Encumbrances

Introduction

The Encumbrance (EN) system is used to manage encumbrances (allocations). Amounts are encumbered when a decision has been made to make a purchase and a Purchase Order is processed. The encumbrance is cleared (disencumbered and the expenses posted) when a purchase is actually made (items received and invoiced).

Amounts may also be encumbered when monies need to be "set aside" for specific reasons. For instance, an organization may wish to encumber its payroll to ensure that it can always be met. These encumbrances are relieved when the payroll is actually paid.

Encumbrance transactions are held in the Encumbrance Database (ENDB). Reports can be produced showing current expenses and pending expenses. Reports can be accessed from within the Encumbrance system or from within the General Ledger (GL) system. When reporting from within the GL, the system prompts whether to include encumbrance information. The system will pull information from the ENDB and report it with the General Ledger data.

Features

The Encumbrance system provides a comprehensive system for managing encumbrance information and is integrated with the following subsystems.

AP (Accounts Payable)

• When entering invoice information into Accounts Payable (for which funds have previously been encumbered), the PO #, Pay Type, Invoice #, and Invoice Date are the only required fields.
• When invoice information is posted, the encumbrance associated with the given PO # is relieved as directed by the defined Disencumbrance Hierarchy and a transaction is posted to the ENDB as specified by the Pay Type.

GL (General Ledger)

• Interactive validation of account numbers from GL/JL when EN transactions are entered into a Set.
• Interactive budget checking when EN transactions are entered into a Set.
• Interactive transaction trapping of invalid Org. Key/Object Code combinations.
• Update encumbrance balances when EN transactions are posted.
• Standard reports access EN transaction details and balances for reporting.

NU (NUCLEUS)

• User security access to accounts and budgets with read, write, or update capabilities.
• User security access to individual menus and job dialogue.

PE (Person/Entity)

• New vendors may be added directly to the Person/Entity database (PEDB) from the PE ID Lookup within the Encumbrance data entry pages.
• Unknown Vendors may be found in the PEDB from the PE ID Lookup within the Encumbrance data entry pages.

PO (Purchasing)

• Automatic encumbrance of a Purchase Request (if system is defined to encumber at the Request level).
• Automatic encumbrance of Purchase Order when printed.
• Automatic encumbrance update if PR/PO amount, PE ID, or account number changes.

PY (Payroll)

• Generation of Payroll encumbrances using a Payroll-Encumbrance Set Interface process.

SY (System Level)

• Sizing maintenance of the ENDB.