Definition Encumbrances are memorandum entries that reserve funds for some specifically pre-determined purpose. System Features Encumbrances are maintained in a master file by reference numbers indicating purchase requisition and purchase order numbers. Integrity is maintained between this encumbrance detail and the subsidiary ledger account summary. The subsidiary ledger file has the details of the encumbrances. The monthly accounting statement shows both a summary total of encumbrances and the details of each specific commitment or obligation.
Special reports showing outstanding encumbrances are also available when needed.
Encumbrances Campus units encumber with Purchase Requisitions that generate Purchase Orders, with Travel Authorizations, and with on-line Check Requests. Both internal and external sources may be encumbered. The campus units are responsible for monitoring the liquidation of the encumbrance along with the Business Office.