Budgetary Ledger

[former_member1310316]

Hi All,

we have implemented Fund Management in the system. As per our client requirement, all commitments (PR,PO and Travel request) has to appear in P&L Account. So it will show surplus or deficit after considering commitments. Client is not interested to carry forward budget to next year. What is the bestway to reflect these commitments in Financial Statments. Is it possible?

To what extent Budgetary ledger will help in this situation. Please guide me.

Regards,

Sree

[iklovski]

Hi,

Commitments will appear in the P&L accounts, which are defined as cost elements, if you switch on the Commitment management in CO.

Regards,

Eli

[former_member1310316]

Hi,

Thanks for your reply. I created all expense GL accounts created as Cost elements only. I checked in OKKP transaction there also commitment managment component active against Controlling area. In fund management, we are using payment budget only but not commitment budget.

Is there any other place to see those commitments in P&L apart from F.01 tranaction.

Regards,

Sreedhar A

[Former Member]

Hi,

In FM using report FMRP_RW_BUDCON - Overview of Budget Consumption, commitment considered in commitment/actual or consumed budget column

In CO using report S_ALR_87013620 - Cost Centers: Actual/Plan/Commitments , commitment displayed in separated column. Make sure you uncheck commitment update in KS02.

Hope this help,

Dewi

[iklovski]

Hi,

In F.01 you won't see them. Use standard CO reports:

S_ALR_87013620 - Cost Centers: Actual/Plan/Commitments

S_ALR_87012999 - Orders: Actual/Plan/Commitments

...,etc.

Regards,

Eli

[former_member1310316]

Hi,

Thanks for your reply.

In our customized reports also we are getting this information as Commitments and Actuals but it is relating to reports. They require as those commitments has to hit GL account so when they are executing P&L Account it has to show either surplus or deficit after considering commitments. I said PO's and Travel requests are commitments only, they wont hit GL account and wont update P&L Accounts. The financial statements generated through F.01 are legally valid and approved by auditors. So they are considering the amount shown against surplus or deficit for next year budget purpose but commitments is not hitting GL account.

Is there any way or is it possible through Budgetary ledger. Can you please explain about Budgetary ledger?

The main objective of the client is at the year end they will consider commitments as actual items to show the correct status of the surplus or deficit of the budget.

Regards,

Sree

[iklovski]

Hi,

Commitments are financial documents and therefore won't be represented in G/L. I hardly can imagine an auditor who will ask such a thing. The reporting, however, provides you the information of the commitments on the level of cost element (G/L account).

I cannot understand the objective: commitment is commitment. When it becomes actual, you will see it in the relevant reports. Meanwhile, it's a mistake showing a commitment as FI posting, as it's not. Budgetary ledger has nothing to do with this requirement as well.

Regards,

Eli

[former_member1310316]

Hi,

Thaks for your information. Actaully i confirmed my client also in the same way but they are insisting this requirement.

Their problem is if they are not considering commitments in the P&L then it will show more surplus. So next year Donors will say you have sufficient fund and they will contribute less amount.

Regards,

Sree

[iklovski]

Your client can always combine two pools of data and presenting it to the donors, if they choose to. However, system cannot be 'fooled' (luckily ) from accounting point of view, by putting commitments to G/L tables.