See committed cost before the bill arrives
Purchase orders and subcontracts commit budget the moment you sign them. Fintra tracks open committed cost per job and cost code so exposure is visible long before the invoices post.
Committed cost vs actual cost
Actual cost is what you’ve been billed. Committed cost is what you’ve locked in but not yet been billed - the open balance on purchase orders and subcontracts. A code can look on budget on actuals while a signed subcontract has already committed you past it. Tracking both is how you catch overruns early.
Open committed cost
open_committed = commitment_amount − invoiced_to_date
As a subcontractor bills against their contract, the invoiced portion moves from committed to actual, and the open committed balance shrinks.
How Fintra tracks commitments
- Record purchase orders and subcontracts as commitments against a job and cost code.
- As bills post against a commitment, invoiced-to-date rises and open committed falls.
- The committed-cost report lists open PO/subcontract exposure across the job.
- Committed cost feeds the estimate at completion, so projected over/under reflects locked-in spend.
Purchase orders and subcontracts
| Type | Typical use | Tracked as |
|---|---|---|
| Purchase order | Materials and equipment from suppliers | Open committed until received/invoiced |
| Subcontract | Trade work from subcontractors | Open committed until billed against |
Why committed cost changes decisions
A projected-cost view that ignores commitments is dangerously optimistic. By feeding open committed cost into the estimate at completion, Fintra’s projected over/under reflects what you’ve truly committed to spend - the number a PM needs before signing the next PO.
Frequently asked questions
What is a committed cost in construction?
A committed cost is spending you’ve locked in through a purchase order or subcontract but haven’t yet been invoiced for. It represents future cost you’re already obligated to, so tracking it alongside actual cost gives a truer picture of where a job’s budget stands.
How does Fintra calculate open committed cost?
Open committed cost equals the commitment amount minus the amount invoiced to date. As a supplier or subcontractor bills against their PO or contract, the invoiced portion becomes actual cost and the open committed balance decreases accordingly.
Does committed cost affect the estimate at completion?
Yes. Committed cost is part of the cost you still expect to incur, so it informs the estimate at completion and therefore the projected over/under on the job-cost report - giving early warning before the invoices arrive.
Where do I see committed costs in Fintra?
Commitments appear on the job-detail commitments tab and in the committed-cost report, which lists open purchase-order and subcontract exposure with amount, invoiced-to-date, and open committed for the job.
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Catch overruns before they bill
Start free, no card required. Record your commitments and see open exposure per cost code.
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