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SAP Funds Management: the budget that says no before you spend
FM checks every purchase against an approved budget and can stop it before it is saved. Here is how it works, and the transactions users and consultants need.
- SAP S/4HANA
- SAP ERP
- Budget Control System
of 100,000Commitments + actuals · 7,000 left15,000.00OPEX-2026Funds centerIT-OPSCommitment itemSOFTWAREFMAVC005Annual budget exceeded by 8,000 for document item 1What Funds Management is
Funds Management in one minute
Controlling tells you where the money went. Funds Management (FM) decides whether you may spend it at all: it checks purchase requisitions, purchase orders and invoices against an approved budget, and can stop a document before it is saved. Further down this page you will follow one purchase through the budget, decode the transactions key users and consultants need, and find answers to the questions people ask most. Use the Key user and Consultant switch at the top to show or hide the technical layer.
Picture a household that splits its salary into envelopes: rent, food, holidays. Before buying anything, you check the right envelope. FM does the same for an organization. The approved budget sits in envelopes defined by a budget address, and every document that will cost money draws from its envelope the moment it is created, long before the money leaves the bank.
Controlling (CO)
“Where did the cost go?”Collects costs on cost centers, internal orders and projects once they are posted, and compares them with plans. It looks back.
Funds Management (FM)
“Can we still spend?”Holds the approved budget and checks each commitment and actual posting against it, warning or blocking when an envelope runs dry. It looks ahead.
Both at once
One posting, two viewsA posting to a cost center also lands in FM. A derivation strategy finds the budget address from the cost center, order, WBS element or G/L account, so users rarely type an FM field.
- Value type 50A purchase requisition already consumes budget in FM. Not a cent has moved yet.SAP Help, value types
- Period 000Commitments carried into the new year are saved in period 000, not in January.SAP Help, commitment carryforward
- 1 toolBCS is the only budgeting tool in SAP S/4HANA. Former budgeting transactions are blocked.SAP Note 2270413
- 2020The commitment item joined the Universal Journal (ACDOCA) in SAP S/4HANA 2020.SAP KBA 2739886
Who uses it
SAP files FM under Public Sector Management and teaches it in courses for governments and higher education. It is not limited to them: SAP itself published a two-part series in 2021 on what FM offers privately owned companies.
Master data
The budget address: where every amount lives
In CO a cost lands on one object. In FM an amount lands on a combination of elements, the FM account assignment, and each element answers a different question. Pick a part of the address below.
The question it answers
Where does the money come from?
The source of the money: this year’s operating budget, a government grant, a donation, a loan. A fund can live for one year or several, which is how a three-year research grant keeps its own budget across fiscal years.
Examples: OPEX-2026, a research grant, a capital programme.
Where you maintain it
Fund master records. Funds of the same kind share a fund type, which can decide which budget types they may consume.
FM5IFM5UFM5SFM5M
Under the hood
Master table FMFINCODE. In SAP S/4HANA the fund is a field of the Universal Journal, ACDOCA (SAP Note 2270449). BCS can restrict consumable budget per fund type or per fund, and budget type groups can be assigned to funds (SAP PRESS).
FMFINCODEACDOCA
Tables, Customizing switches and derivation details for this element are in the Consultant view.
The question it answers
Who is responsible for the budget?
The organizational unit that owns and answers for the budget, much as a cost center owns costs. Funds centers can be arranged in a hierarchy, so a ministry or a division sees the sum of its units.
Examples: IT Operations, Faculty of Medicine, District office North.
Where you maintain it
Funds center master records in the FM area. SAP PRESS points to the master data report S_KI4_38000038 to select funds centers by any attribute.
FMSAFMSBFMSCS_KI4_38000038
Under the hood
Master table FMFCTR. Most projects derive the funds center from the cost center, order or WBS element with an FMDERIVE strategy rather than asking users. Before derivation tools, SAP’s own logic read it from the referenced document, the commitment item master or the CO object, in that order (SAP Help, 4.6C).
FMFCTRFMDERIVE
Tables, Customizing switches and derivation details for this element are in the Consultant view.
The question it answers
What is the money for?
The classification of revenues and expenditures, a budget-side view of the chart of accounts: software, travel, salaries, tuition fees. Usually it comes from the G/L account, so the user never sees it.
Examples: Software licences, travel, salaries, tuition fees.
Where you maintain it
Commitment item master records and hierarchy. Each G/L account that posts to FM needs one, or message FI600 asks for it.
FMCIAFMCICFMCID
Under the hood
Master table FMCI. The financial transaction controls the update: 30 revenues and expenditures, 40 GR/IR clearing, 50 cross-company clearing, 60 customer and vendor reconciliation accounts, 80 and 90 bank and check clearing (SAP Help). Commitment items are year-dependent: FMCI_COPY_NEXT_YEAR copies them forward. In ACDOCA since SAP S/4HANA 2020 (KBA 2739886, Note 2912327).
FMCIFMCI_COPY_NEXT_YEAR
Tables, Customizing switches and derivation details for this element are in the Consultant view.
The question it answers
Which purpose or policy area?
The function the money serves: education, health, administration. It is shared with FI and CO, where the same field drives cost-of-sales reporting.
Examples: Education, Health, General administration.
Where you maintain it
Functional area maintenance, shared across FI, CO and FM.
