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E1: 43: Encumbrance/Commitment Processing (Doc ID 625480.1)

Last updated on DECEMBER 09, 2019

Applies to:

JD Edwards EnterpriseOne Procurement and Subcontract Management - Version XE and later
Information in this document applies to any platform.

Purpose

Overview

You can set up commitment tracking to monitor purchasing obligations for a specific job or project. Each time you enter an order detail line, the system recognizes the amount on the line as a commitment and applies it to a job or project. You can review individual commitments and the total amount of outstanding commitments for a specific job or project.

Commitment tracking applies only to purchases for nonstock items and services. You must charge each order detail line to a general ledger account number. The number represents the job or project for which you are tracking commitments.

You must specify the order types for which the system is to track commitments in UDC table 40/CT. For example, if you want the system to track commitments on orders and requisitions, you must specify these order types.

For a detail line to be eligible for commitment tracking, it must have a line type with an inventory interface code of A, B, or C. These codes indicate that the line is charged directly to a general ledger account number.

Each time you enter a purchase order detail line for which commitment tracking is applicable, the system records the amount in the purchase amount (PA) ledger and the purchase unit (PU) ledger.

The PA ledger contains committed purchase amounts. The PU ledger contains committed purchase units.

When you receive goods or create a voucher for purchases, the system relieves commitment amounts by subtracting them from the total commitment amount for the job or project.

You set up commitment relief to determine whether the system relieves commitments automatically. When you specify automatic commitment relief and you are using a formal receiving process, the system relieves commitments when you post either receipts or vouchers to the general ledger. If you use an informal receiving process, the system relieves open commitments when you post vouchers to the general ledger.

Scope

 

Details

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In this Document
Purpose
Scope
Details
 Purpose
 Setup
 Tables Used
 Example - Lump Sum Line, 2-Way Match
 Example - Quantity Based Line, 3-Way Match
 Example - Commitments across Multiple Order Types
 Cancel Purchase Order Generated from OR
 Commitment Integrity
 Receipt Tracking with Expense at Voucher
References

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