Marketing Funds Management

Marketing Funds Management enhances the functionality of the marketing solution by integrating marketing planning and campaign management with funds management. You use it to translate the annual planning and budgeting into available funds, closely track the budgets during the year, and shift funds to support unplanned activities and react to market conditions. The integration provides visibility into funds reservations when planning marketing campaign costs and tracks accruals and consumptions from SAP ERP purchase commitments and settlements.

Prerequisites

You have activated the business function Funds Management for Marketing (CRM_MKT_FM).

You have made the settings in Customizing for Customer Relationship Management under:
- Funds Management Integration Define Planning Profile for Funds Management Integration .
- Funds Management Integration Assign Marketing Spend Types to Expense Types .
- Funds Management Integration Define Funds Management Integration Profile Settings .
- Basic Data Define Types/Objectives/Tactics .
You have set up core Funds Management in Customizing for Customer Relationship Management under Funds Management.

Features

Fund attributes

When defining the purpose of a budget, additional fund attributes are available for fund types created for marketing, and these are:

Marketing Organization
Marketing Plan

These attributes can also be leveraged in fund determination and other relevant fund objects. You can determine the relevant funds for campaigns based on these new attributes and/or existing ones, such as product category and product.

Note Note

A sales organization is required in funds plans, funds, and to support budget postings and accruals postings. It is possible to create fund objects without the need to maintain a sales organization manually. When a company uses a marketing organization to model their organization, they can map it to a sales organization in the organizational management maintenance so it defaults automatically.

End of the note.

Selecting a marketing organization during budget transfer

In the budget transfer, the Marketing Organization is determined by business partner. In the Budget Transfer wizard, the user can select a marketing organization. If the user is assigned to only one marketing organization, it is selected by default. If several marketing organizations exist, the user has the option to select the marketing organization to be used. If a selection is not made by the user, then the marketing organization is determined from the user responsible using the business add-in (BAdI); Fund Determination Adaptation for Marketing (ES_CRM_BPO_DET) if this has been implemented.

Selecting a campaign type relevant for funds management

When the user selects a campaign type relevant for the Funds Management scenario, the Funds Management section of the screen is enabled. When the user adds a Funds Plan the option to add Funds and Fund Usages is enabled on the screen. The user can then assign funds in the planning area. Once the campaign has a status that allows posting, fund usages are created to track consumption.

Date check

The Funds Plan Date Range allows the user to define what dates on the campaign are checked against the validity of the Funds Plan to ensure the campaign falls within the period of the funds plan. By default, the system checks for the plan start and end date.

Fund association levels in a campaign

In a campaign, funds can be associated at the following levels:

Root
When you set the fund association level to Root for a campaign type in Customizing, you are splitting all of the costs between these funds irrespective of the spends.
Marketing Spend
When you set the fund association level to Marketing Spend for a campaign type in Customizing, you are assigning a fund to a specific marketing spend, for example, spending on media only.

In both cases, multi-fund allocation is possible by defining a cost allocation percentage split for the funds. For example, this could be used if multiple brands or organizations are contributing budget to run the campaign.

Fund determination

Fund determination is triggered from the campaign and used to assign appropriate funds.

The Fund Determination Profile allows you to define how relevant funds are determined for the campaign. The system determines a suitable fund for a campaign based on the following data:

Sales or Marketing Organization
Marketing Plan Hierarchy

Planning and adjusting costs on the campaign

If a campaign is performing well the user can request more funding or you can also release unused funding without having to cancel the campaign. If you make changes to the planning data on the campaign, the reserved amounts are updated automatically in the selected fund(s). When you cancel or close a campaign unused reserved amounts are released back into the fund through balancing of funds usages.

Posting status and value categories

You can define what campaign statuses trigger the creation of fund usages and what value category is used for reservation. When changing the campaign status, the planned campaign costs are reflected in the fund checkbook using fund usages with value categories of pre-reserved or reserved.

Pre-reserved tracks and displays planned amounts in the checkbook, but does not decrease the Available-to-Reserve amounts.
Reserved takes money out of the associated fund(s) by decreasing the fund’s Available-to-Reserve amount, so that it is no longer available for other campaigns.

Fund usages and statuses

Fund usages are used to track consumption throughout the lifecycle of a fund. They are created for each expense type mapped to a marketing spend planned on a campaign and can be settled against, accrued, and balanced to return unconsumed budget and accruals. The user can define what campaign statuses trigger the creation of fund usages and what value category is used for reservation when the status of the campaign is changed. When the campaign status is changed, the planned campaign costs are reflected in the fund checkbook using fund usages with pre-reserved or reserved value categories.

