Agreement commitment
Agreement commitments let you commit funds for activities and general ledger commitments at the time a contractual vendor agreement is created. As requisitions and purchase orders are created referencing an agreement, the amount committed from the agreement will be reduced by the commitment amount defined for the requisition or purchase order. At the end of the agreement period, you can manually close the agreement if there is an outstanding balance.
Agreement commitments can be created for contract, blanket order, standing, service, or catalog agreements.