What is it?

Commitments is an accounting term representing a promise or agreement to pay for goods or services.

Why is this important?

University financial commitments are contractual in nature and relate to employee salaries (ongoing or contracted) and outside suppliers via purchase orders.  These commitments, also known as encumbrances, are funds that have been set aside or “committed” for projected expenses pending actual expenditure of funds.  Encumbrances can be for goods/services that have been authorized but not yet received or for orders of goods/services that have been received but not yet invoiced.

Where do I find more information?