Example

 

Adding an Encumbrance to an Account without a Reversal Date

 

We need to encumber $1,000 that we plan to pay to an artist who is creating a mural. This allows us to set aside the money in our account to keep track of this $1,000 expense that is to be charged to account 1031400 in the future.

In this example we have not included a reversal date. This means that rather than having Kuali Financials automatically remove this encumbrance on a future date, the user has to disencumber the account by processing another PE document.

 

The General Ledger Pending Ledger Entries tab shows that these entries are made in balance type PE (Pre-Encumbrance). This marks the entries as being distinct from other balance types such as Actuals (AC) or Current Budget (CB).

 

Disencumbering the Funds

 

We now need to disencumber the funds that were encumbered in the first example. Notice that we have entered the same information used before, but this time the entries are made on the Disencumbrance section of the document. One difference is that we were required to enter two other fields: Ref Origin Code and Ref Number. We use the Ref Origin Code to indicate to the system that the original encumbering transaction came from (01 means Kuali Financials in this example) and the Ref Number indicates the identifying document number in that system (the document ID number of Kuali Financials Pre-Encumbrance document used to initially encumber the funds).

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Procurement Card