Opening an Encumbrance Year
When you open the first period ever for your set of books, General Ledger automatically opens your first encumbrance year as well. When you open additional encumbrance years, General Ledger automatically rolls your project-to-date encumbrance balances forward through the last period of the latest open encumbrance year.
You do not need to open encumbrance years if you are not using encumbrance accounting.
To open an encumbrance year:
1. Navigate to the Open and Close Periods window.
General Ledger automatically displays your Latest Open encumbrance year. You can enter and post encumbrance balances up to the last period of your latest open encumbrance year.
2. Choose Open Next Year. General Ledger submits a concurrent process to open the next encumbrance year.
Overview of Encumbrance Accounting
Opening and Closing Accounting Periods