SAP Funds Management - Integration With MM

6/22/2020
Funds Management
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Integration with Materials Management

Use
Business transactions posted in Materials Management are updated in Funds Management (FM). The following business
transactions can be updated in Funds Management:
Purchasing
Purchase requisition, purchase order, scheduling agreement
Inventory management
Goods receipt, goods issue, transfer
Invoice veri cation
Invoice receipt, logistics invoice veri cation, credit memo as document
 Note
Note that purchase orders for which the Return item indicator is set are not updated in Funds Management.
Irrelevant postings
If no budget-relevant update is wanted, you can de ne that the update only takes place statistically in Funds Management for
purchase requisitions and purchase orders without account assignments (these are purchase requisitions and purchase orders in
which no account assignment categorywas speci ed) and for the goods issue. You can do this through the settings in Customizing
and by assigning a statistical commitment item for the warehouse stock account.
If other business transactions from Materials Management are not budget relevant for you (for example, purchase orders), you
can de ne that the update should only be statistical for each value type in Funds Management Government in IMG activity
Override Update Pro le. The statistical postings are displayed separately in the information system.
Prerequisites
For more information, see Prerequisites for Updating in Funds Management .
The clearing account goods receipt/invoice receipt requires a commitment item nancial transaction 40 /item category 3 .
Features
Unassigned purchase orders/purchase requisitions
You de ne how the updating of purchase requisitions and purchase orders without an account assignment takes place depending
on which Warehouse Concept is relevant for you.
If own budget should be available for the warehouse, you must make sure that purchase requisitions and purchase orders without
an account assignment are updated in FM automatically on the corresponding account assignments (for example, warehouse
funds center, warehouse fund). You can do this by de ning corresponding assignments in your account assignment derivation.
The commitment item is usually determined from the MM account determination (the inventory account already mentioned). This
commitment item is not allowed to be statistical.
If no budget should be available for the warehouse, the relevant account assignments must be entered for FM manually. When
Funds Management is active, the elds for the FM-relevant account assignments are in the standard in the transactions ME21,
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ME22, ME51, ME52 on the detail screen on tab page Account Assignment . In the other processing transactions you enter the
account assignments for FM in the item overview via Item More Functions Financial Accounting .
In the Customizing of Funds Management Government , you can change this eld status accordingly in IMG activity Maintain
Field Status for Assigning FM Account Assignments (for example, you can hide the elds if no update is wanted in Funds
Management). You can also reduce funds reservations in these transactions. The eld Earmarked Funds is ready for input for this.
Assigned purchase orders/purchase requisitions
When updating assigned purchase orders and purchase requisitions, you must include a complete FM account assignment. You
either make the inclusion manually or according to the assignments in your account assignment derivation made from
commitment item to G/L account or from FM account assignment elements to CO account assignments. For more information on
account assignment derivation, see Account Assignment Derivation , Deriving Commitment Item from G/L Account and Deriving
FM Account Assignment Elements from CO Account Assignments .
You can enter multiple account assignments for assigned purchase orders - that is, you have the option of distributing the
amounts for a purchase order item to more than one funds center or commitment item.
Depending on the settings you have made for the assignment screen, you can use the eld More to reach a second overview
screen, in which you can enter budget relevant account assignments.
Time when the purchase order commitment is redeemed
You can choose to redeem the purchase order commitment either at goods receipt or at invoice receipt. You can also specify that
both the goods receipt and the invoice receipt are updated.
You make these settings in Customizing of Funds Management Government in IMG activity Make Other Settings .
If the purchase order is redeemed at goods receipt, then the goods receipt is displayed in the information system under the
business transaction (value type text) “Invoice” with the correct date of goods receipt and the correct period. Otherwise the goods
receipt is not displayed.
If the redemption occurs at the same time as the invoice receipt, then the invoice receipt is displayed in the information system
under the value type text Invoice with the correct date of invoice receipt and correct period.
If the goods receipt and the invoice receipt are updated, both – the goods receipt and the invoice receipt - are displayed under the
value type Invoice with the correct period and both with the respective transaction Goods Receipt Purchase Order (RMWE) and
Invoice Receipt (RMRP). For more information on this, see Updating Goods Receipts and Invoice Receipts .
Displaying redemption of purchase order commitment in the information system
Examples, such as the commitment reduction displayed in the information system, see Displaying Settlement of Purchase Order
Commitments .
Value-based and quantity-based commitments
You can set the Value-based commitment indicator in IMG activity Check Units of Measurement in the Global Settings
Customizing. This indicator controls whether commitments for the chosen unit of measurement or unit of measure are recorded
on a quantity basis or a value basis.
If you do not set the indicator then the commitments are managed on a quantity basis. If you set the indicator they are managed
on a value basis.
For value-based updates, the reduction of purchase order commitments occurs with the maximum of goods receipt and/or invoice
value . For quantity-based commitments, the reduction of purchase order commitments occurs with the maximum of goods
receipt and/or invoice quantity.
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 Example
You post a purchase order: 1000 at the price of 10
You post a goods receipt above 500 at the price of 9
For value-based updates, an amount of 4,500 is updated.
For quantity-based updates, an amount of 5,000 is updated.
Note that the purchase requisitions in Funds Management are always reduced by quantity.
Parked Documents
Parked documents are only updated if they have the status “Complete”. Updating is always net irrespective of whether you have
chosen the setting Gross or Tax separate.
Parked documents that reference a purchase order or funds reservation are not updated.
Activities
You enter the settings required to control updating of posting data from Materials Management in accordance with your
requirements, in the Funds Management Government Customizing.
For more information, go to the IMG of Funds Management Government and choose Actual and Commitment
Update/Integration Global Settings Make Other Settings.
Updating Goods Receipt and Invoice Receipt

Use
The following examples show how the values in Funds Management are updated and displayed in the information system, if you
have de ned in Customizing that both the goods receipt and the invoice receipt are to be updated.
Goods receipt and invoice receipt are displayed in the information receipt under the value type Invoice (54) according to the
correct period, both with the appropriate transaction Goods Receipt Purchase Order ( RMWE ) and Invoice Receipt (RMRP).
Invoice receipt occurs before the goods receipt
Business Display in the Information System

Transaction
Doc.No. Value Type Amount Type Activity Amount
Purchase order 4711 Purchase orders Original RMBE 100
Invoice 4712 Invoices Original RMRP 100
4711 Purchase orders Reduction RMBE -100
Goods receipt 4713 Invoices Original RMWE 100
4713 Invoices Reduction RMWE -100
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If you are working on a payment basis, the status of the invoice is converted to Paid after the payment selection (program
RFFMS200).
Goods receipt occurs before the invoice receipt
Business Display in the Information System

Transaction
Doc.No. Value Type Amount Type Activity Amount
Purchase order 4720 Purchase orders Original RMBE 100
Goods receipt 4721 Invoices Original RMWE 100
4720 Purchase orders Reduction RMBE -100
Invoice 4722 Invoices Original RMRP 100
4721 Invoices Reduction RMWE -100
If you are working on a payment basis, the status of the invoice is converted to Paid after the payment selection (program
RFFMS200).
More Information
Integration Materials Management
Credit Memo
De nition
The term credit memo always refers to a credit memo from the vendor. Therefore, posting a credit memo always leads to a debit
posting on the vendor account.
Use
As in the case of invoices, credit memos reference purchase orders or goods receipts. They are used to correct the purchase order
history if the quantity invoiced was too high. This might occur, for example, if an invoice was too high or if part of the quantity
covered by the invoice was returned.
When you post a credit memo, the total quantity in the purchase order history is reduced by the credit memo quantity.
Principle of Prudence
The principle of prudence can be applied to credit memos. By this principle, credit is not taken until thememo or the cash is
actually received from the vendor.
Some con guration work is required before the principle can be applied. To do this, go to the Public Sector Management section of
the Implementation Guide (IMG) and choose General Settings for Public Sector Management Integration Principle of
Prudence De ne Derivation Strategy for Principle of Prudence .
The documentation for the IMG step provides detailed instructions on what you must do then.
See also:
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Creating Credit Memos
Creating Credit Memos

