PSM, Additional Functions in SAP SRM and PPS

Technical Data
Technical Name of Business Function	PSM_PPS_INTEGRATION
Type of Business Function	Enterprise Business Function
Available as of	Enhancement Package 4 for SAP ERP 6.0
Technical Usage	Public Sector Accounting
ECC Software Component	EA-PS
ECC Application Component	Procurement for Public Sector (PSM-GPR)
Business Intelligence Content	Not relevant
SAP Enterprise Services	Not relevant
JAVA Software Component	Not relevant
Portal Content	Not relevant
Additional Content Available in Other SAP Applications	As of SAP SRM 7.0
Business Function Requiring Activation in Addition	SAP SRM PPS Basis (`/SAPPSSRM/SRM_CROSS_INDUSTRIES`), SAP SRM Procurement for Public Sector Functions (`/SAPPSSRM/SRM_PPS`), MM Multiple Account Assignment (`LOG_MM_MAA_1`)

You can use this business function to use the following SAP Supplier Relationship Management (SAP SRM), Procurement for Public Sector (PPS) functions:

Incremental funding
Account assignment distribution
Smart numbering
Earmarked funds

This business function provides enhanced integration with SAP ERP so that you can achieve greater financial integration for procurement functionality.

Integration

To use incremental funding, you must activate business function MM Multiple Account Assignment (LOG_MM_MAA_1) in the SAP ERP Customizing activity Activate Business Functions.

Prerequisites

To use this business function, you must have SAP SRM 7.0 installed on your system. Ensure that PPS is activated in your SAP SRM system.

Features

Incremental Funding

Incremental funding is a method of funding contracts that provides specific spending limits below the total estimated costs of a project or program. Incremental funding allows long-term funding of a project without the total funds being available at the time a purchase order is created. An incrementally funded purchase order is created with an initial funded amount which is less than the total value of the order. Additional funds can be added as they become available. You can track the amount of funding applied to an order. When you create a purchase order in SAP SRM, it is duplicated and transferred to SAP ERP, and incremental funding is also available on these replicated purchase orders. Incremental funding is especially useful for public sector customers who receive funding for large purchase orders incrementally in accordance with the legislative appropriations process.

Account Assignment Distribution

Large projects in the public sector often receive funding from multiple sources. Using account assignment distribution, you can automatically distribute costs among multiple accounts when processing purchase orders or contracts with a guaranteed minimum. Customers can assign multiple account assignments to purchase requisitions or purchase orders based on either a percentage of the total amount or on specific amounts charged to each account assignment. Account assignment distribution is a way to efficiently allocate the total cost of a purchase to multiple account assignments. Account assignment distribution is available on purchase orders created in SAP SRM and replicated to SAP ERP.

Smart Numbering

Smart numbers (formerly called “long procurement numbers”) are highly configurable alphanumeric codes that uniquely identify procurement documents. Each smart number is made up of components that you define in Customizing. Components can reflect, for example, the fiscal year in which the document is created or the version of the document. Smart numbers are generated on purchase orders created in SAP SRM and are copied to the replicated purchase orders in SAP ERP. The U.S. federal government requires that smart numbers be integrated into all commitment and obligation processes, and this requirement is met in SAP ERP. Procurement documents now contain both the customer agency-specified document number and the SAP document number, making it easier to locate, search, and report on documents.

Earmarked Funds

Earmarked funds are funds set aside for a specific project for which the exact application of funds does not have to be known. You can use earmarked funds on purchase requisitions created in SAP ERP that are replicated to SAP SRM as external requirements (EXTREQs). You can also reference an earmarked funds document created in SAP ERP when processing a procurement document, for example, a purchase order. If account assignment data for earmarked funds is available, it is transferred to a purchase order if you reference an earmarked funds document in the purchase order.