Obligo#

Commitments are expected future binding costs resulting from follow-up documents such as purchase orders, stock levels, production or assembly orders and time records within a project.

This initially creates target costs, which become actual costs after the delivery is posted. These are dissolved as commitments through invoicing and consumption on the project task and subsequently debit the project with actual costs.

In Microsoft Dynamics 365 Business Central¹ Standard, the project task displays the commitments "Order backlog" and "Unbilled delivery amount" by default. These values include direct assignments to follow-on documents, but reservation references are not taken into account at this point.

In KUMAVISION factory365, the commitments "Order backlog" and "Uninvoiced delivery amount" have been extended by "Remaining order amount" and "Stock purchase amount (expected)".

The remaining order amount includes the calculation of the "order backlog" plus possible reservation relationships to an associated purchase order line. The "Stock cost price (expected)" includes the calculation of the "Uninvoiced delivery amount" plus possible reservation relationships to a purchase order line as well as delivered but not invoiced stock values directly in the project plan line.

In addition, the commitment values "Production, assembly and labor cost amount" are available to you. Depending on the booking progress, the cost price amounts are divided into expected or actual amounts and together form the total commitment.

Obligos in project task#

The commitments described below are displayed in the project task lines of a project as cost price amounts. Clicking on the respective value opens the "Commitment items" page, which is already pre-filtered for the respective project and the corresponding project task.

Remaining order amount#

The order commitment of a project task represents the remaining order amount of a purchase line that is linked to a corresponding project plan line of this project task. The order commitment is the sum of the "Order backlog" field plus the remaining order amount of the reserved purchase line for the associated project plan line.

External operations for external work center groups for a production order operation are also valuated via the production commitment and do not form an additional purchase order commitment.

Stock purchase amount (expected)#

The warehouse commitment (warehouse purchase amount (expected)) comprises the value from the "Uninvoiced delivery amount" field supplemented by the valuation of external resource deliveries and the expected purchase price of the item items with direct reservation on a project plan line.

Stock purchase amount (actual)#

The warehouse commitment (warehouse cost amount (actual)) comprises the actual valued amount of an invoiced item (cost price (actual)) with a direct reservation for a project plan line.

This value is determined by invoicing the purchase order line, completing the production order line for this actual message, posting an assembly order or manually posting an item ledger sheet. All revaluations or additions/deductions in purchasing affect the actual cost amount. Continuous stock adjustments can therefore be made depending on the stock issue method.

The "Update project item prices" function can subsequently correct the project consumption after the stock adjustment of the item issue item. Further information can be found under: Information on inventory cost accounting.

Production cost price (expected)#

The production commitment (production cost amount (expected)) comprises the target costs (values of the FA components and FA operations) of a reserved production order line for a project plan line.

If a multi-level structure is added to the production order line, these FA components and the FA operation costs are also included. As a result, multi-level target FA costs are calculated.

In addition to the value approach, the liability items are also formed:

• the type of origin for FA components for FA operation
• the due date and quantity (basis) of the FA components
• the end date/time and the sum of the setup and processing time of the FA operations. The time quantities are calculated as a base time unit in accordance with the "Display capacity in" production setup.

A project plan line can be assigned to several production orders, just as several project plan lines can be assigned to a single production order.

In addition, surplus quantities can be produced in the production order line that are not reserved and therefore count as neutral stock receipts. This is also tracked at several levels in the substructures.

The assignment of project plan lines to production orders is clearly defined by the system in reservation items. This allows the target and actual costs of the production order to be analyzed in a targeted and multi-level manner along the reservation tracking for each project plan line.

In KUMAVISION factory365, this multi-level value analysis can be used for both make-to-order production and make-to-stock production through an extended reservation relationship (link to the production order line). This creates a fully logistical and capacitively usable order network that can be analyzed flexibly.

Production cost amount (actual)#

The posting of article consumption, capacity consumption and article actual reports form the amount "Production cost amount (actual)" or the FA target costs.