FM_FUNCTION
Under the hood
Master table TFKB; field RFAREA in ACDOCA. Like the fund, it is one of the Public Sector fields SAP moved into the Universal Journal (SAP Note 2270449).
TFKBRFAREA
Tables, Customizing switches and derivation details for this element are in the Consultant view.
The question it answers
Which program or initiative?
A program that cuts across funds centers and years, such as a building programme or a digital transformation initiative, so its budget and spend can be followed as one.
Examples: Campus renovation, Cloud migration 2026.
Where you maintain it
Funded program master records; in SAP Fiori, the Manage Funded Programs app.
FMMEASURE
Under the hood
Optional. In BCS each account assignment element is set per FM area as mandatory, optional or not used, and the setting applies to every budget document (SAP PRESS).
FMMEASURE
Tables, Customizing switches and derivation details for this element are in the Consultant view.
The question it answers
For which period was the money granted?
The period of available budget authority, separate from the fiscal year: a 2026 appropriation can stay spendable into 2027 or 2028 while still being reported as 2026 money.
Examples: An appropriation granted for 2026 and spendable until 2028.
Where you maintain it
An optional element, switched on when the organization manages budget authority that spans fiscal years.
Under the hood
SAP teaches the budget period as a master data element of its own in the S/4HANA FM course IPS910. Activate it only if the law or the funder works with budget authority periods; it adds a dimension to every budget address.
IPS910
Tables, Customizing switches and derivation details for this element are in the Consultant view.
Budget execution
Follow one purchase through the budget
The IT Operations funds center has 100,000 of budget, and 78,000 is already consumed. Pick the value of a new software purchase, then step through its documents. Watch the bar: the available budget drops at the very first document, not at payment.
83 %93 %78 % usedBudget bar: 83 percent consumed.Budget bar: 93 percent consumed.Budget bar: 78 percent consumed before; the requested 25,000 does not fit in the 22 percent left.
- Consumed before
- Open commitment
- Actual
- Available
- Consumable budget
100,000 - Consumed
83,00093,00078,000 - Available
17,0007,00022,000
OKPassed availability control. Usage after this document: 83 %.
FMAVC006Warning: annual budget almost exhausted for document item 1. In this example the tolerance profile only warns, so the requisition is saved at 93 % usage.
FMAVC005Error: annual budget exceeded by 3,000 for document item 1. The requisition cannot be saved.
What happens · step 1 of 4
Purchase requisition
The requester creates a purchase requisition. FM records it as a commitment, value type 50, on the budget address derived from its account assignment, and availability control checks it on the spot. From now on this money is gone for everyone else.
FM line items so far
- Purchase requisitionValue type 50 · open commitment
5,00015,000
Nothing was saved, so FM holds no line item for this purchase.
Where you see it: FMRP_RFFMEP1AX all postings, FMRP_RFFMEP1OX commitments.
Under the hood
Commitments are stored in table FMIOI. If the check fails, nothing is saved. Should FM data for requisitions ever drift from MM, FMN3N rebuilds it and FMRC22 reconciles it.
FMIOIFMN3NFMRC22
Tables and repair transactions for this step are in the Consultant view.
What happens · step 2 of 4
Purchase order: blocked upstream
The buyer turns the requisition into a purchase order. The requisition’s commitment is reduced and the PO, value type 51, takes its place. Consumption does not change: it is the same money, now promised to a vendor.
This step never happens. Availability control rejected the purchase requisition, so there is nothing to convert, invoice or pay. Ask the budget office for a supplement or a transfer, or change the account assignment, then start again.
FM line items so far
- Purchase requisitionValue type 50 · reduced by the PO
0 - Purchase orderValue type 51 · open commitment
5,00015,000
Nothing was saved, so FM holds no line item for this purchase.
Where you see it: FMRP_RFFMEP1AX all postings, FMRP_RFFMEP1OX commitments.
Under the hood
Still FMIOI. A PO that references a funds reservation reduces the reservation instead of consuming new budget. FMN4N rebuilds FM data for POs; FMRC23 reconciles them.
FMIOIFMN4NFMRC23
Tables and repair transactions for this step are in the Consultant view.
What happens · step 3 of 4
Invoice: blocked upstream
The vendor invoice is posted. The PO commitment is reduced by the invoiced amount and the invoice becomes an actual, value type 54. A parked invoice would already show in FM as value type 60.
This step never happens. Availability control rejected the purchase requisition, so there is nothing to convert, invoice or pay. Ask the budget office for a supplement or a transfer, or change the account assignment, then start again.
FM line items so far
- Purchase requisitionValue type 50 · reduced by the PO
0 - Purchase orderValue type 51 · reduced by the invoice
0 - InvoiceValue type 54 · actual
5,00015,000
Nothing was saved, so FM holds no line item for this purchase.
Where you see it: FMRP_RFFMEP1AX all postings, FMRP_RFFMEP1OX commitments.
Under the hood
FI actuals in FM are stored in table FMIFIIT, the FI line item table in Funds Management. The commitment item must carry financial transaction 30 for revenue and expenditure accounts.
FMIFIITFMRP_RFFMEP1AX
Tables and repair transactions for this step are in the Consultant view.
What happens · step 4 of 4
Payment: blocked upstream
The payment run pays the invoice and FM records the payment, value type 57, so reports can tell invoiced from paid. Consumption stays the same. Whether the invoice or the payment date picks the budget year depends on the update profile, explained in the next section.
