Purchase Order - Commitment Accounting

[David.Simmonds]

Hi Jiwa Solution Providers,

I am reviewing functionality in the Purchase Order Cycle and wonder whether the Commitment Accounting in the Purchase Order Cycle fits into the category of Good Idea, just no one uses it?

Is it a must have, does anyone have a customer who uses or understands what this is about? I am inclined to not do it in the JIWA 7.

Comments welcomed.

[beth.blok]

If a client does not want to reflect this then they only need assign the same account to the asset and liability account. For my moeny, it should stay as is.

[David.Simmonds]

Beth,
What I am trying to do is look at ways to make the system simpler. Simpler to code and simpler to use. Here's another way of looking at it. Do you know anyone who uses this? David

[jspohio]

Purchase order commitment Accounting.

I have 3 client's who use this facility and would like to do budgeting and also have had a few deals go missing because Jiwa does not faclitate project budget commitment of purchasing.

eg a firm is running a project to build houses and wants to know what it's commitment are for future months and how they are going against budget for purchases for the project by month and future months

Regards
Richard Collins

[SBarnes]

Hi David,

I understand it and we do use Purchase order commitment but one of its biggest bug bears at the moment is that there is no reconcilaition between the commitment and stock in transit according to the ordering system and back to the GL.

I also agree that budgeting would be good idea in this area if it could be linked back to inventory classification in terms of the VOH and current commitment when the purchase order is raised.