Hi Edward,
I hope this is what you really mean by commitment accounting.
Commitment Accounting :
"Also known as Encumbrance Accounting or Invoice Matching, Commitment
Accounting allows the posting of expenses before the creation or collection of
the underlying documents such as invoices, purchase orders, etc., and before
those committed funds are paid out.
This allows the financial records to reflect the allocation of budgetary
resources when they are committed instead of when they are paid out, providing
financial information earlier than “budget to actual” reports and preventing
budget overruns.
Typical “continuing” commitments would include wages and salaries for employees
and monthly utility payments, and typical “specific” commitments might include
the verbal agreement (and subsequent written agreement) to hire a band for an
event."
"Commitment accounting identifies and reserves funds for future payment
obligations. Commitment accounting is required to ensure that departments
anticipate their expenditures so as not to exceed appropriation ceilings.
Commitment accounting means the accounting entries are made and the
appropriation is charged when a contract is entered into or when an order is
placed for goods or services. The entries record the amount to be reserved out
of the unencumbered balance remaining in an appropriation in order to honour
the commitment
If this is the case, I'm afraid AX may not provide as detailed functionality
explained above. But yes to an extent you can achieve invoice matching and also
posting the expenses before the purchased order has been invoiced. Go through
the AP parameters. You'll find an option post purchase order to ledger.
- On Tue, 2/2/10, Eddie <edwardjosl...@hotmail.com> wrote:
From: Eddie <edwardjosl...@hotmail.com>
Subject: [Axapta-Knowledge-Village] Commitment Accounting
To: Axapta-Knowledge-Village@yahoogroups.com
Date: Tuesday, February 2, 2010, 3:58 PM
Hi All
Do anyone know if and where I can get information on commitment accounting
functionality in Ax (4 and 2009)?
Maybe someone with some insight into the new upcoming version - any such
functionality planned?
Eddie
