Integrating PSM with Contract and Lease Management

Integrated Leasing Scenarios in Public Sector Management:

Public Sector Management account assignment fields such as fund, grant, and functional area are mandatory, available for input, and enabled for automatic derivation in the Posting Parameter tab, and are an organizational assignment rule of a CLM contract.

The organizational assignment rule is the only place in a CLM contract where public sector account assignments are available. Therefore, PSM fields persisted in the organization assignment should be compatible for cost objects of an entire contract. When there are multiple items in a contract with different cost objects, it is necessary to create separate contracts for each funding source.

A budget period is not persisted in a CLM contract and will be derived during financial document posting.

Budget accounts, that is, specific accounts that need to receive or spend budgets, will be derived based on properties of the G/L account in the financial posting.

Cash Origin accounts will be derived on the G/L account properties with the exception of bank, reconciliation, and zero balance clearing lines.

SAP_BR_RECM_SPECIALIST is the role that will have access to update organization assignment rules. To derive PSM fields from the cost object of a valuation parameter, and to update the same in the organizational assignment rule, underlying users must have the SAP_BR_RECM_SPECIALIST role.

In a non-valuated CLM contract, periodic posting (business partner invoice document) is posted with P&L accounts from account determination against the business partner from the CLM contract.

The P&L account line will get PSM account assignments from the organizational assignment on a non-valuated lease periodic posting. Business partner line items in a periodic posting document will get PSM document splitting and balancing account assignments via document splitting logic.

In a periodic posting for "type of posting run", only "integrated posting" is supported in the SAP S/4HANA Public Sector Cloud Environment.

In a non-valuated lease, public sector account assignments are derived from the object tab's cost object (cost center or WBS element).

For a contract object, public sector management (PSM) field derivation will happen directly from the cost object in the contract's object tab.

For a real estate object that is an integration object from the intelligent real estate, the derivation of Public Sector Management (PSM) fields will be from the leading cost object assigned in the real estate object.

The figure, Public Sector Account Assignment and CLM Contracts, is a general illustration of a CLM contract and subsequent postings. Note that there are can be variations and differences based on the contract characteristics.

PSM account assignments persisted in the CLM contract will be used in all subsequent financial postings such as valuation, interest, and periodic postings.

As you complete the contract, assets, when applicable, will be created using the account assignments with the applicable cost object and PSM assignments from the organizational assignment.

Parallel valuation is based on the ledger and accounting principles set up. Refer to Unit 5, Lesson 7, Understanding the Integration with Contract and Lease Management, and Unit 1, Lesson 2, Outlining Modified and Full Accrual Accounting Principles (of IPSC3, SAP S/4HANA Cloud, Public Edition, for Public Sector (USA): Fund Accounting) in fund accounting.

In a periodic posting for type of posting run, only integrated posting is supported in the SAP S/4HANA Public Sector Cloud Environment.

Display of a CLM contract: SAP Fiori ID - F5273 Contract Management.

If there are differences between the cost object on the object tab and the valuation parameter, PSM account assignments will be derived from the valuation parameter's cost object, provided that PSM fields are not already derived and persisted in the organization assignment based on the object tab's cost object.

If PSM fields are derived and persisted in the organizational assignment based on the object tab's cost object, and if there is a need for additional derivation based on the valuation parameter's cost object, PSM fields will be changed only if there is a fixed flag PSM assignment.

Public sector account assignments with respect to subsequent asset creation will be based on the account assignments persisted in the contract's organization account assignment.

To derive PSM fields from the cost object of a valuation parameter and to update the same in the organizational assignment rule, the underlying user must have the SAP_BR_RECM_SPECIALIST role.

In case of changes to the organization assignment of a valuated lease that is change in the cost assignment and funding sources, time slices in the organization assignment have to be synced and aligned with time slices of the valuation parameter manually.