This step never happens. Availability control rejected the purchase requisition, so there is nothing to convert, invoice or pay. Ask the budget office for a supplement or a transfer, or change the account assignment, then start again.
FM line items so far
- Purchase requisitionValue type 50 · reduced by the PO
0 - Purchase orderValue type 51 · reduced by the invoice
0 - InvoiceValue type 54 · actual, now paid
5,00015,000 - PaymentValue type 57 · payment
5,00015,000
Nothing was saved, so FM holds no line item for this purchase.
Where you see it: FMRP_RFFMEP1AX all postings, FMRP_RFFMEP1OX commitments.
Under the hood
The update profile assigned to the FM area decides, per value type, which budget category is updated (payment, commitment or both) and which year (SAP Help).
FMIFIIT
Tables and repair transactions for this step are in the Consultant view.
The 90 % warning and the 100 % stop are an example. Your tolerance profile sets the limits per activity group (earmarked funds, requisitions, actual postings), as a percentage, an absolute amount or both; when both exist, the lower one is used. SAP Help: tolerance limits.
Update profile
Same purchase order, different budget year
A purchase order is posted on 15 December 2026, with payment due on 20 February 2027. Which year’s budget does it consume? FM answers with the update profile assigned to the FM area. SAP’s own documentation explains the profiles with exactly this kind of example. Switch the profile.
- 2026Budget consumed hereUntouchedPO posted on 15 December 2026PO 4500001234 consumes this year
15,000 - 2027Budget consumed hereUntouchedPayment due on 20 February 2027PO 4500001234 consumes this year
15,000
Why
Profile 000100 updates the payment budget on a payment basis with the due date. The PO is a promise to pay in February 2027, so it consumes the 2027 budget, even though it was entered in 2026.
Profile 000101 updates the payment budget on a payment basis with the posting date. The PO was posted in December 2026, so it consumes the 2026 budget, whatever its payment terms say.
And if 2027 has no budget yet?
Availability control treats a year without budget as zero. With a percentage tolerance, the posting is rejected. With an absolute tolerance, say 5,000, a 1,000 posting still goes through. That is how December purchases can fail, or slip into a year nobody has budgeted.
SAP Help: tolerance limits| Standard profile | Budget category | What SAP Help says |
|---|---|---|
000100 | Payment budget | Payment basis with due date: a PO posted in one year with a due date in the next consumes the next year’s budget. |
000101 | Payment budget | Payment basis with posting date: the same PO consumes the budget of the year it was posted. |
000102 | Payment budget | Invoice basis with posting date. |
000200 | Payment and commitment budget | Updates both budget categories. |
000350 | Payment and commitment budget | Commitment documents and invoices update with the posting date; payments update the payment budget with the due date. |
000400 | Payment and commitment budget | Only when the global functions for German government are active in FM Customizing. |
The profile also decides, per value type, whether an update is statistical only and whether commitments carry forward at year-end. Source: SAP Help, update profile.
Budget Control System
How budget gets in, moves and comes back
In SAP S/4HANA all budgeting runs in the Budget Control System (BCS). Every change is an entry document that carries a process, a budget type and a version. These processes cover the life of a budget.
Enter
The original budget approved for the year is entered and becomes the starting point for availability control.
Supplement
Extra budget added during the year, for example after a mid-year review or a new grant.
Return
Budget given back or taken away, so it stops being available to the budget address.
Transfer
Budget moved from one budget address to another, sender and receiver in one document.
Carryover
Budget taken from the closing year into the next one at year-end, under the rules you define.
Revenues increasing the budget
Revenue actually received raises the budget it is linked to, through RIB rules (sender and receiver processes).
Budget types are yours
In BCS you define your own budget types, independent of the processes. Use them to separate budgeting phases (appropriation, apportionment, allotment), to keep a part of the budget out of availability control, or as statistical types for reporting only. A release scenario can make budget wait for release before anyone can consume it.
Two budget categories
The payment budget limits what may be paid in a year; the commitment budget limits what may be promised now for payments in later years. In BCS each category is a ledger with its own cash-effectiveness setting, and most FM reports, including the budget consumption report, ask which category you want.
FMBBFMBBCFMEDDFMEDDWFMRP_RW_BUDGETFMCYCOPI_CO
Under the hood
Coming from former budgeting? What FB called a budget type became the BCS process, and the FB budget subtype became the BCS budget type; the mapping sits in the IMG under Display Assignment Rules for Budgeting Process (SAP Help). In S/4HANA the BCS totals tables FMBDT and FMRBT are no longer updated: line items in FMBDP and FMRBP feed compatibility views V_FMBDT and V_FMRBT (SAP Note 2270445). Account assignment elements are set per FM area as mandatory, optional or not used, and version 0 holds budget and actuals (SAP PRESS).
Earmarked funds
Reserve the budget before the purchase exists
Earmarked funds set budget aside for an expense or a revenue you expect, before any purchasing document exists. Their transaction codes follow a pattern that almost nobody explains: FM, then a letter for the document type, then a digit for the action. Build a code.
Your code
FMX1Create Funds ReservationFMX2Change Funds ReservationFMX3Display Funds ReservationFMX4Approve Funds ReservationFMX5Change FM Acct Asst in Funds ResvnFMX6Funds Reservation: Manual Reductionvalue type 81Reserves funds, typically for a contractual agreement. Reduced by a funds precommitment, a purchase requisition or a purchase order.