Use
When you post a credit memo, the system makes a number of checks:
The maximum quantity you can credit is the quantity that has already been invoiced. If you enter a larger quantity, the
system issues the following error message:
Reversal quantity greater than quantity invoiced to date
If you post a credit memo for the same quantity as was invoiced so far, the system expects that the total amount invoiced
so far is also credited. Otherwise, a situation might arise where you had no stock for a material but a stock value. If you do
not enter the amount invoiced so far, the system automatically replaces your entry and proceeds to the item screen. A
warning message informs you that your entry has been changed.
Reverse entry value set automatically for full reversal
If you post a credit memo for a smaller quantity than that invoiced to date, the amount of the credit memo cannot be larger
than the amount invoiced so far. If you post a larger amount, the system displays an error message, such as:
Reversal value is greater than value invoiced to date
The system does not check whether your entries in the columns Amount and Quantity correspond to the purchase order
price or the invoice price.
Procedure
You post a credit memo as follows.
1. In the Easy Access menu, Choose Logistics Materials Management Logistics Invoice Veri cation Document Entry Enter
invoice.
The Logistics Invoice Veri cation screen appears.
1. Choose the transaction Credit memo .
2. Enter the document header data as required and match up the invoice.
3. Choose Enter.
The system lists the order items per your allocation criteria. In the columns Amount and Quantity , the system suggests the value
and quantity invoiced to date for each item.
1. Select the items contained in the credit memo. Check the quantities and amounts suggested by the system and make any
necessary corrections.
2. Choose Enter.
The system then checks your entries and displays any necessary warning or error messages.
1. Save your entries.
Result
The system posts the credit memo
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Displaying Settlement of Purchase Order

Commitments
After the settlement of purchase order commitments three lines are displayed in the information system under value type
Purchase Orde r:
one line with the amount type Original (0100) with the posted purchase order amount
one line with the amount type Reduction (0200) with which the amount is reduced by the follow-on document.
one line with the amount type adjusting to follow-on document (0500) which displays the difference between the amount
of the original document and the amount of reduced documents.
If a document is completely reduced or has been completed by the inward delivery completed indicator or the nal invoice
indicator, the total of these three amount types is 0.
If a purchase order has been deleted or blocked, the amounts for all amount types are converted to 0 in Funds Management.
The following examples show the display of purchase order commitments in different scenarios. The scenarios depend on the
following Customizing settings:
Customizing of Funds Management Government
The settlement of purchase order commitments can take place either at the time of the goods receipt or of the invoice receipt; or
you can specify that both the goods receipt and the invoice receipt are updated.
You make these settings in Customizing of Funds Management Government in step Make Other Settings .
Customizing Global Settings
Commitments can be updated as value-based or quantity-based. You de ne a value-based update in Customizing with Global
Settings in step Test Unit of Measure, by setting the indicator Value-based Commitments. For more information on this, see
Integration Materials Management .
Goods receipts
Value-based commitments
PO value Goods receipt Deleted/blocked Delivery Original Reductn Adjustment Total

value completed
indicator
100 60 100 - 60 0 40
100 60 X 100 - 60 - 40 0
100 120 100 - 120 20 0
100 60 X 0 0 0 0
Quantity-based commitments
PO price PO qty GR price GR qty IR price IR qty Dely Orig. Reducn Adj. Total
comp.
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indic.
11 11 10 10 0 0 121 -100 -10 11
11 11 9 11 0 0 121 -99 -22 0
11 11 10 10 0 0 X 121 -100 -21 0
10 10 15 9 0 0 100 -135 45 10
10 10 15 10 0 0 100 -150 50 0
10 10 15 9 0 0 X 100 -135 35 0
10 10 10 5 11 7 100 -50 2 52
Invoice Receipt
Value-based commitments
PO value Invoice value Deleted/blocked Dely comp. Original Reducn Adjustment Total
indic.
100 60 100 - 60 0 40
100 60 X 100 - 60 - 40 0
100 120 100 - 120 20 0
100 60 X 0 0 0 0
Quantity-based commitments
PO price PO qty IR price IR qty Delivery Original Reducn Adjust-ment Total

compl.
charac.
11 11 10 10 121 -100 -10 11
11 11 9 11 121 -99 -22 0
11 11 10 10 X 121 -100 -21 0
10 10 15 9 100 -135 45 10
10 10 15 10 100 -150 50 0
10 10 15 9 X 100 -135 35 0
 Note
The total displayed in the examples is not displayed in the standard line item reports that are delivered. You can display these
however by forming the subtotal for the document number or document line item.
Integration: Stock Material Procurement –

Warehouse Concept
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Use
If you integrate stock material procurement with Funds Management (FM), you can control the following:
At what point in time (purchase order or goods issue) the budget is available.
Whether your own budget should be made available to the warehouse.
Four concepts are available to integrate Inventory Management with Funds Management. You can choose one of these concepts
for each FM area.
Prerequisites
Irrespective of which concept you choose, a commitment item ( nancial transaction 30) must be derivable from the
corresponding balance sheet accounts. This also applies to concepts for which updates are only statistical.
Depending on which warehouse concept your organization wants to use, you must control the eld status for FM-relevant account
assignments accordingly for the individual business transactions (purchase requisition, purchase order, and goods issue). You
must also de ne how the goods issue should be updated in your account assignment derivation. For more information, see the
section “ Functions”.
For purchase requisitions and purchase orders, de ne the settings for the eld status in Customizing for Funds Management
Government in the Customizing activity Field Status for Assigning FM Account; and for the goods issue in the Customizing
settings for Inventory Management in the Customizing activity De ne Screen Structure.
You make settings for the account assignment derivation in Customizing for Funds Management Government in the Customizing
activity De ne Account Assignment Derivation.
Features
Concept 1
Manual account assignment of the purchase order determines the budget assignments
The consuming funds center is already known at the time of the purchase requisition or purchase order.
Purchase requisitions and purchase orders that go to the warehouse and the goods receipt are updated directly in Funds
Management by specifying the corresponding account assignments for Funds Management as an additional account assignment
during posting.
Goods issue postings are only updated statistically.
Concept 2
Only the goods issue determines the budget assignments
Purchase requisitions and purchase orders that go straight to the warehouse, and the goods receipt, are not budget-relevant for
Funds Management. When you post purchase requisitions and purchase orders, the update is therefore only statistical.
The assigned values are only updated during goods issue by specifying the consuming funds center, and fund and functional area
if necessary, in the goods issue line.
Concept 3
Warehouse has own budget – budget credit during goods issue

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The budget for the warehouse is automatically debited and credited again.
When purchase requisitions, purchase orders and goods receipts are posted, the assigned values for the “warehouse account
assignments” (such as the warehouse funds center, warehouse fund) are updated automatically.
When the goods are issued, the budget assigned in the goods receipt is returned to the warehouse account assignments and
these account assignments are then available for purchasing again. The assigned values for the account assignments
(consuming) speci ed in the expenditure item in the goods issue are updated.
If you choose this concept, the warehouse account assignments may not be overwritten manually by other account assignments
during the posting of purchase requisitions and purchase orders. Otherwise the account assignments entered manually are
debited instead of the warehouse account assignments.
Concept 4
Warehouse has own budget – No budget credit during goods issue
When you post purchase requisitions, purchase orders, and goods receipts, the assigned values in the warehouse account
assignments are updated automatically as in concept 3.
The assignments in the warehouse account assignments are not affected by the goods issue, meaning that the warehouse
account assignments do not get the budget back. The assigned values are updated for the account assignments (consuming)
entered in the goods issue expenditure item. The budget for the warehouse is consumed in "parallel" to other areas of
responsibility.
If you use the standard price procedure, the warehouse account assignments may produce “residual values” if the invoiced
amount is not identical to the valuated warehouse stock amount.
If you work with moving average prices, the warehouse account assignments cannot contain any residual values.
Settings in Customizing for these Concepts
You control which warehouse concept is used in your system by making the corresponding settings for the eld status and
account assignment derivation. For example, the elds for the FM account assignments are to be hidden in the purchase
requisition and the purchase order for warehouse concept 2, since the business transactions in this concept are not budget-
relevant.
The following questions are relevant when de ning the derivation steps in your account assignment derivation:
How does the account assignment derivation recognize which posting is involved? (Source eld)
It is essential here that the posting of a goods issue is recognizable, since a statistical or real update is to be performed in FM
according to the concept.
The eld TRANSAC Business Transaction can be used to identify the posting of a goods issue.
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Use the eld FLG_INVNTRY_PSTNG to differentiate between the stock line and the expenditure line in the goods issue (speci es
that the current posting is a stock posting).
How should the target elds be controlled to ensure that the update performed is suitable for the relevant concept?
For postings that are not budget-relevant, a commitment item that is agged as statistical must be derivable.
You can also use the information about the plant ( eld PLANT) and the evaluation class ( eld VAL_CLASS) to control the
derivation steps in more detail.
The following demonstrates how you can de ne the eld status and your account assignment derivation for the relevant concept.
Settings in Customizing for these Concepts
Concept Field Status Control Recognize Posting Target Field Control
1 Pur.req./pur.order Fields are ready for input Fields contain entries No setting necessary
in accordance with the
standard
GI stock line No eld status TRANSAC = RMWA Statistical commitment

item
FLG_INVNTRY_PSTNG =
X
GI expenditure line Field status by TRANSAC = RMWA Statistical commitment

