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 PSM, Expenditure Certification

 

Technical Data

Technical Name of the Business Function

PSM_EXP_CERT

Type of Business Function

Enterprise Business Function

Available As Of

SAP Enhancement Package 3 for SAP ERP 6.0

Technical Usage

Application Component

PSM-EC — Expenditure Certification

Directly Dependent Business Function Requiring Activation in Addition

EA-PS

You can use this business function to implement the SAP Expenditure Certification (PSM-EC) solution, which provides functions enabling accurate tracking of incurred expenditures made out of public funding obtained by a government agency or local public sector organization. The data on these expenditures is subsequently collected, in order to create a report to external sponsors. Use of funding resources is thus optimized, reporting to sponsors made easier, and an audit trail is available for expenditure reports.

For full information on PSM-EC, read the appropriate documentation.

Prerequisites

You have installed the following components as of the version mentioned:

Type of Component

Component

Is Needed Only for the Following Features

Software Component

EA-PS 603

SAP-APPL 603

Portal Content

ERP Business Package Expenditure Certification

ERP Business Package Certification Run

To use the PSM-EC solution, you need first to customize it using the steps accessed by choosing Public Sector Management —> Expenditure Certification.

Features

The solution offers the following features:

  • Retroactive assignment of expenses to funding buckets

    Derivation of financing source and assignment of expenditure line items.The original account assignments in the expenditure document will not be changed, but the expense will be mapped to one or more funding options. Accounting standards and period-end closing operations are not harmed.

  • Automatic evaluation of available and preferred funding

    For each project (operation), the system reads a list of preferred funding and checks the availability of the funds.

  • Calculation of eligible expenditure amounts with taxes and other funding

    The system applies different methods of deducting the non-eligible portion of the expense line item and allocates it to the financing source. It also considers whether a part of the expense has already been assigned to the same or different funding and evaluates the eligibility of tax amounts.

  • Different methods for calculation of sponsor's contribution

    The system calculates the contribution from a financing source as a percentage of the eligible expenditure. If a financing source is exhausted or not applicable, the system tries to find a different source. In a cofunding situation, the system evaluates how the different financing sources relate to one another. Some complement each other, others are used in addition or simply pay for the uncovered expenses. The system also prevents the calculated contribution from exceeding the allowed limit.

  • Reworking of proposed expenditure certification

    Before finalizing the financial report to the sponsor, manual changes and corrections are often necessary and can be very time consuming. To make the process easier and speed it up, the system proposes a list of expense line items, along with the given financing source and the calculated contribution. The proposal list is optimized in the sense that the algorithm has found available and best-possible funding. The user can directly accept this proposal or, if desired, make manual changes, such as excluding a line item. A trace function about the calculation of the eligible amount and access to the original line item is also provided. Before saving the expenditure statement in a final version, a separation-of-duties approval process can be launched.