FMY1Create Funds PrecommitmentFMY2Change Funds PrecommitmentFMY3Display Funds PrecommitmentFMY4Approve Funds PrecommitmentFMY5Change FM Acct Asst in Funds PrcmmtFMY6Reduce Funds Precommitment Manuallyvalue type 82Reserves funds for an internal demand, before the details are known. Reduced by a funds commitment.
FMZ1Create Funds CommitmentFMZ2Change Funds CommitmentFMZ3Display Funds CommitmentFMZ4Approve Funds CommitmentFMZ5Change FM Acct Asst in Funds CommtFMZ6Reduce Funds Commitment Manuallyvalue type 65Reserves funds for an upcoming expense. Reduced by FI expense postings or down payments that reference it.
FMV1Create Forecast of RevenueFMV2Change Forecast of RevenueFMV3Display Forecast of RevenueFMV4Approve Forecast of RevenueFMV5Change FM Acct Asst in Fcst of Rev.FMV6Reduce Forecast of Revenue Manuallyvalue type 83Forecasts revenue you expect to receive. Reduced by customer invoices in Accounts Receivable.
FMW1Create Funds BlockFMW2Change Funds BlockFMW3Display Funds BlockFMW4Approve Funds BlockingFMW5Change FM Acct Asst in Funds BlkgFMW6No such code: this document type has no manual reduction transaction in the list.value type 80Blocks part of the budget so it cannot be consumed until the block is lifted.
FMWACreate Funds TransferFMWBChange Funds TransferFMWCDisplay Funds TransferFMWDApprove Funds TransferFMWEChange FM Acct Asst in Funds TrsfrFMW?No such code: this document type has no manual reduction transaction in the list.value type 64A document type of its own. Its codes break the pattern: FMWA to FMWE, letters instead of digits.
- Give the rest backSet the completion indicator on a line and its unused remainder returns to the budget. Lines can also be reduced manually, for example with FMZ6.
- Pending still reservesWith approval workflow on, an earmarked fund waiting for approval keeps its budget reserved but not yet consumable. Rejection releases it.
- The address travelsFollow-on documents inherit the earmarked fund’s account assignment. Users can change it only if the line is flagged “Account assignment changeable”.
Sources: SAP Learning, earmarked funds · FI-FM transaction list · SAP Help, value types
Reference
The Funds Management transaction finder
The codes key users run every week and the ones consultants reach for in Customizing and repair, plus the SAP Fiori apps. Pick an audience and an area, or type a code or a word. The SAP name column shows the description as the system has it.
| Code | SAP name | What you use it for | For | Area |
|---|---|---|---|---|
FMSC | Display Funds Center in FM Area | Check who owns a budget and which fund or hierarchy it sits under. | Key users | Master data |
FM5S | Display Fund | See a fund’s validity, type and settings before posting to it. | Key users | Master data |
FM5M | Index of Funds | List the funds of an FM area. | Key users | Master data |
FMCIC | Display commitment item | Find out what a commitment item means and which category it is. | Key users | Master data |
FMCIE | Display Commitment Item: Hierarchy | See where a commitment item sits in the hierarchy. | Key users | Master data |
FMSA | Create Funds Center in FM Area | Create a new budget owner. | Consultants | Master data |
FMSB | Change Funds Center in FM Area | Change validity, hierarchy or default fund of a funds center. | Consultants | Master data |
FM5I | Create Fund | Create a fund, for example for a new grant or fiscal year. | Consultants | Master data |
FM5U | Change Fund | Change a fund’s dates, type or authorization group. | Consultants | Master data |
FMCIA | Edit Commitment Item | Create or change commitment items, including the financial transaction. | Consultants | Master data |
FMCID | Change Commitment Item: Hierarchy | Rearrange the commitment item hierarchy. | Consultants | Master data |
FMCI_COPY_NEXT_YEAR | Copy Cmmt Items into Following Year | Copy year-dependent commitment items before the new year opens. | Consultants | Master data |
FMMEASURE | Funded Program: Maintain | Create and change funded programs. | Consultants | Master data |
FMBB | Budgeting Workbench | Enter, supplement, return or transfer budget in one screen. Usually for the budget office only. | Key users | Budget |
FMEDD | Display Entry Document | Open one budget entry document and see who changed what. | Key users | Budget |
FMEDDW | Drilldown for Budget Entry Documents | Analyse budget documents by process, type, version and address. | Key users | Budget |
FMBBC | Create Entry Document | Create a budget entry document directly. | Consultants | Budget |
FMCYCOPI_CO | Transfer of CO Planning Data to BCS | Turn CO planning data into budget instead of typing it again. | Consultants | Budget |
FMX1 | Create Funds Reservation | Reserve budget for a contract before anything is ordered. | Key users | Earmarked funds |
FMY1 | Create Funds Precommitment | Reserve budget for an internal demand. | Key users | Earmarked funds |
FMZ1 | Create Funds Commitment | Reserve budget for a known upcoming expense, such as a recurring bill. | Key users | Earmarked funds |
FMZ3 | Display Funds Commitment | See what is left on a funds commitment and what reduced it. | Key users | Earmarked funds |
FMZ4 | Approve Funds Commitment | Approve a funds commitment when workflow is active. | Key users | Earmarked funds |
FMZ6 | Reduce Funds Commitment Manually | Give back the part of a commitment you will not need. | Key users | Earmarked funds |
FMV1 | Create Forecast of Revenue | Record revenue you expect, for example from a funder. | Key users | Earmarked funds |
FMW1 | Create Funds Block | Freeze part of a budget. | Key users | Earmarked funds |
FMWA | Create Funds Transfer | Create a funds transfer document. | Key users | Earmarked funds |
