Calculating and displaying financial commitments
Contract lines generate financial commitments in Planon. Financial commitments are always related to payments or revenues. Based on the agreements made on amounts, payment frequency and commitment periods, Planon calculates the corresponding commitments and the dates at which these should be paid / received. In Contracts, go to > > to view the financial commitments.
 | For lease accounting contract lines, Planon calculates accounting commitments. For more information, see Accounting commitments. |
• Financial commitments generate postings in Planon for journal entries in your financial system. See Generating postings and journal entries.
• Financial commitments can be calculated and shown for all types of contracts, provided that the contracts are in the Active, Renewed, Terminated, Expired or Blocked status.
• Financial commitments are calculated individually for each contract line, based on the amount specified in the contract line.
• If a contract line has an end date, the financial commitments are calculated and displayed until the end date.
• If a contract line does not have an end date, the following applies:
◦ When a horizon date is set on a contract, all contract lines without an end date will use this date for calculating commitments. For more information, see Using a horizon date.
◦ If the horizon date is left empty (only possible for non-lease accounting contracts), the Cash flow calculation – years setting in Field definer determines the number of commitment years. Here, you can specify the number of years in advance for which Planon should calculate and display financial commitments on the Financial commitments selection step. The maximum value is 100 years.
If the Cash flow calculation – years setting is changed, the financial commitments are not updated automatically, to do this, go to the Contracts selection level and click Recalculate commitments on the action panel.
When an amount-related change is applied, the financial commitments are re-calculated automatically, taking the Cash flow calculation – years setting in to account. For more information, see Contract settings.
If the Cash flow calculation – years setting is changed, the financial commitments are not updated automatically, to do this, go to the Contracts selection level and click Recalculate commitments on the action panel.
When an amount-related change is applied, the financial commitments are re-calculated automatically, taking the Cash flow calculation – years setting in to account. For more information, see Contract settings.
Planon automatically recalculates the financial commitments if:
• A contract is terminated or renewed. Contract options marked as 'reasonably certain' are included in the financial commitments calculations, treated as if they have been executed.
• Contract prices are adjusted
(manually, via indexation, via a discount percentage
or via a tax rate).
(manually, via indexation, via a discount percentage
or via a tax rate).
• If the payment frequency has changed.
For changes to amounts that have already been closed, Planon automatically creates a supplement. For details on closing amounts, see Closing amounts. For details on supplements, see Supplements.
Several data fields are available for financial commitments. For a description of these fields, see Financial commitments data fields.