What is a Commitment?

 

In business management, the term "commitment" is commonly used to refer to an obligation to pay for materials or services. The following definition can be applied to commitments in the SAP System:

A commitment is a contractual obligation, which is not recorded in book-keeping, but which does, however, lead to actual costs through different business transactions.

The commitment identifies costs that will be incurred in the future for materials and services that you have requested or ordered. A commitment reserves funds for costs which will be incurred in the future.

Commitments management enables you to record and analyze funds commitments at an early stage.