Committed Costs

Committed costs within the EBMS job costing module consist of costs that are entered into a purchase order, job costing transfer screen, or other documents that have not been processed. For example, a purchase order associated with a specific job contains costs but has not yet been processed into an expense invoice, which would create General Ledger transactions. These costs are listed on job costing reports as committed costs, although the exact values may not have been established and have not been processed.

Committed costs include the following:

• Quantity of products listed on a purchase order that have not been processed into an expense invoice: Review Job Costs from a Purchase Order or Expense Invoice for more details on entering job costs on a purchase order.
• Item Quantity listed within an Inventory Transfer ticket but not processed: Review Inventory Transfers for a Job for more details on creating inventory transfers for a job.
• Labor entered into a non-processed timecard: Review Allocating Labor Expenses to a Job for more details on applying labor to a job.
• Items listed within a manufacturing batch: Review Stock Manufacturing Jobs for more details on how job costs are applied to manufacturing batches. 

Committed Cost totals are decreased when a document is processed creating Actual Costs.

Committed costs are temporary values until they are processed into actual costs.  This step happens at the time the document is processed creating permanent general ledger transactions. Review the Evaluating Job Costs section for more details on actual costs, budgeted costs, and committed cost totals.