1. PO/Requisition Encumbrance Update
Sheri Hardison, Assistant Vice President for Financial Affairs & University Controller
Mary Simon, Senior Director for Budget Planning & Development
Yvette Medina, Purchasing Business Analyst

2. Encumbrance Update The Original Problem
UTShare used manual roll-forward process to move FY2014 PO open encumbrances to FY2015
Open encumbrance balances were moved to FY2015 by journal entry, but active PO document remains in FY2014
Change orders, closing and sometimes payments on FY14 PO’s causes problems in FY2015 encumbrance balance
Encumbrance moves between months
Double encumbrances/re-encumbrance may occur
Encumbrances may be released in the incorrect fiscal year

3. Encumbrance Update Where We Are Now
Purchasing, Budget and Accounting working together
Tested and attempted large scale solutions that caused new problems
Requested outside assistance for global solution
Processing specific fixes, when possible
Each problem is a little different and requires help from all 3 departments

4. Encumbrance Update FY2015 Close  FY2016 Start
High Priority Request to System to use automated rollfoward process in UTShare
Will involve campus in identifying what should be rolled forward – stay tuned…

5. Procurement to Payment
Documents flow through Commitment Control to budget check and hold funds for payment. Entries are recorded in ‘ledgers’ sourced by module processing activities from Procurement, Travel and Disbursements
‘Pre-Encumbrance’
‘Encumbrance’
Requisition
Purchase Order
Vendor Ships; Sends Invoice
Receiving
‘Expense’
Create Voucher
Approve; Post Voucher; Process Payment
Journal Generate

6. Encumbrance Scenarios
Issue
Requested Action
Point of Contact
Don’t know how to find encumbrance detail (PO #, requisition #, etc.)
Budget Overview training – PS Managing Dept Expense & Revenue Budgets
Encumbrance Amount & Remaining Spending Authority (RSA) is incorrect
Obtain PO/req. detail from Budget Overview.
Contact Purchasing to verify encumbrance.
Purchasing will work with Budget and/or Accounting for a possible solution
(If no PO/Req. #, then
Encumbrance has moved in a previously reconciled month and RSA is correct
Keep original reconciliation.
Make a note on new month’s reconciliation that change was noted but RSA is correct.
N/A

7. Encumbrance Scenarios
Issue
Requested Action
Point of Contact
Awaiting correction on encumbrance issue and don’t have adequate RSA
Contact Budget to override a specific transaction.
To close a PO and add back the balance to RSA
Contact Purchasing. FY2015 will be closed quickly.
FY2014 PO’s will be held momentarily.
To see the remaining encumbrance balance on a specific PO
See next slide.

8. Encumbrances – See Remaining Balance on a PO…
Purchasing  Purchase Orders  Review PO Information 
Purchase Orders

9. Encumbrances – See Remaining Balance on a PO…
To see full detailed purchase order encumbrance activity , please follow the Reviewing PO Activity instructional guide.

10. How to drill down into Encumbrances
BUDGET OVERVIEW SCREEN
How to drill down into Encumbrances

11. Budget Overview Main Menu>Commitment Control>Review Budget Activities>Budget Overview

12. Activity Log

13. Drill Down

14. Go to Source Entry

15. PO Information

16. In summary, Budget Overview provides drill down ability to view more information on requisitions, purchase orders and vouchers.
Requisitions can be found under the Pre-Encumbrance Column
Purchase Orders can be found under the Encumbrance Column
Vouchers can be found under the Expense Column