Commitments, encumbrances, and budget edits

Before you enter a transaction for a posting account, you must verify that you have money remaining in your budget to fund the transaction. For example, you might need to check your remaining budget dollars before you create a requisition or purchase order for a new item. If you use budget editing, then you can check your remaining budget dollars, and any defined budget tolerance percent, for an account before you can release a transaction for that account. A requisition is recorded as a commitment in the system and an encumbrance is used to track purchase orders or transactions from other applications. Budget editing uses actual balances, commitments and encumbrances to arrive at an accurate remaining balance of your budgeted funds.

You can select the subsystems and accounts for which budget editing will be performed and whether you want to perform detail or summary budget edits.

Use this appendix to set up the General Ledger application to process commitments, encumbrances, and perform budget editing. Budget editing requires the Budgeting application.