requirement item
FLG_INVNTRY_PSTNG =
SPACE/BLANK
2 Pur.req./pur.order Hide elds
GI stock line No eld status TRANSAC = RMWA
FLG_INVNTRY_PSTNG =
X
GI expenditure line Field status by TRANSAC = RMWA Real cmmt item or

requirement manual acct assnmt
FLG_INVNTRY_PSTNG =
SPACE/BLANK
3 Pur.req./pur.order Hide elds
GI stock line No eld status TRANSAC = RMWA Real cmmt item
FLG_INVNTRY_PSTNG =
X
GI expenditure line Field status by TRANSAC = RMWA Real cmmt item

requirement
FLG_INVNTRY_PSTNG =
SPACE/BLANK
4 Pur.req./pur.order Fields are ready for input
GI stock line TRANSAC = RMWA
FLG_INVNTRY_PSTNG =
X
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Concept Field Status Control Recognize Posting Target Field Control
GI expenditure line TRANSAC = RMWA Real cmmt item
FLG_INVNTRY_PSTNG =
SPACE/BLANK
If you create a goods issue using a reservation, you can assign an FM account assignment to this reservation. The assigned values
are not updated in Funds Management for the reservation, meaning that the budget is not debited yet. The assigned values are
only updated in Funds Management when the goods issue is posted.
See also
Deriving the Commitment Item from the G/L Account
Account Assignment Derivation
Posting Example Warehouse Concept 1

Use
The posting example shows the effects of business transactions in Materials Management (MM) on FI G/L accounts and on
updating in Funds Management .
Prerequisites
The example presupposes certain prerequisites. Please be aware of these prerequisites.
 Note
Posting lines that are only statistically updated are agged in column S (statistical).
Prerequisites for posting example
Settings For more information, see:
Master data
Material valued with a moving average price SAP Library under Control of Material Valuation .
Assignments for account assignment derivation
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Commitment items are assigned to the G/L accounts in the SAP Library under Deriving commitment item from
G/L account .
Funds centers are assigned to the cost centers in the SAP Library under Deriving FM account assignment
elements from the CO account assignments .
Customizing settings
Update pro le 100 Funds Management Government IMG under Actual and
Commitment Update/Integration General Settings Assign
Update Pro le to FM Area .
In the SAP Library under Update Pro le .
Funds Management Government IMG under Actual and

GR/IR updating: MM invoice receipt
Commitment Update/Integration General Settings Make Other
Settings.
Value-added tax display: Gross value-added tax
Control of purchase orders/requisitions not assigned to an

account: "Manual account assignment"
Control goods issue: "Not budget relevant"
Transaction type budget relevant? No entry

Commitment Update/Integration Integration Inventory
Transaction type goods issue? No entry Management Integration Select transaction types
Deductible input tax

Financial Accounting IMG under Financial Accounting
Global Settings Taxes on
Sales/Purchases Calculation De ne Tax Codes for Sales
and Purchases.
Cash discount posting: GR gross, IR net

Global Settings Document Document Header Overview.
Warehouse Concept 1
Business FI G/L accounts Funds Management

transaction
Debit Credit Funds center Commitment item S
Purchase Purchase order Commitment item

requisition from balance sheet
account (without
tax)
Purchase order Purchase order Commitment item

from balance sheet
account (without
tax)
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transaction
Goods receipt Stock
always evaluated! at purchase order

price
GR/IR
(Freight clearing)
(Customs clearing)
Invoice parking
Save invoice Purchase order Commitment item

completely from balance sheet
account (without
tax)
Invoice Receipt GR/IR Purchase order Commitment item

from balance sheet
Invoiced amount =
account
Order amount
Vendor
Additional posting lines at invoice receipt if:
Input tax (Input tax) (Purchase order) (Commitment item

from balance sheet
account)
Freight clearing (Freight clearing) (Purchase order) (Commitment item

from balance sheet
account)
Customs clearing (Customs clearing) (Purchase order) (Commitment item

from balance sheet
account)
Invoiced amount > (Stock) (Purchase order) (Commitment item

Order amount from balance sheet
account)
(also with unplanned
delivery costs) and (Price differences) (Purchase order) (Commitment item
insufficient stock from balance sheet
coverage account)
Invoiced amount < (Stock) (Purchase order) (Commitment item

account)
delivery costs) and (Price differences) (Purchase order) (Commitment item
coverage account)
Small differences Small differences Cost center Expenditure

(GR/orders to DN) commitment item
from small
differences account
(incl. tax)
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transaction
Small differences Cost center Revenue

commitment item
from small
(incl. tax)
Differences due to Differences due to Cost center Expenditure

exchange rate exchange rate commitment item
rounding rounding from differences due
to exchange rate
rounding account
Differences due to Cost center Revenue

exchange rate commitment item
rounding from differences due
to exchange rate
rounding account
Exchange rate Exchange rate Purchase order Commitment item

differences differences from balance sheet
account
Ex-change rate Purchase order Commitment item

differ-ences from balance sheet
account
Cash discount (net Cash discount

procedure) clearing
Stock Purchase order Commitment item

from balance sheet
account
Price differ-ences Purchase order Commitment item

from balance sheet
account
Subsequent debit invoice
Subsequent (Stock) (Purchase order) (Commitment item

adjustment, no from balance sheet
amount change account)
(Dependent on (Price differences) (Purchase order) (Commitment item

current stock from balance sheet
situation) account)
(Input tax) (Purchase order) (Commitment item

from balance sheet
account)
Vendor
Credit memo All postings from invoice receipt and subsequent debit invoice mirror inverted depending on current stock situation.
Business FI G/L accounts Funds

transaction Management
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Reservation No update: However, you can include an FM account

assignment manually that is then included in the
consumption.
Consumption
Consumption Cost center Expenditure commitment item from X

consumption account
Stock Top Commitment X

item from
balance sheet
account
Returns to the
warehouse
evaluated Stock Top Commitment item from balance X

sheet account
Consumption Cost center Expenditure X

commitment
item from
consumption
account
Inventory
Too much Stock Top Commitment item from balance X

warehouse sheet account
space
Inventory differ- Cost center Revenue X
ences commitment
item from
inventory
differences
account
Stock shrinkage Inventory Cost center Expenditure commitment item from X

differences inventory differences account

item from
balance sheet
account
Scrapping
Damage cases Expense from Cost center Expenditure X

scrapping commitment
item from
scrapping
account

item from
balance sheet
account
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transaction
Stock transfer
Receiving standard Expense from stock Cost center Expenditure X

priced managed transfer commitment item
material is cheaper from stock transfer
account
Stock Top Commitment item X

from balance sheet
account

from balance sheet
account
Receiving standard Stock Top Commitment item X

priced managed from balance sheet
material is more account
expensive
from balance sheet
account
Revenue from stock Cost center Revenue X

transfer commitment item
from stock transfer
account

transaction
Revaluation
Valuation price is Stock Top Commitment item

too low from balance sheet
account
Revenue from Cost center Revenue

revalua-tion commitment item
from revaluation
account
Valuation price is too Expense from Cost center Expenditure

high revaluation commitment item
from revaluation
account
Stock Top Commitment item

from balance sheet
account
 Note
If this business transaction is relevant to cost accounting in your organization, you have to set up the account assignment to
derive the funds center from the CO object used for the posting.
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If you do not use Controlling, you have to set up the account assignment to derive the funds center from the master record of
the commitment item. Alternatively, you can de ne the derivation using an enhancement.

Use
The posting example shows the effects of business transactions in the Materials Management (FI) component on the FI G/L
accounts and on updating in the Funds Management Government component.
Prerequisites
 Note
Posting lines that are only statistically updated are agged in column S (statistical).
Master data
Commitment items assigned to G/L accounts SAP Library under Deriving Commitment Item from G/L
Account .
Funds centers are assigned to the cost centers SAP Library under Deriving FM Account Assignment
Elements from CO Account Assignments .
Update Pro le 100 Funds Management Government IMG under Actual and
SAP Library under Update Pro le .

Settings.

account: "Not budget relevant"
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Control goods issue: "Stock allocation statistical"
Transaction types budget relevant? X
Transaction type goods issue? X

Deductible input tax Management Integration Select transaction types

and Purchases.

