University of California, Riverside

Encumbrances



Problems and Issues


  1. Negative encumbrances appear on the ledger

    PO change orders on a PO that has had previous vouchering activity sometimes result in negative encumbrance balances. eBuy lines that have been vouchered are restricted from line amount reductions and FAU changes. This does not prevent a department from creating a new line on a vouchered PO for a negative amount using an FAU having a zero encumbrance balance resulting in a negative encumbrance balance for that FAU. Other PO change order actions could also result in negative FAU encumbrance balances.

    Caution and analysis is recommended before completing a PO change order on a PO that has had previous vouchering activity to help ensure a negative encumbrance balance does not result from the PO change order. The PO Encumbrance Activity page in UCRFS is very helpful for analyzing FAU encumbrance balances.

  2. Encumbrance balance remains after PO has been fully paid

    To release an entire encumbrance balance successfully the vendor invoice must match, line-by-line, the PO. Often this is not the case. Many vendor invoices do not match the PO line-by-line. The results are unmatched PO lines. Unmatched PO lines will not release the encumbrance.

    Because vendor invoices are dynamic a department will invariably encounter a fully paid PO having a remaining encumbrance balance. These remaining encumbrance balances can be resolved by the encumbrance release mechanisms discussed on this website.

  3. Encumbrance balance remains for freight after PO has been fully paid

    Freight may have been included as a line item on the PO. When paying the vendor invoice, freight is not handled as a line item but rather pro-rated across all invoice lines. This causes unmatched PO freight lines that will not release the encumbrance. These remaining encumbrance balances can be resolved by the encumbrance release mechanisms discussed on this website.

    In eBuy, freight should be entered into the Freight field on the General tab. This will pro-rate the PO freight amount across all PO lines and help ensure the entire PO encumbrance amount gets released upon invoice payment. See eBuy PO 10147452 for example on how freight should be recorded on the PO.

  4. Encumbrance balance remains for sales tax after PO has been fully paid

    Sales tax may have been included as a line item on the PO. When paying the vendor invoice, sales tax is not handled as a line item but rather pro-rated across all invoice lines. This causes unmatched PO sales tax lines that will not release the encumbrance. These remaining encumbrance balances can be resolved by the encumbrance release mechanisms discussed on this website.

    In eBuy, sales taxable should be indicated yes or no on the PO line. Indicating yes will allocate the sales tax amount to the PO line and help ensure the PO encumbrance amount gets released upon invoice payment. See eBuy PO 10155395 for example on how sales tax is indicated on the PO lines.

    Sales tax my have been indicated on the PO line however the line item may not be sales tax applicable. Services, fees, and certain commodities are sales tax exempt. For such items, sales tax will not be paid which will cause PO sales tax encumbrance amounts not being released. These remaining encumbrance balances can be resolved by the encumbrance release mechanisms discussed on this website.

    Although sales tax was indicated on the PO line many vendors, mostly out-of-state, do not collect California sales tax. Use tax is accrued on vendor invoices that do not collect California sales tax. Accrued use tax amounts will match the PO sales tax amount and the encumbrance amount for sales tax will release.

  5. Encumbrance balance remaining for future freight payments

    The UCRFS encumbrance release mechanism sometimes returns the above message. The PO is not eligible for encumbrance release because it has an FOB term requiring the University to pay freight. If the University will not be paying additional freight, the FOB term can be updated to Not Applicable via an eBuy change order. This will make the PO eligible for encumbrance release.

  6. None of the encumbrance release mechanisms discussed on this website are resolving a particular encumbrance balance on the ledger

    Forward the PO to the Accounting Office (attention Marc Guerra or Steve Wilson) where any encumbrance release can be accomplished.

More Information 

General Campus Information

University of California, Riverside
900 University Ave.
Riverside, CA 92521
Tel: (951) 827-1012

Department Information

Computing & Communications
Computing & Communications Building

Tel: (951) 827-4741
Fax: (951) 827-4541
E-mail: helpdesk@ucr.edu

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