Obligation
A commitment of award funds: a purchase order, subaward, or hire, that will require payment.
An obligation is created when a recipient commits funds: placing an order, signing a subaward, or hiring someone. It's distinct from an expenditure, which is the actual payment. Unliquidated obligations are commitments made but not yet paid.
Sponsors expect funds to be obligated within the period of performance and liquidated within the closeout window, so tracking obligations separately from cash spent is essential as an award ends.
Confusing obligations with cash spent leads to over- or under-spending as an award closes.
Track this in GrantsManager
GrantsManager gives PIs and administrators one real-time view of proposals, awards, budgets, and compliance, so terms like this stop living in spreadsheets.