This example shows the entries necessary when an outstanding encumbrance remains at year end. Every effort should be made to liquidate outstanding encumbrances prior to the end of the year.
All purchase orders are valid and are to be re-encumbered in the next fiscal year.
Close encumbrances at year-end. All optional summary entries to the Encumbrance Control account or Expenditure Control account also require detail posting to the Budget Analysis Ledger accounts.