Purchase Order Commitments (PO Commitments) are available in Microsoft Dynamics GP as a part of the Purchase Order Enhancements module, which also includes PO Approvals within Purchase Order Processing.
A Purchase Order Commitment is a way to reserve funds when a PO is entered in the system to ensure that the funds remain available when the goods are received and invoiced. PO Commitments works by comparing the committed PO amounts along with the actual values for the received POs compared to the budget values for the period.
In this chapter we'll take a look at enabling PO Commitments, entering transactions, and then reporting on the commitments. By following these steps, you will learn how to use PO Commitments in Dynamics GP to gain control over purchasing.