Encumbrance / Commitment Reallocation

Transfer underutilized / unutilized Encumbrances (from RFQ) or Commitment (from PO) balances from its original reserved or committed Accounting Period, to another Accounting Period (same or differential fiscal year).

Introduction

The Encumbrance object represents an amount that is reserved against a budget.  It might be due to an RFQ pending approval or approved but PO not yet issued. The Commitment Reallocation object represents an amount that is committed for spending but the expenditure is not yet recognized.  It can also represent the amount in a PO issued to a vendor but for which a goods receipt or an invoice receipt has not yet been submitted.

Overall, the encumbrance and  commitment journals are similar to Budget Journals , except the entries post to the encumbrance and commitment balances of the affected GL Accounts respectively rather than the actual balances.  However, encumbrance and commitment journals do not have to be balanced.

Navigation

1. From the homepage, go to Finance module.

2. Navigate to the Budget and select Encumbrance/Commitment Reallocation.

Guide

1. Click the Create New button.

2. Select the Document type (Purchase Request, Request for Quotation or Purchase Order), Choose the Document from the list and input the Reason. Business Entity will automatically will be populated.

3. Click the Add Purchase Budget to select a different GL account and Accounting Year for the transfer of Encumbrance:

• Fiscal Year
• Accounting Period From
• Accounting Period To
• Choose Document Item
• Adjusted Amount
• Click the Update button once done.

4. Once done, click the Submit for Approval.

Note:

• The System does not permit posting to a closed accounting period or to GL accounts that disallow posting to encumbrance or commitment balances.

Related Articles

• Budget
• Budget Adjustment
• Budget Reallocation