MAN04 Orders Correspondence

"Raising an order = commitment to pay"

Muli is a commitment accounting solution. Managers establish Budgets the sum of which is equal to the contract value or for internal projects, the Board's approved value.

The commitment is by way of:-

1. Purchase Order - (Supply of goods only)
2. Subcontract - (Any supply involving on-site labour or special conditions)
3. Labour Order - To allow company personnel to be allocated (costed) to a project
4. Equipment Order - To allow company assets and equipment to be charged to a project
5. Stock Order - To allow company Stock/Inventory to be allocated to a project

While Management may have imposed the project budget, the project team is responsible to ensure they:-

1. Confirm the budget allowed (for the scope of works to be let).

2. Confirm the expected final cost (for the scope being let).

   This may be entered in 2 parts:-

   • Order Commitment
   • Risk2Do - Provision for items not in the initial Order/Subcontract but needed to be addressed for project to be completed.