General Ledger has the following predefined encumbrance types:
|Commitment||An encumbrance you record when you complete a purchase requisition.|
|Obligation||An encumbrance you record when you turn a requisition into a purchase order.|
You can define as many additional encumbrance types as you want or change the names of the standard encumbrance types to reflect the terminology you use within your organization. You specify an encumbrance type when you enter an encumbrance and when you perform inquiries.
Overview of Encumbrance Accounting