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11i / 12: Incorrect Encumbered Amount / Active Encumbrance / Encumbrance Detail Report For Purchase Order - Troubleshooting (Doc ID 742621.1)

Last updated on DECEMBER 24, 2020

Applies to:

Oracle Purchasing - Version 11.5.10.2 to 12.0.3 [Release 11.5 to 12]
Information in this document applies to any platform.

Purpose

This document provides the reader with detailed information on how to troubleshoot Purchasing documents having incorrect Encumbrance Accounting.

The document is divided into below three sections:

FUNCTIONALITY section
This section will help in understanding what 'Active Encumbrance' amount and 'Encumbered' amounts are for a Purchasing document and helps in understanding the expected values on the Purchasing documents at different stages in their life cycle ( Open to Final close).

TROUBLESHOOTING section
The Troubleshooting section covers the following symptoms seen in the 'Incorrect Active encumbrance/ Encumbered Amount / Encumbrance Details report' area.

S.NoSymptom
a. Encumbered amount is not correct for the Purchase Order
b. Incorrect active encumbrance for Purchase Order
c. Discrepancy with Encumbrance Reversal created in Receiving/Inventory
d. Discrepancy with Encumbrance Reversal created in Payables
e. Incorrect Encumbrance Detailed Report (EDR)
f. There is an outstanding commitment/obligation even after cancelling/final closing the purchasing document
g. Obligation not getting reversed even though the purchase order is fully received/billed


Most of the above symptoms are manifestations of  the below three main issues which are often seen in this category.

   a.  Incorrect Encumbered amount for the Purchase Order distributions :
     This covers POs in Open, Cancelled , Finally closed , Cancelled and finally closed statuses seperately.

   b.  Incorrect Active Encumbrance for Purchase Orders :
     Active encumbrance is calculated with the use of the below three components and the troubleshooting is aligned accordingly.

  1. Verify any incorrect Encumbered_amount value on Purchase distributions
  2. Verify any incorrect encumbrance reversal / actual creation at Receipt Deliver( for online accruals)
  3. Verify any incorrect encumbrance reversal / actual creation at Payables (for period end accruals )    

   c. Incorrect Encumbrance Details Report

PROCESSING OVERVIEW section
DATA FLOW section

Troubleshooting Steps

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In this Document
Purpose
Troubleshooting Steps
 FUNCTIONALITY
 When does the Active Encumbrance/Outstanding Encumbrance for a Purchasing document get relieved?
 What is the difference between Encumbered amount and Active Encumbrance amount?
 Value of Encumbered amount and Active encumbrance at various stages of purchasing document 
 TROUBLESHOOTING
 a) Encumbered amount is not correct for the Purchase Order
 b) Incorrect active encumbrance for Purchase Order
 c) Discrepancy with Encumbrance Reversal created in Receiving/Inventory
 d) Discrepancy with Encumbrance Reversal created in Payables
 e) Incorrect Encumbrance Detailed Report (EDR) 
 f) There is an outstanding commitment/obligation even after cancelling/final closing the purchasing document
 g) Obligation not getting reversed even though the purchase order is fully received/billed
 PROCESSING OVERVIEW
 DATA FLOW
References

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