Warehouse concept 2

transaction
Purchase Top Commitment item X

requisition from balance sheet
account (without
tax)
Purchase order Top Commitment item X

from balance sheet
account (without
tax)
Goods receipts Stock

price
GR/IR
(Freight clearing)
(Customs clearing)
Invoice parking
Save invoice Top Commitment item X

account (without
tax)
Invoice receipts GR/IR Top Commitment item X

from balance sheet
Invoiced amount =
account
Order amount
Vendor
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transaction
Input tax (Input tax) (Top) (Commitment item X

from balance sheet
account)
Freight clearing (Freight clearing) (Top) (Commitment item X

from balance sheet
account)
Customs clearing (Customs clearing) (Top) (Commitment item X

from balance sheet
account)
Invoiced amount > (Stock) (Top) (Commitment item X

account)
delivery costs) and (Price differences) (Top) (Commitment item X
coverage account)
Invoiced amount < (Stock) (Top) (Commitment item X

account)
delivery costs) and (Price differences) (Top) (Commitment item X
coverage account)

from small
(incl. tax)

commitment item
from small
(incl. tax)

to exchange rate
rounding account

to exchange rate
rounding account
Exchange rate Exchange rate Top Commitment item X

account
Exchange rate Top Commitment item X

differences from balance sheet
account
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transaction

procedure) clearing

from balance sheet
account
Price differences Top Commitment item X

from balance sheet
account
Subsequent (Stock) (Top) (Commitment item X

(Dependent on (Price differences) (Top) (Commitment item X

situation) account)
(Input tax) (Top) (Commitment item X

from balance sheet
account)
Vendor

Reservation No update: You can, however, manually include an FM

account assignment that is then included in the
consumption.
Consumption
Consumption Cost center Expenditure commitment item from

consumption account

item from
balance sheet
account
Returns from
warehouse
evaluated Stock Top Commitment item from balance X

sheet account
Consumption Cost center Expenditure

commitment
item from
consumption
account
Inventory
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Too much Stock Top Commitment item from balance X

warehouse sheet account
space
Inventory Cost center Revenue
differences commitment
item from
inventory
differences
account
Stock shrinkage Inventory Cost center Expenditure commitment item from


item from
balance sheet
account
Scrapping
Damage cases Expense from Cost center Expenditure

item from
scrapping
account

item from
balance sheet
account

transaction
Stock transfer
Receiving standard Expense from stock Cost center Expenditure

account

from balance sheet
account

from balance sheet
account
Receiving standard Stock Top Commitment item X

expensive
from balance sheet
account
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transaction
Revenue from stock Cost center Revenue

from stock transfer
account
Business FI G/L accounts Funds Management S

transaction
Debit Credit Funds center Commitment item
Revaluation
Valuation price is Stock Top Commitment item X

too low from balance sheet
account
Revenue from Cost center Revenue

revaluation commitment item
from revaluation
account
Valuation price is too Expense from Cost center Expenditure

from revaluation
account

from balance sheet
account
 Note

Use
The posting example shows the effects of business transactions in the Materials Management (FI) component on the FI G/L
accounts and on updating in the Funds Management Government component.
Prerequisites
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Master data
Commitment items assigned to G/L accounts SAP Library under Deriving Commitment Item from G/L
Account .
Funds centers are assigned to cost centers SAP Library under Deriving FM Account Assignment
Elements from CO Account Assignments .
Update Pro le 100 Funds Management Government IMG under Actual and
SAP Library under Update Pro le .

Settings.

account: "Warehouse funds center"
Control goods issue: "Credit warehouse funds center"
Transaction types budget relevant? X
Transaction type goods issue? X

Deductible input tax Management Integration Select transaction types

and Purchases.

Warehouse concept 3
Business transaction FI G/L accounts Funds Management
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Purchase requisition Warehouse Commitment item from

balance sheet account
(without tax)
Purchase order Warehouse Commitment item from

(without tax)
Goods receipts Stock
always evaluated! at purchase order price
GR/IR
(Freight clearing)
(Customs clearing)
Invoice parking
Save invoice completely Warehouse Commitment item from

(without tax)
Invoice receipts GR/IR Warehouse Commitment item from

Invoiced amount = Order
amount Vendor
Input tax (Input tax) (Warehouse) (Commitment item from

balance sheet account)
Freight clearing (Freight clearing) (Warehouse) (Commitment item from

Customs clearing (Customs clearing) (Warehouse) (Commitment item from

Invoiced amount > Order (Stock) (Warehouse) (Commitment item from

amount balance sheet account)

delivery costs) and (Price differences) (Warehouse) (Commitment item from
insufficient stock balance sheet account)
coverage
Invoiced amount < Order (Stock) (Warehouse) (Commitment item from

amount balance sheet account)

delivery costs) and (Price differences) (Warehouse) (Commitment item from
insufficient stock balance sheet account)
coverage

(GR/orders to DN) commitment item from
small differences account
(incl. tax)
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Small differences Cost center Revenue commitment

item from small
differences account (incl.
tax)

exchange rate rounding exchange rate rounding commitment item from
differences due to
exchange rate rounding
account
Differences due to Cost center Revenue commitment

exchange rate rounding item from differences
due to exchange rate
rounding account
Exchange rate differences Exchange rate differences Warehouse Commitment item from
Exchange rate differences Warehouse Commitment item from

Cash discount (net Cash discount clearing

procedure)
Stock Warehouse Commitment item from
Price differences Warehouse Commitment item from

Subsequent adjustment, (Stock) (Warehouse) (Commitment item from

no amount change balance sheet account)
(Dependent on current (Price differences) (Warehouse) (Commitment item from

stock situation) balance sheet account)
(Input tax) (Warehouse) (Commitment item from

Vendor
Credit memo All postings from invoice receipt and subsequent debit invoice mirror inverted depending on current stock
situation.

transaction
Reservation No update: You can, however, manually include an FM account

assignment that is then included in the consumption.
Consumption

consumption account
Stock Warehouse Commitment item

from balance sheet
account
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transaction
Returns from
warehouse
evaluated Stock Warehouse Commitment item from balance sheet

account

commitment item
from consumption
account
Inventory
Too much Stock Warehouse Commitment item from balance sheet

warehouse space account

differences commitment item
from inventory


from balance sheet
account
Scrapping

scrapping commitment item
from scrapping
account

from balance sheet
account
Stock transfer

priced managed material transfer commitment item from
is cheaper stock transfer account


Receiving standard Stock Warehouse Commitment item from

priced managed material balance sheet account
is more expensive
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Revenue from stock Cost center Revenue commitment

transfer item from stock transfer
account
Revaluation
Valuation price is too low Stock Warehouse Commitment item from

Revenue from revaluation Cost center Revenue commitment

item from revaluation
account
Valuation price is too high Expense from revaluation Cost center Expenditure
commitment item from
revaluation account

 Note

Use
The posting example shows the effects of business transactions in the Materials Management (MM) component on the FI G/L
accounts and on updating in the Funds Management component.
Prerequisites
Posting lines only updated statistically are agged in column S (statistical).
6/22/2020
Master Data
Material valued with a moving average price SAP Library under Controlling Material Valuation .
Commitment items are assigned to the G/L accounts in the SAP Library under eriving commitment item from G/L
account .
Funds centers are assigned to the cost centers in the SAP Library under Deriving FM Account Assignment Elements
from the CO Account Assignments.
Update pro le 100 In Customizing for Funds Management Government under Actual
and Commitment Update / Integration → GeneralSettings →
Assign Update Pro le to FM Area .
In the SAP Library under Update Pro le.
GR/IR updating: MM invoice receipt In Customizing for Funds Management Government under Actual
and Commitment Update / Integration → GeneralSettings →
Value-added tax display: Gross value-added tax Make Other Settings .
Control of purchase orders/requisitions not assigned to an account:

"Warehouse funds center"
Control goods issue: "Stock allocation statistical"
Transaction type budget relevant? X In Customizing for Funds Management Government under Actual
and Commitment Update / Integration → Integration →
Transaction type goods issue? X InventoryManagement Integration →Select transaction types
Deductible input tax In Customizing for Financial Accounting under Financial

AccountingGlobal Settings → Taxes on Sales/Purchases →
Calculation → De ne Tax Codes for Sales and Purchases .
Cash discount posting: GR gross, IR net In Customizing for Financial Accounting under Financial
AccountingGlobal Settings→Document→Document
Header→Overview.
Warehouse Concept 4

Transaction
Purchase requisition Warehouse Commitment item

from balance sheet
account (without
tax)
Order Warehouse Commitment item

from balance sheet
account (without
tax)
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Transaction
Goods receipt Stock

price
GR/IR
(Freight clearing)
(Customs clearing)
Invoice parking
Save invoice Warehouse Commitment item

account (without
tax)
Invoice receipt GR/IR Warehouse Commitment item

from balance sheet
Invoiced amount =
account
Order amount
Vendor
Input tax (Input tax) (Warehouse) (Commitment item

from balance sheet
account)
Freight clearing (Freight clearing) (Warehouse) (Commitment item

from balance sheet
account)
Customs clearing (Customs clearing) (Warehouse) (Commitment item

from balance sheet
account)
Invoiced amount > (Stock) (Warehouse) (Commitment item

account)
delivery costs) and (Price differences) (Warehouse) (Commitment item
coverage account)
Invoiced amount < (Stock) (Warehouse) (Commitment item

account)
delivery costs) and (Price differences) (Warehouse) (Commitment item
coverage account)

from small
(incl. tax)
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Transaction

commitment item
from small
(incl. tax)

to exchange rate
rounding account

to exchange rate
rounding account
Exchange rate Exchange rate Warehouse Commitment item

account
Exchange rate Warehouse Commitment item

differences from balance sheet
account

procedure) clearing

from balance sheet
account
Price differences Warehouse Commitment item

from balance sheet
account
Subsequent (Stock) (Warehouse) (Commitment item https://help.sap.com