FMZZ | Revalue Earmarked Funds | Revalue earmarked funds in foreign currency. | Consultants | Earmarked funds |
OFMR0 | Global Settings for Earmarked Funds | Customizing that applies to all earmarked funds. | Consultants | Earmarked funds |
FMRP_RW_BUDCON | Budget Consumption Report | The everyday question: budget, consumed, available. Pick payment or commitment budget. | Key users | Reports |
FMRP_RW_BUDGET | Budget Report | Budget values by address, process and type. | Key users | Reports |
FMRP_RFFMEP1AX | All Postings | Every FM line item, commitments and actuals, with drilldown to the document. | Key users | Reports |
FMRP_RFFMEP1OX | Commitments and Funds Transfers | Open requisitions, POs and earmarked funds. | Key users | Reports |
FMRP_RFFMEP1BX | Annual Budget | Budget line items for the year. | Key users | Reports |
FMRP_FW_BUDCON | Budget Consumption Line Items | The line items behind a consumption figure. | Key users | Reports |
FMRP_FW_BROWSER | FM Line Item Browser | Browse FM line items with flexible selections. | Key users | Reports |
FMRP_RW_BUDVER | Budget Version Comparison | Compare budget versions, for example draft against approved. | Both | Reports |
FMAVCR01 | Display Annual Data of Control Obj. | See exactly what availability control checks for a year: budget, consumption, available. | Key users | Availability control |
FMAVCR02 | Display Overall Data of Control Obj. | The same for overall (multi-year) control. | Key users | Availability control |
FMAVCH01 | Overview of AVC Data | A wider overview of availability control data. | Key users | Availability control |
FMAVCDERIAOR | Derivation of control object (ACO) | Define how budget addresses roll up into the objects AVC checks. | Consultants | Availability control |
FMAVCDERITPROF | Derivation of tolerance profile | Decide which tolerance profile applies where. | Consultants | Availability control |
FMAVCDERICH | Derivation of checking horizon | Decide whether AVC checks the annual or the overall budget. | Consultants | Availability control |
FMAVCCUSTDEF | Check AVC Customizing (FM) | Check availability control Customizing for gaps. | Consultants | Availability control |
FMAVCREINIT | Re-Initialize AVC Ledger | Rebuild the AVC ledger after Customizing changes or a conversion. | Consultants | Availability control |
FMAVCDIFF | Display AVC inconsistencies | Find where the AVC ledger and the source data disagree. | Consultants | Availability control |
FMDERIVE | FM Object Assignment – Customizing | Build the derivation strategy that fills fund, funds center and commitment item. | Consultants | Derivation |
FMDERIVER | FM Object Assignment - Maintenance | Maintain the values in derivation rule tables, for example cost center to funds center. | Consultants | Derivation |
FMDERIVETRACE | Activate FMDERIVE TRACE | Trace a derivation step by step to see why it picked an address. | Consultants | Derivation |
FMDERIVATIONANALYSIS | Analysis Report on FM Derivations | Analyse derivation results. | Consultants | Derivation |
FMJ_DISPLAY | Display FM Commt Carryforward Docs | See which commitments were carried into the new year. | Key users | Year-end |
FMJ2 | Year-End Closing: Carryfwd Cmmts | Carry open requisitions, POs and earmarked funds into the new year. | Consultants | Year-end |
FMJ3 | Reverse Commitments Carryforward | Undo a commitment carryforward. | Consultants | Year-end |
FMJ2_D | Carryfwrd Cmmt Accrd. to Entry Date | Carry forward commitments entered late, by entry date. | Consultants | Year-end |
FMJ_APP | Approval Step Cmmt Carryforward | Approve or reject items selected for carryforward. | Consultants | Year-end |
FMN3N | Reconstruction of Purch. Requisition | Rebuild FM data for purchase requisitions. | Consultants | Checks and repair |
FMN4N | Reconstruction of Purchase Orders | Rebuild FM data for purchase orders. | Consultants | Checks and repair |
FMN5N | Reconstruction of Earmarked Funds | Rebuild FM data for earmarked funds. | Consultants | Checks and repair |
FMRC21 | Reconciliation of Earmarked Funds | Reconcile earmarked funds with FM. | Consultants | Checks and repair |
FMRC22 | Reconciliation of Purch. Requisition | Reconcile requisitions with FM. | Consultants | Checks and repair |
FMRC23 | Reconciliation of Purchase Orders | Reconcile purchase orders with FM. | Consultants | Checks and repair |
FMRBREINIT | Re-Initialize RIB Ledgers | Rebuild the ledgers for revenues increasing the budget. | Consultants | Checks and repair |
FMOD | Override FM Update Date | Override the date FM uses for updates. | Consultants | Checks and repair |
| Fiori app | My Budget Overview | Monitor budget consumption with drill-down (SAP S/4HANA). | Key users | Fiori apps |
| Fiori app | My Budget Alerts | Get alerted when budget consumption crosses limits (SAP S/4HANA). | Key users | Fiori apps |
| Fiori app | Manage Funded Programs | Maintain and display funded programs (SAP S/4HANA). | Both | Fiori apps |
| Fiori app | Period Budget and Commitment Line Item Analyzer | Analyse budget and commitment line items by period (SAP S/4HANA). | Key users | Fiori apps |
| Fiori app | Manage Earmarked Funds | Create and follow earmarked funds, with process flow and approval details (Cloud Public Edition). | Key users | Fiori apps |
| Fiori app | Budget Consumption Dashboard | A dashboard of budget consumption (Cloud Public Edition). | Key users | Fiori apps |
| Fiori app | Budget and Commitment/Actual Line Item Analyzer | Line items for budget, commitments and actuals (Cloud Public Edition). | Key users | Fiori apps |
Nothing matches. Try another word, or pick All.
