FM BCS Configuration Documents is a set of eight documents which explains

sap funds management configuration setting in step by step manner with

system screen prints. If you follow this documents you will be able to
configure sap funds management in couple of hours. It is fast and can be
used in all the projects of sap implementation. It will also help you to learn
sap fm configuration in very fast manner.

Followings documents are included in this document set,

 Activation and Org level Setting

 Basic Settings
 Master Data
 Budgeting
 Availability Control
 Actual and Commitment Update n Integration
 Organization Profile Analysis
 key Data Structure

Details of each documents are given below,

Activation and Org level Setting

This is the first setting you need to do in the system. It include

 Activate Funds Management

 Create FM Area
 Assign FM Area to Company Code
 General Settings for Public Sector Management

Note: This is mandatory setting you must have to do in your system.

This document explains in detail in step by step manner for funds

management configuration for activation and organization level setting.

Table of Content,
 Activation and Org level Setting
 Activate Funds Management
 Create/Define FM Area
 Assign FM Area to Company Code
 General Settings for Public Sector Management

Basic Settings

Following activities need to carried out for basic setting in sap funds
management

 Activate Global Funds Management Functions (PSM-FM)

 Activate Global Functions for Budgeting
 Define Global Parameters
 Define Number range for FM Area and Assign

This document explains in detail in step by step manner for funds

management configuration for basic setting.

Table of Contents
 SAP Funds Management Basic Settings
 Activate Global Funds Management Functions (PSM-FM)
 Activate Global Functions for Budgeting
 Define Global Parameters
 Define Number range for FM Area and Assign
 Define Number range for your FM Area
 Assign Number Range to FM Area

SAP FM Master Data Configuration

In the following sections you will be carrying out important settings which are
necessary for the maintenance of master data.
At this place you find various setting as been given like,
 Account Assignment Elements
 Use of Account Assignment Elements
 Allocations to Account Assignments from Other Components
 Derivation Strategy for Reassignment
 Status Management
 Deleting Master Data

At this place most of the configuration setting are optional. Only one setting
is very important over here that is “Allocations to Account Assignments from
Other Components”. At this place detail explanation will be given to in this
area. It is require to be carried out in your system too.

You need to understand you business requirements and business process to

do this setting. There is fix rule for this setting; you can customize it as per
your requirement. This document explains about sap funds management
master data configuration setting in detail.

Table of Content
 Master Data
 FMDERIVE: Account Assignment Derivation
 Steps to Setup Derivation Strategy and Derivation Rule
 Hierarchy Variant
 Create/Change Hierarchy Variant Fund Center
 Assign Hierarchy Variant to FM Area
 Create Variant in FM Area/Fiscal Year Commitment Item
 Document Version History

Budgeting Configuration

In this section, you define the budgeting settings for the Budget Control
System (BCS). In this section basically you need to do following three setting.
This will allow the transaction with related to enter budget.

Basic Settings
At this place you need to define the basic budget setting like, use of master
data, budget type etc.

 Activate Account Assignment Elements in Budgeting

 Define Budget Category
 Define Budget Types

Budget Entry
In this section, you define the necessary settings for budget entry documents
for the Budget Control System (BCS).

 Define Document Types

 Maintain Number Range Interval for Entry Documents
 Maintain Number Range Interval for Budget Change Documents
 Define Number Range Interval for Document Family
 Define Layout for Budgeting Workbench
 Define Editing Options for Budget Amounts

Control Budgeting Flow

At this place you define your period control or status control. In this
document we will discuss about these setting in details. List of steps you
need to carry is given below,

 Activate Period Control

 Edit Status
This document explains about budgeting configuration in detail.

Table of Details
 Budgeting Overview
 Basic Settings
 Activate Account Assignment Elements in Budgeting
 Define Budget Category
 Budget Type
 Budget Entry
 Define Document Types
 Maintain Number Range Interval for Entry Documents
 Maintain Number Range Interval for Budget Change Documents
 Define Number Range Interval for Document Family
 Define Layout for Budgeting Workbench
 Define Editing Options for Budget Amounts
 Control Budgeting Flow
 Activate Period Control
 Edit Status

Availability Control Configuration

The availability control checks that the consumed amount does not exceed
the consumable budget on a control object taking into account tolerances,
which can be customized in the system.

At this place we would be doing following settings

What to check?
Where to check?
How to Check?
Solution in FM BCS is as below,

What? Filters ( consumable budget …)

Where? Derivation rules for control objects
How? Tolerance profiles
So we can say that we would be doing filter setting, derivation rule setting,
and tolerance profile setting.

