What is 'commitment' in SAP FI - Financial Accounting?

commitment - Overview

• Component: FI

• Component Name: Financial Accounting

• Description: The types of commitments and liabilities, such as: Outstanding orders delivery commitment for confirmed orders Open purchase orders acceptance commitment from binding orders Bill liability total bill of exchange commitments at a bank

commitment - Details

• 
  Key Concepts: 
  Commitment in SAP FI Financial Accounting is a legally binding agreement to purchase goods or services. It is a document that records the amount of money that has been agreed upon by both parties and is used to track the progress of the purchase. It is also used to ensure that the goods or services are delivered as agreed upon. 
  
  How to use it: 
  In SAP FI Financial Accounting, commitments are created in the system by entering the details of the purchase into the system. This includes the vendor, the amount of money agreed upon, and any other relevant information. Once this information is entered, a commitment document is generated which can be used to track the progress of the purchase. 
  
  Tips & Tricks: 
  When creating a commitment in SAP FI Financial Accounting, it is important to ensure that all relevant information is entered accurately. This will help to ensure that all parties involved are aware of their obligations and that the purchase is completed as agreed upon. 
  
  Related Information: 
  Commitments in SAP FI Financial Accounting are closely related to other documents such as purchase orders and invoices. It is important to understand how these documents interact with each other in order to ensure that all purchases are tracked accurately and efficiently.