What is 'commitment capital' in SAP FS-AM - Account Management?

commitment capital - Overview

• Component: FS-AM

• Component Name: Account Management

• Description: This is the amount for which the bank and account holder have a binding agreement for a fixed condition period.

commitment capital - Details

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  Key Concepts: 
  Commitment capital is a term used in the SAP FS-AM Account Management component. It is the amount of money that a company has committed to spend on a particular project or activity. This amount is tracked and monitored in the system to ensure that the company does not exceed its budget. 
  
  How to use it: 
  In order to use commitment capital, a company must first define the budget for a particular project or activity. This budget is then entered into the system and tracked over time. The system will then alert the user if the amount of money committed to the project or activity exceeds the budget. 
  
  Tips & Tricks: 
  It is important to keep track of commitment capital in order to ensure that a company does not exceed its budget. It is also important to review and update the budget regularly in order to ensure that it remains accurate and up-to-date. 
  
  Related Information: 
  Commitment capital is closely related to other financial terms such as budgeting, forecasting, and cost control. It is also related to other SAP components such as Financial Accounting (FI) and Controlling (CO).