What is 'eligible for cover' in SAP PSM-FM - Funds Management?

eligible for cover - Overview

• Component: PSM-FM

• Component Name: Funds Management

• Description: Qualified to receive enough funding to pay a cost.

eligible for cover - Details

• 
  Key Concepts: 
  Eligible for cover is a term used in Funds Management (FM) of SAP. It refers to the ability of a budget to be covered by a commitment item. A commitment item is an item that is used to record the financial obligations of an organization. It is used to track the amount of money that has been committed to a particular purpose or project. 
  
  How to use it: 
  In order to use the term eligible for cover, you must first create a budget in Funds Management. Once the budget has been created, you can then assign a commitment item to it. This will allow you to track the amount of money that has been committed to the budget. Once the commitment item has been assigned, you can then mark the budget as eligible for cover. This will indicate that the budget can be covered by the commitment item. 
  
  Tips & Tricks: 
  When creating a budget in Funds Management, it is important to ensure that all necessary information is included. This includes the amount of money that is being allocated, as well as any commitments that are associated with it. This will ensure that all commitments are tracked and accounted for when marking a budget as eligible for cover. 
  
  Related Information: 
  For more information on Funds Management in SAP, please refer to the official