Practicing commitment accounting

As previously mentioned in the Commitment Type section of this chapter, we can use commitment type accounting as a tool to provide financial information before "budget to actual" reports, and prevent budget overrun. In the following sections, we will implement commitment accounting and analyze the accounting facts/GL journal entries generated.

Prerequisites

We can activate commitment accounting through the Accounting Schema window. There is a list of options that can be used to enable commitment accounting. The options are:

  • PO Commitment only
  • PO Commitment & Reservation
  • SO Commitment only
  • SO Commitment & Reservation
  • PO;SO Commitment
  • PO;SO Commitment & Reservation

For our reference, monitoring the expenses incurred in the ...

Get ADempiere 3.4 ERP Solutions now with the O’Reilly learning platform.

O’Reilly members experience live online training, plus books, videos, and digital content from nearly 200 publishers.