Pre-Encumbrances, Encumbrances Pre-Encumbrances, Encumbrances & Expenses& Expenses

PurposePurpose

This session is designed to explain what This session is designed to explain what pre-encumbrances, encumbrances & pre-encumbrances, encumbrances & expenses are and how to monitor them.expenses are and how to monitor them.

AgendaAgenda

1. Basics of Pre-Encumbrances, Encumbrances 1. Basics of Pre-Encumbrances, Encumbrances and Expensesand Expenses

2. Review the Processes2. Review the Processes

3. Monitoring Pre-Encumbrances and 3. Monitoring Pre-Encumbrances and EncumbrancesEncumbrances

Basics of Pre-EncumbrancesBasics of Pre-Encumbrances

What are Pre-Encumbrances?What are Pre-Encumbrances?– Entry & Approval of RequisitionsEntry & Approval of Requisitions– Budget CheckingBudget Checking– Canceling a RequisitionCanceling a Requisition

Basics of EncumbrancesBasics of Encumbrances

What are Encumbrances?What are Encumbrances?– Purchase orders Purchase orders – Purchase order numberingPurchase order numbering

Health eShop VS Special Order ReqsHealth eShop VS Special Order Reqs

Basics of ExpensesBasics of Expenses

What are Expenses?What are Expenses?– Accounts Payable VouchersAccounts Payable Vouchers

PO vouchersPO vouchers

Check Requests Check Requests

TravelTravel

– Transactions that hit the Journal linesTransactions that hit the Journal linesPCardPCard

Phone Bill / Mail Charges / Copy ChargesPhone Bill / Mail Charges / Copy Charges

IDRs & Cost TransfersIDRs & Cost Transfers

Payroll expensesPayroll expenses

Basics of Pre-Encumbrances, Basics of Pre-Encumbrances, Encumbrances & ExpensesEncumbrances & Expenses

Basic termsBasic terms

Pre-EncumberedPre-Encumbered == RequisitionRequisition

EncumberedEncumbered == Purchase OrderPurchase Order

ExpendedExpended == Voucher/Journal ExpenseVoucher/Journal Expense

Requisition is Created (make sure that all required fields are entered and have valid codes)

Requisition is Budget Checked (makes sure that the commitments & expenditures will not exceed the total Budget) Req is approved by the Dept.Must pass Budget Check to continue!When the Budget check is Valid, then the Pre-Encumbrance is made.

Approved requisitions are marked to be processed into a Purchase Order by the Purchasing Department after review for non-Health eShop Orders. Health eShop orders less than $2,999 are automatically processed by the system to a Purchase Order.

*Any Edit or Budget checking errors will be referred back to the department for resolution.

Pre-Encumbrance ProcessPre-Encumbrance Process

Start

Continue

Requisition Keyed

Continue

Encumbrance ProcessEncumbrance Process

Reqs are assigned Purchase Orders and Purchase Orders are generated by the Buyer or the system.

Purchase Order is Budget Checked (makes sure that the commitments & expenditures will not exceed the total Budget) Must pass Budget Check to continue!

When it is Budget Checked to Valid, then the Pre-encumbrance is reversed, and the PO amount is Encumbered.Requisition

Marked for PO

Purchase Orders are then dispatched to the Vendor to fulfill the good or service.

*Budget checking errors will be referred back to the department for resolution .

Expense ProcessExpense Process

PO ReadyFor Payment

Continue

Voucher Keyed

Check is Printed

Invoice is received by Accounts Payable with Purchase Order number listed on Invoice.Purchase Order is Required to continue!

Voucher is Budget Checked (makes sure that the commitments & expenditures will not exceed the total Budget)Must pass Budget Checking to continue!

When Budget Check is Valid, then the Encumbrance is reversed, and the Voucher Amount is expended.

If the Purchase Order is set up for 3-way match then the lines must be received in PeopleSoft by Receiving or the Department. Must be received to continue!

Journal generate is run and vouchers are posted to the Journal Lines

Check printing assigns each voucher with a check number.

Check is remitted to vendor for payment.

Funds were Pre-Encumbered, Encumbered & Expended. All Steps are Complete!

How Can I see these Entries?How Can I see these Entries?

Budget Transaction Detail ReportBudget Transaction Detail Report

Comprehensive Financial ReportComprehensive Financial Report

Open Encumbrance Report Open Encumbrance Report (just shows (just shows outstanding encumbrances)outstanding encumbrances)

Budget Transaction DetailBudget Transaction Detail

Monitoring Pre-Encumbrances, Monitoring Pre-Encumbrances, Encumbrances & ExpensesEncumbrances & Expenses

Why?Why?– Use it or lose itUse it or lose it– ErrorsErrors

Who?Who?– Your DepartmentYour Department

How?How?– Budget Transaction Detail ReportBudget Transaction Detail Report– Comprehensive Financial ReportComprehensive Financial Report– Open Encumbrance ReportOpen Encumbrance Report

Monitoring Pre-Encumbrances, Monitoring Pre-Encumbrances, Encumbrances & ExpensesEncumbrances & Expenses

If it is Encumbered and received, but not If it is Encumbered and received, but not ExpendedExpended– Take actionTake action– Who to contactWho to contact

Expensed (Payment) Amount vs. Encumbered Expensed (Payment) Amount vs. Encumbered amount Differencesamount Differences

CancellationsCancellations

Helpful WebsitesHelpful Websites

Supply Chain/PurchasingSupply Chain/Purchasing– Go to the A to Z index and click on the M and Materials Management > Go to the A to Z index and click on the M and Materials Management >

Purchasing > Purchasing Home > Buyers Commodity ListingPurchasing > Purchasing Home > Buyers Commodity Listing

Controller’s Division > Contacts– Go to the A to Z index and click on C and the Controller’s Division > Contact Us

Questions ?Questions ?