Review of Commitments (Encumbrances)
5/29/07
| To improve the accuracy of
monthly statements throughout the fiscal year, all departments are
requested periodically to review outstanding commitments (encumbrances).
Please see these instructions
for running a line item report of purchase requisitions and purchase
orders to assist in this review. This method:
The report is in document number order and shows each line item that has an outstanding amount or there may be multiple lines when the cost is split among multiple Funds. The Posting Date tells you how old the document is. You should pay particular attention to old dates. The Fund is identified by number and name; the line item Text tells what was ordered. The amount shown is the remaining commitment, not necessarily the original cost, as partial payments and other reductions are included in the figure. For those items you determine to be obsolete, email your Purchasing Department with the specific document numbers and line item numbers to be closed. In most cases, each obsolete line item should be marked Closed on purchase requisitions, or Final Invoice on purchase orders. Please note that when a purchase order line item is reduced or deleted (rather than marked Final Invoice), the corresponding purchase requisition is reactivated by that amount, as the system assumes you want to re-order with a different vendor. So, it is important to ask for a delete/reduce when you intend to re-order, but to ask for Final Invoice when you want the commitment completely cleared. Contact your purchasing office or campus business office if you have questions about your encumbrances.
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