What is earmarked funds in SAP PSM-FM - Funds Management?

SAP Term: earmarked funds

• Component: PSM-FM

• Component Name: Funds Management

• Description: The business transactions within that can reserve budget already distributed for revenues or expenditures to be expected. The characteristics of earmarked funds are: They commit budget. Their use is linked to a purpose functional area or application of funds. There are legal obligations associated with them. The business transactions involving earmarked funds are: Funds reservation Funds precommitment Funds commitment Funds blocks Estimated revenue

Smart SAP Assistant

• Key Concepts: 
  Earmarked funds are a type of budget that is set aside for a specific purpose. They are allocated from the general budget and are used to finance activities that have been approved by the relevant authorities. The funds are managed by the Funds Management component of SAP PSM-FM. 
  
  How to use it: 
  The Funds Management component of SAP PSM-FM allows users to create earmarked funds and allocate them to specific activities. The funds can be used to finance activities such as purchasing materials, paying salaries, and other expenses related to the activity. The funds can also be used to track the progress of the activity and ensure that it is completed within the allocated budget. 
  
  Tips & Tricks: 
  When creating earmarked funds, it is important to ensure that they are allocated to the correct activities and that they are managed properly. It is also important to monitor the progress of the activity and ensure that it is completed within the allocated budget. 
  
  Related Information: 
  For more information on earmarked funds, please refer to SAP's documentation on Funds Management in PSM-FM. Additionally, there are many online resources available that provide detailed information on how to use earmarked funds in SAP PSM-FM.