Codes and SAP names checked against the PSM-FM and FI-FM transaction lists; Fiori apps against SAP Help and SAP PRESS. Availability can differ by release, and your roles decide what you can open.
Troubleshooting
Error decoder
The messages and symptoms behind most “FM is blocking me” tickets. Pick one to see what it means and where to look. SAP knowledge base articles need an SAP for Me login.
FMAVC005
Annual budget exceeded by &2 for document item &1
What it tells you
Availability control compared the document with the consumable budget of its control object, for one AVC ledger and fiscal year, and the document does not fit. It is an error: the document cannot be saved until the problem is solved.
Where to look
Open the control object in FMAVCR01 (or FMCEMON01 for automatic cover groups). SAP notes that reporting usually leaves out the amounts of the document you are trying to post. Then ask for a supplement or transfer, reduce an old commitment, or correct the account assignment.
FMAVCR01FMZ6
FMAVC006
Annual budget almost exhausted for document item &1
What it tells you
The document pushes the control object into the tolerance zone of its activity group: the budget is nearly used up. Whether you see a warning or a hard stop depends on the tolerance profile.
Where to look
Tolerance limits are set per activity group (earmarked funds, requisitions, actual postings) as a percentage, an absolute amount or both; with both, the lower limit wins. FMAVCDERITPROF shows which profile applies.
FMAVCDERITPROFFMAVCR01
KBA 3215874
Budget is available, but AVC still raises an error
What it tells you
Reports show enough budget on your budget address, yet availability control complains. The check runs on the control object, which can group several budget addresses, and under the rules of the tolerance profile.
Where to look
Compare FMAVCR01 (what AVC checks) with FMRP_RW_BUDCON (your address). SAP PRESS warns that complex control-object derivation makes these reports harder to read. The knowledge base article covers the case and its tolerance-profile causes.
FMAVCR01FMRP_RW_BUDCON
KBA 3478309
Negative available amount: budget exceeded although Customizing should prevent it
What it tells you
AVC tools (FMAVCR01, FMAVCR02, FMAVCH01, FMCEMON01) and the budget consumption report show consumption above budget that nobody can explain.
Where to look
SAP lists the causes in the knowledge base article. On the system side, FMAVCDIFF shows AVC inconsistencies and FMAVCREINIT rebuilds the AVC ledger.
FMAVCDIFFFMAVCREINIT
FI600
Maintain a commitment item in the G/L account master
What it tells you
The posting needs a commitment item and the G/L account has none, so FM cannot tell what the money is for.
Where to look
Enter a commitment item in the G/L account master, or let the FMDERIVE strategy derive one. If a derivation exists and still fails, FMDERIVETRACE shows the step that returned nothing.
FMDERIVEFMDERIVETRACE
Documented, but little known
14 tips that save hours
Each one comes from SAP Help, an SAP Note, a knowledge base article, SAP Learning or SAP PRESS, linked under the tip.
- 01Key users
Look at the control object, not only your line
Availability control checks a control object that may group several budget addresses. FMAVCR01 shows what it really sees. Reporting usually leaves out the document you are posting, so the figure can look fine while AVC says no.
FMAVCR01
- 02Key users
Give back what you will not use
Setting the completion indicator on an earmarked fund line returns its unused remainder to the budget at once. Lines can also be reduced by hand.
FMZ6FMX6
- 03Key users
Waiting for approval still blocks budget
With workflow on, an earmarked fund pending approval keeps its budget reserved but not consumable. Only a rejection releases it, so chase approvals before month-end.
FMZ4
- 04Key users
Period 000 is not a mistake
Carried-forward commitments are saved in period 000 and appear as two line items: carryforward previous year and carryforward subsequent year.
FMJ_DISPLAY
- 05Key users
Ask for the right budget category
The budget consumption report, like most FM reports, works by budget category: payment budget or commitment budget. The wrong one gives the right numbers to the wrong question.
FMRP_RW_BUDCON
- 06Key users
Close what you will not buy before year-end
Closing open requisitions, POs and earmarked funds before the commitment carryforward sends the unused amounts back to the budget instead of into next year.
FMJ2
- 07Consultants
Trace a derivation instead of guessing
FMDERIVETRACE switches on a trace of the FMDERIVE strategy, so you see which step filled the fund or funds center and which returned nothing. FMDERIVATIONANALYSIS analyses the results.
