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Showing posts from May, 2015

When does Negative encumbrance occur in Funds Inquiry screen?

Negative encumbrance will be shown in funds inquiry form; if any of the following conditions are met, When un-reserved amount > total encumbrance shown in funds inquiry for that period in which the Un-reserve action is taken Scenario: If a purchasing document is reserved in one period and unreserved in different period by doing Cancel/Final close/Un-reserve action without consuming the funds (receipt and invoice not done), it will create negative encumbrance. When received amount > total encumbrance shown in funds inquiry for that period in which the receipt is done Scenario: If a Purchase Order is reserved in one period and received in another period, it will create a negative encumbrance hitting the current period's budget even though the PO has consumed the previous period's budget.   But this negative encumbrance does not increase the funds availability as the encumbrance is getting converted to actual. When billed amount > total

How to unreserve the purchasing document in the same period in which the document originally got reserved?

As per the functionality, when an unreserve action is taken in a purchasing document, encumbrance reversal will happen in current GL period considering the system date. If you want the reversal to happen in the same period in which the document originally got reserved, you can use the check box " Use Document GL Date to Unreserve " so that the reversal will happen based on GL date entered in PR/PO distributions.    This check box would be available only when doing Unreserve/Cancel/Final close where you can manually enable it and get the encumbrance reversal in the same period in which it got created. But if you perform a Reject action on the PO or Return the PR or delete the lines which are in Incomplete,Reserved status, this check box will not be available. In such cases, you may need to set the profile option “ PO:Use Document GL to Unreserve” to Yes so that the encumbrance reversal will happen automatically in the same period in which it got created.