FS109 The FS109 is used in conjunction with the FS100. See pages 15-16 for sample FS109 and corresponding Current Month Transaction listing. An encumbrance, first of all, is a firm commitment of dollars for a specific purchase. The encumbrance, or lien, sets aside an amount of money before the money is actually paid out. It is calculated, along with actual expenditures, into your ledger balance.
Encumbrances are always debits.
They appear as Type Entry EN on the FS100 and FS109. When the specific purchase is finally paid out of the account, it appears in the expenditure column. This causes an automatic reduction of the lien in the encumbrance column. The FS109 shows all open encumbrances for an account in transaction number order. Transaction numbers here are purchase order numbers, blanket numbers, and Facilities Management requisition numbers.