Registering costs and commitmentsYou want to keep your project control as up-to-date as possible, therefore it is essential that the right costs and future costs are entered for, for example, your monthly reports. Commitments are a financial obligation that represent future costs. The commitment will be replaced by costs when the costs are actually made. Commitments can be booked in two ways:
Soft and hard commitments If a commitment has a purchase order linked to it that is not yet actually delivered, it is called a soft commitment. You insert this commitment manually. The soft commitment becomes a hard commitment when the purchase order is actually delivered. After costs are recorded, the commitments must be offset by the same amount as the cost amount. If the costs are generated from a direct delivery or through a warehouse, these steps are completed:
Commitments are only booked financially after they are confirmed and posted to Project. In the Material Costs (tpppc2511m000) session, commitments can be reconciled, which means that they become costs. Cost origins
If costs are the result of registering hours or if costs are the result of actions in Financials or Procurement, the calculation of these transactions takes place automatically. The surcharge percentage applied to registered costs can be defined by project, cost type, cost object, and cost component. Extensions are included in a surcharge calculation or excluded, depending on the extension definition. Confirm costs in the Approve Costs (tpppc4811m000) session or in the Global Approving (tpppc4200m000) session. Process costs with the Process Transactions (tpppc4802m000) session to Financials, and Project transactions.
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