University of California, Riverside

Encumbrances



Release Encumbrances


​Releasing encumbrances can occur by meeting certain criteria within the financial system, making changes to a purchase orders (which changes the encumbrance amount), or by manually releasing the encumbrances in the financial system.

Automated System release process
Purchase Order Change Orders
UCRFS PO Reconciliation Process

Automated System release process

An automated system process ran on the 1st of each month is in place to release encumbrances that match certain conditions. The criteria for automated system encumbrance releases are:

  • Encumbrance balances that range between +9.99 to -9.99
  • There must be at least one payment against the PO to prevent small encumbrances of $10 or less from becoming swept away immediately

The source of the resulting journal is POA.

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Purchase Order Change Orders

In some cases, the original purchase order amount is incorrect and a change order must be completed to incur the correct encumbrance amount. A ledger encumbrance balance related to an eBuy PO can be reduced through the PO change order process. This is accomplished by reducing line item quantity or amount. Reducing PO quantity or amount is appropriate subsequent to vendor payment due to circumstances involving price reduction, unit of measure, item availability, sales tax, freight, etc.. If the PO has payment activity, the effected line and related FAU(s) can not be reduced below the amounts vouchered. A change order can be processed by departments for a DAPO (Department Approved Purchase Orders) or by the Purchasing department for Purchase Orders.

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 on a particular PO. To use the PO Encumbrance Activity page within UCRFS, navigate: Purchasing, Purchase Orders, Reconcile PO, PO Encumbrance Activity. This page shows the current PO encumbrance balance by FAU. • A user in UCRFS must be in the same Accountability Structure as that of the eBuy Transactor who initiated the PO. (See Common Problems and Issues with Encumbrances) remove this link

It will take two-three business days for the encumbrance reduction to appear on the Financial Transaction Detail Report.

To view the Guide to eBuy DAPO change orders, please see http://cnc.ucr.edu/encumbrances/index.php?content=change_order/index.html

To request a change order to a Purchase Order, email the buyer with the pertinent information.

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UCRFS PO Reconciliation

UCRFS PO Reconciliation should be used when the purchase order has been completed and a price variance of less than $1000 remains, at least one invoice has been paid against the PO and the PO is more than 90 calendar days old. (Please note that this process may be used for any purchase order whether it was generated as a DAPO or as a Purchase Order.)

The Manual Encumbrance Release process will completely close a purchase order and relieve any remaining encumbrance amount. Please be aware that the process closes the PO which means NO further payments, or change orders, can be made against it to the vendor.

The Manual Encumbrance Release process or PO Recon process should only be used to release encumbrances on POs for which there is certainty that no further transactions are forthcoming or pending.

There are a number of Business Rules that pertain to the use of the PO Recon process. It is important to pay special attention to these rules while reviewing encumbrances.

The PO Recon process can only be used for purchase commitments originating in eBuy or commitments that were migrated from the POLite or SubPOLite applications.

The PO Recon process can not be used for relieving encumbrances from sub-contracts or leasing agreements.

A user in UCRFS must be in the same Accountability Structure as that of the eBuy Transactor who initiated the PO.

At least one payment/voucher must have been processed against the PO.

There can not be a payment voucher pending against the PO.

The PO must be at least 90 days old from the time it was encumbered.

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The POs total outstanding encumbrance can not be equal to greater than $1000.

It will take two-three business days for the encumbrance reduction to appear on the Financial Transaction Detail Report.

To view the Guide to Manual Encumbrance Release (or PO Recon), please see http://cnc.ucr.edu/encumbrances/index.php?content=recon_guide/index.html#2

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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