Commitment Management

Commitment management is part of the cost monitoring process. Commitment items for projects are triggered by material purchase requisitions and purchase orders and are reduced by various business transactions such as goods receipt.  A project cost report shows commitments versus plan and actual costs.

If this scope item is activated and the prerequisite scope item of Project Financial Control (1NT) is performed, the Project Financial Controller can monitor purchase order commitments against plan and actual costs in a report.

If the scope item is activated, and the prerequisite scope item of Overhead Cost Accounting (J54) is performed, the Cost Accountant-Overhead can monitor purchase order commitments by cost center and cost element in a report.

Key Process Steps Covered

  • Monitor projects

Benefits

  • Analyze project costs with information on commitments compared with actual and plan costs