What is funds reservation in SAP PS - Project System?

SAP Term: funds reservation

• Component: PS

• Component Name: Project System

• Description: The function for entering expected costs. Manual funds reservation is also called manual commitment. You do not yet know which transaction such as a purchase order or material reservation will actually cause the costs you expect. However, you can use manual funds reservation to reserve some of the budget for expected costs.

Smart SAP Assistant

• Key Concepts: 
  Funds reservation is a feature of the Project System (PS) component of SAP that allows users to reserve funds for a project before the project is actually started. This ensures that the necessary funds are available when the project begins and that the project can be completed without any financial issues. 
  
  How to use it: 
  To use funds reservation, users must first create a project in the PS component. Once the project is created, users can then reserve funds for it by entering the amount of money they want to reserve in the “Funds Reservation” field. This will ensure that the necessary funds are available when the project begins. 
  
  Tips & Tricks: 
  It is important to remember that funds reservation does not guarantee that the project will be completed on time or within budget. It only ensures that the necessary funds are available when the project begins. Therefore, it is important to plan ahead and make sure that all other resources needed for the project are also available before beginning. 
  
  Related Information: 
  For more information on funds reservation in SAP PS, please refer to SAP’s official documentation on the topic. Additionally, there are many online tutorials and videos available that provide step-by-step instructions on how to use this feature.