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You can carry forward encumbrances into the next fiscal year. If you do not carry forward encumbrances, you might want to cancel existing requisitions and purchase orders behind the encumbrances. You can easily identify purchase orders and requisitions behind encumbrances.

Prerequisites

   Run receipt accruals in Purchasing if installed.

   To perform year-end encumbrance processing:

1. Identify outstanding encumbrances in Oracle Purchasing to determine which encumbrances to cancel or to carry forward.

2. Review purchase order and requisition encumbrances by requesting the following reports:

• Encumbrance Details Report in Oracle Purchasing

• Open Encumbrance Balance with Transaction Detail Report.

Suggestion: In addition to using these reports to identify outstanding encumbrances, request these reports before year-end carry-forward to create an audit trail of encumbrance balances.

3. Define the MassCancel criteria in Oracle Purchasing to select the encumbrances you want to cancel.

4. Run MassCancel in Oracle Purchasing to cancel selected outstanding purchase order and requisition encumbrances.

5. Post all encumbrance, budget, and actual journal entries. See: Posting Journal Batches.

6. Request the Encumbrance Trial Balance Report in General Ledger to review in detail encumbrance balances and activity for the general ledger accounts before year-end carry forward. See: Encumbrance Trial Balance Report

7. Close the last period of the current fiscal year. See: Opening and Closing Accounting Periods

8. Open the first period of the next fiscal year. See: Opening and Closing Accounting Periods

9. Open the next encumbrance year

10. Open the next budget year

11. Carry forward year-end encumbrances

12. Request the Encumbrance Trial Balance Report in General Ledger to review the year-end carry forward balances.

Note: Requesting the Encumbrance Trial Balance report before and after year-end carry-forward creates an audit trail of encumbrance balances.

See Also

Define MassCancel (Oracle Purchasing Reference Manual)