FM is a process that allows classification and tracking of revenues and expenditures in terms of a budget structure
The FM module contains several core master data elements:
Fund – Source and use of financing
Fund Center – Organizational Structure
Commitment Item – Expenses and Revenues
Functional Area – Program or Activity
Fund Type – Description
Funded Program – Lower level internal programs or activity
Fund: Represent the lowest level source of funding used for tracking, controlling and reporting on available financial resources. A full set of financial reports is possible for each fund. Funds Center: Represent the lowest level areas of responsibility for budgetary assignment, monitoring and control. Can be one to one with cost centers. Commitment Items: Represent the categories or classifications of fund equity, revenues, expenses and encumbrances at the lowest level of detail necessary for internal and external reporting. These have a one to one relationship with GL accounts. Functional Area: Structures that identify and classify financial transactions by overall purpose, objective, function and/or mission for accomplishing major services or regulatory responsibilities.
Fund Types: Determine Budget scope. Some assignments are Overall budget, Annual budget and Not Assigned
Funded Programs: Represent lower-level internal programs or initiatives, which represent a plan or system under which actions may be taken to achieve specific goals.