Committed Costs

Committed costs within the job costing module of the EBMS software consists 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 been processed into an expense invoice, creating 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:

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.