Deciding Between Budgetary Control and Encumbrance Accounting

Review these decision points to determine which features to enable.

Decision Point

Budgetary Control Required?

Encumbrance Accounting Required?

Do you want transaction amounts from requisitions, purchase orders, invoices, receipts, and journals to be validated against a budget during transaction processing in real time?

Yes

No

Do you want journals in General Ledger to represent purchase order obligations or requisition commitments?

No

Yes

Do you want to report from General Ledger purchase order obligation or requisition commitment balances?

No

Yes

Do you want to report budget versus actual expenditures only?

No

No

Based on the decision points, you can decide to enable these features:

  • Budgetary Control only

  • Encumbrance Accounting only

  • Both Budgetary Control and Encumbrance Accounting

  • None