What is commitment in SAP CO - Controlling?

SAP Term: commitment

• Component: CO

• Component Name: Controlling

• Description: A contractual or scheduled commitment that is not yet reflected in Financial Accounting but that will lead to actual expenditures in the future. Commitment management gives you an early recording and analysis of such commitments for their cost and financial effects. Commitments can be entered for the following objects: production orders Production orders Internal orders Maintenance orders Sales orders Cost centers Networks Network activities Projects work breakdown structure elements

Smart SAP Assistant

• Key Concepts: 
  Commitment in SAP CO Controlling is a financial obligation that is created when an order is placed. It is a record of the expected costs associated with the order and is used to track and monitor the budget. Commitments are created in the system when goods or services are ordered, and they are updated as the order progresses. 
  
  How to use it: 
  In SAP CO Controlling, commitments are created when an order is placed. The commitment is then updated as the order progresses, and it can be used to track and monitor the budget. The commitment can also be used to generate reports that show the expected costs associated with the order. 
  
  Tips & Tricks: 
  When creating a commitment in SAP CO Controlling, it is important to ensure that all of the necessary information is included in the record. This includes the expected costs associated with the order, as well as any other relevant information such as delivery dates or payment terms. 
  
  Related Information: 
  Commitments in SAP CO Controlling are closely related to budgeting and cost control. For more information on budgeting and cost control in SAP CO Controlling, please refer to the official SAP documentation.