Set Up Encumbrances

Access this form with Administrative user rights using Organization>Set Up Modules>Encumbrances.

Use this form to create warnings when encumbrances are about to exceed their liquidation limit during transaction entry in the system. When you select these options, the system warns when Encumbrance balances are exceeded during transaction entry involving Purchase Order items and Stand Alone Account codes.

 

Transaction Entry Options:

• Warn when Encumbrance Balances are Exceeded for Purchase Order Items: Select this option to display a warning message when the actual expense recorded on the Accounts Payable Invoice (Transactions>Accounts Payable>Enter A/P Invoices), Cash Disbursement (Transactions>Enter Cash Disbursements), or Check (Activities>Check Writing>Write Checks>Start button) exceeds an encumbrance balance derived from the Purchase Order (Activities>Purchase Orders>Create/Modify Purchase Orders). This occurs at the item code level.
• Warn when Encumbrance Balances are Exceeded for Stand Alone Account Codes: Select this option to display a warning message upon Save, during Enter A/P Invoices, Enter Cash Disbursements, Enter Encumbrance Liquidation, and Activities>Write Checks transaction entry sessions, when the actual expense exceeds an encumbrance balance at the transaction coding level. This warning applies to Stand Alone Encumbrances only.
• Allow Appending Entries to Encumbrances: Clear this option to not allow any existing transactions to be appended with new information. You cannot adjust a balance or reclassify a GL code for any existing encumbrance for a vendor that has the same document number and vendor information.

For example, if you allow appending entries, you are able to adjust balances on an encumbrance for a vendor that has the same document number and vendor information as an encumbrance which has been saved (unposted) or posted in another session. By posting a second encumbrance, the original balance is adjusted by $5.00:

Session	Vendor	Document Number	System Control	GL Code	Debit	Credit
001	ABC	123	0012620	5000	20.00
001	ABC	123	0012620	2000		20.00
002	ABC	123	0002021	5000		5.00
002	ABC	123	0002021	2000	5.00

Another example, if you allow appending entries, you are able to reclassify the GL coding on an encumbrance for a vendor that has the same document number and vendor information as an encumbrance which as been saved (unposted) or posted in another session. By posting a second encumbrance, the original GL Code is changed to 6000:

Session	Vendor	Document Number	System Control	GL Code	Debit	Credit
001	ABC	123	0012620	5000	20.00
001	ABC	123	0012620	2000		20.00
002	ABC	123	0002021	5000		20.00
002	ABC	123	0002021	2000	20.00