For public administration agencies, fund accounting is sometimes the foundation for financial accounting and reporting. Using this function, you can perform all activities — creating external financial statements, including balance sheets, profit and loss statements and cash flow statements — based on funds while meeting requirements such as US GAAP.

Fund accounting is supported in the SAP System in Controlling (CO), the General Ledger (FI-GL) and various subsidiary ledgers. This simplifies reporting on financial activities that fulfills a number of different requirements.

In Asset Accounting, when you post to fixed assets, you can automatically post to account assignment objects of fund accounting (funds, functions and grants) at the same time. In all reports, you can restrict selections to specific account assignment objects.

To be able to use the account assignment objects of fund accounting, you have to make the following settings for them in Customizing for Asset Accounting:

• Activate the account assignment objects and specify their account assignment type (balance sheet posting or depreciation account assignment). Choose Integration with the General Ledger ® Additional Account Assignment Objects)
• Define the field as a required entry field in the screen layout for asset master data (Master Data ® Screen Layout ® Define Screen Layout for Asset Master Data).

It is also necessary to make settings in Customizing for the generic company code and generic transaction types. For more information, refer to the Implementation Guide.

When you create the asset master record, the system derives the fund and function from the controlling area, cost center, internal order and WBS element. You define the rules for how this derivation takes place using transaction FMDERIVE.

Funds, functions, and grants are attributes of the asset master record. If you want to change these attributes, but the asset is already capitalized, you have to transfer to a new asset.

Each asset can be assigned to each of the following: a fund, a function and a grant. When a fixed asset, made up of component parts, is related to multiple funds, functions and grants, then you should create subnumbers for the asset that reflect these relationships.

For all asset transactions, the system checks if the account assignment objects should also be posted, and creates an FI/CO document containing funds, functions, and grants. For acquisitions originating in the Financial Accounting (FI) and Materials Management (MM) components, the asset master record is the determining factor for completing any additional account assignments. The system checks if the account assignments in the document are identical to those in the asset master record. If they are not identical, the system issues a warning dependent on the settings in Customizing.

When posting for funds and functions, the system checks only if the objects exist, but not (as with cost centers) if the time intervals are valid.

You can settle CO objects to fixed assets or to assets under construction, while still taking funds, functions and grants into account. Although the CO settlement rule contains only the main asset number, the system determines the correct asset subnumbers based on the account assignment objects.

Before settling to assets under construction, start the RA_CREATE_ASSET program, in order to create asset subnumbers for each CO object.

You post depreciation using program RAPOST2000. It is recommended that you carry out a test run and correct any errors before the actual depreciation posting run. There is a document simulation function that can also assist you. Set up a layout that contains the needed account assignment objects.

The functions of the SAP List Viewer are also available for the depreciation posting run. For more information, refer to the SAP Library. Choose Basis Components ® Basis Services / Communication Interfaces ® SAP List Viewer ® ALV Grid Control.

You can plan the depreciation posting run using the Schedule Manager. For more information, refer to the SAP Library. Choose Financials ® Controlling ® Controlling ® Controlling Methods ® Schedule Manager.