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Funds Checking and Encumbrance Accounting

You can elect to do funds checking with encumbrance accounting. You can post encumbrances to individual line item accounts and to summary accounts. However, used alone, encumbrance accounting does not automatically verify that there is sufficient funding in these accounts.

Funds checking used with encumbrance accounting immediately updates the accounts and verifies that funds are available.

Suggestion: To use funds checking, enable budgetary control when you create a set of books. If you enable budgetary control later, you might overspend budgets, since the system does not retroactively create encumbrances for transactions approved before you enabled the budgetary control flag.

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