Earmarked funds

With earmarked funds aspects of both revenues and expenditures are handled by budget funds. In doing so you can, on the one hand, take expected revenues into account and the incoming budget funds linked to them. On the other hand, you can earmark the appropriate funds for expected expenditures, for which the exact application of funds does not have to be known.

Using budget blocks you can completely block access to already allocated budget. This budget is no longer available for other business transactions.

Funds transfers

Using funds transfers you can transfer assigned funds which are in a particular Funds Management account assignment, to other Funds Management account assignments.

Integration with Other Components in the SAP System

Within the framework of budget execution you can claim the earmarked budget funds both via the business transactions in accounting and via purchasing. The earmarked funds are reduced by financial accounting documents or purchasing documents. In doing so, the budget is consumed.

The graphic represents the options you have for reducing the earmarked funds by financial accounting documents and purchasing documents.

With other Funds Management components

Depending on the valid update profile earmarked funds affect the budget. Earmarked funds take part in the active available control (AAC) when they are created and reduced. The AAC checks if the available budget is still sufficient according to the defined tolerance limits. For more information, see Availability Control Settings .

Earmarked funds are displayed in the information system as commitments.

Expenditures:

The SAP system provides several ways of claiming budget for particular purposes:

Revenues

Forecast of revenue

Transfers

Funds transfers