Committed spend is the total amount of money that a company has obligated to spend on future purchases. This can include things like inventory, contracts, and even leases.
The committed spend is important to track because it gives you an idea of how much money the company will be spending in the future, which can help you make financial projections. It’s important to note that committed spend is different from actual spend.
Committed spend is the amount of money that has been set aside for future purchases, while actual spend is the amount of money that has been spent on those purchases. For example, if a company has committed to spending $1,000 on inventory next month, its committed spend would be $1,000. But if the company only spends $500 on inventory next month, its actual spend would be $500.