Skip to main content

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 encumbrance shown in funds inquiry for that period in which the invoice is matched

Scenario: If a Purchase Order is set to accrue at period end is reserved in one period and billed in another period without performing receipt, 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 cancelled amount in Invoice > total encumbrance shown in Funds Inquiry for that period in which the invoice is canceled

Scenario: If a non PO matched Invoice is validated in one period and canceled in different period without consuming the funds, it will create a negative encumbrance hitting the current period's budget even though the PO has consumed the previous period's budget. 

Note:  Another scenario where negative encumbrance can happen is, 
For Purchase orders set to accrue at period end, encumbrance reversal will get created at the time of generation of accrual entries by Receipt Accruals Period end program. If this encumbrance reversal is not reversed and posted in the period next to the one in which accrual is created and when invoice is accounted in that next period, it will create a negative encumbrance.

Comments

Post a Comment

Popular posts from this blog

SQL Query to extract Oracle Purchase Order Information

SELECT   poh.po_header_id,    poh.type_lookup_code PO_TYPE,   poh.authorization_status PO_STATUS,   poh.segment1 PO_NUMBER,   pov.vendor_name SUPPLIER_NAME,   povs.vendor_site_code Location,   hrls.location_code Ship_To,   hrlb.location_code Bill_to,   pol.line_num ,   msib.segment1 Item,   pol.unit_price,   pol.quantity,   pod.amount_billed Amount,   pod.destination_subinventory,   ppf.full_name Buyer_Name,   poh.closed_Code  FROM   PO_HEADERS_ALL poh,   PO_LINES_ALL pol,   mtl_system_items_b msib,   PO_LINE_LOCATIONS_ALL poll,   PO_DISTRIBUTIONS_ALL pod,   po_vendors pov,   po_vendor_sites_All povs,   hr_locations_all hrls,   hr_locations_all hrlb,   per_all_people_f ppf,   po_line_types polt WHERE   1                         =1 AND polt.line...
Post a Comment
Read more

Query to find Operating Unit, Business Group and Legal Entity Information

SELECT   DISTINCT   hrl . country ,                  hroutl_bg . name              bg ,                  hroutl_bg . organization_id ,                  lep . legal_entity_id ,                  lep . name                    legal_entity ,                  hroutl_ou . name              ou_name ,               ...
Post a Comment
Read more

How To Enable / Disable Forms Personalization Option

Forms Personalization gives great flexibility to execute custom business logic without performing so much of technical work. To start forms personalization navigate to Help -> Diagnostics -> Custom Code -> Personalize But many time when we click on personalize it give below error  " Function is not available for this respnosibility. Change responsibilities or contact your System Administrator " To Enable access to forms personalization function we need to set below profile option.  -  Utilities:Diagnostics -> Yes / No It determines the diagnostics option is enabled for a user / responsibility or site, depending on the level profile option is set. Navigate to System Administrator -> Profile -> System Query for your user / responsibility for which you want to provide access. Set the value to 'Yes' , If you want allow access to forms personalization Since we change the profile option please change the respons...
Post a Comment
Read more