Commitment Management

What is Commitment Management ? Commitment Management enables us to enter and analyze commitments at an early stage, and thus to account for them in controlling.

When we need to consider Commitment in Implementation? When there is need to monitor the Funds ,and to reserve funds for future costs. Which all Modules to be integrated in Commitments Management? - Controlling (CO) In Controlling it performs tasks such as planning, checking and controlling costs. Commitments management is a part of the cost monitoring process. Commitments are displayed either on internal Orders, Cost centers, or Projects - Materials Management (MM) Commitments are created through purchase requisitions and purchase orders. Commitments are reduced by various business transactions such goods receipt/Service Entry Acceptance/LIV. The commitments data is transferred to Controlling. Features of Commitment Managment. 1, Commitment Creation -when Materials or Services Ordered for Internal Order,Cost center or for a Project, it creates Commitment equivalent to order value. 2,Displaying Commitement - It can be displayed with value , Quantity for the cost element, fiscal year, and the period when the costs are expected to be incurred. 3,Commitment Currency 4,Commitment Reduction -Commitment is reduced  by business transaction like Goods Receipt or Service Entry Acceptance or LIV ,when it is PO based LIV . 5,Carrying Forward Commitments at year end closing.