Following Setting need to be done in general scenario

 Edit Tolerance Profiles

 Maintain Customer-Specific Ledger for Availability Check
 Define Filter Settings for Budget Values
 Define Filter Settings for Commitment/Actual Values
 Define Derivation Strategy for Control Objects
 Define Derivation Strategy for Tolerance Profiles
 Assign Tolerance Profiles and Strategy for Control Objects
 Select Checking Horizon for Availability Control
 Define Activation of Availability Control
All of the above setting are mandatory and need to be carried out in the
same sequence. This document explains in details for configuration for
Availability control in sap funds management.

Table of Contents,
 Concept of Availability Control
 Edit Tolerance Profiles
 Maintain Customer-Specific Ledger for Availability Check
 Define Filter Settings for Budget Values
 Define Filter Settings for Commitment/Actual Values
 Define Derivation Strategy for Control Objects
 Define Derivation Strategy for Tolerance Profiles
 Assign Tolerance Profiles and Strategy for Control Objects
 Select Checking Horizon for Availability Control
 Define Activation of Availability Control

Actual and Commitment Update and Integration

This document explain about configuration of Actual and Commitment

Update and Integration with other module.

Table of Content
 Actual and Commitment Update/Integration overview
 Funds Management Update Settings
 Assign Update Profile to FM Area
 Override Update Profile
 Make Other Settings
 Activate Deactivate Funds Management
 Conclusion

Organization Profile Analysis

This document explains about basic set up for configuration documents. This
will help you to understand Dolphin Corporation as business case.

Dolphin Corporation is an illustrative set up. This organization does not in

existence. This name is used to demonstrate concepts and understanding for
SAP Funds Management. Any resemblance with this setup or organization
profile does not have any meaning and it should not be linked with any other
organization.

FM Key Data Structure

This document explains key data used in configuration for FMBCS.com. This
can also be used as sample key data for sap funds management.

SAP Funds management is part of SAP ECC. FM is well integrated with other
module in SAP like FI CO MM SD… and so on…

This document set explains the integration aspects of SAP Funds

Management with other module of SAP. Individual concept documents has
been given as below,

 Financial and Asset Accounting Integration

 Funds Management and CO
 MM FM Integration
 Business Trip Accounting
 Integrating Human Capital Management
 Integrating Project System
 Integrating Plant Maintenance
 Integrating Sales and Distribution
 Integrating PSCD
 Integrating Real Estate
 Integrating Treasury and Risk Management Cash Mgmt
 New General Ledger in Public Sector
 OFUP Funds Management Update
These documents explain the following concepts as given below,
 OFUP Funds Management Update
 Funds Management Update
 Update Control Option (OFUP)
 Configuration Setting for Update Profile
 Assign Update Profile to FM Area
 Override Update Profile
 OFUP – Make Other Settings
 Update Profile
 Update Profile 000100
 Update Profile 000101
 Update Profile 000350
 Update Profile 000200
 Update Profile 000400
 Period-Based Encumbrance Tracking
 Statistical Update
 Tax Update
 Financial Transactions Value Types and Amount Types
 Carry forward Level

Financial and Asset Accounting Integration

 Financial Accounting Integration
 Configuration required for Financial Accounting Integration
 Assets Accounting Integration
 Fund/Functional Area as Acct Assgnt Object in Asset Accounting

Funds Management and CO

 CO Integration with FM
 CO – FM Integration Options
 Account Assignment Derivation
 CO – FM Posting Integration Example

New General Ledger in Public Sector

 The new General Ledger
 Possibilities with the New General Ledger
 New G/L in Public Sector: Overview & Advantages
 Totals tables for Public Sector
 MM FM Integration
 MM FI Integration
 Procurement with MM Without Warehouse Management
 Purchasing Without Warehouse Management
 Purchasing with Warehousing
 Warehouse Processing Scenario
 GR/IR Update
 Multiple Account Assignment for a Purchase Order
 Rule Based Account Assignment Distribution

Business Trip Accounting

 Travel Management Integration
 Account Assignment Options for Trips
 Account Assignment Derivation

Integrating Human Capital Management

 Funds Management and HR
 HR – FM Integration Options
 Integrating Human Resources Without Commitments
 Time-Dependent FM Assignment
 Encumbrances for Personnel
 Determining financing requirements
 HR Payroll Accounting PSM – Integration

