Open and Closed Encumbrance Amounts

When posting the GL encumbrance entries associated with a new encumbrance, a new entry in the GL Encumbrance table is added with the encumbrance amount set to the total entry amount. This is accomplished by passing entries to the accounting cycle with a 'D' in the Encumbrance Update Code. This entry tells 'Poster' to insert or update a row into the Open Encumbrance file using the document number and to put the amount in the Open Amount column. When posting any subsequent adjustment to that encumbrance, increases or decreases are made to the Encumbrance Close Amount column for that item by passing entries to the accounting cycle with an 'R' in the Encumbrance Update Code. This value tells 'Poster' to insert or update a row in the Open Encumbrance file using the reference document number of the entry and to adjust the amount in the Closed Amount column. Consequently, the Open Encumbrance file shows both the amount of the original encumbrance (open amount) and the amount of the encumbrance that has been relieved (closed amount).

Note: These entries may easily be viewed in the application through the Open Encumbrance report. For more information see GL Inquiries: Basic Information.

Encumbrance update business rules:

Transaction Encumbrance Update code

Debit/Credit Code

Action on Encumbrance Amount

Encumbrance Amount Updated

D (Document)

'D' (Debit) or blank

+ (Add)

Encumbrance Amount for the particular Document Type, Origin Code, Document Number

Other

- (Subtract)

R (Reference Document)

'D' (Debit) or blank

- (Subtract)

Encumbrance Closed Amount for the particular Reference Origin Code, Document Reference Type Code, Reference Document Number

More:

Purchase Order (PO) Encumbrance Amounts