About updating commitments and encumbrances

Because transactions can originate in many different Lawson applications and follow different paths, the process for updating a commitment is not the same for each transaction. See Programs that update commitments or encumbrances

This example shows how a commitment will affect the budget for an equipment acquisition:

  1. A purchasing agent at LGE Corporation enters a requisition for one computer at a cost of $2,000.

  2. When the requisition is released, the General Ledger commitment file (GLCOMMITX (for UNIX/Windows) DBGLGOX (for IBMi)) is updated with a $2,000 Requisitions commitment record.

  3. After the requisition is approved, a purchase order is created. After the purchase order is released, the Requisitions commitment record is deleted and a Purchase Order encumbrance record is created.

  4. The purchase order is issued, and the computer is received. After the invoice is matched, it is released to the Accounts Payable application, the Purchase Order encumbrance record is deleted and an Accounts Payable encumbrance record is created.

  5. After the Invoice Distribution (AP175) is closed, the Accounts Payable encumbrance record is deleted and a released journal entry is created in General Ledger and is treated as a General Ledger encumbrance.

  6. When you run Journal Posting (GL190), the entry is posted is no longer an encumbrance and becomes a General Ledger actual balance.

    Illustration: dynamics of the commitment and encumbrance files during processing

Programs that update commitments or encumbrances

This table shows the specific programs in the Lawson applications that update commitments or encumbrances. These are updated when the transaction status is changed to released, with one exception. Encumbrances are updated for time records created in the Payroll application when the transaction status is changed to current.

System Program Transaction
Accounts Payable

Batch Control (AP25)

Invoice Release (AP26)

Invoice Interface (AP52)

Batch Release (AP125)

Mass Invoice Release (AP126)

Invoice Interface (AP520)

Invoices
Accounts Receivable

Transaction Header (AR42)

Application Closing (AR190)

Transaction Interface (AR560)

Invoices
Billing

Invoice Entry (BL20)

Batch Control (BL29)

Invoice Batch Release (BL120)

Create Recurring Invoices (BL130)

Billing Interface (BL520)

Invoices
Cash Management

Bank Transaction Entry (CB20)

Reconciliation Variance Adjustment (CB500)

Bank Transactions
Employee Expense

Advance Release (EE35)

Mass Employee Release (EE135)

Expenses
General Ledger

Journal Entry (GL40)

Journal Control (GL45)

Recurring Journal Control (GL75)

Recurring Journal Interface (GL170)

Transaction Interface (GL165)

Remote Site GL Transaction Upload (GL311)

Allocation Interface (CA190)

Journal Entries
Grant Management Salary Encumbrance Processing (GM110) Salary Encumbrances
Order Entry

Item Speed Entry (OE10)

Returns (OE30)

Batch Order Release (OE110)

Orders
Payroll

Time Record Entry (PR36)

Time Record Selection (PR38)

Manual Payment (PR80)

Adjustment (PR82)

Retroactive Pay Calculation (PR131)

Batch Time Record Update (PR137)

Time Records
Project Accounting

Journal Entry (AC Only) (AC40.1)

Journal Entry (AC and GL) (AC40.4)

Resource Journal Entry (AC Only) (AC41.1)

Resource Journal Entry (AC and GL) (AC41.4)

Subcontractor Time Entry (AC42)

Manual Commitments Transaction Entry (AC46)

Allocation Update (AC131)

DI541 (Time Entry Commitments)

Activity Entries
Purchase Order

Purchase Order Entry (PO20)

Purchase Order Interface (PO100)

Received, Not Invoiced Report (PO135)

Purchase Orders
Requisitions

Requisition (RQ10)

Approval Review (RQ12)

Requisition Interface (RQ500)

Requisitions