text: Accounting Support and Cost Management
  Figure 5-1. Stages of a transaction
  AUTHORIZATION STAGE
  5-6. The accounting process begins with an authorization as discussed in Chapter 2, Section I. Financial
  managers receive their Fund Authorization Document, DD Form 448, Resource Allocation Documents, and
  Resource Distribution Documents via the PBAS or GFEBS. The supported unit will request funds for
  services or goods; however, only the financial manager validates availability of those funds by funds
  certification.
  COMMITMENT STAGE
  5-7. A commitment is an administrative reservation of funds where the funds certifying official certifies
  funds are available for an approved requirement. The funds certifying official ensures funds are available
  and sets them aside for the requirement. Varied accounting systems are used to track commitments. These
  accounting systems track costs (by event, program, unit, MDEP, and Army Management Structure Code
  for each transaction) based on the fiscal code. Financial managers—who must keep their commander
  informed on a daily basis of all aspects of FM –use the fiscal code for two main purposes. First, the fiscal
  code helps track expenditures at a detailed level. Second, the fiscal code helps prepare and present fiscal
  information to the command and staff, including the status of funds, mission or event cost, status of
  unfinanced requirements, and obligation rates.
  5-8. A cost center is a locally established data element that allows the financial manager the ability to
  capture costs and track commitments, obligations, accrued expenditures/expenses, and disbursements in
  accounting systems. It is a tool used to answer the question of who spent how much for what. Cost centers
  may be assigned to specific units, staff sections, events, or functions. Cost centers link MDEPs and Army
  management structure code (AMSCO) with the purpose of the funding.
  Example: The commander might ask the Division G-8, “What did 2d Brigade spend on class IX
  last year?” Instead of researching historical requisition records and manually calculating each
  supply request obligated, the financial manager uses the accounting system to search for 2d
  Brigade’s cost center and retrieves all element of resource 26** (supplies) for the year. The
  answer to the commander’s question can be found easily if the cost center is established
  correctly and properly annotated on all applicable orders.
  OBLIGATION STAGE
  5-9. The obligation stage begins when the obligation is recorded into the accounting system of record.
  Obligations must be recorded in the official accounting records at the time a legal obligation is incurred or
  as soon as the situation permits following the time of incurrence. Several actions may lead to the incurrence
  of a legal obligation. For instance, the financial manager records an obligation as a result of a signed
  contract, the acceptance of a DD Form 448, or the issuance of a travel order. An obligation is a legal
  (binding) reservation of funds. Once the obligation is recorded in the accounting system, the financial