Fund Accounting OverviewSAP Best Practices Public Sector(Canada)

SAP Best Practices

Fund Accounting – Organizational Structure and Master Data

Fund Accounting

Fund Accounting in the SAP Best Practices for Public Sector Canada package is accomplished through the FI module in combination with Profit Center Accounting. The Funds Management module is not implemented as availability control is not a requirement in the majority of municipalities.

Master Data

A single profit center master record is used to represent both the departmental organizational unit as well as the fund center. The profit center numbering convention can be defined to include a numbering component for both the departmental and fund views.

  Profit center groups are maintained as two distinct hierarchies within a single controlling area: (1) Funds Management view (2) Department (operational) view. Either structure can be defined as the standard hierarchy, with the other created as an alternate reporting group in PCA. Each structure contains all of the profit centers defined in the organization.

Fund Accounting – Plan and Actual Postings

Actual Postings

Document splitting is activated, with profit center defined as the splitting characteristic. In addition, a default Profit Center is not activated, requiring all transactions to be split actively, with actual derivation occurring through the classification configuration.

The exception is the substitution rule for Y2 and Y3 document types originating in HCM.

 

Plan Data

Revenue is planned in FI by profit center. Costs are planned in CO, through cost centers or internal orders. FI is updated by profit center through integrated planning.

Fund Accounting – Year-end and Reporting

Year–End Closing

Fund balances during year-end closing will automatically roll to the Retained Earnings account. If funds balances are maintained by separate balance sheet accounts, manual reallocation of Fund Center balance will be required for year-end closing procedures.

 

 Reporting

The FI module will be used for reporting by fund. Using the profit center group with fund view, reporting will resemble the fund structure of the organization. The profit center group structures provide a basis for further report development using standard tools such as Report Painter.