(Dependent on (Commitment item

situation) account)
(Price differences) (Warehouse) (Commitment item

from balance sheet
account)
(Input tax) (Warehouse) (Commitment item

from balance sheet
account)
Vendor
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Transaction Management
Reservation No update: However, you can include an FM account assignment manually

that is then included in the consumption.
Consumption

consumption account
Stock Warehouse Commitment X

item from
balance sheet
account
Returns to the
warehouse
evaluated Stock Warehouse Commitment item from balance X

sheet account

commitment
item from
consumption
account
Physical Inventory
Too much Stock Warehouse Commitment item from balance X

warehouse space sheet account

item from
inventory
differences
account


item from
balance sheet
account
Scrapping

item from
scrapping
account

item from
balance sheet
account
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Transaction Management

Transaction
Stock transfer

account
Stock Warehouse Commitment item X

from balance sheet
account

from balance sheet
account
Receiving standard Stock Warehouse Commitment item X

expensive
from balance sheet
account
Revenue from stock Cost center Revenue

from stock transfer
account

Transaction
Revaluation
Valuation price is too Stock Warehouse Commitment item X

low from balance sheet
account
Revenue from See note Revenue

revalua-tion commitment item
from revaluation
account
Valuation price is too Expense from See note Expenditure

from revaluation
account
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Transaction

from balance sheet
account
 Tip
If this business transaction is relevant to your organization’s cost accounting, you must set up the account assignment
derivation is such a way that the funds center is derived from the CO object used with the posting.
If you do not use Controlling, you must set up the account assignment derivation in such a way that the funds center is derived
from the master record of the commitment item. Alternatively, you can de ne the derivation using an enhancement.
Posting Example for Consumable Materials

Use
The posting example shows the effect of business transactions in the Materials Management (MM) component on FI G/L
accounts and updates in Funds Management .
Prerequisites
Master data
Commitment items are assigned to the G/L accounts in the SAP Library under Deriving commitment item from
G/L account .
Funds centers are assigned to the cost centers in the SAP Library under Deriving FM account assignment
elements from the CO account assignments .
Update pro le 100 Funds Management Government IMG under Actual and
6/22/2020
In the SAP Library under Update Pro le .

Settings.
Deductible input tax

and Purchases.

Postings

Debit Credit Funds center Commitment

Item
Purchase Cost center Expenditure

requisition commitment item
from
consumption
account (without
tax)
Purchase Cost center Expenditure

order commitment item
from
consumption
account (without
tax)
Goods
receipts
valuated Consumption
GR/IR
(Freight
clearing)
(Customs
clearing)
non-valuated
Invoice
parking
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Save invoice Cost center Expenditure

completely commitment item
from
consumption
account (without
tax)
Post invoice
GR valuated GR/IR Cost center Expenditure

Invoice commitment item
amount = from
Order amount consumption
account
Vendor
GR non- Consumption Cost center Expenditure

valuated (also (for invoice commitment item
for unplanned value) from
delivery costs) consumption
account
(Input tax) (Cost center) (Expenditure

commitment
item from
consumption
account)
Vendor
Input tax (Input tax) (Cost center)

GR non-
valuated
(also for
unplanned
delivery
costs)
(Expenditure
commitment item
from
consumption
account)
Freight (Freight (Cost center) (Expenditure

clearing clearing) commitment item
from
consumption
account)
Customs (Customs (Cost center) (Expenditure

clearing clearing) commitment item
from
consumption
account)
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GR valuated Consumption Cost center Expenditure

Invoice commitment item
amount > from
account
(also for
unplanned
delivery costs)
GR valuated Consumption Cost center Expenditure

and Invoice commitment item
amount < from
account
Small Small Cost center Expenditure

differences differences commitment item
(GR/orders to from small
DN) differences
account (incl. tax)
Small Cost center Revenue

item from
small
differences
account (incl.
tax)
Differences Differences Cost center Expenditure

due to due to commitment item
exchange rate exchange rate from differences
rounding rounding due to exchange
rate rounding
account
Differences Cost center Revenue

due to commitment
exchange rate item from
rounding differences
due to
exchange rate
rounding
account
Cash discount Cash discount

(net clearing
procedure)
commitment
item from
consumption
account
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Subsequent Consumption Cost center Expenditure

adjustment, commitment item
no amount from
change consumption
account
(Input tax) (Cost center) (Expenditure

commitment
item from
consumption
account)
Vendor
Credit memo All postings from invoice receipt and subsequent debit invoice reversed depending on current stock
situation.
Overview of Posting Ex. Consumable

Materials/Warehouse Concepts
Postings of the posting examples for consumable materials and warehouse concepts are summarized in the following overview.
Depicted is the following: To which FM account assignments (commitment item and funds center) is posting done and whether the
postings are only performed as statistical or "real".
Summary of posting examples
Business Consumable Warehouse concept Warehouse concept Warehouse concept Warehouse concept
transaction material 2 3 4
no account assigned
account assigned no account assigned no account assigned no account assigned
Purchase requisition ConsA/CC/R Stock/PO/R Stock/TFC/S Stock/Whse/R Stock/Whse/R
Purchase order ConsA/CC/R Stock/PO/R Stock/TFC/S Stock/Whse/R Stock/Whse/R
Goods receipts
Invoice parking
Complete invoice ConsA/CC/R Stock/PO/R Stock/TFC/S Stock/Whse/R Stock/Whse/R
Invoice ConsA/CC/R Stock/PO/R Stock/TFC/S Stock/Whse/R Stock/Whse/R
Price difference ConsA/CC/R Stock/PO/R Stock/TFC/S Stock/Whse/R Stock/Whse/R
Small difference SmDif/CC/R SmDif/CC/R SmDif/CC/R SmDif/CC/R SmDif/CC/R
Difference due to Rate/CC/R Rate/CC/R Rate/CC/R Rate/CC/R Rate/CC/R

exchange rate
rounding
Exchange rate Stock/PO/R Stock/TFC/S Stock/Whse/R Stock/Whse/R

difference
Cash discount ConsA/CC/R Stock/PO/R Stock/TFC/S Stock/Whse/R Stock/Whse/R
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Reservation
Stock line Stock/TFC/S Stock/TFC/S Stock/Whse/R Stock/Whse/S
Consumption ConsA/CC/S ConsA/CC/R ConsA/CC/R ConsA/CC/R
Inventory Inv/CC/S Inv/CC/R Inv/CC/R Inv/CC/R
Scrapping Scrap/CC/S Scrap/CC/R Scrap/CC/R Scrap/CC/R
Stock transfer STrans/CC/S STrans/CC/R STrans/CC/R STrans/CC/R
Revaluation Reval/CC/S Reval/CC/R Reval/CC/R Reval/CC/R
Legend:
Commitment item
Commitment item derived from FI accounts Abbreviation
Consumption account ConsA
Small differences SmDif
Differences due to exchange rate rounding Rate
Stock Stock
Inventory differences Inv
Scrapping Scrap
Stock transfer STrans
Revaluation Reval
Warehouse Whse
Funds center
Funds center derived/posted to Abbreviation
Cost center CC
Purchase order PO
Top funds center TFC
Warehouse funds center WFC
Updating
Type of update Abbreviation
"Real" R
Statistical S
No update No entry
See also:
6/22/2020
Posting Example for Consumable Materials
Commitment Plan for Purchase Contracts

Use
You can use the commitment plan to preplan value consumption on purchase contracts.
Integration
You need to have Funds Management (FM) and Materials Management (MM) installed, con gured, and active.
Prerequisites
Some customizing is required. See the Activities section below.
Activities
To carry out the required customizing, proceed as follows:
1. Make the necessary customizing settings in the FM Implementation Guide (IMG). To do this, go to the FM IMG and choose
Actual and Commitment Update/Integration Integration Integration Contracts . Then follow the instructions given in
the IMG documentation.
2. Activate the commitment plan in Purchasing. To do this, go to the MM IMG and choose Purchasing Contract De ne
Screen Layout at Document Level .
3. Choose the relevant contract(s) and de ne plan elds as you would the other purchase elds.
Result
A commitment plan is generated for each document item in the relevant contract. Each document item can itself have any
number of items.
You can de ne a value and validity date for each commitment plan item. The system generates an earmarked funds
document for a de ne commitment plan item. The earmarked funds document can, in turn, contain several different items
with different account assignments.
If a purchase requisition or purchase order references this contract, the earmarked funds document is copied to the
purchase order and the account assignment is adopted from that document. Account assignment to a different account
assignment object is then no longer allowed.
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Revaluation of Open Amounts in Purchase

