What is period-based encumbrance tracking in SAP (PSM-FM - Funds Management)?

SAP Term: period-based encumbrance tracking

• Component: PSM-FM

• Component Name: Funds Management

• Description: A function that monitors encumbrances per period, with a change record issued for each change made within a period. You can control posting periods for any or all documents updating FM, as well as for different FM account assignments. PBET also allows prior-period corrections to obligatory documents, whereby the changed amounts may be reflected in prior periods and not just in the current period.

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• Key Concepts: 
  Period-based encumbrance tracking is a feature of SAP Funds Management (PSM-FM) that allows users to track and manage budget commitments over a period of time. This feature allows users to plan and monitor their budget commitments in a more efficient manner. It also helps to ensure that the budget is not exceeded and that all commitments are tracked accurately. 
  
  How to use it: 
  To use period-based encumbrance tracking, users must first set up the budget for the period they wish to track. This can be done by entering the budget amount for each period in the Funds Management module. Once the budget is set up, users can then enter their commitments into the system. The system will then track these commitments over the period of time and will alert users if they exceed their budget. 
  
  Tips & Tricks: 
  When setting up the budget for period-based encumbrance tracking, it is important to ensure that all commitments are entered accurately and that the budget is not exceeded. Additionally, it is important to regularly review the commitments and adjust them as needed. This will help ensure that all commitments are tracked accurately and that the budget is not exceeded. 
  
  Related Information: 
  For more information on period-based encumbrance tracking, please refer to SAP's documentation on Funds Management (PSM-FM). Additionally, there are many online resources available that provide detailed information on how to use this feature in SAP.