Definition

Funds represent financial resources that are provided for a specific purpose by a sponsor and managed separately. This enables the exact source of the funds to be determined.

Use

Funds represent own/external funds that are limited time-wise (financing period) and functionally (application of funds), which have been designated for a specific expenditure. They can also be used as administration or accounting units to separate activities so as to facilitate further analyses or another Reporting.

The fund is active by default in Funds Management as long as you are not using the Budget Control System (BCS) . If however you use the Budget Control system and want to use the fund, you must activate the fund in the Customizing of Public Sector Management and in the Customizing of BCS .

In contrast to the account assignment elements, funds center and commitment item, you can also use the fund in Controlling, Asset Accounting and in Human Resources as an independent object. To be able to do this, you must activate the fund in the Customizing of Public Sector Management . For more information, see the IMG under  Public Sector Management Global Settings Activate Account Assignment Elements.

Asset Accounting Usage

Activating the fund enables you to handle the assets with the correct fund in Asset Accounting. By defining a fund in each asset master record, asset acquisitions can be posted to the correct fund; depreciation postings can also be carried out for the correct fund in Controlling and the asset history sheet can be displayed for the correct fund. For more information on the prerequisites and features of the fund as an account assignment object in Asset Accounting, see Fund/Functional Area as Account Assignment Object in Asset Accounting .

Controlling

Activating the fund ensures that costs and revenues are assigned to the correct fund in cost center accounting. The fund then, along with controlling objects, is another account assignment object and can be specified as sender and receiver for all types of internal clearing.

Human Resources

Activating the fund ensures that personnel expenses, time sheet and travel expenses are assigned to the correct fund in cost center accounting.

Funds Management

In the system, a funds represents the whole organizational and functional structure of your organization (funds center and commitment item hierarchy). You can use a Budget Structure to confine this structure to particular responsibility areas (funds centers) and expenditure categories (commitment items). You thus determine which responsibility area receives the promised funds, which have usually come from a particular source to cover a particular project and can only be disbursed on particular types of expenditure.

You can create an overall budget to cover the whole period in question: you can apportion this to the financial years affected. Budget is used up as postings are made to the fund. In Funds Management, this occurs through funds reservations and business transactions entered in the feeder components (for example, Financial Accounting, Materials Management).

Structure

You can find an overview of all fields, under Fields in Fund Master Record

You can search for changes to the fund master record using the pushbuttons Change History and Change Documents .

You can define long text information in the funds master record using the pushbutton Long Text . For more information, see Maintaining Long Texts for Master Data .

Integration

Master data entry

You can assign a debtor to more than one fund; the same applies to applications of funds. For more information on this, see Fund, Source of Funds and Application of Funds

Posting

For posting data from the feeder components to be updated in Funds Management, you must always specify a complete Funds Management account assignment (funds center, commitment item, and, if required, fund and functional area) in the posting transaction. You can minimize manual entry expenditure by assigning the fund to other account assignment elements. Then the system automatically derives the fund from these assignments. For more information on account assignment derivation, see Account Assignment Derivation .

If the fund was activated as an account assignment element for Asset Accounting and Controlling, you must take note of the following regarding the account assignment derivation. For clearing in Controlling the commitment items and funds center must always be derived from different account assignments because they cannot be assigned directly to an account in Controlling. For postings in Asset Accounting, the funds center and commitment item can be entered either manually (using the account assignment block) or be derived from the respective assignments from other account assignments. The fund is always transferred automatically from the master asset.

See also:

Maintain Fund

Application of Funds

Budget Profile

Integration with Cost and Project Controlling

Prerequisites for Integration with Cost and Project Controlling