Orders
Use
For purchase orders in Funds Management, the transaction currency may differ to the local currency. If the exchange rate between
the transaction currency and the local currency has changed at the time of document reduction, you need to recalculate the open
amounts.
Integration
You can use program Revaluation of Purchase Orders (RFFM_REVALUATION_PO) to recalculate the amounts which have not yet
been reduced in the corresponding local currency for Funds Management purchase order documents where the transaction
currency does not match the local currency.
This applies to all open documents that are updated in Funds Management under the value type 51, were entered in a foreign
currency, and are currently in the selected FM area and scal year.
Prerequisites
Note that down payments and down payment requests should always be entered in the document currency of the relevant
purchase order.
Exchange rate changes to currencies at condition level of the purchase order document items are not included in the revaluation.
Activities
You de ne the FM area the rst time you call the program. To change the FM area, choose Environment -> Change FM Area .
You can restrict processing for purchase orders using the following selection options:
Document number
Company code
Transaction currency
 Note
Documents that were entered in the FM area currency are not included.
You can restrict processing of purchase orders further by specifying FM account assignment elements:
Fund
Funds center
Commitment item
Functional area
Funded program (and grant)
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Purchase orders are processed if they contain at least one account assignment line or item that is open from a Funds Management
point of view, are in the selected FM area and scal year, and satisfy the account assignment restriction.
 Caution
If period-based encumbrance tracking takes place in your system, the account assignment restriction could affect an earlier
account assignment even though it may have been reassigned in the meantime.
You can restrict the purchase orders by de ning whether to process only documents that were changed by the reassignment in
the FM area, in the transaction currency, or in both.
Note: you require the determination of the delta amount before/after for this restriction. Output option Document-Based without
Amounts is not possible for this.
You can de ne the new exchange currency as follows:
By referring to the exchange rate information de ned in the system using the conversion date and the exchange rate type.
By entering an exchange rate.
Note that if you enter an exchange rate, you have to de ne one transaction currency.
You can control the ow and output of the program as follows:
Test Run
When you select this eld, a log is generated. Data is neither updated nor changed in the database.
You have three options for output control:
1. Document-based:
The output list displays the purchase order document numbers and the revaluation amounts.
2. Document-based without amounts:
The output list displays the purchase order document numbers and, due to its simplicity, helps performance.
3. Account assignment-based:
The output list is summarized on FM account assignment elements and also displays the revaluation amounts.
You can go to the document display by double-clicking on a purchase order number in the output list if you have
selected the option Document-based or Document-based without Amounts .
After executing the program, you can see whether the revaluation of a purchase order was successful or not in the Status eld of
the output list.
A message can appear in the Message Text eld of the output list. If there are several messages for an item, the symbol
(warning) appears in the More Errors eld. Select this eld to go to the display of all the messages that were issued during
processing of the purchase order. You can go to the display of the message long text from the list of messages by double-clicking.
Multiple Account Assignments with Final

Account Assignment Indicators
Use
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This business function allows you more exibility when dealing with time-limited funds or similar account assignment features
that are used in purchase orders with multiple account assignments. Using the nal account assignment indicator (FAA indicator)
you can close individual account assignment items for further quantity postings before the end of the procurement process. You
can set the FAA indicator at account assignment level in material and service items.
Process
1. You create a purchase order manually or using a BAPI and create multiple account assignments for a purchase order item.
In the details of the purchase order item, you specify whether you are expecting a goods receipt. If you are only expecting
an invoice receipt, you must not have created an invoicing plan, and you must have deselected the AA Chgable at IR
(Account Assignment Changeable at Invoice Receipt) checkbox for the corresponding account assignment categories in
Customizing for Materials Management. If you are expecting a goods receipt, it must be valuated. You do not ag the
purchase order item as a returns item. If you want to create service items (item type D) and set an FAA indicator for them,
you must have activated service-based invoice veri cation.
2. You create follow-on documents, such as goods or invoice receipts, with reference to the purchase order item that you
created with multiple account assignments.
3. You set the FAA indicator in one or more account assignment items.
The system determines the nal account assignment quantity from the purchase order history. To do this, the system
compares the quantities posted to this account assignment item from goods receipts and incoming invoices, and sets the
higher of the two as the nal account assignment quantity.
4. You create further goods or invoice receipts for the corresponding purchase order item.
The system only distributes further quantities from partial goods receipts or invoice receipts to the account assignment
item with an FAA indicator up to the level of the nal account assignment quantity.
More Information
For further information on the individual steps in this process, see:
Setting the Final Account Assignment Indicator in Purchase Orders
Goods Movements for Purchase Orders with a Final Account Assignment Indicator
Creating Incoming Invoices for Purchase Orders with a Final Account Assignment Indicator
Setting the Final Account Assignment Indicator for Services
Setting the Final Account Assignment

Indicator in Purchase Orders
Use
This function allows you to prevent further quantity postings to single account assignment items (AA items) and - if encumbrance
tracking takes place for the account assignment - to reduce the open commitment value accordingly.
Prerequisites
In Customizing for Materials Management, under Purchasing Purchase Order De ne Final Account Assignment Reasons , you
have de ned nal account assignment reasons that are available to the user in entry help during purchase order processing. If you
6/22/2020
set the nal account assignment indicator (FAA indicator) in an AA item without setting a nal account assignment reason, the
system displays a message. In Customizing you can de ne this message as a warning or an error message.
By default the system does not include quantities from parked invoices when determining the nal account assignment quantity
(FAA quantity). However, if you want the system to include invoices with the status parked as complete or parked released when
calculating the FAA quantity, you must specify this in Customizing for Public Sector Management, under Funds Management
Government Actual and Commitment Update/Integration Integration Integration Materials Management Apply Parked
Invoices in Calculating Final Account Assignment Quantity .
You can only set the FAA indicator if the following conditions have been ful lled:
You have created the purchase order manually or using a BAPI.
You have created multiple account assignments for the purchase order.
You have already created follow-on documents, such as goods receipts or invoice receipts, for the purchase order.
You have not agged the purchase order item as a returns item.
If you want to create service items (item type D) and set an FAA indicator for them, you must have activated service-based
invoice veri cation. In unplanned service lines (up to a limit), the FAA indicator is simply for information purposes.
You have made the appropriate goods receipt settings on the Delivery tab:
If you are expecting a goods receipt for the purchase order item, you have deselected the GR Non-Valuated
checkbox.
If you are not expecting a goods receipt for the purchase order position, and have deselected the Goods Receipt
checkbox, you cannot invoice this purchase order item using an invoicing plan. Once you have set the FAA indicator
for an account assignment item, the system no longer allows you to create invoicing plans on the Invoice tab. If you
have already created an invoicing plan for a purchase order item, you can no longer set the FAA indicator for the
assigned account assignment items.
If you are not expecting a goods receipt for the purchase order item, you are not longer permitted to change the
account assignments for the purchase order item during invoice entry. The system only displays the FAA indicator
in the purchase order if you have not selected the AA Chgable at IR (Account Assignment Changeable at Invoice
Receipt) checkbox in Customizing for Materials Management, under Purchasing Account Assignment Maintain
Account Assignment Categories .
Features
Setting the Final Account Assignment Indicator
If you want to limit further quantity postings to an account assignment item, select the Final AA Indicator checkbox. To document
why you have set the FAA indicator for this account assignment item, you can select a nal account assignment reason (FAA
reason). If the related message is de ned as an error message in Customizing, you cannot set the FAA indicator and save without
entering an appropriate FAA reason.
If you remove the FAA indicator from an AA item, the system posts quantities to the item again at the next partial goods receipt or
invoice receipt, according to the distribution speci ed by you.
Determining the Final Account Assignment Quantity
When you set the FAA indicator, the system determines the FAA quantity from the purchase order history, and reduces the original
AA quantity that was stored there accordingly. The system determines the FAA quantity based on delivered and invoiced material
quantities, but does not include delivery costs in the calculation. The FAA quantity determined by the system then applies to
material items and planned delivery costs.
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The system calculates the FAA quantity depending on the distribution logic selected by you:
If you have selected distribution by quantity, the system compares the delivered and invoiced quantities for this AA item,
and sets the higher of the two as the FAA quantity.
If you have selected distribution by amount, the system compares the delivered and invoiced quantities for this AA item,
which it has calculated to the oating point from the amounts, and sets the higher of the two as the FAA quantity. In the
case of distribution by amount, the system saves the FAA quantity to the oating point and displays it on the screen
rounded to three decimal places.
If you have chosen percentage distribution and then set the FAA indicator, the system changes the distribution logic to
distribution by quantity. This is necessary in order to avoid rounding errors when distributing the remaining quantity.
 Caution
We therefore recommend that you do not choose percentage distribution if you want to work with the FAA indicator in your
procurement process.
The system only distributes subsequent partial goods receipts and invoice receipts to AA items with an FAA indicator up to the
level of the FAA quantity. The system always distributes quantities to items with with FAA indicators on a progressive ll-up basis,
even if you speci ed a different distribution in the partial invoice indicator.
Redistributing the Quantity Difference
When the system has determined the FAA quantity from the purchase order history, it reduces the originally entered AA quantity
to match the FAA quantity. After you have set the FAA indicator, the sum of the quantities at account assignment level is lower
than the previously entered purchase order item quantity.
You can balance out the ensuing quantity difference in the following ways:
You can reduce the quantity at purchase order item level by the difference in quantities.
You can specify in a Business Add-In (BAdI) how you want the system to distribute the quantity difference across the
remaining open account assignment items. If you implement the BAdI: Adjust MAA Distribution for Final Account
Assignment (ME_MAA_ADJUST), you can trigger a redistribution of the quantity or value difference according to an
algorithm stored by you. You can do this in the details of the purchase order item on the Account Assignment tab using the
Adjust Distribution pushbutton. The example implementation CL_EXM_ME_MAA_ADJUST is available for this BAdI.
You can distribute the quantity difference manually across the remaining open account assignment items.
You can add new account assignment items and post the quantity difference to these items.
Deselecting the Final Account Assignment Indicator
If you remove the FAA indicator from an AA item, the system posts quantities to the item again at the next partial goods receipt or
invoice receipt - according to the distribution speci ed by you.
More Information
For further information on the effects of the FAA indicator on your procurement process, see:
Goods Movements for Purchase Orders with a Final Account Assignment Indicator
6/22/2020
Goods Movements for Purchase Orders with

