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For transactions from Payables and Purchasing, the system might partially reserves funds. For example, if you have three distribution lines on a requisition and only two have sufficient funds, the system reserves funds for the two lines and marks them as Accepted. Since no funds are available for the third line, the system marks it as Rejected.
Example
You are approaching year end and you want to spend available funds before you lose the funding. The online inquiry of funds available tells you that you have $6000 available in Company 01-Product Expense. You enter a purchase order for $5000 which you charge to Company 01 - Product Expenses. You approve the purchase order online. Purchasing notifies you that the purchase order is approved. Another buyer then enters a purchase order for $2000 to Company-01 Product Expenses and attempts to approve it. The approval process fails because sufficient funds are not available.
You need not post an encumbrance batch immediately to see what effect the approved transactions had on available funds. However, you must post an encumbrance batch in General Ledger to accurately reflect funds available in reports and trial balances. (The Funds Available Analysis Report and the View Funds Available window do include the effect of approved but unposted transactions in calculating funds available.)
Suggestion: We recommend you implement AutoPost to post encumbrance entries automatically.
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