Encumbrance Question (Doc ID 2505684.1)

Last updated on AUGUST 26, 2022

Applies to:

Goal

User has enabled encumbrance accounting. Has a control budget with the advisory level set at control. For November 2015, the budget for a given combination is approved requisition of $900 USD and user has an approved
purchase order of $2,500 USD. An adjustment encumbrance journal is created in the General Ledger for the obligation type for $1,600 USD. User then cancelled the approved line of $400 USD. For November 201b, user created a new invoice by matching to the
PO for $2,100 USD.
Which two statements are true?
• A. Purchase order encumbrance will be released for $2100 USD.
• B. As there are cancellations for $400 USD, the system will partially reserve the funds in November 2015 and fully reserve it in December 2015.
• C. As user is matching to a purchase order, the system will allow the user to create an invoice with the reservation status of Reserved.
• D. Encumbrance entries are created only for nonmatched Invoices, so the system will not create any encumbrance accounting entries.
• E. The system always consumes budget of future periods if the limit for the current period is expired, so December 2015 budget will be considered for reservation.
 

Solution

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