a Final Account Assignment Indicator
Use
In items with a nal account assignment indicator (FAA indicator) you can only post further goods receipt quantities up to the level
of the nal account assignment quantity (FAA quantity) that the system determined when the FAA indicator was set.
Prerequisites
You have set the FAA indicator for at least one account assignment item (AA item) in the purchase order. For further information,
see Setting the Final Account Assignment Indicator in Purchase Orders.
Features
Clearing an Invoice Surplus
If there are quantities that have been invoiced but not yet delivered, the system determines the FAA quantity based on the invoice
quantity. In that case the FAA quantity is higher than the quantity of goods received posted to this assignment up to now. To clear
this invoice surplus, the system distributes further partial goods receipt quantities to items with an FAA indicator up to the level of
the FAA quantity. The system distributes quantities according to the following logic:
1. First, the system distributes the quantity of goods received proportionally across all AA items with an invoice surplus,
regardless of whether these items have an FAA indicator or not.
2. Once the invoice surplus has been cleared, the system distributes the goods receipt surplus on a progressive ll-up basis to
items with an FAA indicator, up to the level of the FAA quantity.
3. Finally, the system distributes the remaining quantity of goods received, in accordance with your settings in the partial
invoice indicator, across all AA items without FAA indicators.
Creating Return Deliveries
In the case of return deliveries, the system distributes the quantity being returned proportionally across the account assignments
of the purchase order items, so that the quantities, including those of the items with an FAA indicator, are reduced accordingly.
The next time there is a partial goods receipt, the system distributes the quantity to AA items with FAA indicators up to the level of
their respective FAA quantities. If you create return deliveries for purchase orders with distribution by quantity or percentage
distribution, and you want to distribute the returned quantity to the account assignments manually, you can use the example
implementation CL_EX_MB_ACCOUNTING_DISTRIBUTE of the BAdI: Multiple Account Assignment - Redistribution in Goods
Receipt (MB_ACCOUNTING_DISTRIBUTE). The system then displays an additional screen, on which you can manually overwrite
the proposed distribution, check your new distribution, or reinstate the original distribution suggestion.
Overdeliveries
If you allow overdeliveries for a purchase order item with multiple account assignments, and enter overdelivery tolerances on the
Delivery tab, the FAA indicator in uences the distribution of the overdelivered quantities:
You have set the FAA indicator for individual AA items before you create an overdelivery for the purchase order item.
The system calculates the allowed level of overdelivery based on the purchase order quantity, and distributes the
overdelivered quantity solely to items with no FAA indicator. Subsequent overdeliveries do not increase the FAA quantity
that the system has already determined for items with an FAA indicator.
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You create overdeliveries before you set the FAA indicator for individual account assignment items.
Overdelivered quantities that were created for an AA item before the FAA indicator was set increase the quantity of goods
received of that AA item. Since the system determines the FAA quantity based on the quantity of goods received and the
invoice quantity, the FAA quantity also includes overdeliveries that are entered as goods receipts. This can have the effect
that the FAA quantity of an AA item exceeds the originally ordered quantity. In the same way, in later reversals or return
deliveries the system does not match the FAA quantity to the ordered quantity, and it distributes quantities from substitute
deliveries to AA items with FAA indicators up to the level of the FAA quantity.
Creating Incoming Invoices for Purchase

Orders with a Final Account Assignment
Indicator
Use
In items with a nal account assignment indicator (FAA indicator) you can only post further invoice quantities up to the level of the
nal account assignment quantity (FAA quantity) that the system determined when the FAA indicator was set.
Prerequisites
You have set the FAA indicator for at least one account assignment item (AA item) in the purchase order. For further information,
see Setting the Final Account Assignment Indicator in Purchase Orders.
If you want the system to include invoices that are parked as complete when calculating the FAA quantity and the open quantity,
you must select the appropriate checkbox in Customizing for Public Sector Management, under Funds Management
Government Actual and Commitment Update/Integration Integration Integration Materials Management Apply Parked
Invoices in Calculating Final Account Assignment Quantity .
Features
Creating Invoice Quantities
When you create incoming invoices for purchase orders that include AA items with an FAA indicator, the system rst proposes
distribution according to the standard logic for purchase orders with multiple account assignments. For all items with an FAA
indicator, the multiple account assignment screen shows not only the FAA indicator and the FAA quantity, but also the open
quantity that is currently allowed to be posted to each item with an FAA indicator. The system determines this open quantity by
calculating the difference between the FAA quantity and the invoice quantities that have already been posted to the AA item.
For purchase orders containing AA items with an FAA indicator, you can trigger a redistribution on the multiple account
assignment screen, which the system performs in accordance with the distribution logic selected in the purchase order.
If you have selected percentage distribution or distribution by quantity in the purchase order and then change the total
quantity on the multiple account assignment screen, the system distributes the invoice quantity according to the following
distribution logic:
1. The system rst distributes the invoice quantity across all AA items with a goods receipt surplus. When doing this,
the system rst clears the goods receipt surplus in items with an FAA indicator, using the progressive ll-up
distribution logic. Then the system distributes the invoice quantity according to your settings in the partial invoice
indicator to all other AA items with a goods receipt surplus.
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2. Once the goods receipt surplus has been cleared, the system distributes the invoice surplus by lling the items with
an FAA indicator up to the FAA quantity.
3. Finally, the system distributes the remaining invoice quantity, in accordance with your settings in the partial invoice
indicator, across all account assignment items without FAA indicators.
If you selected distribution by amount in the purchase order, the system does not, by default, display any quantities at
account assignment level. However, the redistribution is based on the quantities calculated from the amounts, so that
subsequent price increases do not in uence the FAA quantity. If you change the total quantity, select new AA items,
deselect proposed AA items, or choose the Update Account Assignments pushbutton, the system distributes the invoice
quantity according to the following distribution logic:
1. First, the system distributes the invoice quantity, taking into account the total quantity, the total amount, and the
account assignment amounts, across all account assignment items. If the quantity that the system calculates for
individual items with FAA indicators exceeds the FAA quantity, the system only assigns the quantities up to the level
of the FAA quantity, and distributes the quantity difference in two further steps.
2. First, the system distributes the quantity difference on a ll-up basis to items with an FAA indicator for which the
calculated and assigned quantities did not exceed the FAA quantity in the rst step. The quantities in these items
with an FAA indicator are lled up to the level of the FAA quantity.
3. The system then distributes the remaining invoice quantity to all account assignment items without an FAA
indicator, taking into account the total quantity, the total amount, and the amounts of all items without an FAA
indicator.
If you trigger a redistribution of the invoice quantity in purchase orders containing AA items with an FAA indicator, the system only
changes the quantities. The amounts remain unchanged, with the effect that price differences arise.
 Note
The distribution logic described here only applies when you are creating incoming invoices. Since, in the case of subsequent
debits and credits, the system only updates the ordering transaction in terms of amounts, it distributes subsequent debits and
credits as well as credit memos according to the standard logic for purchase orders with multiple account assignments, also
when the FAA indicator is set. In addition, the distribution logic described above only applies when all requirements for setting
the FAA indicator have been met in the referenced purchase order (you can nd the requirements under Setting the Final
Account Assignment Indicator in Purchase Orders).
Processing Parked Incoming Invoices
In general, the system does not take into account parked invoices when calculating the FAA quantity or the open quantity. This
means that you can no longer post parked invoice quantities in the planned account assignment if the FAA indicator has been set
for individual AA items in the meantime. For parked as complete invoices, you can specify in Customizing that you want the
system to include these when calculating the FAA quantity. If you have selected the checkbox in the above-mentioned
Customizing for Public Sector Management, you can still post parked as complete invoices with the planned account assignment
after the FAA indicator has been set.
When you park invoices, or post parked invoices that reference a purchase order with an FAA indicator, the multiple account
assignment screen displays the FAA indicator, the FAA quantity, the open quantity, and the Update Account Assignments
pushbutton. This pushbutton allows you to overwrite parked account assignment data with the current account assignment data
from the purchase order (account assignment objects, newly added AA items). Then you adjust the quantities for the AA items
such that the open quantity of the items with an FAA indicator is greater than or equal to zero.
 Note
If goods-receipt-based invoice veri cation is activated in the referenced purchase order item, the system only displays the
newly created AA items if you have already created a goods receipt or subsequent delivery for them.
6/22/2020
Invoicing Planned Delivery Costs
When you set the FAA indicator in the purchase order, the system determines the FAA quantity based on delivered and invoiced
material quantities, but does not include delivery costs in the calculation.
Even if you create goods receipts or invoice receipts for delivery costs that are higher than those for the corresponding material
items, the system determines the FAA quantity solely based on the material quantities created. If the quantity of delivery costs
created exceeds the FAA quantity at the time of the nal account assignment, the maximum delivery cost quantity is higher than
the FAA quantity.
Invoicing Purchase Order Items without Goods Receipt
You can also set the FAA indicator for AA items if no goods receipt is permitted or expected for the purchase order item. The
system distributes the invoice quantity to the AA items according to the distribution logic described above. However, you can only
set the FAA indicator in purchase order items without a goods receipt if you have not created an invoicing plan, and if you have
speci ed in the invoice that the account assignments cannot be changed. For further information, see Setting the Final Account
Assignment Indicator in Purchase Orders.
Setting the Final Account Assignment

