Splitting of Commitment Items PSM-FM

[satyaranjan_swain]

Hello Experts,

There is one marketing expenses GL and management wants to check and consume budgets by splitting that particular GL into Electronic Media, Advertisement Media, Print Media. Can I make these as different commitment items? If so then how can I map these 3 commitment items with a single GL and what would be the derivation strategy. Or any suggestions how to handel this business process in Funds Management?

[iklovski · Accepted solution]

Hi,

If they create internal orders for activities, you can use them as derivation parameter to establish your commitment item. Don't forget that you can equally use budgetary functionalities within CO itself, since they would be using I/O for each budgeted activity. But, of course, if you opt to manage your budget in PSM-FM, then CO budget functionality could be irrelevant.

To sum up, it is possible to have the split you are talking about based on internal order, without any issues.

Regards,

Eli

[satyaranjan_swain · Accepted solution]

Hi Eli,

Business does not want to create internal order also. Is this possible to manually put the commitment item and fund centers by activating screen fields for different business transactions?

[iklovski · Accepted solution]

It is of course possible technically, but very prominent from functional perspective. In most case, people who are in charge of invoice registry have no notion about budgetary aspects. Not to mention the fact that you are getting exposed to many assignment errors, where you would would have to react on a permanent basis.

[iklovski]

Hi,

It is all a question of ability to make this split while posting a document. There should be some dimension which allows you to identify the nature of expense and distinct between Electronic, Print, etc. It can be a cost object, e.g. internal order or some other parameter. It could be also a material group, for example, if your document originates from MM. If such a parameter exists, you can build a derivation rule in FMDERIVE based on it. If it doesn't exist, then you have to either create it or make a split on G/L level already. This second option is more transparent and I'd recommend it, especially if your G/L is derived based on procurement attributes of a material article.

Regards,

Eli

[satyaranjan_swain]

Hi Eli,

Thanks for the quick response. The client has no such cost objects & we have tried to convince for statistical internal order for these activities and they are rigid to accept the solution, also they don't want to create that number of GL accounts since like this expenses items there are around 60 numbers of sub-activities performed under 2 GL accounts. It was earlier tracked by account assignment and document reference. Now they want to have budgets for those activities. The documents are completely FI documents and there are no such other responsibility areas/ cost objects that are differentiating the nature of these activities. So should I create 60 number of commitment items for these 6 GL accounts? Or what would be the other workaround?