What is commitment limit in SAP SBO - SAP Business One?

SAP Term: commitment limit

• Component: SBO

• Component Name: SAP Business One

• Description: The prescribed maximum of liabilities specified for a customer. This may include open purchase orders or bill liabilities.

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• Key Concepts: 
  Commitment limit is a feature in SAP Business One (SBO) that allows users to set a limit on the amount of money that can be spent on a particular project or activity. This limit is set by the user and can be adjusted as needed. The commitment limit helps to ensure that the project or activity does not exceed its budget.
  
  How to use it: 
  To use the commitment limit feature in SBO, users must first create a budget for the project or activity. Once the budget is set, users can then set a commitment limit for the project or activity. This limit can be adjusted as needed and will be enforced when creating purchase orders or other financial documents related to the project or activity.
  
  Tips & Tricks: 
  It is important to regularly review and adjust the commitment limit as needed. This will help ensure that the project or activity does not exceed its budget. Additionally, it is important to keep track of all purchases related to the project or activity so that the commitment limit is not exceeded.
  
  Related Information: 
  For more information about commitment limits in SBO, please refer to the SAP Business One User Guide. Additionally, there are many online resources available that provide more detailed information about this feature and how to use it effectively.