Reducing Earmarked Funds: Financial Accounting Documents

Use

You can use earmarked funds to represent a procurement process from a Funds Management viewpoint without having to use the Purchasing component. When you do so, you can choose how many phases the process should run through.

In order to control and monitor the assigned funds in a differentiated way via the budget, you can for example use all three ways of earmarking budget for specific purposes (funds reservation, funds precommitment, funds commitment). However, you can only use funds reservations or funds commitments to represent this process.

Integration

Prerequisites

So that the document number of a funds reservation or a funds commitment can be included for the postings in Financial Accounting, the field Earmarked funds must be marked as required input or optional input in the Financial Accounting Customizing in step Maintain field status variants.

Features

The following financial accounting documents can either reduce the funds reservation or the funds commitment.

  • Vendor invoice

  • Down payment request

  • Down payments

Activities

When posting a financial accounting document, enter the document number of a funds reservation or a funds commitment in the coding block of the Earmarked funds field.

The system automatically transfers the Funds Management account assignment from the funds reservation. The earmarked funds are reduced accordingly.

The available budget only changes if the posting amount exceeds the earmarked funds amount, and you have specified the amount of the earmarked funds can be exceeded by a specific percentage or by an unlimited amount.

Caution Caution

Down payment requests - Down payments - Invoices

When posting down payment requests and down payments, you must take the following into account when reducing the earmarked funds with these documents:

Down payment requests and down payments each reduce earmarked funds independently. Therefore, it is possible to enter a down payment request, a down payment and an invoice each with reference to earmarked funds and for the full amount of the reservation document.

This ensures, for example, that both a down payment and its invoice can reduce the relevant earmarked funds without reducing double the amount.

This procedure can also have disadvantages. Example: An earmarked fund is completely reduced directly (without a down payment settlement) by an invoice. Nevertheless, a down payment request and a down payment are both posted with reference to these earmarked funds. An invoice for these documents would then no longer be able to refer to these earmarked funds.

You must therefore ensure that, when posting the documents, the reference to earmarked funds is the same for all documents, or hide the Earmarked funds field in the coding block to prevent down payment requests and down payments from reducing earmarked funds.

You will find an example under Earmarked Funds-Down Payment Request-Down Payment .

Parked Documents

For parked documents, the reduction takes place if the parked document is set to the status "complete". If this status is reset or the parked document is deleted, the reduction is automatically canceled again.

End of the caution.