Commitment reporting (POP settings)

Use these settings to choose how values are calculated in the Excel reports that include your committed costs; i.e. the value of purchase orders you've raised and not yet invoiced. These reports are Nominal Budgets, Nominal Outturn, and Nominal Outturn by Report Category.

You can choose if your committed expenditure should include goods received (for orders) and goods despatched (for returns) for which you have not yet entered a purchase invoice. Goods are only be included as actual expenditure when you enter the purchase invoice.

Open: Purchase Order Processing > POP Utilities > System Set Up > POP Settings | Commitment Reporting.

If Commitments include goods received and goods despatched is selected, the value of orders and returns are included in your committed costs when the goods are despatched or received, as well as when the orders or returns are entered. Once orders and returns are invoiced or credited, the value is included in your actual expenditure.

When calculating the committed expenditure, the value of the return lines are subtracted.
If Commitments include goods received and goods despatched is not selected, the value of purchase orders and returns is only included when order and returns are entered but not included once the orders and returns are despatched or received. Once orders and returns are invoiced or credited, the value is included in your actual expenditure.

You only need to disable this setting when you have set up purchase order accruals to account for goods received but not yet invoiced. This is because the accrual journal postings will already be included as actual expenditure. Therefore, if you enabled this setting, the same amounts would be duplicated as committed expenditure.

Reports including commitments

The following reports include your committed costs, i.e. any purchase orders you've raised but have not yet invoiced.

Nominal Budgets report

This report shows you the position of your nominal account budgets for each accounting period, taking into account actual and committed expenditure.

For each nominal account in each period, you can see your account budget, actual expenditure, committed expenditure, and the budget variance.

How are values calculated in the Nominal Budgets report?

Budget	The budget for the nominal account in that accounting period.
Actual	The actual amount posted to the nominal account in that accounting period, which is the value of all purchase invoices minus purchase credit notes.
Committed	The committed amount is calculated from: Orders with a document date that falls within that accounting period. Orders must also have a live status. The value is the total of all purchase order lines that have not been invoiced. The value of the order lines is: quantity x discounted line price in base currency. If you have enabled the Include goods received setting, goods received (but not invoiced) are included as committed expenditure. If there are any returns, the value of the return lines are subtracted.
Budget Variance	The budget variance is calculated from: Budget - Actual - Committed

Note: The values in this report are affected by your Commitment Reporting settings.

Nominal Outturn report

This report shows your budget position for each nominal account taking into consideration any commitments.

For each nominal account, you can see the annual budget, budget to date, actual expenditure, committed expenditure, budget variance, and budget remaining.

How are values calculated for the Nominal Outturn report?

Annual Budget	The budget for the nominal account for this financial year.
Budget to date	The total of the budget values for this nominal account, up to and including the latest open accounting period.
Actual to date	The total of the actual values posted to this nominal account, up to and including the latest open accounting period. The actual values are calculated as the total of all purchase invoices, minus purchase credit notes.
Committed	The committed amount is calculated from: Orders are included if the document date is inside the end of the latest open accounting period. Orders must also have a live status. The order value only includes order lines that have not been invoiced. The value of the order lines is: quantity x discounted line price in base currency. If you have enabled the Include goods received setting, goods received (but not invoiced) are included as committed expenditure. If there are any returns, the value of the return lines in the order are subtracted.
Budget Variance	The budget variance is calculated from: Budget to date - Actual - Committed
Budget Remaining	The remaining budget is calculated as the total of the budget values for this nominal account, for accounting periods after the Time fence in the current financial year.

Note: The values in this report are affected by your Commitment Reporting settings.

Nominal Outturn by Report Category report

This report shows your budget position for each report category taking into consideration any commitments.

For each report category, you can see the annual budget, budget to date, actual expenditure, committed expenditure, budget variance, and budget remaining.

The budget values are calculated from total of the budgets set on each nominal account within the report category. Budgets set at report category level are not included.

How are values calculated for the Nominal Outturn by Report Category report?

Annual Budget	The budget for all nominal accounts in this report category for this financial year. Budgets set at report category level are not included, the value is calculated from the individual nominal account budgets in that report category.
Budget to date	The total of the budget values for this report category, up to and including the latest open accounting period.
Actual to date	The total of the actual values posted to this report category, up to and including the latest open accounting period. The actual values are calculated as the total of all purchase invoices, minus purchase credit notes.
Committed	The committed amount is calculated from: Orders are included if the document date is inside the end of the latest open accounting period. Orders must also have a live status. The order value only includes order lines that have not been invoiced. The value of the order lines is: quantity x discounted line price in base currency. If you have enabled the Include goods received setting, goods received (but not invoiced) are included as committed expenditure. If there are any returns, the value of the return lines in the order are subtracted.
Budget Variance	The budget variance is calculated from: Budget to date - Actual - Committed
Budget Remaining	The remaining budget is calculated as the total of the budget values for this report category, for accounting periods after the Time fence in the current financial year.

Note: The values in this report are affected by your Commitment Reporting settings.