Budgetary Control and Encumbrance Accounting

The encumbrance journal entries for requisitions and purchase orders.

Encumbrance accounting is independent from Budgetary Control and is managed by these application.

• Subledger Accounting

• General Ledger

Note: Balances stored in Budgetary Control aren't the same as balances stored in General Ledger. For example, the funds available balance is only maintained in Budgetary Control. Budget and funds available balances for Budgetary Control aren't stored in General Ledger.

Subledger Accounting

Subledger Accounting supports the encumbrance accounting process by providing the following functions:

• Creates the encumbrance journal entries for requisitions and purchase orders.

• Creates the actual journal entries for receipts and invoices, and the encumbrance journal entries reversing the purchase orders.

These journal entries are created when you submit the accounting program.

General Ledger

General Ledger supports the encumbrance accounting process by providing the following functions:

• Stores the encumbrance and actual journal entries.

• Stores and maintains the encumbrance and actual account balances based on the ledger's accounting calendar and chart of accounts.

When accounting is created for transactions and the encumbrance or actual journal entries are created in General Ledger, the General Ledger account balances are updated for the specific account combinations and accounting period. You can also load budget balances in General Ledger for use in financial reporting, but not for Budgetary Control.