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Background documentationIntegration with SAP ERP Funds Management

 

For purchases in SAP Supplier Relationship Management (SAP SRM), including Procurement for Public Sector (PPS), funds can be committed in Funds Management (PSM-FM) of the back-end system (SAP ERP).

Principles of Funds Commitment in SAP SRM

In the extended classic scenario of SAP SRM, purchase orders created in SAP SRM are replicated to the back-end system. The replicated back-end purchase order is the document that triggers follow-on processes in Financials, Controlling, and Funds Management, thus obligating funds.

Before an SAP SRM purchase order is replicated to SAP ERP, the system checks whether sufficient budget is available for the item. This check is performed using the active availability control function in SAP ERP Funds Management. Availability of budget and approval of the SAP SRM purchase order are prerequisites for the replication of the purchase order to SAP ERP.

You make the settings relevant for posting commitments in the SAP ERP system in Customizing for Public Sector Management under Start of the navigation path Funds Management Government Next navigation step Actual and Commitment Update/Integration Next navigation step General Settings End of the navigation path.

Funds Commitment for Standard Line Items

For purchasing documents created in SAP SRM, funds commitment in the back-end system is performed as follows:

  • Purchaser Orders (in SAP SRM, including PPS)

    Funds are committed for purchase-order line items when the purchase order is approved and replicated to the back-end system.

  • Shopping Carts (in PPS Only)

    Funds are committed for shopping cart line items when the shopping cart is approved. For more information, see Shopping Cart Commitment.

  • Other Purchasing Documents (in SAP SRM, including PPS)

    For other purchasing documents, such as RFxs, auctions, and contracts, no funds are committed.

Funds Commitment for Line Items With Enhanced Functions (PPS Only)

For purchase order line items that offer enhanced functions provided by Procurement for Public Sector (PPS), such as order type line items or optional line items, funds commitment is performed in the following way:

  • Order Type Line Items

    For order type line items in mixed-use purchase orders, no funds are committed when the PPS purchase order is ordered. When a release order is created and its purchase order line items are replicated to SAP ERP, the back-end purchase order triggers the funds commitment.

    If you want to commit funds for order-type line items at the moment when they are created, you can use the guaranteed minimum function. For more information, see Guaranteed Minimum.

  • Options

    For inactive options, no funds are committed when the PPS purchase order is ordered. When the optional line item is exercised and activated, the line item is replicated to SAP ERP. The back-end purchase order then triggers funds commitment. For more information, see Funds Commitment for Options.

PPS Functions Integrated with SAP ERP Funds Management

The following topics describe the functions that are available in SAP SRM, PPS, to manage funding of your procurement activities:

Note Note

While this document focuses on the integration with Funds Management in SAP ERP Public Sector, note that, to create commitments, you can use one or several of the following SAP ERP components, depending on your configuration:

  • Commitments Management (CO)

  • General Ledger Accounting (FI-GL)

  • Special Ledger Accounting (FI-SL)

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