Completion indicator vs. liquidating a funds reservation

[Former Member]

Hi all,

Can someone clearly explain what the difference between liquidating a funds reservation versus marking the completion indicator or completing a funds reservation is?

How does one liquidate a funds reservation? FMRE_SERLK or FMX6? fmz6?

Finally, can you briefly explain or redirect me to explanation of MM-FM integration? (How does a PO created based on the funds reservation impact the funds reservation document after the purchase is made)

Your response is much appreciated.

Thanks.

R

[iklovski · Accepted solution]

Hi,

Completion indicator, when raised, closes the commitment document in FM (and CO) tables. The details of the commitment are not modified in this case, i.e. the original amount remains untouched.

Regarding you second question: when you create a reservation, a commitment document is established in the system. PO with account assignment to reservation consumes (reduces) the commitment of reservarion, but creates in its turn, her own commitment document. Thus, the available budget remains the same after PO creation.

You can check this link for further info:

http://help.sap.com/saphelp_erp60_sp/helpdata/en/8c/2e40e1380811d295750000e835339d/frameset.htm

Regards,

Eli

[Former Member]

Thanks Eli.

Regarding the completion indicator, once you check that, does that amount become available in the budget? For example, if you have 100 dollars in a budget, and a reservation for 40 dollars, my understanding is that only 60 dollars can be consumed for other purposes (other than the funds reservation). If i check the completion indicator for that reservation, can i now spend the entire 100 dollars? Following up on that, when would you check the completion indicator? when you have no need for those funds that have been reserved? or when you have made the purchase that you made the reservation for?

Is completion the same as liquidating the funds reservation?

Regarding the PO: So the budget gets consumed when the GR is posted?

Thanks a lot for your clarification.

R

[iklovski]

Hi,

Indeed, when you set the completion indicator, all 100 become available again. In reality, completion indicator is set, when you have, for example, reservation of 40, out of which 38, were consumed by the invoices. You do not need the residual 2, so you set the completion indicator, making these 2 available for new consumption. Liquidation brings to the same result, but in this case you actually change the reserved amount.

Regarding PO: when you post GR (or IR, depending on the settings of your FM update profile and on valuated/non-valuated GR parameter), the commitment is consumed and the actual is posted. But the residual budget does not change: suppose you have budget of 100. You make a reservation of 40 - the available budget is 60. You make a PO of 20 on this reservation - the residual budget remains the same. You post GR on this PO of 20: the residual budget remains the same - only the commitment is reduced and actual consumption is posted instead.

Regards,

Eli

[Former Member]

Thanks Eli - that was helpful.

Finally, what is the difference between a funds reservation and a funds commitment? (FMX1 vs. FMZ1) I do know that these are two types of earmarks - but when would one use a FC instead of a FR and vice versa.

Thanks again for your prompt replies.

R

[iklovski]

Hi,

Reservations are to be used when you have further consumption by logistic documents (PO, PR). Commitments could be used in all other cases; basically, when you do not have MM module in your project and commitment actually replaces purchase order.

Regards,

Eli

[Former Member]

Eli,

Related to this, can you explain how value adjustment (FMVA01) documents work? What parts in config have to be in place to use this functionality.

If you already have existing funds reservation documents and commitment docs, how will activating Val. adjustment impact these existing docs?

Thanks.

Ajay

Edited by: Ajay Vidya on Mar 11, 2010 1:01 AM

[Former Member]

Eli,

I created a new PO. When I go to environment -> AC commitment in the PO document, it shows me the FM commitment. However, i cannot seem to find a document number for that funds commitment. Is this normal? So does a PO not create an actual funds commitment document that i can view using fmx3 or fmz3?

Please clarify.

Thanks

[mar_novalbos]

Hi,

No, the PO does not create another document as it was an earmarked funds (visible through FMX3, FMY3, FMZ3).

Instead, PO is interpreted as a 'Commitment' itself

if the PO is referenced to an Earmarked funds, then it will consume the EF and you will see it in the consumption report of the Earmarked funds, but it will still represent a commitment

kind regards

Mar