What is obligation order in SAP PSM-FM - Funds Management?

SAP Term: obligation order

• Component: PSM-FM

• Component Name: Funds Management

• Description: A funds management document that is generated automatically each time an invoice is created in FI to reflect the corresponding consumption in .

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• Key Concepts: 
  An obligation order is a document used in SAP Funds Management (PSM-FM) to record the commitment of funds for a particular purpose. It is used to reserve funds for a specific purpose and to ensure that the funds are available when needed. The obligation order is created when the budget is approved and is linked to the budget document. 
  
  How to use it: 
  In SAP Funds Management, an obligation order is created when a budget document is approved. The obligation order is linked to the budget document and contains information about the amount of funds that have been committed for a particular purpose. The obligation order can then be used to reserve funds for that purpose and ensure that they are available when needed. 
  
  Tips & Tricks: 
  When creating an obligation order, it is important to ensure that all of the necessary information is included in the document. This includes the amount of funds that have been committed, the purpose for which they are being committed, and any other relevant information. Additionally, it is important to ensure that the obligation order is linked to the correct budget document. 
  
  Related Information: 
  For more information about using obligation orders in SAP Funds Management, please refer to the SAP Help documentation. Additionally, there are several online resources available that provide detailed information about using obligation orders in SAP Funds Management.