Purchasing documents can reduce funds reservations in Funds Management. In this way, the process chain in purchasing is linked with the funds reservation document. The funds reservation provides a framework for future budget consumption, within which all purchasing activities must take place.

In order that a funds reservation document number or a funds commitment can be included for postings in Materials Management, the field Funds reservations must be marked as required input or optional input in the Materials Management Customizing in workstep Maintain account assignment categories.

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.

The following purchasing documents can reduce funds reservations:

• Purchase requisition
• Purchase orders

When posting a purchasing document enter a funds reservation document number in the Earmarked funds field of the account assignment coding block. The system automatically transfers the Funds Management account assignment from the funds reservation.

Purchase requisitions reduce funds reservations with the open amount (open quantity X price). Purchase orders reduce funds reservations with the purchase amount.

When posting a purchase order that refers to a purchase requisition, the funds reservation account assignment is automatically transferred from the purchase requisition. In doing so, the purchase order reduces the quantity of the purchase requisition according to the purchase amount and, in turn, the amount still open as well.