Commitments in Company Code

[jantoniomoyano3]

Good morning,

I am analyzing commitments when performing budget control for cost centers.

The other day, I had a question: when you create the purchase order, that is when the commitment is generated. That much is clear to me.

But what happens when you have the order approval in the workflow? I know that approval allows you to receive that order.

Let's imagine that it is rejected. We would no longer be able to receive the order, and from what I have seen, that commitment is not removed from the reports.

I also tried rejecting that order to see if it would be removed from the report, but it wasn't.

The only way I have found to remove it would be to mark the order position for deletion, in which case it would be removed.

I would like to know if there is a more automatic way to remove the commitment from the report once the order approval has been rejected.

Best regards.

Juan Antonio Moyano

[Lakshmipathi · Accepted solution]

Why rejection does not remove commitments is because, the PO is already created in the system, so the commitment is booked against the cost center/WBS. Workflow approval is a business process control, not a financial posting control. Rejection only prevents follow‑on processes (like goods receipt or invoice), but the PO technically still exists, so the commitment remains visible. That’s why you only see the commitment disappear when you flag the PO item for deletion.

The only standard options are to delete the PO item or reduce its value to zero. If you want commitments to reflect approval status, the best practice is to use Purchase Requisitions with workflow approval before PO creation. Alternatively, you can add custom logic to automate deletion/adjustment on rejection.

[Lakshmipathi · Accepted solution]

Please click "Accept as Solution" if my suggestion solves your query. If not, update here what you tried