Committed costs are incurred when a commitment has been made to purchase a service or non-stocked item, but the service or item has not yet been provided.
SYSPRO currently records a budget per ledger code and then records the actual value of transactions posted against that ledger code. Any expected costs are excluded from the check against the budget.
Committed and uncommitted values are recorded against the relevant ledger code as they are incurred (i.e. not updated in batch mode). When an item changes from uncommitted (e.g. a requisition) to committed (a purchase order is created) the uncommitted value is reduced and the committed value is increased.
The value remains committed until the actual cost is incurred and posted. Thereafter, it is removed.
When you enable this option, you must define all General Ledger period end dates for the entire current year for Commitment Accounting to function correctly. The period for each transaction is based on the date supplied and depending on the source, is one of the following:
the purchase order line due date
the requisition due date
Business Objects - the date supplied in the XML input
If the date is in the future and the period cannot be calculated, then the transaction is considered 'unallocated'. The transaction period is based on the period end dates for the General Ledger. Any items for next year are calculated using the current year period end day/month. When the requisition or purchase order value is checked against the budget for the General Ledger account, it is the budget for the current year that is used.
Therefore, if you are using Commitment Accounting and you need to change your current year budget for any reason, you should consider the implications of this particularly when reducing the budgets. The General Ledger budget is only updated with the actual cost when the transaction is posted into the General Ledger. This means that real time monitoring of the actual costs is not available.