New or amended policies or regulations have been developed or adopted to provide financial assistance to groups of individuals or organizations.

Grants Management for Grantor allows an organization to flexibly define grantor programs and their characteristics based on the unique attributes needed to deliver a variety of types of payments to its constituency.

The grantor program can be replicated as a funded program in SAP Funds Management Budget Control System, providing integration between program definition and grant budgeting.

Budgets and forecasts are required for each fiscal year that a program is active. Encumbrance accounting allows granting organizations to manage spending within a program.

Grantors receive applications from potential grantees through multi-channel access - internet, phone, mail, walk-in, or external data feed. Application forms are program-specific.

Grant applications are assessed against rules to determine eligibility and evaluate the amount of grant or payment.

Applications can be assessed manually or automatically, using the SAP Business Rules Framework. If the application is approved, this can trigger a budget encumbrance in the form of a funds precommitment in Funds Management.

You can use this business process to deal with complex and related problems or issues that extend beyond individual documents, transactions, or business partners. Cases enable you to consolidate and manage diverse information about a problem or issue in a central repository, and to track and analyze this information. The information that you can store in a case can include master data, transactions, electronic documents and business partners.

You can create an agreement as a follow-up transaction to an approved application. An agreement is a prerequisite for a grantor payment.

Agreements can be amended based on changes to the program, business partner or application.  Amended agreements are processed through change management.

Grantor payment processing supports the following payment types:

- Payment

- Advance

- Holdback

- Payment Recovery

- Repayment

Payment, advance and repayment amounts can be automatically split using billing plans. Grantor payments can also be linked to more than one funding source or account assignment using multi-funding capability.

Payment information in SAP CRM is transferred to Public Sector Collections and Disbursements (PSCD) for actual payment processing and update of the general ledger.

A claim represents a request from the grantee for payment based on accounting for incurred expenses or meeting other terms or conditions of the agreement.

Granting organizations monitor the activities of grantees to ensure that the grantees are complying with the terms and conditions of the grant(s).

The complexity and duration as well as the type of program may result in the need for the grantor to monitor the activities of the grantee as they relate to the grant funding. Monitoring may take the form of recurring communications with the grantee and other stakeholders, i.e. scheduled site visits or the requirement for the grantee to supply the grantor with monitoring documents, i.e. quarterly financial statements or project plans. All activities, communications and related documents must be linked to the relevant application and agreement. Activity Processing in CRM provides the capability to support grant monitoring.

Internal and external stakeholders require reports at various stages of the grantor lifecycle. Grantor anaylsis provides BI queries for Budget Control System, Public Sector Collections and Disbursements and Grantor processing. 

With this business process, you can prepare and execute all activities for year-end closing. These include transferring open commitments (commitment carryforward) and a separate transfer of non-consumed budget (carryforward of residual budgets) from old fiscal years to the new.

  You can also use the closing operations to display budgets and assigned values for each period.