What are Open Commitments?
Open Commitments (also known as encumbrances) are budgeting tools used to set aside funds for expenses that will eventually be incurred. The use of Open Commitments provide a better idea of the budget available at any time of the project period. Open Commitments are set up by submitting a Requisition to the Purchasing Department to create a Purchase Order and an Open Commitment. Open Commitments are usually liquidated (removed) as expenses are incurred. Contact the Accounts Payable Office if clarification is needed.
