Commitments and Internal Orders:In SAP, a commitment represents an obligation to make a future payment. When a purchase order is issued, it creates a commitment against the associated internal order.

Impact of Purchase Orders:

Budget Control:The commitment from a purchase order helps in monitoring and controlling the budget for internal orders, ensuring financial discipline and planning.

Financial Reporting:These commitments are important for financial reporting, providing insights into future financial obligations.

Creating and Managing Commitments:

Issue Purchase Orders:When a purchase order related to an internal order is saved, the system automatically records a commitment.

Monitor and Manage Budgets:Use SAP's controlling and financial modules to monitor commitments and manage budgets effectively.

References:

SAP Internal Orders Configuration Guide

SAP Financials Management Documentation