PROCESSING A PRE-ENCUMBRANCE DOCUMENT ON-LINE TRAINING Welcome to Processing a Pre-Encumbrance Document On-line Training. This guide will first provide an overview of the Pre-Encumbrance eDoc in KFS and show how to process a manual disencumbrance. Fiscal Services Office Rev September 21, 2016

Pre-Encumbrance (PE) Overview Allows users to add encumbrances using an eDoc instead of relying on information from some system outside of KFS Used to reserve funds for items not committed by a Purchase Order.  May be required for an Interdepartmental Orders (IDO) which is the most common use. Can manually disencumber open encumbrances created with the PE document. Negative amounts are not allowed. Encumbrances and disencumbrances are both recorded as positive amounts. Not for manually disencumbering a Purchase Order encumbrance. Some UH departments require a PE to insure that funds are available prior to providing the goods/services. The Pre-Encumbrance (PE) document allows you to add encumbrances using an eDoc instead of relying on information from some system outside of KFS. Itis used to reserve funds for items not committed by a Purchase Order.  A PE may be required for an Interdepartmental Orders (IDO) which is the most common use. The document is also used to manually disencumber open encumbrances created with the Pre-Encumbrance document. Negative amounts are not allowed. Encumbrances and disencumbrances are both recorded as positive amounts. Do not use the PE document to manually disencumber a Purchase Order encumbrance. Some UH departments require a Pre-Encumbrances to insure that funds are available prior to providing the goods/services.

Pre-Encumbrance (PE) Navigation: Main Menu > Transactions > Financial Processing > Pre-Encumbrance The Pre-Encumbrance (PE) document Navigation is Main Menu > Transactions > Financial Processing > Pre-Encumbrance Click on the Pre-Encumbrance link to open the eDoc.

PE Document Layout PEs have seven (7) tabs. The Document Overview tab is used describe what the encumbrance (or disencumbrance ) is for. The Pre-Encumbrance Details tab is used to enter an optional reversal date The Accounting Lines tab is used to enter the account detail to encumber or disencumber funds The Notes and Attachments tab will be used for attaching supporting documents

Pre-Encumbrance Document Overview Tab Complete the Description and Explanation fields. Organization Document Number field is optional. Total Amount field is display only. The first tab on the Pre-Encumbrance eDoc the Document Overview tab. In the Description field enter your 3 digit FO Code followed by a short description for the document. Use the Explanation field to provide a more detailed explanation of the description. The Total Amount field will display after the accounting lines are entered and the document is saved. This field cannot be edited.

PE Pre-Encumbrance Details Tab Optional Reversal Date field. System will automatically reverse the encumbrance on the date entered. Date must be later than the current date. PE’s without a Reversal Dates must be disencumbered manually by processing another PE document & completing Disencumbrance section. If both a Reversal Date is entered and a PE to disencumber is processed, then the pre-encumbrance would be disencumbered twice and another document would need to be processed to reverse the duplicate disencumbrance. Contact General Accounting and Loan Collection for more information on how to correct the duplicate dis-encumbrance. The Pre-Encumbrance Details tab contains an optional Reversal Date field. When entering an encumbrance, a Reversal Date may be entered to indicate when the system should automatically reverse the encumbrance. This date must not be earlier than the current date. Note: Encumbrances entered on a PE document without a Reversal Date must be disencumbered manually by processing another PE document and entering one or more accounting lines in the Disencumbrance section of the document. If a date is entered in the Reversal Date field on a Pre-Encumbrance document, KFS will automatically reverse the encumbrance on the date entered even if the disencumbrance is done manually. If both a Reversal Date and a PE is processed to disencumber, then the pre-encumbrance would be disencumbered twice and another document would need to be processed to reverse the duplicate disencumbrance. Contact GALC for more information on how to correct the duplicate dis-encumbrance.

Pre-Encumbrance Accounting Lines Tab Complete the required fields on the Accounting Lines tab: Chart, Account Number, Object and Amount. Enter information directly into fields, use the drop downs or perform lookup by clicking on magnifying glass icons. Click “add” button to record accounting line in the document. Unlike other documents with more than one side such as From/To or Income/Expense, there is no relationship between the Encumbrance and Disencumbrance sections of Accounting Lines. Complete the required fields on the Accounting Lines tab: Chart, Account Number, Object and Amount. Click the “add” button. Unlike other documents with more than one side, such as From/To or Income/Expense there is no relationship between the Encumbrance and Disencumbrance sections of Accounting Lines.

PE General Ledger Pending Entries (GLPE) Tab Displays the debit/credit information based on the accounts used in the Accounting Lines tab. Displays while document is ENROUTE or SAVED. Once fully approved, route status changes to FINAL, the transactions post to the General Ledger (GL) in the nightly process, and the data on this tab is subsequently removed. Verify the GLPE against the accounting entries. The General Ledger Pending Entries displays the debit/credit information based on the accounts used in the Accounting Lines tab. The data will display while the document is ENROUTE or SAVED. When the document is fully approved and the status changes to FINAL the transactions are posted to the General Ledger during the nightly batch process, and the data on this tab is subsequently removed. Note: It is good habit to check the GLPE to verify the accounting entries for your respective eDoc.

Pre-Encumbrance Notes and Attachments Tab Enter notes and attach any supporting documentation such as as Interdepartmental Order Form (http://www.fmo.hawaii.edu/financial_systems/docs/FSO-30_IDO_Order_Form.pdf). If notes and/or attachments are necessary click on the “Notes and Attachments” tab and populate the fields where applicable.   Attach supporting documentation such as an Interdepartmental Order Form which can be found on the FMO Website, note the web address.

PE Ad Hoc Recipients & Route Log Tabs If you need to ad hoc route the document to someone who is not in the normal routing, click on the Ad Hoc Recipients tab and populate the fields where. The Route Log tab can be reviewed prior to and/or after the submission of the eDoc to see the workflow of the document. Click “submit” to begin workflow routing

Manual Disencumbrance No Reversal Date was entered on the initial PE to encumber funds tab. Used to remove an encumbrance established with a previous PE document. If you do not use the Reversal Date field on the Pre-Encumbrance Details tab to automatically reverse the funds, then you have to use the Disencumbrance accounting line on a new Pre-Encumbrance document to disencumber the funds manually. Note: Disencumbrances entered on the PE Document would only be used to remove an encumbrance established with a previous PE document. For example, if a PE was posted to reserve funds for a future purchase, the PE should be manually disencumbered when the Purchase Order is issued or if a PE was posted to reserve funds for an Interdepartmental Order, the PE should be disencumbered when the Internal Billing is processed. In the image shown, the Disencumbrance accounting line is used to manually disecumber the $5000 earmarked in the previous example. Note that in addition to using a new eDoc, a Reference Number is required to identify the PE document used to initially encumber the funds.

KFS Contacts FMO website - http://www.fmo.hawaii.edu/ Kuali Financial - kfs.hawaii.edu/ Submit a Trouble Ticket - http://www.hawaii.edu/kualifinancial/feedbackForm.php KFS Help Desk - ph. 956-4357 Financial Systems Training - ph. 956-4357 or email fissrv@hawaii.edu

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