Funds Management - Commitment items for all GLs

[Former Member]

Hello -

When we activate Funds Management, System expects a commitment item for every GL, including Bank accounts and Inventory accounts. I want system to expect commitment item only for expense accounts. How can I Do it. As such, we donu2019t have a budget for bank accounts.

Thanks in advance.

Chris

Edited by: Chris Farr on Nov 24, 2008 12:14 PM

[iklovski · Accepted solution]

Hi,

Even if you do not manage a budget for certain acitvity, you have to secure normal creation of FM documents. So, you have to assign your balance sheet accounts such as vendor, bank, etc. to a commitment item (or in master data or via derivation strategy). If you do not manage a budget for bank/vendor, which is only obvious, make sure that the commitment items for these G/Ls are defined with a right category and financial transactions. Thus, you will avoid budget check in the postings on those accounts.

Regards,

Eli

[Former Member · Accepted solution]

Hi

my requirement is to do the availabilty check only for expense accounts or for some inventory accounts for which i am going to create a commitment item 3/30. And for all other accounts ( bank, payables, receivables,loans, Revenue, GR/IR etc) can i simply create a dummy commitment item with 1/90 and assign it to all GLs. Also planning to derive a dummy Fund center from this dummy commitment item. would you foresee any complications with this strategy.

Thanks in advance

Chris

Edited by: Chris Farr on Dec 1, 2008 12:19 PM

[iklovski · Accepted solution]

Hi,

This strategy is not quite accurate. You certainly should define 1/90 for banks, 1/60 for receivables/payables, 2/50 for other dummy balances, etc. But for revenues, you'd better use 2/30. If you do not want to activate AVC on revenue items (which is quite normal), define a tolerance profile which will allow execeeding of the budget and assign this profile to revenue commitment items via derivation strategy. As for dummy fund centre for balances, this is OK.

Regards,

Eli

[Former Member · Accepted solution]

Just read Eli's msg clearly, its mentioned that GLs have to be assigned to Commitment with right category and Fin transacton. Just explored the IDES FM areas 1000,3000 and 4000 and understood the following but with couple of questions ( mentioned below)

Expenditure 30/3

Asset exp 30/3

GR/IR - Clearing 40/3

Misc clearing 40/3

Liquid funds / Bank a/cs 90/1

All other bank chk pable/ Recbles 80/3

Trade recble 60/2 it make sense, but in FM area 3000, Receivables defined as 30/3 ?

Trade payable 60/3 it make sense, but in FM area 3000, Receivables defined as 30/3 ?

Tax payable 30/2 Why category '2' here?

Input tax 30/2 Why category '2' here?

WOULD APPRECIATE IF SOMEBODY CAN CLARIFY MY QUESTIONS ABOVE.

Hope this info is useful and not mis guiding

Thanks

Chris

[iklovski · Accepted solution]

Hi Chris,

That's really dependent on your functional requirements. If you do not need to control your balance sheet accounts budget-wise (only maybe except for stock and assets), define them as balance financial transactions. That's what I did in all my FM projects.

In your example, they prefer to manage vendors as AVC control CIs... Well, it's possible; maybe not so functional, but possible.

Regards,

Eli

[Former Member · Accepted solution]

Hi Eli -

Looks like commitment category '1' is allowed only with Fin transaction '90'. I tried 1/60, system didnt allow me to create.

Thanks

Chris

[iklovski · Accepted solution]

Certainly, 60 could go with 2/3 only.

[Former Member · Accepted solution]

Hi Eli -

For inventory accounts - I wanted to go with 30/3 but I cant derive Commitment item for material inventories a/c at the time of PR /PO because there is no GL available unless an account assignment category mentioned in PR ( in our scenarios accnt assignment category will be blank as Materials first go to the stores then to respective departments/cost centers). I have decided to derive commitment from matl group and it will be carried through PO and GR etc. In such a case can i derive my inventory accounts to a 50/3 commitment item.Do you see any problem with this? Same case with Assets also.

Thanks in advance

Chris

[iklovski · Accepted solution]

Hi Chris,

If this is your requirement, then what problem it could probably cause?

There are no strict rules of how to define the derivation strategy of the FM documents; it's totally dependent on the business requirements.

Regards,

Eli

[Former Member]

Please note that a cummy commitment item can be created and assigned to all GL accounts relating to Bank and Inventory in GL master.

You have the option to exclude specific committment items from budget check.

Regards,

Mamta sarda