FMDERIVETRACEFMDERIVATIONANALYSIS
- 08Consultants
After conversion, re-initialize AVC
In S/4HANA the AVC totals table FMAVCT is updated only until FMAVCREINIT runs, and for revenues increasing the budget SAP asks for FMRBREINIT for the current fiscal year.
FMAVCREINITFMRBREINIT
- 09Consultants
Absolute or relative tolerance?
With both limits set, the lower one is used. For a future year without budget, AVC sees zero: a percentage tolerance rejects a 1,000 posting, an absolute tolerance of 5,000 lets it through.
FMAVCDERITPROF
- 10Consultants
Rebuild, then reconcile
When FM and MM disagree, FMN3N, FMN4N and FMN5N rebuild FM data for requisitions, POs and earmarked funds; FMRC22, FMRC23 and FMRC21 reconcile them.
FMN4NFMRC23
- 11Consultants
Commitments first, budget second
Run the commitment carryforward before the budget carryover: the budget released by carried-forward commitments feeds the residual budget calculation.
FMJ2
- 12Consultants
Keep control-object derivation simple
The clearer the derivation of AVC control objects, the more readable budget consumption reports are. Complex rules leave users unable to explain their own AVC messages.
FMAVCDERIAOR
- 13Consultants
Authorization groups only
SAP S/4HANA supports only the authorization-group concept in FM. Assign groups to master data, update roles, and check that field AUTH_CHECK_OLD in table FMISPS is blank.
FMISPS
- 14Consultants
Copy commitment items before the new year
Commitment items are year-dependent. Copy them into the following year before the first posting of the new year needs them.
FMCI_COPY_NEXT_YEAR
SAP S/4HANA
What changed from SAP ERP to SAP S/4HANA
Funds Management came through to SAP S/4HANA, with a few hard cuts. Each row below is a simplification item in SAP’s Simplification List, with the SAP Note to read before a conversion.
| Topic | SAP ERP | SAP S/4HANA | SAP Note |
|---|---|---|---|
| Budgeting tool | Former budgeting (FBS) or the Budget Control System (BCS). | BCS only. FBS data stays readable, but its operational transactions are blocked. Migrate before the conversion. | 2270413 |
| Multi-level budget structure | Available in BCS (business functions PSM_FM_BCS_MBS and _2). | Discontinued, with no committed successor. | 2270464 |
| BCS totals tables | FMBDT, FMRBT and FMAVCT hold totals. | Budget and RIB totals replaced by line items in FMBDP and FMRBP, read through compatibility views. FMAVCT is updated until FMAVCREINIT runs. | 2270445 |
| FM in the general ledger | FM fields in FM’s own tables; fund accounting in special ledger or new G/L. | Fund and functional area are fields of ACDOCA; the commitment item joined in SAP S/4HANA 2020. | 2270449 |
| Fund accounting on special ledger | Supported. | Still possible, but not recommended: new developments build on the Universal Journal only. | 2270444 |
| Authorizations | Old concept based on master data keys (up to 4.6C) or authorization groups. | Authorization groups only. | 2339149 |
Converting with FM active
Migrate former budgeting to BCS before the conversion, not after: once on S/4HANA the old budget data stays readable, but its transactions are blocked. Plan the migration style early: totals only, full documents, at year-end or mid-year.
adesso, 2024In the public cloud
SAP S/4HANA Cloud Public Edition brings the same ideas to the public sector as Budget Management, with apps such as Manage Earmarked Funds. The relevant scope item has to be activated first.
SAP LearningFor consultants
Implementation map
The order that saves rework. Tick the steps you have covered; the page keeps count while it is open.
of 9 steps covered
Myths
Things people get wrong about Funds Management
Myth
Funds Management is only for governments.FactUniversities, foundations and companies with strict budgets use it too. SAP wrote a 2021 blog series on what FM offers privately owned customers.
Myth
Budget is consumed when the invoice is paid.FactIt is consumed by the first commitment: a purchase requisition (value type 50), a PO or an earmarked fund. Payment only changes what kind of consumption it is.
Myth
A funds center is just another name for a cost center.FactA funds center owns budget; a cost center collects costs. They are separate master data, often linked one to one by a derivation rule.
Myth
SAP S/4HANA dropped Funds Management.FactFM is there. What went is former budgeting (Note 2270413) and the BCS multi-level budget structure (Note 2270464).
Myth
If AVC lets a posting through, the budget was not exceeded.FactTolerances can allow postings above 100 %, and an absolute tolerance accepts postings in a year with no budget at all. That is how negative available amounts appear (KBA 3478309).
Myth
The year-end carryforward moves the budget too.FactFMJ2 moves open commitments. The budget for them, and any residual budget, is a separate carryover that runs afterwards.
The questions people ask most
Is Funds Management only for the public sector?
No. SAP places it under Public Sector Management and teaches it for governments and higher education, but nothing stops a company with strict, approved budgets from using it, and SAP wrote a 2021 blog series on what FM offers privately owned customers. Technically FM is part of the EA-PS extension, switched on in SFW5; whether your licence covers it is a question for your SAP contract.
Should I use FM, or CO budgets on internal orders and projects?
Budgets on internal orders and WBS elements control one object at a time. FM controls budget addresses that many cost centers, orders and projects post to, adds dimensions such as fund and commitment item, and brings tools built for budget offices: earmarked funds, revenues that increase the budget, cover eligibility and year-end carryforward. If you only need to cap a handful of projects, CO or Project System budget control may be enough.
