Integration: Procurement of Stock Material – Warehouse Concept

Use

Integration of Stock Material Procurement into Funds Management (FM) enables you to control:

The time (purchase order or goods issue) at which budget is assigned

Whether own budget should be made available to the warehouse

There are 4 concepts for the integration of Inventory Management with Funds Management. You can choose one of the concepts for each FM area.

Prerequisites

Irrespective of which concept you choose, a commitment item (financial transaction 30) must be derivable from the corresponding balance sheet accounts. This is also true for concepts where updates are only statistical.

Depending on which warehouse concept your organization should use, you must control the field status for account assignments relevant to FM accordingly for the individual business transactions (purchase requisition, purchase order, and goods issue). You must also define how the goods issue should be updated in your account assignment derivation. For more information, see section “Functions”.

For purchase requisitions and purchase orders, define the settings for the field status in the Customizing of Funds Management Government in IMG activity Field Status for Assigning FM Account Assignments ; and for the goods issue in the Customizing of Inventory Management in the IMG activity Define Screen Structure .

You make settings for the account assignment derivation in the Customizing of Funds Management Government in IMG activity Define Account Assignment Derivation .

Features

Concept 1

Manual purchase order account assignment determines when the budget is assigned

The consuming funds center is already known at the time of the purchase requisition or ordering.

Purchase requisitions and purchase orders that go to the warehouse and the goods receipt are updated directly in Funds Management by postings the corresponding account assignments for Funds Management as an additional account assignment.

Goods issue postings are only updated statistically.

Concept 2

Budget assignments determined solely by goods issues

Purchase requisitions and purchase orders that go straight to the warehouse, and the goods receipt, are not budget relevant for Funds Management. Updating is therefore only done statistically when posting purchase requisitions and orders.

The assigned values are only updated at good issue by specifying the consuming funds center, and fund and functional area if necessary, in the goods issue line.

Concept 3

Warehouse has own budget – budget credit with goods issue

The budget of the warehouse is automatically debited and credited again.

When purchase requisitions, purchase orders and goods receipts are posted, the assigned values of the “warehouse account assignments” (for example, warehouse funds center, warehouse fund) are updated automatically.

When the goods are issued, the budget assigned in the goods receipt is returned to the warehouse account assignments and these account assignments are then available for purchasing again. The assigned values for the account assignments (consuming) specified in the expenditure item in the goods issue are updated.

This graphic is explained in the accompanying text.

If you choose this concept, the warehouse account assignments may not be overwritten manually by other account assignments during the posting of purchase requisitions and purchase orders. Otherwise the account assignments entered manually will be debited and not the warehouse account assignments.

Concept 4

Warehouse has own budget – No budget credit with goods issue

When you post purchase requisitions, purchase orders, and goods receipts, the assigned values in the warehouse account assignments are updated automatically as in concept 3.

The assignments in the warehouse account assignments stay the same with the goods issue, in other words the warehouse account assignments do not get the budget back. The assigned values are updated for the account assignments (consuming) entered in the goods issue expenditure item. The budget for the warehouse is consumed in "parallel" to other areas of responsibility.

This graphic is explained in the accompanying text.

If you use the standard price procedure, it may be that “residual values” result in the warehouse account assignments if the invoiced amount differs from the valuated amount of the warehouse stock.

If you work with moving average prices, then there should not be any residual values in the warehouse account assignments.

Settings in Customizing for the Concepts

You control which warehouse concept is used in your system through the corresponding settings on the field status and account assignment derivation. For example, if the fields for the account assignments of FM should be hidden in the purchase requisition and the purchase order with warehouse concept 2, as these business transactions in this concept are not relevant to the budget.

The following questions are relevant when defining the derivation steps in your account assignment derivation:

How does the account assignment derivation recognize which posting it is? (Source field)

It is essential here that the posting of a goods issue is recognizable as the update takes place statistically or real in FM depending on the concept.

To recognize the posting of a goods issue, the field TRANSAC Business Transaction is available.

Use field FLG_INVNTRY_PSTNG to differentiate between the stock line and the expenditure line of the goods issue (specifies that the current posting is a stock posting).

How should the target fields be controlled so that a correct update takes place in accordance with the relevant concept?

For postings not relevant to the budget, one commitment item flagged as statistical must be derivable.

You can also use the information on the plant (field PLANT) and the evaluation class (field VAL_CLASS) for a detailed control of the derivation steps.

The following demonstrates how you can define the field status and your account assignment derivation for the relevant concept.

Settings in Customizing for the Concepts

Concept		Field status control	Recognize posting	Target field control
1	Pur.req./pur.order	Fields are ready for input in accordance with the standard	Fields are filled	No setting necessary
	GR stock line	No field status	TRANSAC = RMWA FLG_INVNTRY_PSTNG = X	Statistical commitment item
	GR expenditure line	Field status by requirement	TRANSAC = RMWA FLG_INVNTRY_PSTNG = SPACE/BLANK	Statistical commitment item
2	Pur.req./pur.order	Hide fields
	GR stock line	No field status	TRANSAC = RMWA FLG_INVNTRY_PSTNG = X
	GR expenditure line	Field status by requirement	TRANSAC = RMWA FLG_INVNTRY_PSTNG = SPACE/BLANK	Real cmmt item or manual acct assnmt
3	Pur.req./pur.order	Hide fields
	GR stock line	No field status	TRANSAC = RMWA FLG_INVNTRY_PSTNG = X	Real cmmt item
	GR expenditure line	Field status by requirement	TRANSAC = RMWA FLG_INVNTRY_PSTNG = SPACE/BLANK	Real cmmt item
4	Pur.req./pur.order	Fields are ready for input
	GR stock line		TRANSAC = RMWA FLG_INVNTRY_PSTNG = X
	GR expenditure line		TRANSAC = RMWA FLG_INVNTRY_PSTNG = SPACE/BLANK	Real cmmt item

This graphic is explained in the accompanying text.

If you are creating your goods issue by way of a reservation, you can enter the FM account assignment in the reservation. The assigned values in the reservation are not recorded in Funds Management - meaning that no charge is made to the budget yet. The assigned values are not updated in Funds Management until goods are issued.