Commitment Issue

[Former Member]

Hi guys,

I have an issue with the commitments in PS. I have a project for which planning and budgetting is done till level 3 which is the acct assig element. the available budget on that WBS is $ 100k and I create a PO against that WBS for 50K, and the client wants to cancel the commintment on that PO if it is not used in 3 months. The problem is how is the budget updated in the projects once the PO is cancled.

Any help is appriciated.

Thanks

[Former Member]

Hi,

There are some different condition : 1st. If you cancel the PO or delete the line item in PO. The amount automatically will go to the PR ( if you create PR before). Therefore, your available budget is still 50K.

(if you wish to get 50K back to your available budget = 100K, delete all line item in PR/PO).

2nd. If your force close the PO (marking the delivery completed) , the amount will go to remaining order plan . Your available budget is still 50K. Do not worry about remaining order plan. Once your network/WBS is TECO, all value trap in Remaining order plan will go to Available budget.

Hopefully will give you some ideas.

Cheers,

Nies

[Former Member]

When you have a commitment against a WBS, this value will be shown as commitment/assigned value against the WBS. Budget will still remain the same, but available budget is shown as difference between Budget and (Total RemOrdPlanTotal ActualTotal Commitment)

Commitments can be PR, PO etc.,

Assigned Value= Total RemOrdPlanTotal ActualTotal Commitment

Now if PO is cancelled its only commitments,assigned values & available budget values are changed (automatically) but not the budget. PO commitments are also reduced by entering goods receipt or invoice receipt for a purchase order.

Regards

Sreenivas

Pls close the post if satisfied.

[Former Member]

Hi Sreenivas,

RemOrdPlan is only activity cost or Activity Cost + Material Cost (Material Attached to the activity)?

Regards,

Venkat

[Former Member]

I would assume (not sure) that RemOrdPlan will include even material costs.

Regards

Sreenivas