The Concept of Net Commitment

This is the difference between:

• quantities to be received—i.e., purchases, recorded as positive

• quantities to be delivered—i.e., sales, recorded as negative.

As soon as a transaction is completed, the net commitment is credited: with a + if it is a purchase, with a - if it is a sale.

As soon as a delivery is made in accordance with a transaction, the account is reversed and debited: with a “-” if it is a delivery received, and with a “+” if it is a delivery made.