1. Procurement Management Implementation Guide
  2. Understanding How to Review Commitment Information for Orders

Understanding How to Review Commitment Information for Orders

You can monitor individual commitment or encumbrance amounts for a job or project to verify the types of purchases being made. You can also review the total commitment or encumbrance amount for a job or project to verify that the amount does not exceed the budget.

After you receive goods or services or create vouchers, you can have the system relieve commitments and encumbrances. The system does this by reducing the total commitment amount for a job or project by the individual commitment amount. If you use a formal receiving process, the system performs commitment relief when you post journal entries for receipts or vouchers to the general ledger. If you use an informal receiving process, the system relieves open commitments when you post vouchers to the general ledger.

The system performs commitment and encumbrance tracking only on order types that you specify in UDC 40/CT. If an order is on hold, the system does not create commitments or encumbrances for the order until you release the hold.

The system tracks commitments and encumbrances only for detail lines that you charge directly to a general ledger account number. These are detail lines to which you assign a line type with an inventory interface of A or B.

Each time that you enter a purchase-order detail line for which commitment tracking is applicable, the system records the amount in the PA ledger, which contains committed purchase amounts in domestic currency, and the PU ledger, which contains committed purchase units.

You can review individual commitment transactions for:

  • A branch/plant.

  • An account number.

  • A supplier.

  • An order number and type.

You can also review the total amount of all commitments, relieved commitments, and open commitments for each of the preceding items.

Each commitment transaction represents one of these situations:

  • The entry of an original commitment.

  • A change to a commitment.

  • A canceled commitment.

  • A relieved commitment due to a receipt or payment.

You can review details for each transaction, such as the account number, order number, line number, and supplier, as well as who generated the transaction and when.

The system retrieves commitment transaction information from the F43199 table.