Note that for clearings with the account assignment derivation in Controlling, the commitment item and funds center must always be derived from different account assignments because they cannot be assigned directly to an account in Controlling. For postings in Asset Accounting, the funds center and commitment item can be entered either manually (using the account assignment block) or be derived from the respective assignments from other account assignments. The functional area is always transferred automatically from the master asset.

Caution

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.

Integrating Functional Areas

This graphic is explained in the accompanying text

 

 

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