What is 'commitment item' in SAP PSM-FM - Funds Management?

commitment item - Overview

• Component: PSM-FM

• Component Name: Funds Management

• Description: A budget item that represents individual revenue and expenditure line items within a financial management area.

commitment item - Details

• 
  Key Concepts: 
  A commitment item is a document used in Funds Management (FM) to record the financial commitment of an organization to a particular project or activity. It is used to track the budget and expenditure of a project or activity, and to ensure that the funds are used in accordance with the organization’s financial policies. 
  
  How to use it: 
  In Funds Management, commitment items are created when a budget is allocated for a project or activity. The commitment item is then used to track the budget and expenditure of the project or activity. The commitment item can be used to monitor the progress of the project or activity, and to ensure that the funds are being used in accordance with the organization’s financial policies. 
  
  Tips & Tricks: 
  When creating a commitment item, it is important to ensure that all relevant information is included, such as the budget amount, start and end dates, and any other relevant details. It is also important to ensure that all changes to the commitment item are tracked and documented. 
  
  Related Information: 
  For more information on Funds Management and commitment items, please refer to SAP’s official documentation on Funds Management.