Commitment (SAP Library

Commitment

Definition

Identifies costs that will be incurred in the future for materials and services that you have requested or ordered. Commitments reserve funds that will become costs at a future date.

Use

On the account assignment objects, Commitments Management portrays the cost side of the procurement process for MM Purchasing. The costs incurred are assigned to business objects, such as orders, cost centers, or projects.

In Commitments Management, you can specify which object the costs are to be assigned to (for example, purchase order costs). In this case, this is known as an Initial Account Assignment.

Commitments Management distinguishes between three types of commitments, depending on the account assignment object:

Order Commitment:

The commitment is initially assigned to an order.

Cost Center Commitment:

The commitment is initially assigned to a cost center.

Project Commitment:

The commitment is initially assigned to a project, or to a work breakdown structure element.

For more information, see the SAP Library:

For Internal Orders	Financials ® Controlling ® Internal orders ® Manual Actual Postings On Internal Orders.
For Cost Center Accounting	Financials ® Controlling ® Cost Center Accounting ® Manual Actual Postings.
For Project System	Financials ® Controlling ® Commitments/Actual Updates Of Transaction Data

Integration

Commitments occur

In Purchasing, due to:

Purchase requisitions (purchase requisition commitment) define the internal requirement for a material or a service. Purchase requisitions have a control function and you change them at any time.
Purchase orders (purchase order commitment):
Purchase orders are contractual requests to a vendor, to supply certain goods or services according to the agreed conditions. No short-term, unilateral changes can be made.

due to funds commitments (commitment for funds commitments):

- You can use Funds Commitments to reserve funds for costs you are fairly certain to incur, but you cannot yet assign to a specific business transaction (such as, a purchase order or a purchase requisition).