Why was my purchase requisition blocked when nothing has been bought yet?
Because in FM a requisition is already a commitment (value type 50) and consumes budget. Availability control checks it on save. If the control object has no room left within the tolerance, you get FMAVC005 and the requisition is not saved.
FM shows budget available, but I still get an availability control error. Why?
Availability control checks the control object, which can group several budget addresses, under the rules of a tolerance profile. Your own address can have money while the group does not. Compare FMAVCR01 with the budget consumption report; SAP covers the case in KBA 3215874.
Where does the commitment item on my posting come from?
Usually from the G/L account or from the FMDERIVE derivation strategy, which can read the cost center, order, WBS element or G/L account. When a document references a PO or an earmarked fund, it takes their account assignment; for earmarked funds it can be changed only if the line allows it. If nothing provides one, message FI600 asks for a commitment item in the G/L account master.
Which year’s budget does a purchase order consume?
It depends on the update profile of the FM area. With 000100 (payment basis, due date), a PO posted in December with payment due in February consumes the next year. With 000101 (payment basis, posting date), it consumes the year it was posted.
What happens to open purchase orders at year-end?
FMJ2 carries open requisitions, POs and earmarked funds into the new year, where they are saved in period 000; FMJ3 reverses a carryforward and FMJ_DISPLAY shows the results. Close what you will not buy first, so the unused amounts return to the budget.
Is former budgeting still available in SAP S/4HANA?
No. SAP decided to support only BCS. After the conversion, former budgeting data remains visible but its transactions are blocked, so SAP recommends migrating to BCS before converting (SAP Note 2270413).
Are Funds Management fields in ACDOCA?
Partly. Fund and functional area are fields of the Universal Journal (SAP Note 2270449), and the commitment item joined in SAP S/4HANA 2020 (KBA 2739886, Note 2912327). FM keeps its own line item tables as well: FMIOI for commitments and FMIFIIT for FI actuals.
Do I need BCS to use Grants Management?
Yes. Grants Management (PSM-GM) requires the Budget Control System; it is not available with former budgeting.
Is there Funds Management in SAP S/4HANA Cloud Public Edition?
For the public sector, yes: it comes as Budget Management, with apps such as Manage Earmarked Funds, once the relevant scope item is activated.
Related pages
References
Checked in November 2026. Several SAP Help pages come from the SAP ERP library; the concepts they describe are the same in SAP S/4HANA unless the table above says otherwise. SAP Notes and knowledge base articles need an SAP for Me login.
- Value types in Funds ManagementSAP Help (SAP ERP library)
- Budget types and processes in FB and BCSSAP Help
- Update profileSAP Help (SAP ERP library)
- Tolerance limits for availability controlSAP Help (SAP ERP library)
- Year-end closing in Funds ManagementSAP Help (SAP ERP library)
- Commitment carryforwardSAP Help (SAP ERP library)
- Budget carryforwardSAP Help (SAP ERP library)
- Financial transactions for commitment itemsSAP Help (SAP ERP library)
- FM account assignment logicSAP Help, release 4.6C
- Introducing earmarked fundsSAP Learning
- IPS910: Funds Management processes and organization in SAP S/4HANASAP Training, course outline
- Earmarked fundsSAP Help, SAP S/4HANA Cloud Public Edition
- Budget and Commitment/Actual Line Item AnalyzerSAP Help, SAP S/4HANA Cloud Public Edition
- Period Budget and Commitment Line Item AnalyzerSAP Help, SAP S/4HANA
- Simplification List for SAP S/4HANA, Industry Public SectorSAP, 2023 edition
- 2270413: Former Budgeting System (FBS) in Funds ManagementSAP Note
- 2270445: Data structure changes in BCSSAP Note
- 2270449: Funds Management dimensions in the Universal JournalSAP Note
- 2270464: BCS multi-level budget structureSAP Note
- 2270444: Fund accounting based on special ledgerSAP Note
- 2339149: Authorization in Funds ManagementSAP Note
- 2739886: Funds Management fields in ACDOCASAP KBA
- 3215874: Budget available but AVC errorSAP KBA
- 3478309: Negative available amount in BCS AVCSAP KBA
- 3598792: Commitment posted despite error FMAVC005SAP KBA
- Message FMAVC005ERPlingo
- Message FMAVC006Michael Management
- Message FI600ERPlingo
- Reporting in Funds Management for SAP S/4HANASAP PRESS, November 2023
- Customizing budget management settings for the public sector in SAP S/4HANASAP PRESS, January 2023
- Funds Management for the Public Sector with SAPSAP PRESS book by Eli Klovski, 2022
- SAP S/4HANA Funds Management, part 1: what is in it for privately owned customersSAP blog, September 2021
- SAP S/4HANA Funds Management, part 2: what is in it for privately owned customersSAP blog, October 2021
- The transition from traditional budgeting to BCSadesso business consulting, February 2024
- Funds Management in PSM (PSM-FM) transaction codesTestingBrain
- Funds Management in FI (FI-FM) transaction codesTestingBrain
- FMY1: Create Funds PrecommitmentERPlingo
- FM5M: Index of FundsERPlingo
- Table FMFCTR: Funds Center Master RecordTestingBrain
- Table FMFINCODE: FIFM financing code (fund)TestingBrain