The Pre-Encumbrance (PE) document allows you to add encumbrances using a document instead of relying on information from some system outside Kuali Financials. These transactions are for the use of the fiscal officers to earmark funds for which unofficial commitments have already been made, setting aside amounts for future anticipated expenses that might not otherwise be encumbered. The document can also be used to disencumber open encumbrances created with the PE document.
Kuali Financials can accept encumbrances from many sources, including external systems (such as a payroll system that might feed information into the General Ledger) and internal systems that represent other modules of Kuali Financials such as its purchasing module.
More: