1. Subcontract Management Implementation Guide
  2. Understanding Commitment Information for Subcontracts

Understanding Commitment Information for Subcontracts

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

After you process progress payments, you can have the system relieve commitments. The system does this by reducing the total commitment amount for a job or project by the individual commitment amount. The system relieves open commitments when you post progress payment vouchers to the general ledger.

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

The system tracks only commitments 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. For subcontracts, typically line type J is used.

Each time you enter a subcontract detail line for which commitment tracking applies, the system records the amount in the Purchase Amount (PA) ledger, which contains committed purchase amounts in domestic currency, and the Purchase Units (PU) ledger, which contains committed purchase units.

You can review individual commitment transactions for:

  • A job/project.

  • An account number or a cost code or cost type.

  • A subcontractor (supplier).

  • A subcontract and type.

You can also review the total amount of all commitments, relieved commitments, and open commitments for each of these individual commitment transactions.

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, subcontract number, line number, and subcontractor, as well as who generated the transaction and when.

The system retrieves commitment transaction information from the F43199 table.