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Can you record obligation even if goods are not yet delivered or services are not yet rendered?
For instance, contract for security and janitorial service, do you obligate the whole amount of contract upon approval of the contract or obligate only that pertains to the monthly cost of the contract which have already been rendered?
According to the DBM:
Obligations are liabilities legally incurred and committed to be paid for by the government either immediately or in the future.
Disbursements refer to the actual withdrawal of cash from the Bureau of the Treasury due to the encashment of checks issued by agencies and payment of budgetary obligations.
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we assign obligation upon approval of the contract for cost of mobillization but temporarily accounted as advances, actual obligation is record for cost of deliveries and progress billings. Issuance of an ObR is just an authority to incur obligation. it may be issued for the whole contract amount to earmark fund for the purpose. PRs are merely controlled to ensure that we are working within the limits of the budget. excess of obligations may be adjusted correspondingly larer or adjusted for increases within the limits.
kapag may contract na po. dapat reserved na ang funds dahil pumirma na ang agency ng contract assuring funds are available for payment once service is rendered or materials are delivered
Upon award
Ff
We must obligate first before the delivery of goods and services.