Legacy FM mapping in SAP

[Former Member]

Dear All,

Please suggest the following mapping of FM into SAP is correct or not, we are into UAT for all the modules....

In Legacy:

1. In legacy budget is controlling with a job code which is nothing but a specific cost

2. One G/L will be booked against so many job code...at present they are getting a report under once g/l what is the job code and cost centre details for budget and actuals

In SAP:

To meet the above requirement we suggested as follows (is it a feasible solution..):

Department = Fund

Cost centre = Fund Centre

Job code = Commitment item

Note: Because of each job code as commitment item, we are not able to write derivation rule (since against one g/l code we have several commitment items), but can we derive automatically Fund and Fund centre automatically through derivation (I tried derivation for Fund and Fund Centre but it is not working)

Because of this issue, we are entering FUND, FC, CI manually

Regards,

Upendar Singh

[iklovski]

Hi,

Through FMDERIVE you can derive whatever FM object, obviously including fund, fund centre, etc. Regarding the mapping itself, it's a bit difficult to establish without knowing your legacy system. What you have to check during UAT, that

a) you can clearly distinguish between different FM objects

b) these objects have perspective of future possible change

c) budget structure is simple to mainetenance

d) FM objects are derived in a non-ambiguous way

Regards,

Eli

[Former Member]

Dear Eli,

Thanks for inputs

In legacy our client is controlling budget through a job code wise, basically it is a sugar industry

Job code is created based on expense not based on G/L, so for one g/l account there are many expenses postings from the several job code... finally in legacy they are having very important report for each g/l account wise containing actuals and budgeted value for job code wise

So for the above reason it is not possible to write derivation rule as once g/l contains several commitment item (CI = Job code)

At least if I can derive automatically FUND and Fund Centre  is well and good (entering commitment item as manual ), but system is not picking if we write derivation only for FUND and FC... but if I write derivation for all three FD, FC, CI then there is no issue.

Kindly suggest.

Regards,

Upendar Singh

[iklovski]

Hi,

 but system is not picking if we write derivation only for FUND and FC...

As I said, you can derive whatever object you want to. If your rules are not working, set a trace on FMDERIVE and see why. Your notion of 'job' sounds more like CO object, e.g. internal order.

Again, I'm not quite sure about your goals. If you want to simply copy budget management system, then I cannot understand why you map department as fund source, cost centre as fund centre, etc. If your intention is to change budget system, then it's another story.

Regards,

Eli

[Former Member]

Dear Eli,

Thanks for update.

Certainly in our case Job Code is not CO object, it is nothing but all revenue expenses are created as job codes to have better control.

Kindly suggest what would be the best mapping for FM to get better control in budget.

Regards,

Upendar Singh

[iklovski]

Well, I cannot tell why you think 'Job code' in not a CO object, if it's supposed to control expenses, but never mind... As I said, I cannot suggest a mapping without having a complete view on your legacy system and your objectives in SAP/FM.

[Former Member]

Dear Eli,

Thank you for immediate reply

Complete Current Legacy Budgeting Process:

1. 01. Based on the Cane Crushing forecast the Sugar, Cogeneration and Research & Development departments will submit their annual budget to the Head Office, where as the other departments such as Bio-Tech and Calcium Lactate department will submit based on the estimated production and Distillery department submit based on the availability of Molasses from Sugar cane. This budget is then consolidated and submitted to the management.
2. 02. Percentage of each products produced based on the Sugarcane crushed is as under
   1. 01. Molasses – 5% of Sugarcane crush
   2. 02. Filter cake – 3 to 3.5% of Sugarcane crush
   3. 03. Sugar – 9 to 11% of Sugarcane crush
   4. 04. Begasse - 30% of Sugarcane crush
   5. 05. Boiler Ash – 1-1.5% of Sugarcane crush
3. 03. The budget is provided by each department at each cost centre level belonging to that particular department.
4. 04. The budgeted value for each cost centre is further broken down to each process or activities that are performed by the department and a job code is created for the same.
5. 05. The first two numbers of the job code represents the FY and the next two numbers will represents the unit, and the last digits will remain as constant for similar jobs.
6. 06. This job code is used whenever any purchase is made for this department, through which the availability of the funds (Budget) is checked for the cost centre.
7. 07. In case the available amount for that particular cost centre gets exceeded, the concern department will have to get additional management approval for the exceeded value.
8. 08. For the Capital Budget, the concern department will raise the budgeted amount with the details of pay-back period, Return on investment, No. of months required to implement the project and also with the purpose of the same.
9. 09. Below are the list of Departments :
   1. 01. Agriculture
   2. 02. Engineering
   3. 03. Instrumentation
   4. 04. Electrical
   5. 05. Civil
   6. 06. Process (Manufacture of Products)
   7. 07. Laboratory
   8. 08. Personnel
   9. 09. Administration (Finance and Accounts)
   10. 10. Computer
   11. 11. Transport
   12. 12. Sugar Sales
   13. 13. Security

Kindly suggest based on my above request.

Regards,

Upendar Singh

[Former Member]

Hi,

Based on the information given, I do not see a need to use Public Sector Funds Management. CO Internal Order Budget should satisfy the requirements. Simply map the departments to the cost centers and job codes to the internal orders and configure CO budgeting and AVC. It is obvious that there is no need for the characteristics fund and funds center. By the way, tell your client, there is no need to create a new IO (job code) for each FY; you enter budget for each FY into one IO.

Regards,

Ming

[Former Member]

Hi Ming,

Thanks for your input

Here department is not equal to cost centre, the design of cost centre has many combinations (some times cost centre is base on location, operations sequences in sugar, and personal department equals to cost centre..)

Budget check at PR creation level is required, at PR if we give account assignment category as "F" then stock will not come into inventory, so internal order budget will not work.

Regards,

Upendar Singh