Settlement to Asset Under Construction in Funds Management

[marketim]

My client has just implemented Project Systems with Budget availability still being controlled from Funds Management. Purchase requisitions are created automatically only through external activities from Network (Capital projects in public sector are outsourced). Purchase Orders from the requisitions go straight to MIRO without Good Receipt. The process works fine until settlement of costs to the Asset Under Construction. During settlement, The accounting document shows the capital expense G/L credit and AUC G/L debit. But in Funds Management, there is a budget reversal against the same capital expense commitment item. This increases the budget availability by the same initial value of commitment created during PO creation.

We created a derivation where AUC derives Dummy FM account assignments but this does not have an effect. Can I get a solution where settlement does not reverse commitment budget?

Please see attached screenshots for accounting document and highlighted reversal in Budget Report

[iklovski · Accepted solution]

Hi,

It is a normal requirement, but I don't see why a rule you created 'has no effect'. Because, normally, that's the way to deal with this kind of requirement. Is the rule not triggered? On what parameter did you base it? You can create a rule which would look at business transaction, and in case of settlement, derive the dummy commitment item.

Regards,

Eli

[marketim · Accepted solution]

Hi Eli, the rule is triggered when tested. We created a rule that looked at transaction type.

The derivation is given as > AUC derives dummy Commitment Item/fund/fund center/functional area/funded programme. On the Conditions tab, the rule is only executed when Transaction Type = 920 (as seen in the accounting document report)

But on posting, budget commitment is still reversed.

[iklovski · Accepted solution]

Make sure that the commitment item overwrites the existing value; it is a setting in the rule.

[marketim · Accepted solution]

Thank you very much eli.klovski , the commitment item overwrites the existing value settings worked. Commitment budget is no longer reversed.

[CesarCarreno]

Hi Mark, my recommendation is that dummy commitment item should have financial transaction 50 and in the derivation step use the suitable CO transaction for settlement as source field.

Regards

César

[marketim]

Hi Cesar, when we created the commitment item with financial transaction 50, the settlement transaction produced errors. We had to make it financial transaction 90, commitment category 01.