Purchasing and Encumbrance

A. Disencumbering

First run a list of all outstanding encumbrances using ENREPS by Department. This list can then be distributed if necessary to the responsible parties in each department for their review. They should identify which purchase orders should be closed and which should remain open.
Once the selection process is completed run POMADExx to automatically or manually create a select file to disencumber and close out all selected purchase orders. This process will provide an option to report entries before disencumbering. This process will update purchase order and encumbrance transactions and encumbrance balances in the general ledger. The user may also run POUTCL to close PO's. This requires a Requisition Code on the PO.

B. Outstanding Encumbrance Options

Now that the process of disencumbering and closing of purchase orders has been completed, it is necessary to decide how to handle the outstanding encumbrances. The options available are described below.

Basic Encumbrance Configurations

Encumbrance balances carry forward from year to year. ENUTRE is not run. This allows prior year encumbrances to automatically be carried forward as encumbrances in the new fiscal year, and no augmentation to the budget is made for carry forward encumbrances. Payments against prior year encumbrances are not tracked. (ENGL-CONTROL is deleted. This is the preferred method)
Encumbrance balances carry forward from year to year (same as #1). ENUTRE is run to carry forward the balance into a budget version. The budget version is then used to augment the current budget by the amount of the carry over encumbrances.
Encumbrance balances do not carry forward from year to year. ENUTRE is not run. At year-end, any open encumbrances are closed, and to be included next year, a new PO is opened.
Encumbrance Balances do not carry forward from year to year. ENUTRE is run to augment the budget and to bring prior balances forward into the next fiscal year (may or may not zero out the old year). With this method, payments against prior year encumbrances are usually being tracked. This requires that the "Prior Year Encumbrances" flag on the Miscellaneous tab be checked. In this configuration, a GL accumulator will be kept to track the payments in the General Ledger that are against prior year PO's.

C. Using ENUTRE Utility

Because encumbrances are such a large part of year-end processing, it is important to understand all of the options.

A backup of the ENDB is strongly recommended before running this process. If anything should go wrong, you will need to restore the Data Base.
After this process is completed you must run a GL Recompute (GLUTDICP) to update the balances in the General Ledger.

RE – Roll EN Balances to next year (ENUTRE)
Do you want a REPORT ONLY?	Y — Selecting report only will allow the user to see the accounts and amounts that will be rolled without making any changes. It is always recommended that the user perform at least one run in "report only" mode to prevent unwanted surprises.
Type of Selection Criteria	Enter any selection criteria needed. Normally, *no selection criteria is needed* as the utility already knows to only process open purchase orders with a balance greater than zero. If this process is only being run to create carryover budgets in the next fiscal year, and some keys are using "Inception To Date" budget checking, selection criteria should be used to exclude these account numbers from this process.
Fiscal year of carry over budget and any new transactions	{Defaults to new fiscal year}
Is a Balance Forward entry to be created? (Y/N)	"Balance Forward Entry" means new encumbrance transactions dated in the new year. In options A, B, and C the user will always answer "NO" to this question. The encumbrance balances are brought into the new fiscal year by creating new accumulator records.
Do you want to leave the prior year open?	This question only gets asked if the user replied "Y" to the above "balance forward" question. The default is "YES" and that is what the user should enter unless they want the old encumbrance transactions deleted.
Create GL budgets for the encumbrance balance amounts	Y. User should answer "YES" to this to get a "carry over" budget created and the next two questions will be asked.
Create budgets in which fiscal year	Defaults to next fiscal year
Replace or add to existing budget?	Answer "A" to "Add to Budget." Answer "R" to "Replace Budget." This is only asked if the user replied "YES" to the "Create GL Budget......." question.
Budget Version to be used	Choose the budget version that will contain the "carry over" budget amount. This is only asked if the user replied "YES" to the "Create GL budget....." question.
Budget Level	Choose the Object or Object Group level that the budget should be assigned to. This is only asked if the user replied "YES" to the "Create GL budget....." question.
GL ledger code from te original year or enter ALL	This only applies to those clients who are running with multiple ledgers.
Update transactions with a miscellaneous code? (Y/N)	The answer to this question is not important as it is not used any more. This option was used to track prior year encumbrances and their payments. That tracking is handled internally. If this box is checked the user will prompted for the New Misc Code. This is NOT related to budgets being created.

Normally the encumbrance carryover budgets are created in a budget version specifically for them. This budget version is then added to the working budget based on a formula on the Budget page in GLUPGN.