Implementing Project Portfolio Management: From Organization Structure to Recognized Revenue · Module 13 · Project Costing: Capture and Processing
Commitments
Lesson 137 of 198 · 11 min
A commitment is money promised but not yet spent — a purchase order raised, not yet invoiced. Project cost reporting that ignores commitments understates the position. Why it matters, with the arithmetic: a project sixty per cent spent with thirty per cent committed is ninety per cent committed in reality. A project manager looking only at actuals will over-spend. Then: show a purchase order commitment against a project, show it in project cost reporting, show it relieved when the invoice arrives, and show the commitment view alongside actuals. Commitments require Procurement integration. Scope honestly. Where Procurement is not in scope, the client needs another way to see committed spend — or their project reporting is systematically optimistic. SAY SO, in design, in writing. It is failure case eight, and it is a scope fact rather than a defect.
The full lesson is part of the course
The video, the complete written lesson and the module quiz are included in Implementing Project Portfolio Management: From Organization Structure to Recognized Revenue, with a certificate on completion and a fourteen-day refund window.