Introducing the Encumbrances Module

Note: The Accounts Payable module must be installed in order to use the Encumbrances module.

The Encumbrances module integrates with the General Ledger module to monitor an organization's financial commitments. Hand-in-hand with Accounts Payable, you increase internal tracking and external compliance for administering and reporting encumbered funds. Standard reports include an encumbrance budget report for easy comparisons and an aged encumbrance ledger.

Encumbrances entered into the system distribute encumbered amounts to individual funding sources, grants, programs, or other account segments. Outstanding encumbrances liquidate automatically through the standardized entry form for Accounts Payable invoices, auto-close encumbrances for all vendors, or manually. The Encumbrances module also works cooperatively with the Purchase Orders module (if owned and installed) to create encumbrance entries by purchase order line number while entering Purchase Orders. The line item encumbrances can be separately liquidated through the Accounts Payable invoices/Cash Disbursement/Write Checks processes or they can be globally closed for all vendors through the Auto-Close Encumbrances process.

To Add This Module:

1. First the Encumbrances module must be added to the organization by the Administrator.
2. Either add Encumbrances to a current organization (Organization>Add a Module Wizard - Module Panel), or select the Encumbrances module when creating a new organization (File>New Organization Wizard - Modules Panel).
3. Once the Encumbrances module has been applied to an organization, the Encumbrances menu selections are available. These selections are integrated into the MIP Fund Accounting menu selections.
4. There are Checklists available for setting up this module and its processes. Please refer to the online help (Help>Contents and Index>Reference) for modular specific menu selections, checklists, and common questions.