We are debating the use of Funds Management for a public sector client in the UK. I don't like it because of the...
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overhead (we already have cost-centres and profit centres) however it seems to be the only practical way of stopping budget overspends. I have two questions: Firstly I have heard that if you go with FM you have to implement it from the outset, as switching it on later causes big problems with any outstanding orders (Purchaee/Sales). Do you have any experience / advice to offer. Secondly although I have read the help many times, I am still not clear on the difference between a payment budget and a commitment budget. Which one do I need to set up for the standard solution. I assumed it was the commitment budget but when I tested it I get an error saying the payment budget isn't big enough. Surely I don't need both?
If you turn on funds management after you have gone live there will be an issue with outstanding purchase orders and sales because the would not have had a fund designated on them at the time they were created. New purchase orders and sales would have the funds designated. You could set up a reserve for old purchase orders and do a manual adjustment at year end for those items created without a fund.
Secondly although I have read the help...
You should be using payment budgets. There is no need to use both payment and commitment budgets. Commitment budgets meet certain countries specific requirements.
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