commitment item

[Former Member]

hello gurus

what is commitment item,i know it is used in gl ac but i dont know exactly what is the meaning of it, where will we create it and what is the purpose using it in gl

thanks in advance

guru

[siva_boni]

Commitment item belongs to Funds Management.

A unique FM account assignment therefore comprises the funds center, commitment item and depending on which other account assignment elements are activated, from fund and/or functional area. Grant and funded program are not available in Former Budgeting.

The commitment item category defines the order according to balances, revenues or expenditure: All commitment items are divided into different categories: revenue items (category 2), expenditure items (category 3), balance items (category 1), balance commitment items (category 4) and the clarification work list from IS-PS-CA, Contract Accounting, (category 5).

You can create one or more hierarchies for each category of commitment item.

The financial transaction and the commitment item category are identical for all commitment items within a hierarchy.

The financial transaction represents business transactions from the feeder application components (for example Materials Management) and plays the central role in passing on data from these components to Funds Management. Whether they are updated in FM depends on the financial transaction of the commitment item used during posting. Only FIVOR 30 will be updated into FM.

There are also technical commitment items which play an important role in integration that are outsourced with financial transaction 30 and item category 2 or 3, as well as the expenditure and revenue commitment items of the budget. For example, commitment items for reconciliation accounts (financial transaction 60, item category 2/3), commitment items for the payment transaction (financial transaction 90, item category 1), commitment items for the clarification work list from IS-PS-CD (financial transaction 90, item category 5) or commitment items for the goods issue/goods receipt (financial transaction 40, item category 2/3).

Hope this is useful to you.

regards

Siva

[former_member188826]

The tasks of Funds Management are to budget all revenues and expenditures for individual responsibility areas, to monitor future fund movements in light of the budget available, and to prevent budget overruns.

Hierarchies of commitment items are created, classified into revenue and expenditure. These when assigned to GL accounts, and have budgets set, can tell you, before you process a transaction if you have enough budget or not.