What is fund type in SAP PSM-FM - Funds Management?

SAP Term: fund type

• Component: PSM-FM

• Component Name: Funds Management

• Description: A category of funds that determine the applicable external accounting and reporting requirements. The U.S. Governmental Accounting Standards Board recognizes the following fund types, divided into three broad categories. Governmental funds, such as: General Special Revenue Debt Service Capital Projects Fiduciary Funds, such as: Expendable Trust Nonexpendable Trust Pension Trust Agency Proprietary Funds, such as: Funds Internal Service

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• Key Concepts: 
  Fund type is a classification of funds in SAP Funds Management (PSM-FM). It is used to group funds according to their purpose, such as operating funds, capital funds, and endowment funds. Fund types are used to control the budgeting process and to ensure that funds are allocated correctly. 
  
  How to use it: 
  Fund types are created in the Funds Management module of SAP. They can be assigned to a fund or a fund group, and they can be used to control the budgeting process. For example, a fund type can be used to limit the amount of money that can be allocated to a particular fund or fund group. 
  
  Tips & Tricks: 
  When creating a fund type, it is important to consider how it will be used in the budgeting process. It is also important to consider how it will interact with other fund types and how it will affect the overall budgeting process. 
  
  Related Information: 
  Fund types are closely related to other concepts in SAP Funds Management, such as fund groups and budget profiles. It is important to understand how these concepts interact with each other in order to effectively manage funds in SAP.