What is year of cash effectivity in SAP PSM-FM - Funds Management?

SAP Term: year of cash effectivity

• Component: PSM-FM

• Component Name: Funds Management

• Description: One year or years in the time horizon for which planned revenues are due or expenditures are carried out. Normally, budget is planned for revenues and expenditures to be paid for in the planning year fiscal year. In some cases, however, budget is planned for revenues and expenditures which are not effective until subsequent years. This budget is therefore valid for the planning year as well as for the years of cash effectivity. The number of years that are defined as cash-effective is defined per budget category and is dependent on the specified time horizon.

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• Key Concepts: 
  Year of Cash Effectivity (YOCE) is a feature in SAP Funds Management (PSM-FM) that allows users to plan and manage their cash flows. It enables users to define the year in which a particular cash flow should be taken into account for planning and budgeting purposes. YOCE is used to ensure that cash flows are accurately reflected in the budget and that the budget is up-to-date.
  
  How to use it: 
  To use YOCE, users must first define the year of cash effectivity for each cash flow. This can be done by entering the year in the “Year of Cash Effectivity” field when creating or editing a cash flow. Once this is done, the system will automatically take into account the cash flow when calculating the budget for that year.
  
  Tips & Tricks: 
  It is important to remember that YOCE only applies to cash flows and not to other types of transactions such as investments or expenses. Additionally, it is important to ensure that the year of cash effectivity is correctly entered when creating or editing a cash flow, as this will ensure that the budget is accurately calculated.
  
  Related Information: 
  For more information on YOCE, please refer to SAP’s official documentation on Funds Management (PSM-FM). Additionally, there are several online tutorials available which provide step-by-step instructions on how to use YOCE in SAP Funds Management.