Understanding Commitments

A commitment is the recognition of a future obligation. Each time you enter a subcontract order detail line, you can have the system track the amount that you are obligated to pay and apply it to a job or project.

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

When you create progress payments, you can have the system relieve commitments. To relieve commitments, the system subtracts the individual commitment amount from the total commitment amount for the job or project.

You can also have the system:

• Create an audit trail in the P.O. Detail Ledger File - Flexible Version table (F43199).

• Recalculate amounts in the account balance ledgers.