Capacity posting

The posting of capacity consumption creates actual costs from the perspective of the production commitment, which increases the commitment "Production cost amount (actual)" and the target costs of the "Production cost amount (expected)" are reduced proportionately.

The target capacity costs are set to zero if the operation is marked as completed or the sum of the actual costs and actual quantities exceeds the target values. A negative value is not possible. If more actual costs than target costs are posted, the "Production cost amount (actual)" increases.

By forming the actual costs and allocating the target costs, further detailed items are formed.

Consumption posting

The target consumption costs are allocated pro rata until they are zero. If the actual consumption costs are greater than the target consumption costs, the target costs are valued at zero.

Completing a production order excludes further FA capacity, consumption postings or actual reports. The article item of the actual declaration is updated by the stock control and the actual cost price is determined. As no further postings are possible, any remaining commitments are canceled.

Assembly cost price (expected)#

The "Assembly cost amount (expected)" shows the single-level target costs of planned consumable items and resource times. The posting of an assembly actual message forms a stock receipt amount (actual) and is linked to the article consumption and capacity costs of the resources.

Working time commitment#

Resource times can be recorded, transmitted and approved directly via time sheets on project tasks.

These capacity quantities are multiplied by their cost price on the resource card and valued as a time commitment. The final project consumption posting of the working time details forms the project consumption and dissolves the time commitment proportionately.

In the case of external resources, billing takes place via the purchase order or purchase invoice.

Commitment item#

On the "Commitment item" page, the source document line is viewed with the quantity, value and date and changes to the value, quantity and date compared to the last item are evaluated. This valuation takes place on a valuation date that is set to the current working date by default.

The value progression takes place through booking processes such as delivery, invoicing, consumption, capacities, actual report, assembly report, working time approval until a project consumption takes place.

Along these processes, the values are accompanied by functions such as: Update cost prices, stock adjustment, update project item prices. The value progress is also documented via detailed items with reversal accounting.

The commitment items are always only a recording at the time of evaluation and document the progress compared to the last recording.

Change events and their effects#

Quantity change#

The quantity change can be caused either manually or by the E+D change reconciliation for growing BOMs. As a result, the amount is adjusted and determined as an additional detail item.

Price change#

The price change can be triggered either manually or using the "Update cost prices" function. This changes the amount, which is recorded as an additional detail item.

Date change with item cancellation and readjustment#

The commitment items monitor date changes in the documents that result from planning processes. This allows the commitment values to be viewed on an accrual basis and analyzed in the forecast matrix.

The relevant fields for the date change are

• "Expected goods receipt date" of the purchase order line
• "Due date" of the purchase order line
• "Due date" of the FA component
• "End date/time" of the FA operation

Actual message for make-to-order production#

Planning level 0

In multi-level make-to-order production, the cost values of the production order lines that are reserved directly for the project planning line are displayed as stock commitment cost amount (expected).

Planning level > 0

For sub-assemblies in multi-level make-to-order production, the cost prices of the actual article declarations are not interpreted as commitment items.

Update commitment items#

The "Update commitment items" function is available in the menu ribbon of a project.

The function calculates the obligation values using the following elements:

• Article item
• Shopping street
• Assembly line
• Time sheet details
• FA component
• FA work process

The quantities, purchase amounts, the expected due date, the multi-level components and capacities are determined for each document line and saved in new commitment items. The calculation can be updated manually or via a task queue. The current document values are checked against the existing commitment item and, if there is a discrepancy, the original item is canceled by a correction item and the new valued item is set.

The items have additional fields for the origin of the document line, the assignment to a project task, project account determination, the valuation date and system information.

It is advisable to have the calculation of the commitment items carried out automatically in short time intervals by a task queue.

Update project article prices#

The cost prices of an item can subsequently change due to stock control. The standard function "Update project item prices" corrects this change in value on the project item.