Year end encumbrance processing

Purchase orders that have been encumbered but not yet received before the end of the fiscal year are rolled forward to the next year. You can roll purchase order encumbrance records forward to the beginning balance of the next year. All other sub system commitment/encumbrance records must have a status of History before processing the year-end rollover. Use the Commitment report to view the status of all commitments and encumbrances for all sub systems.

For more information, see Commitment report.

City, county, or state laws may prevent an entity's encumbrances from rolling to the next year when an open encumbrance exists at year-end. Other entities may be able to roll encumbrances forward to the new year. If budget controls are enabled and encumbrance accounting is used at the end of the fiscal year, then you have two options:

• Cancel all open purchase orders and manual encumbrances. Close the year.
• Cancel all open purchase orders and manual encumbrances that aren't required to roll forward. Records that remain open must be rolled forward to the next year before the current year can be closed. Use the Process Year End Encumbrance action.