Example: Partial Reduction of Purchase Order Commitments 
Example: Partial Reduction of Purchase Order Commitments
In inventory management for your purchase order, you post a goods receipt for two PCs.
The internal order has now incurred actual costs equal to the purchase order value of the two PCs, plus the proportionate delivery costs. The purchase order commitment is partially reduced by the value of the goods receipt. The actual costs and the purchase order commitment added together provide the total amount of assigned funds:
Reduction of the purchase order commitment
Business transaction |
Actual |
Commitment |
Assigned (actual + commitment) |
1. Purchase order for 3 PCs |
./. |
4,650.00 |
4,650.00 |
2. Goods receipt for two PCs |
3,100.00 |
1,550.00 |
4,650.00 |
You can display the current actual and commitment values in reporting.