What is commitment in SAP PA-PM-PB - Position Budgeting and Control?

SAP Term: commitment

• Component: PA-PM-PB

• Component Name: Position Budgeting and Control

• Description: Enables you to enter and analyze commitments with regard to cost/financial effects at an early stage. It includes funds precommitments and commitments. Commitment is managed on the following objects: - Internal order - Cost center - Project WBS element - Fund - Funds center - Grant - Functional area

Smart SAP Assistant

• Key Concepts: 
  Commitment in SAP is a financial obligation that is created when goods or services are ordered. It is used to track and manage the budget of a project or position. It is also used to ensure that the budget is not exceeded. 
  
  How to use it: 
  In SAP, commitment can be used to create a budget for a project or position. This budget can then be tracked and managed using the commitment feature. The budget can be set up with different levels of detail, such as by cost center, activity type, or account assignment. 
  
  Tips & Tricks: 
  When setting up a commitment in SAP, it is important to ensure that the budget is realistic and achievable. It is also important to ensure that the budget is regularly monitored and updated as needed. 
  
  Related Information: 
  The commitment feature in SAP is part of the PA-PM-PB Position Budgeting and Control component. This component also includes features such as budget planning, budget monitoring, and budget control.