PO/Requisition Encumbrance Update

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

Sheri Hardison, Assistant Vice President for Financial Affairs & University Controller

Mary Simon, Senior Director for Budget Planning & Development

Yvette Medina, Purchasing Business Analyst

Encumbrance UpdateEncumbrance 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

• 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

Encumbrance UpdateEncumbrance 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

• 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

Encumbrance UpdateEncumbrance 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…

• 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…

Procurement to PaymentProcurement to Payment

Journal Generate

‘Pre-Encumbrance’ ‘Encumbrance’

‘Expense’

Vendor Ships; Sends Invoice

Purchase Order

Requisition

Approve; Post Voucher; Process

Payment

Create Voucher

Receiving

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

Encumbrance ScenariosEncumbrance ScenariosIssue Requested Action Point of Contact

Don’t know how to find encumbrance detail (PO #, requisition #, etc.)

Budget Overview training – PS205.02 Managing Dept Expense & Revenue Budgets

Budget.fms@utsa.edu

Encumbrance Amount & Remaining Spending Authority (RSA) is incorrect

1. Obtain PO/req. detail from Budget Overview.

2. Contact Purchasing to verify encumbrance.

3. Purchasing will work with Budget and/or Accounting for a possible solution

Purchasing@utsa.edu (If no PO/Req. #, then budget.fms@utsa.edu)

Encumbrance has moved in a previously reconciled month and RSA is correct

1. Keep original reconciliation.2. Make a note on new month’s

reconciliation that change was noted but RSA is correct.

N/A

Encumbrance ScenariosEncumbrance ScenariosIssue Requested Action Point of Contact

Awaiting correction on encumbrance issue and don’t have adequate RSA

Contact Budget to override a specific transaction.

Budget.fms@utsa.edu

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.

Purchasing@utsa.edu

To see the remaining encumbrance balance on a specific PO

See next slide. Purchasing@utsa.edu

Encumbrances – See Remaining Balance on a PO…

Encumbrances – See Remaining Balance on a PO…

Purchasing Purchase Orders Review PO Information Purchase Orders

Encumbrances – See Remaining Balance on a PO…

Encumbrances – See Remaining Balance on a PO…

To see full detailed purchase order encumbrance activity , please follow the Reviewing PO Activity instructional guide.

Reviewing PO Activity

How to drill down into Encumbrances

How to drill down into Encumbrances

BUDGET OVERVIEW SCREENBUDGET OVERVIEW SCREEN

Budget OverviewMain Menu>Commitment Control>Review Budget Activities>Budget Overview

Budget OverviewMain Menu>Commitment Control>Review Budget Activities>Budget Overview

Activity LogActivity Log

Drill DownDrill Down

Go to Source EntryGo to Source Entry

PO InformationPO Information

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

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