Encumbrance & Pre- Encumbrance in AX2012


 
 
 
 
 
 
 
 

Encumbrance

When we activate the encumbrance process at GL Parameter, when we post the purchase order than all the transaction are gets recorded at Encumbrance table

Encumbered Value on a purchase order are released when a vendor invoice is posted to spend all or part of the encumbered amount. Released amounts are subtracted from the value of the purchase order encumbrance.

Pre- Encumbrance

A pre-encumbrance is a process of request to reserve funds for planned expenditures i.e., purchase requisition. The funds have been requested, but have not yet been approved for a purchase order. If the pre-encumbrance process is activated, you can create purchase requisitions with a pre-encumbered amount for the planned Expenses.

The pre-encumbrance amount will be released and transferred to PO once the PR is approved and converted to purchase order

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