Fund Accounting 

Use

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 by Controlling (CO), General Ledger Accounting (FI-GL) and various subsidiary ledgers. This simplifies reporting on financial activities that serve a number of different purposes.

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.

Prerequisites

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

·        In Customizing for Asset Accounting, choose Integration with the General Ledger ®  Additional Account Assignment Objects.

Here you activated the account assignment objects of fund accounting. You specified that they are relevant to the balance sheet and specified the account assignment type (APC or depreciation posting).

·        You made the fields for account assignment objects visible in the screen layout for asset master data, and specified that these are required entry fields. In Customizing for Asset Accounting, choose Master Data → Screen Layout → Define Screen Layout for Asset Master Data.

·        You also have to have made settings in Customizing for the generic company code and generic transaction types. For more information, see the documentation of the IMG activity. In Customizing for Asset Accounting, choose Integration with the General Ledger ®  Additional Account Assignment Objects ®  Specify Account Assignment Types for Account Assignment Objects.

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 create the derivation rules for this in Customizing for Public Sector Management, by choosing Funds Management Government → Master Data → Allocations to Account Assignments from Other Components → Define Account Assignment Derivation. (Also see Derivation Rules for Account Derivation in Fund Management.)

Features

Funds, functions, and grants are attributes of the asset master record. If you want to change these attributes, but the asset is already capitalized and one of the account assignment objects is designated as relevant to the balance sheet, you have to transfer to a new asset.

Each asset can be assigned to one of 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.

Asset Transactions

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 message dependent on your 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.

Settlement to Assets

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 asset subnumbers based on the account assignment objects. Therefore you have to use the RA_CREATE_ASSET_FM report to create an asset subnumber for the asset under construction for each account assignment combination of Fund Management. In the case of completed fixed assets, you have to create them manually with their account assignments.

Depreciation Posting Run

To post depreciation, on the SAP Easy Access screen, choose Accounting → Financial Accounting → Fixed Assets → Periodic Processing → Depreciation Run → Execute.

We recommend that you perform 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.