Add Encumbrances Or Commitments Or POs Page

Use this page to add encumbrance records, which include vendor information, accounting distribution, and encumbered amounts.

If you use the Purchasing System, you can record encumbrances that are not tied to a purchase order.
If you do not use Purchasing, you can record all your encumbrances in this page.

Menu Path: Fund Accounting > Entry & Processing > Encumbrances > POs/Encumbrances/Commitments > click Add New

System Processing

Following is an explanation of the system processing that occurs when you enter an encumbrance:

Budget Monitoring

The system monitors budgeting when you enter the accounting distribution for an encumbrance. For each expenditure budget account entered, the system references the Check Budget Balance field in the related Organization Chart record.

Following are the settings available in the Check Budget Balance field:

N - No Checking - Allows distribution of amounts that exceed the expenditure budget account's budget balance. No warning is issued.
W - Warning - Issues a warning if you try to distribute amounts that exceed the expenditure budget account's budget balance. However, the system still allows you to enter the amounts.
F - Fatal - Prevents the distribution of amounts that exceed the expenditure budget account's budget balance.

Ledger Transactions

When you post an encumbrance to Fund Accounting, the system generates the following ledger transactions:

For all expenditure budget accounts included in the encumbrance's accounting distribution, the encumbrance amount is increased and the budget balance is reduced. These transactions are recorded on the Expenditure Ledger.
The same entries are made on the Project Ledger for any project budget accounts included in the encumbrance's accounting distribution.
When encumbrances are posted to the Expenditure Ledger, the following General Ledger balance sheet account transactions occur:

Debit	Encumbrance Control account
Credit	Reserve for Encumbrance account

The encumbrance record is added to the Transaction Ledger with a Transaction Code of 17 - Add Encumbrance. You can search for and view the record using the Transactions page (Fund Accounting > Entry & Processing > Detailed Displays > Transactions).
For information on how to search for and list Transaction Ledger records, refer to Transactions.
A record is added to the Encumbrance Ledger, which you can view by selecting Fund Accounting > Entry & Processing > Detailed Displays > Encumbrances, and then entering the appropriate search criteria.

Adding an encumbrance

Select Fund Accounting > Entry & Processing > Encumbrances > POs/Encumbrances/Commitments to display the Post Encumbrances/Commitments/POs page.
If you need to change the fiscal year period or transaction date for this encumbrance, use the Set Period item. For details, refer to Resetting Periods.
Click Add New to display the Add Encumbrances/Commitments/POs page.
Complete the page's fields in the Header section (PO/Encumber through Control Number).
Click OK.
In the Charge Information section, distribute the item's cost to the appropriate ledger accounts.
As you enter rows of accounting distribution data, the system keeps a running total of all charge amounts in the Total field at the bottom of the Charge Information section.
When you finish entering the distributions, click OK to save the encumbrance.

Fields

Header Section

Use the fields in this section to identify the encumbrance and vendor.

Field	Description
*PO Or Encumber*	A number to identify the encumbrance. If letters are used, they must be at the beginning or end of the number, for example, A12345 or 54321A. Character/8
Item Number	A line item number for the encumbrance. For the encumbrance's first line item, enter 1. For each succeeding line item increase the number by one, unless you are adding an accounting distribution row for an encumbrance item you entered earlier. Integer/2
Vendor Number	The vendor's ID number.
Description	A brief description of the encumbrance item. Character/25
Control Number	A reference number to group the encumbrance with similar transactions. Later, you can use this number for searching and reporting purposes. Character/8

Charge Information Section

Use the fields in this section to enter the record's financial distributions.

Field	Description
*Budget Unit*	Low organization where the expense is charged. If your Fund Accounting Profile is set up for full expensing, the Full Account Window page will display for entering the budget unit. For the procedure, refer to Full Account Window Page.
Account	Expenditure account where the expense is charged. The Budget Unit and Account combination must exist in the Expenditure Ledger.
*Project*	Low-level project code where the expense is charged, if you use project accounting.
Account	Expenditure account tied to the project code you entered, if you use project accounting. The Project and Account combination must exist in the Project Ledger.
Amount	Amount of the encumbrance line item charged to the row’s Expenditure and Project Ledger accounts.
Total	Displays the running total of charges for the current item. This total is added to the Total Entry field in the Header section when you save the item.