Indicator for Services
Use
This function allows you to prevent further quantity postings against account assignments for service items in a purchase order
(PO) with multiple account assignments, and reduce the open commitment value accordingly. You can use this function to
redistribute quantities when you have account assignments that will expire at a particular point in time, such as at the end of the
scal or calendar year.
Prerequisites
The following requirements must rst be met before you can set the nal account assignment (FAA) indicator for individual
service items in a PO:
You have created the PO manually. The PO has not been created as a follow-on from another document or from another
application.
You have created multiple account assignments for the PO
You have selected Service-Based Veri cation, on the Invoice tab of the PO. In unplanned service lines (up to a limit), the
FAA indicator is purely for information purposes
If applicable, you have selected the GR Non-Valuated indicator, on the Delivery tab of the PO. When the service-based
veri cation indicator is set in a PO but the GR indicator is not, new accounting lines cannot be added, and the entry elds
on the Account Assignment tab of the SES will either be open or closed for input based on the SES Account Changeable
indicator setting in Customizing. To select the SES Account Changeable indicator, in Customizing for Materials
Management, go to External Services Management> Source Determination and Default Values> for Client>SES
Account Changeable.
For more information on the general requirements for setting the FAA indicator for account assignment items in a purchase order
(PO), see: Setting the Final Account Assignment Indicator in Purchase Orders.
Features
6/22/2020
Setting the Final Account Assignment Indicator
If you want to prevent further postings to an account assignment for a service item, select the Final AA indicator in the account
assignment details at service item level. To document why you have set the FAA indicator for this item, you can select a nal
account assignment reason (FAA reason). For more information on setting the Final AA reason, see: Setting the Final Account
Assignment Indicator in Purchase Orders.
Determining the Final Account Assignment Quantity
When you set the FAA indicator, the system determines from the purchase order history the quantity that has already been posted
to this service item, and sets the higher of the SES or IR quantity as the nal account assignment quantity. In the case of
distribution by amount, the nal account assignment quantity is calculated and stored to the oating point. The system returns
any remaining budget back to Funds Management. When you set the FAA indicator, if the distribution is based on percentage, the
system changes the distribution from percentage to quantity.
Distributing the Quantity Difference
When you set the FAA indicator for a service item, overages when creating a SES, and rounding differences, are not posted to any
account assignment lines on which the FAA indicator is set. The system checks the distribution proportions in the PO, and
proposes the open quantity in the same proportion in the SES. When you set the FAA indicator for a service item in a PO in which
partial follow-on documents have been posted, the system displays a message informing you that the SES or IR distribution logic
is changing to the ll-up method.
When the system sets the nal account assignment quantity, you can distribute the difference between the old and the new
quantity in the following ways:
You can manually reduce the service quantity at PO item level
You can add new account assignment items and post the quantity difference to these items
You can distribute the quantity difference manually across the remaining open account assignment items
You can specify in the BAdI (Business Add-In) MMSRV_ACC_DIST_PO how you want the system to distribute the quantity
difference across the remaining open account assignment items. You can also use the example implementation
MMRV_ACC_DIST_PO_IMPL available for this BAdI to distribute the quantity difference across the open account
assignment items. You activate the BAdI by clicking the Adjust Distribution button in Account Assignment screen of the
service item.
Revoking a Service Entry Sheet
When you revoke a SES that has the FAA indicator set on an account assignment line, the system processes the reversal exactly as
the SES was originally posted regardless of any account assignment lines that may now be closed due to the FAA indicator being
set. The quantities in the referenced PO cannot be changed or entered until you delete the revoked SES. A revoked SES remains
open to be posted again.
More Information
For further information on the FAA indicator functionality in your procurement process, see:
Goods Movements for Purchase Orders with a Final Account Assignment indicator

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Integration with Materials Management

Purchase requisition, purchase order, scheduling agreement

Goods receipt, goods issue, transfer

Invoice veri cation

Invoice receipt, logistics invoice veri cation, credit memo as document

Assigned purchase orders/purchase requisitions

Time when the purchase order commitment is redeemed

Displaying redemption of purchase order commitment in the information system

Value-based and quantity-based commitments

You post a goods receipt above 500 at the price of 9

For value-based updates, an amount of 4,500 is updated.

For quantity-based updates, an amount of 5,000 is updated.

Updating Goods Receipt and Invoice Receipt

Invoice receipt occurs before the goods receipt

Business Display in the Information System

Purchase order 4711 Purchase orders Original RMBE 100

Invoice 4712 Invoices Original RMRP 100

4711 Purchase orders Reduction RMBE -100

Goods receipt 4713 Invoices Original RMWE 100

4713 Invoices Reduction RMWE -100

Goods receipt occurs before the invoice receipt

Business Display in the Information System

Purchase order 4720 Purchase orders Original RMBE 100

Goods receipt 4721 Invoices Original RMWE 100

4720 Purchase orders Reduction RMBE -100

Invoice 4722 Invoices Original RMRP 100

4721 Invoices Reduction RMWE -100

Creating Credit Memos

Reversal quantity greater than quantity invoiced to date

Reverse entry value set automatically for full reversal

Reversal value is greater than value invoiced to date

You post a credit memo as follows.

The Logistics Invoice Veri cation screen appears.

1. Choose the transaction Credit memo .

1. Save your entries.

The system posts the credit memo

Displaying Settlement of Purchase Order

Customizing of Funds Management Government

Customizing Global Settings

PO value Goods receipt Deleted/blocked Delivery Original Reductn Adjustment Total

100 120 100 - 120 20 0

11 11 10 10 0 0 121 -100 -10 11

11 11 9 11 0 0 121 -99 -22 0

11 11 10 10 0 0 X 121 -100 -21 0

100 120 100 - 120 20 0

PO price PO qty IR price IR qty Delivery Original Reducn Adjust-ment Total

11 11 10 10 121 -100 -10 11

11 11 9 11 121 -99 -22 0

11 11 10 10 X 121 -100 -21 0

Integration: Stock Material Procurement –

Whether your own budget should be made available to the warehouse.

Goods issue postings are only updated statistically.

Only the goods issue determines the budget assignments