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Derivation Rule

A rule defined by IF-THEN logic which controls how certain target characteristic values are derived automatically from source characteristic values. This rule will be used to minimize entry of the account string to only those elements that vary or for which entry is required.


Dunning (A/R)

Provides the ability to evaluate accounts receivable and send notifications of invoices that are past due. Dunning incorporates many parameters, but normally the length of time an invoice is overdue is key to determining which notices to send. (also see Customer Aging)

Financial Management Area

SAP defines a financial management area in R/3 as the organizational unit within an institution used to represent budgeted and actual revenues and expenses.

Functional Area

SAP defines the functional area as a master data element that is maintained within the Funds Management (FM) Module. It is used in FI to classify revenues and expenditures of an organization by function. Functional area is often referred to as mission. The functional area will be derived from the cost center.

Fund

A separate and distinct fiscal/accounting object containing a self-balancing set of accounts used to budget and control costs and to identify source and use of funding. Financial data will be separated by Funds so that certain activities can be performed or objectives achieved in accordance with special regulations, restrictions, or limitations. Fund is not hierarchical. The Fund is the lowest level at which a balance sheet can be created.

Funds Center

An organizational unit within the Funds Management (FM) Module. It represents the lowest level area of responsibility for budgetary monitoring and controlling costs by area of responsibility. Fund centers are arranged in a multilevel hierarchy where a parent-child relationship is defined for reporting and/or controlling levels. For the University of
Kentucky, Fund Centers will have a one-to-many relationship with cost centers.

Funds Center Group

Funds Centers can be grouped together to form funds center groups (not necessarily hierarchical). Funds Center groups will be used to provide the organizational structure for reporting information from the SAP system. Budgeting will be done at the Funds Center level.