Hi Zain,
The next question would then be - which release are you on with regard to the EA-PS component. As far as I understand SAP Notes 1278967 (http://service.sap.com/sap/support/notes/1278967) and 1321375 (http://service.sap.com/sap/support/notes/1321375) the integration between Material Reservations and Funds Management is not available before 603 (EHP3) and then only, once you have activated the corresponding business function PSM_FM_CI_1 via the Switch Framework (TA SFW5).
You may want to check this as well!
Cheers,
Danilo