Creating a Commitment

You can create subcontract detail lines using the Subcontract Entry method in Purchase Orders (P4310).

When you create a subcontract detail line, the system verifies that the document type exists in user-defined code (UDC) 40/CT, verifies that the line type has an inventory interface of A or B, and automatically creates commitments and encumbrances.

If you create a subcontract from a requisition, you can track precommitments in addition to commitments. A precommitment is the recognition of a future obligation from which you can commit budget amounts based on that request. When you generate the subcontract from the requisition, the system relieves the precommitment and creates commitments for the resulting subcontract amounts.