About tracking commitments

The system tracks the commitment cost in the base currency for the Normal and Drop-ship lines of the purchase orders associated with a project.
These commitments are called Internal because they originate from documents created in the system, in contrast to External commitments that can be imported into Visma Net.

The system tracks the internal commitment cost if the Internal commitment tracking check box is selected in the Project accounting preferences (PM101000) window.

When you save a purchase order created in the Purchase orders (PO301000) window with the Open status and the order refers to a project, the system creates a commitment record for each purchase order line in the amount of the Ext. cost of the line.
These commitments are updated when the order line is changed (for example: When the quantity or amount of the line is corrected or the order line is completed or cancelled).

You can review the commitment records in the Commitments (PM306000) window.
The original commitment amount is displayed in the Amount column of the line.
For a new commitment, the Open amount equals the original committed amount.

When a purchase order is received, the system updates the Received quantity and reduces the Open amount of the commitment line by an amount proportional to the received or invoiced quantity.

The system updates the Received quantity of the commitment line depending on the type of the purchase order line as follows:

• For the purchase order lines that are processed through a purchase receipt, the commitment lines are updated with the received quantity when the purchase receipt is released.
• For the purchase order lines that are invoiced directly without a purchase receipt being processed, the commitment lines are updated with the invoiced quantity when the purchase invoice is released.

When a purchase invoice that corresponds to the purchase order is released, the Invoiced amount is updated with the Ext. cost of the invoice line.

After a purchase order has been closed, the Open amount of the commitment lines becomes zero.

If a purchase order has been received partially or cancelled, the incomplete amounts are also subtracted from the Open amount.

The validate process in the Validate project balances (PM504000) window recreates internal commitment records based on the amounts and quantities in the lines of purchase orders if the tracking of project commitments is enabled.

The system tracks the commitment revenue in the base currency for the lines of sales orders associated with a project.

As with commitments for purchase order lines, these commitments are internal because they originate in the system.

The system tracks the internal commitment revenue if the Internal commitment tracking check box is selected in the Project accounting preferences (PM101000) window.
The Commitment tracking check box should also be selected in the Order types (SO201000) window for the order type for which the commitment tracking is required.

When you save a sales order created in the Sales orders (SO301000) window with the Open status and the sales order refers to a project, the system creates a commitment record for each sales order line in the amount of the Ext. cost of the line.
These commitments are updated as soon as the order line is changed (for example, when the quantity or amount of the line is corrected, or the order line is completed or cancelled).

In the Commitments (PM306000) window, the original commitment amount is displayed in the Amount column. For a new commitment, the Open amount equals the original committed amount.

The system updates the Received quantity of the commitment line depending on whether a shipment is processed for the sales order as follows:

• For the sales order lines that are processed through a shipment, the commitment lines are updated with the shipped quantity when the shipment is confirmed.
• For the sales order lines that are invoiced directly without shipment processing, the commitment lines are updated with the invoiced quantity when the sales invoice is released.

When a sales invoice that corresponds to the sales order is released, the Invoiced amount is updated with the Amount of the invoice line.

After a sales order has been completed, the Open amount of the commitment lines becomes zero.

If a sales order has been delivered partially or cancelled, the incomplete amounts are also subtracted from the Open amount.

The return lines of sales orders are recorded as commitment lines with a negative sign if commitment tracking is enabled for the applicable return order type (for example, a credit note).

The validation process in the Validate project balances (PM504000) window recreates internal commitment records based on the amounts and quantities in the lines of sales orders for which the tracking of project commitments is enabled.

The commitment data aggregated by the project budget line key (project, project task, item, and account group or project, project task, item and account group ID, respectively) is available in the analytical reports and in the following windows:

• In the Projects (PM301000) window, in the corresponding columns on the Revenue budget and Cost budget tabs.
  For a selected budget line, you can click View commitments in the table toolbar to review the detailed commitment records in the Commitments (PM306000) window.
• In the Row sets (CS206010) window, in the Amount type field of the Data source of a row, for row sets of the PM type.
• In the Column sets (CS206020) window, in the Amount type field of the Data source of a column, for column sets of the PM type.
• In the Unit sets (CS206030) window, in the Amount type field of the Data source of a unit, for unit sets of the PM type.

Project commitments do not necessarily have to originate from purchase orders or sales orders that exist in the system.

• You can import commitment records from an external system into Visma Net for further analysis against budget and actual figures. These commitment records are called External in contrast to internal ones that originate from documents created in the system.

• After the initial import, you can update imported commitment records as the project goes on and the system changes the applicable open committed amounts and invoiced amounts.
  Imported commitment records have the External type in the Commitments (PM306000) window and are identified in Visma Net by the external reference number.

• The selection of the Internal commitment tracking check box in the Project accounting preferences (PM101000) window is not necessary for the import of external commitment records.

• To create an external commitment record, in the toolbar of the Commitments (PM306000) window, you can click Create external commitment and then populate the necessary settings of the window, which opens.
  This window is also available for writing import and export scenarios and through the Web Services API.