Skip to Content
0

Revenue actual posted into Fund Center

Apr 29 at 08:11 AM

35

avatar image

Hello SAP experts.

In our 20 year old SAP, revenues are posted into cost centers. We are implementing S/4 HANA at the moment, and the proposed solution is to post revenues into fund center so that we can maintain the same level of granularity in revenue/expense reporting as we have in the old system.

I understand revenues are usually posted in Profit Center level, and a fund center may be manually keyed in (not derived) in a simple journal. What do you make of this proposal? I thought fund management is more for viewing available funding against any given fund. I am not sure how this proposed solution will impact that aspect of fund management reporting.

Thanks in advance.

Regards

10 |10000 characters needed characters left characters exceeded
* Please Login or Register to Answer, Follow or Comment.

1 Answer

Best Answer
Eli Klovski
Apr 30 at 07:12 AM
0

Hi,

I'm afraid you are mixing terms and advising on a setup is a bit tricky given the information you provided. Revenues indeed can be posted on cost centres (statistically) and on profit centre (actually) in CO. Whether you take this information also to Funds Management module (via normal derivation in the same way you can make it for expenses), this is only dependent on your business requirements, i.e. whether you are interested to see your revenues (budget and/or execution) in your reports or not.

Regards,

Eli

Show 3 Share
10 |10000 characters needed characters left characters exceeded

Hi Eli, Yes, my original question wasn't really clear. Can you please elaborate more on "take this information also to Funds Management module (via normal derivation in the same way you can make it for expenses)"? Because what I was told from the system implementation team was that it cannot be derived because PC and FC do not have a direct connection or, is it something that can be done through system configurations?

A bit of more background info - our business requirement is to report revenue actual against budget (i.e. profit not just expense) at cost centre levels. As revenue is generally posted into PC, there is some tension between business areas and the system implementation team re: what should be the lowest level to set up PC. Business areas want to create PC lower than what the system thinks is necessary. The system team believes the requirement can be met through FC reporting by entering FC in revenue journals.

Thank you.

Regards

Soo

0

Hi,

If you cannot link your profit centres to fund centres (I mean functionally, because technically it is of course possible), then you have to find some other parameter. If your revenues are reported also on cost centres (even if only statistically), it could be sufficient to derive fund centre. Of course, manual introduction is always an option, but this would/might require procedural changes in your management chain; you have to be sure that people responsible for revenue inscription know to which budgetary line it has to be affiliated.

Regards,

Eli

0

Thank you Eli, I appreciate your time for answering my questions.

0