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Oracle Public Sector Financials User Guide
Release 12.1
Part Number E13449-04
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accrual basis of accounting
A method of accounting that recognizes revenue when it is earned, not collected, and recognizes expenses when incurred, not paid. Accrual accounting also attempts to match revenue and the expenses incurred in generating that revenue in the same period.
distribution line
A line corresponding to an accounting transaction for an expenditure item on an invoice or a liability on a payment.
An entry made to record an anticipated expenditure of any type. Oracle Public Sector Financials creates requisition encumbrances, purchase order encumbrances, and invoice encumbrances automatically when encumbrance accounting or budgetary control is enabled. Users can also record other encumbrances manually.
encumbrance accounting
An Oracle Public Sector Financials feature that creates encumbrances automatically for requisitions, purchase orders, and invoices. If the encumbrance accounting feature is enabled only, users can create encumbrances automatically or manually. Users cannot check funds online unless budgetary control is enabled.
encumbrance journal entry
A journal entry created online that increases or relieves encumbrances. Encumbrance entries can include encumbrances of any type. Users can enter manual encumbrance entries, define encumbrance allocations, or use the Journal Import process to import encumbrance entries from other financial systems.
encumbrance type
An encumbrance category that enables users to track anticipated expenditures according to purchase approval process and to more accurately control planned expenditures. Examples of encumbrance types are commitments for requisition encumbrances and obligations for purchase order obligations.
Governmental Accounting Standards Board (GASB)
Organization that establishes standards of financial accounting and reporting for state and local governmental entities.
modified accrual basis of accounting
A method of accounting focused on the measurement of the flow of financial resources on the sources and uses of funds. Revenue is recognized when it is both measurable and available, and expenditures are recorded for acquisitions of goods and services for current operations and for capital assets and debt payments.
reversing journal entry
A journal entry in General Ledger that reverses an existing journal entry. Users can reverse any journal entry and post it to any open accounting period.