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

SAP Term: fiduciary funds

• Component: PSM-FM

• Component Name: Funds Management

• Description: Fiduciary Funds are used to account for money received and held by a government in the capacity of trustee, custodian, or agent for individuals, other governmental organizations, and private organizations Expendable Trust Funds are used to account for monies from a donor or outside entity, set aside in a trust, that can be used by the government only for a purpose specified by the donor or outside entity. Nonexpendable Trust Funds are used to account for monies from a donor or outside entity, set aside in a trust, the income from which may be used by the government. The original principal amount must be maintained and not reduced. Pension Trust Funds are used to account for the accumulation, investing, and distribution of government employee pension contributions. Agency Funds are used to account for assets received by a government in its capacity as an agent for individuals, businesses, or other governments.

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• Key Concepts: 
  Fiduciary funds are funds that are held in trust by an organization for the benefit of another party. In SAP Funds Management, fiduciary funds are used to manage funds that are held in trust for a third party, such as a government agency or a non-profit organization. 
  
  How to use it: 
  In SAP Funds Management, fiduciary funds can be used to manage the financial resources of a third party. This includes tracking and managing the budget of the third party, as well as tracking and managing the financial transactions related to the third party. 
  
  Tips & Tricks: 
  When setting up fiduciary funds in SAP Funds Management, it is important to ensure that all of the necessary information is entered correctly. This includes the name of the third party, the budget for the fund, and any other relevant information. 
  
  Related Information: 
  Fiduciary funds are just one type of fund that can be managed in SAP Funds Management. Other types of funds include general ledger accounts, asset accounts, and liability accounts.