Overview of Invoice Encumbrance Accounting

Configure Subledger Accounting (SLA) when you need to report actuals at payment rather than invoice validation.

When utilizing invoice encumbrance accounting, there is no expense accounting entry for the invoice. Matched invoices will continue to liquidate purchase orders and invoice encumbrance will be created. The expense entry occurs upon payment of the invoice.

In order to provide visibility into the invoices pending payment, an invoice encumbrance is created and purchase order obligation is liquidated when the invoice is validated. The invoice encumbrance is liquidated when the invoice is paid.