Integrating Project System

 Project System Integration
 Process Flow
 Project System and FM: Structures and Functions
 PS and FM: Updating Commitment and Actual

Integrating Plant Maintenance

 Integrating Plant Maintenance
 Process Flow
 PM Transactions Relevant to Funds Management
 FM Account Assignment in the Maintenance Order
 Integrating Sales and Distribution
 Integrating Sales and Distribution with FM
 Process Flow
 Transactions in SD ; Sales Order / Credit and Debit Memos
 FM Account Assignment in the SD Sales Order Item
 Integration of SD and PM Orders
 Revenue Scenarios

Integrating PSCD
 FM PSCD Integration
 Integration Requirement

Integrating Real Estate

 RE Contract to Funds Management Integration
 Enhancements for RE integration FMDERIVE

Integrating Treasury and Risk Management Cash Mgmt

 Treasury and Risk Management Cash Mgmt
 Integration points between TRM, CM and FM

In SAP Funds management there are following concept of budget control

within your business process,

 Active Availability Control

 Revenues Increasing the Budget
 Cover Eligibility
 Concept of Earmarked Funds
 Debit Entry – Requests
In this document set, separate document have been given for individual
concept. It will help you to understand the concept of budget control in SAP
Funds Management.

This document set cover following things in detail

Active Availability Control

 Availability Control
 Basics of Availability Control
 Availability Control Ledger (AVC Ledger)
 AVC Filters for Budget and Commitment/Actual Values
 Control Object
 Tolerance Profiles
 Availability Control: Activity Groups
 Checking Horizon
 Availability Control Activation
 Multi-Level Availability Control
 Tools for Availability Control

Revenues Increasing the Budget

 Revenues Increasing the Budget
 Revenues Increasing the Budget: Global Settings
 Increase Budget from Revenue
 Configuration for Revenue Increasing Budget
 Use of Revenue Increasing the Budget
 Increase Budget from Revenues
 Procedure
 Result
 T Codes for Revenue Increasing the Budget

Cover Eligibility
 Cover Eligibility Concept
 General Relationships – Without Cover Eligibility
 Cover Eligibility: Automatic Cover Group
 Role of Budget Address in Cover Group
 Automatic Cover Group: General Principle
 Configuration option for Cover Eligibility
 Use of Cover Eligibility

Concept of Earmarked Funds

 Earmarked Funds
 Funds transfers
 Process Flow: Budget Execution
 Earmarked Funds and Funds Transfers
 Earmarked Funds Document Types
 Earmarked Funds Specific Settings
 Earmarked Funds Adjusting Values
 Earmarked Funds Procurement Process
 Earmarked Funds Approval Workflow
 Configuration for Earmarked Funds
 T Codes Used for Earmarked Funds

Debit Entry – Requests

 Debit Entry Request
 General Request Categories
 Request Categories
 Entering Requests
 Request Process
 Posting Logic FM FI
 Requests: Account Determination
 Example: Account Determination
 Requests: Reversal Postings
 Special Request Categories
 Configuration for Request
 T Codes Used for Request

The Budget Control System (BCS) is the component that allows you to
manage your budget in Funds Management. A budget cycle is divided in two
main phases
 Budget preparation
 Budget Execution

This document set explains in detail for sap funds management Budget
Process. Separate documents has been given on following subjects

 Budget Process
 Period Control in Budgeting
 Payment Budget, Commitment Budget and Financial Budget
 Version Management and Frozen Version
 Budget Process
 Budget Type
 Budget Document Type
 Budget Status Management
 Budget Planning
 Budget Release Process
 Budget Workbench
 Budget Key Figure
 Consistency Check
 Budget Text
 Derivation Tool for Budget Entry
Detail of each documents are given as below,

Budget Process
 Budget Process Overview
 Business Benefits for Budgeting process
 Basic Configuration for Budgeting Function
 Concepts of Budgeting

Period Control in Budgeting

 SAP Configuration of Period Control
 Use of period control
 SAP T Codes for period Control in FM BCS

Payment Budget, Commitment Budget and Financial Budget

 Budget Category
 Payment budget [9F]
 Commitment budget [9G]
 Financial budget [9J]
 Difference between payment budget, commitment budget and
financial budget
 Important Information
 Configuration
 Use of Budget Category

Version Management and Frozen Version

 Version Management
 Configuration Version
 Use of budget Version
 Frozen Version
 Configuration Frozen version
 Use of Frozen Version

