Managing Encumbrances. PeopleSoft FMS 8.8

Transcription

1 Managing Encumbrances PeopleSoft FMS 8.8 1

2 Purchase Order Encumbrances An encumbrance is created whenever a PO passes the budget check process Encumbrances are recorded in the commitment control ledgers CC_ORG_ENC CC_PRJ_ENC Each line item on a PO has at least one encumbrance entry in commitment control A line item with more than one chartfield distribution will have a commitment control entry for each detailed distribution line 2

3 Relieving a PO Encumbrance by Payment Vouchers for payment are attached to specific PO distribution lines By Accounts Payable when processing an invoice for a catalog (CAT) or special request (SPL) order By the cardholder (or proxy) when reconciling their statement The encumbrance is relieved for the distribution line when the voucher is budget checked Up to, but not exceeding, the amount encumbered for that distribution line The full amount of the voucher is expensed to the chartfield of the line to which it is attached 3

4 Relieving a PO Encumbrance by Modification Canceling a PO entirely Cancel PO + Budget Check + Daily PO Reconciliation batch process relieves the encumbrance Make sure to indicate NO for re-sourcing or a preencumbrance will be created Canceling a PO line Cancel PO Line + Budget Check + Daily PO Reconciliation batch process relieves the encumbrance Make sure to indicate NO for re-sourcing or a preencumbrance will be created When a PO is Finalized + Closed any remaining encumbrance will be relieved This process must be run by Purchasing Department 4

5 Non-Liquidated Encumbrances A variety of situations can occur that can cause an encumbrance balance to remain on a purchase order. The objective is to develop methods for departments to identify and liquidate encumbrance balances that are no longer required. 5

6 Scenarios POS Purchase Orders Purchase order not reconciled to bank statement or the incorrect PO is attached to the statement. Complete amount expensed to cardholder s default account and total encumbrance open against the order. No voucher exists for any line on the purchase order. One line of purchase order reconciled to total amount of bank statement. Encumbrance for one line liquidated and encumbrance balance exists on remaining lines. No voucher exists for one or more lines of the purchase order. Amount on bank statement is less than the purchase order line that was reconciled. A voucher exists for a purchase order line, but a balance still exists. 6

7 Example Total Encumbered Amount = $ PO Line # Desc. Dist. Line # Oper Unit Dept. Fund Project Account Amount PKG - Beakers $ CS Flasks $ $

8 Order Not Reconciled to Statement Encumbrance Balance Amount = $ Expense of $ Charged to Cardholder s Default Chartfield PO Line # Desc. Dist. Line # Oper Unit Dept. Fund Project Account Amount CS - Beakers $ CS Flasks $ $

9 Statement Reconciled to Order Line #1 Encumbrance Balance Amount = $ Expense of $ Charged to PO Line #1 Chartfield PO Line # Desc. Dist. Line # Oper Unit Dept. Fund Project Account Amount CS - Beakers $ CS Flasks $ $

10 Statement Lines Charged to Incorrect Order Lines (Line 1/1 & 2/1 reversed) Encumbrance Balance Amount = $50.00 Expense Recorded Correctly PO Line # Desc. Dist. Line # Oper Unit Dept. Fund Project Account Amount CS - Beakers $ CS Flasks $ $

11 Supplier Only Submitted Charge for $45.00 Encumbrance Balance Amount = $5.00 Expense Recorded Correctly PO Line # Desc. Dist. Line # Oper Unit Dept. Fund Project Account Amount CS - Beakers $

12 Finding Open Encumbrances Report Navigation: Commitment Control/Review Budget Activities/Budget Reports/Open PO Encumbrance Report Run Control Mode: Chartfield...Buyer...PO Query POX_ENCUMBRANCE_BY_CHARTFIELD POX_ENCUMBRANCE_BY_BUYER POX_ENCUMBRANCE_BY_PO POX_OPEN_ENCUMBRANCE_BY_CF POX_OPEN_ENCUMBRANCE_BY_BUYER POX_OPEN_ENCUMBRANCE_BY_PO 12

13 Organizing the Search Run query by buyer by a specific month September, 2003, then October, 2003, etc. Export Data to Excel Create Pivot Table Drag & Drop Fields to Row Fields Unit, Origin, Entered, PO Drag & Drop Fields to Data Items Encumbrance, Liquidated, Residual 13

14 Query Output (44 Fields of Data) 14

15 Pivot Table 15

16 Run Report by PO to View Detail 16

17 Example of Incorrect Match 17

18 Correcting POS Orders No voucher against PO, but expense incurred Cancel entire PO per published procedure Corrections to funding through journal voucher Open lines w/o vouchers, but expense incurred Cancel PO lines per published procedure Corrections to funding through journal voucher Open encumbrance with voucher on all lines Finalize and close PO Forward requests to Rick Sears Business Unit & PO Number Note: Budget Pool must be active and not in deficit Corrections to funding through journal voucher 18

19 What is different about CAT & SPL orders A purchase order was dispatched to the supplier Canceling purchase orders or purchase order lines requires contact with the supplier Vouchers are created in Accounts Payable Encumbrance issues are possible and likely need input from Purchasing and/or AP Vouchers could be pending payment if you have not processed a receiver Amount Only purchase orders may be completed prior to exhausting all funds Finalize and close PO Forward request to Rick Sears Business Unit & PO Number Note: Budget Pool must be active and not in deficit 19

20 Process for Liquidating Encumbrances POS Identify potential problems using available reports & queries Investigate to determine if open encumbrance is incorrect Take corrective action based on the situation Cancel PO Cancel PO Line Finalize and Close PO Verify liquidation of encumbrance CAT & SPL Identify potential problems using available reports & queries Investigate to determine if open encumbrance is incorrect Contact supplier if there are open items that you do not want shipped Take corrective action based on the situation Cancel PO Cancel PO Line Finalize and Close PO Verify liquidation of encumbrance 20

21 How about Travel & Internal Services Yes, all purchase orders encumber funds Contact ERT for help with travel orders Contact the internal service department for help with internal service orders 21

22 Who is Responsible? Department managers need to establish specific procedures and monitor activity for their departments The Buyer on the purchase order is the individual who is able to make the change 22

23 Next Steps Educate all administrative managers and department buyers Departments develop plans to clear up existing encumbrance problems Departments develop plans to monitor and manage encumbrances 23