R12 - Encumbrance Not Getting Converted To Actuals For Purchase Orders
Last updated on MARCH 15, 2018
Applies to:Oracle Purchasing - Version 12.0.6 to 12.1.3 [Release 12 to 12.1]
Oracle Cost Management - Version 12.0.4 to 12.1.3 [Release 12 to 12.1]
Oracle General Ledger - Version 184.108.40.206 to 12.1.2 [Release 11.5.10 to 12.1]
Information in this document applies to any platform.
Various Manifestations of the problem
Encumbrance does not get converted to Actuals for Purchase Orders when the Receipt Accounting happens
Encumbrance Reversal and Actuals hit the Funds Inquiry at two different times for Purchase Orders during the Receipt Accounting process
In encumbrance enabled environment, when a purchase order set to accrue at receipt is received and delivered or when a purchase order set to accrue at period end is received and Receipt Accruals-Period end program is run, encumbrance reversal gets reflected in Funds Inquiry screen even before the create accounting process where as Actuals get reflected in Funds Inquiry only when the actual entries are posted in GL. Due to this, funds availability in General Ledger considers only the encumbrance reversal amount and not the Actual amount. This leads to incorrect funds availability in Funds Inquiry screen till the posting is done in GL.
To overcome this issue, online accounting was introduced where create accounting process always happened in online mode irrespective of the value for the profile option CST:Receiving Accounting Option in encumbrance enabled environment which resulted in encumbrance reversal and actuals hitting the GL at the same time. But this resulted in performance issues with the create accounting process and there was a need to decouple the event of encumbrance reversal hitting the GL and the event of actuals hitting the GL. Hence the issue of incorrect funds availability still persists.
Encumbrance reversal and Actual entries should hit the General Ledger (GL) at the same time so that Funds Inquiry screen will reflect the correct funds available at any point of time.
Since the Encumbrance and Actuals are not getting balanced at the same time, Funds availability will increase and funds will get consumed for some other purpose. Once the posting is done, there will be a sudden increase in actuals and finally Funds available will become negative.
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