Purchase Order Commitments (PO Commitments) are available in Microsoft Dynamics GP as a part of the Purchase Order Enhancements module, which also includes PO Approvals within Purchase Order Processing.
A Purchase Order Commitment is a way to reserve funds when a PO is entered in the system to ensure that the funds remain available when the goods are received and invoiced. PO Commitments works by comparing the committed PO amounts along with the actual values for the received POs compared to the budget values for the period.
In this chapter we'll take a look at enabling PO Commitments, entering transactions, and then reporting on the commitments. By following these steps, you will learn how to use PO Commitments in Dynamics GP to gain control over purchasing.
Before Purchase Order Commitments can be used, the function in Purchase Order Enhancements needs to be enabled.
To enable Purchase Order Commitments, follow these steps:
2017 MASTER
into the Budget ID field.5.00%
in the next field.With Purchase Order Commitments now enabled, any fiscal year with a commitment budget defined will be compared to the budget and committed amounts to see if a purchase order can be entered.
For every year that commitments are to be used, a budget is required. In this example, I have used the 2017 MASTER
budget, but there is no requirement to use the Master budget.
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