Funds Reservation

[Former Member]

Hi there

Which is the correct behaviour when drawing down on a funds reservation created using FMX1? Assume FR amount of EUR1000

1. FR shows as assigned in funds management i.e. EUR1000. When you draw on the reservation using a purchase requisition for example EUR100, the assigned funds remain the same. The assigned funds amount does not increase but when you drill down, you can see the purchase requisition and follow on documents reported against the FR using the various applicable value types.
2. The purchase requisition amount is added to the assigned funds FR amount. A total of EUR1100 is reported as assigned and yet the purchase requisition was created drawing down on the FR.

We are getting both these behaviours. I thought the 1st beehaviour would be correct.

Please help.

Thanks.

[iklovski]

Hi,

Funds reservation creates a commitment in FM. Assuming, that this value type is not defined as 'statistical' in your FM update profile, it will also consume the budget. When PO is created with a reference to funds reservation, it consumes the commitment, by creating a new commitment (with different value type). If EMF (earmarked fund), as I mentioned, consumed the budget in the first place, then there will be no affect on the budget with the creation of PO. If however, EMF does not consume the budget, it will be consumed with the creation of PO (again, if the update profile is defined in this way). In rare cases, creation of PO with a reference to EMF, will create additional commitment; it will be created only if EMF could be exceeded.

Regards,

Eli