Use

By creating a reference between the earmarked funds, funds commitment, funds precommitment and funds reservation, you can portray a reservation process of budget funds. In doing so, you decide how many phases the process should run through. You can choose between using one, two or all three levels of earmarking funds.

All earmarked funds can go through an approval process when using the SAP Business Workflow component. A multi-level approval procedure is also supported here.

Prerequisites

When processing earmarked funds you need the authorization for each document type. For further information see Authorizations in Funds Management .

If the earmarked funds are to go through an approval process, you must carry out the appropriate Customizing settings for Workflow. For further information, see Workflow settings earmarked funds and funds transfer in the Funds Management IMG. For further information on Workflow, see Workflow: Earmarked Funds and Funds Transfers .

Note the following when you enter documents in different currencies:

The reducing document for earmarked funds entered in the local currency of the company code, can be entered in any foreign currency.

The currency of the reducing document must correspond to the currency of the reduced document for earmarked funds in foreign currency.

Features

You can use the so-called role definition per document category (for example funds reservation, funds precommitment, funds commitment) to define which employees are allowed to, for example depending on amount or a certain Funds management account assignment, process the earmarked funds(approve, reject, change).

Activities

The following example shows the use of two levels of earmarked funds together with Workflow.

A competitive bidding procedure for procuring new hardware is initiated. Create a funds reservation in order to take this budget relevant activity into account. You define the Funds Management account assignment (the corresponding commitment item and funds center and if desired fund) the amount and if desired, additional text information in the funds reservation document.

This reservation ensures that

After viewing the offers, you specify the business partner for example a supplier for the hardware and a partner for services.

Using the additional information now available, you create a funds commitment using Workflow that refers to a funds reservation. The Funds Management account assignment is transferred from the funds reservation. You enter a document item with the appropriate amount for each business partner. You can define more detailed business partner (vendor) specifications per line item.

The amount is earmarked in the budget but cannot be used yet. The funds commitment created must first be approved. The Workflow is started in accordance with the settings entered. The budget can only be used after the approval of the funds commitment, for example by an incoming invoice.