What is certified expenditure in SAP PSM-EC - Expenditure Certification?

SAP Term: certified expenditure

• Component: PSM-EC

• Component Name: Expenditure Certification

• Description: The sum of all expenditure documents assigned to a particular financing source and time slice, representing the line items that are actually certified during a certification run. After manual processing of the list of eligible certified expenditures, only the line items remain in the list that will form part of the actual certification run, that is, that will ultimately be certified that is, the "certified total contribution". When the certified expenditures have reached the expenditure ceiling, no further documents can be assigned to the financing source/time slice, since enough funding was certified for the maximum contribution from the sponsor. The sum of expenditures is subsequently submitted to the sponsor for approval.

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• Key Concepts: 
  Certified expenditure is a term used in the SAP PSM-EC Expenditure Certification component. It refers to the process of verifying and approving the costs associated with a project or activity. This process is used to ensure that all costs are properly accounted for and that the project or activity is being managed in an efficient and cost-effective manner. 
  
  How to use it: 
  The certified expenditure process begins with the creation of a budget for the project or activity. This budget should include all expected costs associated with the project or activity, including labor, materials, and other expenses. Once the budget is created, it must be approved by the appropriate stakeholders. Once approved, the budget can be used to track and monitor actual expenditures against the budgeted amounts. 
  
  Tips & Tricks: 
  When creating a budget for certified expenditure, it is important to include all expected costs associated with the project or activity. This includes both direct and indirect costs, such as labor, materials, overhead, and other expenses. Additionally, it is important to ensure that all stakeholders are aware of and agree to the budget before it is approved. 
  
  Related Information: 
  The SAP PSM-EC Expenditure Certification component is part of SAP’s Project System module. This module provides tools for managing projects and activities, including budgeting, tracking, and reporting capabilities. Additionally, this module provides tools for managing resources and materials associated with projects and activities.