In the Procurement Cycle, what occurs at the Commitment/Obligation step?

• A. Supply creates order in GCSS-MC
• B. Supply validates the request
• C. Goods/services are received by unit
• D. Payment to vendor

Answer: (A)

In the Commitment/Obligation step, the procurement system formalizes the purchase by creating a purchase order to commit funds. This action encumbers the exact amount of money the organization will pay the vendor and records a liability against the budget. In other words, the moment the order is created in GCSS-MC, financial responsibility is established for that purchase, even before any goods or services are received. This is why the purchase order is the instrument of the obligation.

Before this step, the request is validated and approved, ensuring the need and funding are legitimate. After this step, goods or services are received and then invoiced, and payment is made later in the cycle.