In SABRS, what describes the Obligation step?

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Multiple Choice

In SABRS, what describes the Obligation step?

Explanation:
In SABRS, the obligation step is about creating a legal liability against the government’s funds. It occurs when a firm contract or purchase order is issued that binds the government to pay a vendor for goods or services, even if the goods haven’t yet been received. This is the moment a binding commitment is established, turning budgeted funds into an actual liability on the books. It’s not merely reserving funds (which can happen earlier), not the point of receiving goods, and not the payment itself, which happens after delivery and invoicing.

In SABRS, the obligation step is about creating a legal liability against the government’s funds. It occurs when a firm contract or purchase order is issued that binds the government to pay a vendor for goods or services, even if the goods haven’t yet been received. This is the moment a binding commitment is established, turning budgeted funds into an actual liability on the books. It’s not merely reserving funds (which can happen earlier), not the point of receiving goods, and not the payment itself, which happens after delivery and invoicing.

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