Note Note

Funds usages have a status of Preliminary until the campaign is released, at which point their status changes to Released. When a fund usage is in preliminary status, accruals and settlements postings are not allowed. If the campaign is canceled then the reserved budget is returned to the fund automatically. If however, the campaign has been released and the fund usages are released, then accruals and settlements are possible and the only way to return unused budget back to the fund is through balancing of the fund usages. For more information, see Fund Usages Status Management

End of the note.

Fund availability check

During campaign planning, you can also run fund availability checks to ensure budget is available in the selected fund(s). The campaign must be in a fund posting status as described above.

Tracking purchase commitments

Purchase commitments, such as purchase requisitions and purchase orders, can be uploaded from ERP to CRM using a batch job and posted to funds management. The committed amounts are tracked in fund usages and displayed in the Fund Checkbook in the committed value category.

Checkbook

The checkbook provides a financial overview by displaying different sets of standard and calculated key figures for funds and for the different types of fund uses.

The value categories relevant for marketing are listed below:

Key Figure	Value Category	Updated By	Use in Marketing
Budget	Budget	Budget Posting (Update/Transfer)	Budget usually provided for a full fiscal year or quarter.
Pre-reserved	Pre-reserved	Campaign	Budget amount requested for a campaign, which is not yet approved.
Reserved	Reserved	Campaign	Budget amount reserved for a campaign, which is approved/released. When approved, Pre-reserved is decreased and Reserved is increased.
Committed	Committed	External Settlement	Amount tracked through ERP purchase commitments (purchase requisitions and purchase orders).
Available-To-Reserve	Calculated	Budget - Reserved - AOVC + Unconsumed Budget	Amount available to be reserved by other campaigns. Unconsumed Budget: An amount that represents a reserved budget value that is greater than settlement values. This amount is captured when a fund usage is balanced.
Settled	Settled	External Settlement	Amount settled through ERP external settlements (goods receipt/invoices).
Expensed	Expensed	External Settlement, Accrual Run	Amount expensed. The sum of actual (settled) expenses and accrued expenses. Always balances with a corresponding posting to Accrued or Settled.
Accrual Balance	Accrual Balance	Accrual Posting Run	Amount financially accrued either on a fund level or campaign level.
Remaining Cash	Calculated	Budget - Settled	Amount not yet consumed through settlements.
Approved Overconsumption	Approved Overconsumption	External Settlement	An amount that represents a settlement value exceeding the reserved amount on a fund usage.

Accruals

You can accrue amounts in funds management to post expenses in the fiscal period in which they occur instead of waiting for the payments to be paid out. There are two ways available to create accruals in funds management:

Fund-based accruals
You can set up your system to create fund usages for a fund so that the budget accrues immediately. When you select a fund type that has an accrual profile and an expense type assigned, the budget automatically accrues when the accrual calculation and accrual posting are run and the corresponding fund is released.
Referenced-based accruals
Fund usages are also created to track the relevant accruals from campaigns. For each expense type, you can define how the amounts for the campaign are accrued, over a number of days or on a fixed date. You can also start an accrual run by marketing organization.

Expense settlement

In Customizing, you can map cost elements in ERP to expense types used in Funds Management. The user can run the actuals upload job from ERP to CRM funds management and update the settled value category of the checkbook accordingly. Users can run this job daily, hourly, or specify the number of times during the day they want to run the job or specify the interval between jobs.

You can use the BAdI;ERP Amount Distribution for Funds Management (CRM_MKTPL_CPG_FM_AD) to change the distribution of ERP monetary amounts after they have been distributed to different accounts, but before they are posted to fund usages. This allows to you to keep the amounts up-to-date, and to reduce the potential for errors to be made in the amounts posted to fund usages.

Funds analytics

The user can evaluate the performance of marketing activities, track the status of budgets and consumption and measure the effectiveness and impact of marketing expenditures and monitor process efficiency using analytics.

There are several reports available to help you analyze data. For more information about these reports, see the relevant documentation below.

More Information

Funds

Funds Management

Fund Usages Status Management

Fund Usages

Fund Determination

Purchasing Process in Marketing Projects

For more information about BI Content for Marketing Funds Management, see the following reports as of BI Content 7.05 on SAP Help Portal at Start of the navigation path http://help.sap.com Next navigation step SAP NetWeaver BI Content Industry Solutions Consumer Products Sales and Marketing Trade Promotion Management Funds Integration Analysis Scenario End of the navigation path :

Accrual Analysis
Balance Fund Usages
Budget Update and Transfer
Funds Checkbook
Funds Consumption Analysis