Accruing Commitments and Encumbrances at Year End

Use this procedure to accrue the commitment and encumbrance expenses. The system uses the commitment and encumbrance records to create an auto reversing journal entry for all the records in the current open period.

Before you run Period Year End GL Commitment Accrual (GL197) to create an accrual journal entry, you must define a commitment accrual account. Defining a commitment accrual account and budget edit parameters

To accrue commitments and encumbrances at year end

Access Period Year End GL Commitment Accrual (GL197).
Type or select the company or company group that you want to process outstanding commitments and encumbrances for. You can run this program more than once at period end if more transactions are entered.
Use the Accrue Commitments, Encumbrances field.

Accrue Commitments, Encumbrances

Select Yes to create an auto-reversing journal entry in the current period for outstanding commitments and advance the period on the commitment record.

Note: You can use this option only if the current period for your company is the last period in the year.

Update Next Year Commitment Budget

Select No in this field. You cannot select Yes in both the Accrue Commitments, Encumbrances, and Update Next Year Commitment Budget fields.
Optional. Run GL197 in Report Only (non-update) mode and review the report.

Report Option

Select Summary (default) option to print the current balance information that will roll forward.

Select Detail to view the detail records that will roll forward.

Note: The detail report shows detail records only for Accounts Payable (AP), Purchase Order (PO), and Requisitions (RQ) system codes. All other system code are available as summary only.

Update Option

Select Report Only to create the report.
To complete the process, select Update in the Update Options field and run the job.

Your records will update and the system will generate a summary or detail report, based on your selection in the Report Option field.