Budget Process
 Budget Processes in SAP Funds Management BCS
 Business Example for Budget Process
 Configuration for Budget Process
 Use of Budget Process

Budget Type
 Budget Type
 Budget Type Configuration
 Manu Path for Budget type Configuration
 Configuration Screenshots
 Use of Budget Type

Budget Document Type

 Functionality Overview
 Budget Document Type Configuration
 Use of Document Type
 Budget Status Management
 Functionality Overview for Budget Status management
 Budget Status Management Example
 Status Management Configuration
 Use of Budget Status Management

Budget Planning
 Budget Planning Process
 FM BCS Budget Planning Process
 Planning Tools I – SEM BPS
 Data Extraction from SAP System to SAP BW
 Data Retraction from SAP BW to FM
 Planning Tools II – CO
 Planning Tools III – Planning in FM
 Budget Planning Configuration
 Budget Planning Uses

Budget Release Process

 Budget Release
 Release Scenario
 Release Process
 Configuration for Budget Release
 Define Release Scenario
 Define Budget Types for Release
 Assign Budget Types for Release to Processes
 Define Document Types for release budget
 Maintain Number Range Interval for Entry Documents
 Use for Budget Release Function
 Auto Release
 Manual Release

Budget Workbench
 Budget Workbench FMBB
 Create/Change Budget Documents
 Management of Existing Documents
 Budget Key Figure
 Budget Key Figure Concept
 Configuration for Budget Key Figure
 Use of Budget Key figure

Consistency Check
 Consistency Check Concepts
 Type of Consistency Check
 Consistency Checks – Basic Principles
 Configuration for Consistency Check
 Use of Consistency Check

Budget Text
 Budget Text Concept
 Configuration Budget Text
 Define Templates for Budget Texts/Budget Memos
 Define Key Fields for Budget Texts
 Activate Processing Mode for Budget Texts
 Assign Forms for FM Budget Texts
 FMTEXT: Budget Text Organizer
 Use of Budget Text

Derivation Tool for Budget Entry

 Derivation Tool for Budget Entry
 Configuration for Derivation Tool for Budget Entry

This document set cover in detail all the master data used in Funds
Management. Separate individual documents has also been given on funds
management master data. This set of document provide complete
knowledge on funds management master data.

This document set includes following documents,

 Master Data
 Fund Center
 Commitment Item
 Fund
 Functional Area
 Funded Program
 MD Options
 Budget Address Posting Address
 Derivation Tool
This document set cover the following topics in details

Master Data
 Business Benefits of FM Master Data
 Basic Information on Master Data
 Activation of Fund and Functional Area
 Activation of Funded Program
 Activation of Grant
 Account Assignment Element “BLANK”

Fund Center
 Fund Center Overview,
 Screenshot of Sample Fund center,
 Hierarchy Variant for Fund center,
 Other Master Data field available for fund center,
 Fund Center: Validity Period,
 T Code for Fund Center,
 Import / Export Funds Centers from External File,

Commitment Item
 Commitment Item Overview
 Example for Commitment Items
 System Screenshot of commitment item
 Basic Information for CI
 Statistical Commitment items
 List of Financial Transaction
 List of Commitment Item category
 Development Scope for Commitment Item Master Data
 Masking for Commitment Item Key

Fund
 Fund
 Example of Funds
 System Screenshot of fund master
 Additional Info for Funds
 Sap T Code to be Used
 Activation of Funds

Functional Area
 Functional Area
 Basic Use of Functional Area
 System Screen prints of Fund Master
 SAP T Code for Functional Area
 Activation of Functional Area

Funded Program
 Funded Program
 System Screen Prints of Funded Program
 SAP T Code to be used
 Activation of Funded Program

MD Options
 FM Area Global Setting.
 Year Dependency of Master Data.
 Commitment Item Masking.
 Subdivide Master Data.
 Master Data Mass Maintenance.
 Authorization Control on FM Master Data
 Budget Address Posting Address
 Budget Structure
 Using Budget Structure in BCS
 SAP T Code to be used
 Display Budget Address
 Display Posting Address
 Budget Address Derivation
 Budget Address Maintenance
 Derivation Tool for Budget Address
 Copy Budget and Posting Address

Derivation Tool
 Derivation tool
 Type of Derivation Rule
 Derivation Rule
 Table Lookup
 Assignment
 Initialization
 Enhancement
 Functional Module
 Assign Derivation strategies to company code
 Derivation Analysis Report RFFMDERIVATIONANALYSIS