Fund Accounting (PSM-FA)
This solution is an integrated solution enabling the implementation of Fund Accounting in compliance with generally accepted accounting principles. It includes the steps necessary to integrate accounting and reporting by fund and functional area.
This solution was first developped with a focus on the U.S. public sector entities and was called US Fund Accounting till SAP ECC 6.0, Enhancement Package 3.
Overview of the solution
Fund accounting is supported using one main financial accounting ledger and various subledgers which facilitate the reporting of financial activities for various purposes. The main ledger supports cash and accrual-based accounting in compliance with accounting principles. Subledgers are used to support additional accounting and control requirements, for instance controls required by U.S. public sector entities.
Fund Accounting for Public Sector, from the SAP Service Market Place :
Fund Accounting incorporates the known accounting methods within a unified accounting approach.
While private organizations usually prepare information using an accounting approach that takes into consideration all organizational responsibilities and cross-company aspects, public organizations are normally required to comply with several accounting methods and must report not only on organizational responsibilities, but also on additional accounting aspects, for example, using fund-based accounting and accounting according to the functions a public organization performs. For this reason, SAP Public Sector Accounting contains fund-based accounting and the definition of functional areas of an organization.
- with Funds Management (FM)
- with Controlling (CO) and Project System (PS)
- with Financial Accounting (FI)
Note 518610 contains an overview of the solution and detailed descriptions of the functions.
- Starting from SAP R/3 Enterprise Public Services 1.10 (EA-PS 110) : compliance with GASB 34/35 requirements
- As of SAP R/3 Enterprise Public Services 2.0 : the Fund Accounting solution included a highly flexible
fund message derivation tool.
- As of SAP ECC 5.0, Public Services (EA-PS 500) : Fiducary funds: Automatic transfer posting of P&L account to
balance sheet account
- As of SAP ECC 6.0, Enterprise Extension Public Sector Management 6.0 (EA-PS 600)
- Balancing of CO-FI Real-Time Postings in the General Ledger for Fund Accounting
- Reconciliation Tool and New Data Provider for Controlling Data
- FM to Budgetary Ledger Transfer Enhancements (to update the General Ledger in FI-GL)
- Business Area Available for Funds Management Total Records (FMIT)
Enhancements in SAP ECC 6.0, Enhancement Package 4
- Business function PSM_FA_CI
- Functional area as balancing entry
- Average daily balance-based allocations
- Partial payment by balancing entry
- Partner fund as entry field in FI transaction
- FM update by depreciation run under modified accrual
- Enhancements CO-FM integration
- Extraction of New-GL
- Enhancements of the FM reconciliation tool for New GL tables
- Business Function PSM_FA_CASH
- Cash-Basis Accounting
- Cash-flow Reporting