About Committed Costs
Job purchase orders are used to track committed costs (held in the JCCP (Job Costs by Period) file).
The total value of a Job PO increases the total committed dollars. This field only changes if you add, change, or delete POs for the job. The remaining committed dollars accumulate all of the order information and are then decreased each time invoices for the items are posted in AP Transaction Entry.
If you change a standing PO to a regular PO (i.e. modify the original units/cost), JCCD and JCCP will be updated with the total committed costs/units and remaining committed costs/units adjusted by the amount of received units/costs.
When you add an item to a PO, the system sends the tax rate amount to the committed cost fields. If the tax rate amount changes, the system will not update the committed cost amounts. When relieving committed costs through AP, the system will relieve the original tax rate amount from the committed cost, but will use the current tax rate on the AP invoice.
If the unit of measure used to order the item equals the unit of measure for the job/phase/cost type (or can be converted), the total committed units and/or remaining committed units are also updated accordingly. The following equations are the calculations the system makes for committed costs.
Total Committed Units = Received Units + Backordered Units
Total Committed $$ = Total Committed Units x Current Unit Cost/ECM
Remaining Committed Units = [Units Received + Backordered Units] – Invoiced Units
Remaining Committed $$ = Remaining Committed Units x Current Unit Cost/ECM