How Do I Automatically Liquidate all Encumbrances to Close my Fiscal Year?

The following is a checklist for liquidating all of the Encumbrances to close a fiscal year. And for re-opening the same Encumbrance ID with the previous ending balance. If needed, review the checklists for Setting Up Encumbrances and Entering and Liquidating Stand-Alone Encumbrances.

Note that Encumbrances can also be created on purchase orders through the Create Purchase Orders process using Activities>Purchase Orders>Create/Modify Purchase Orders.

To Automatically Close All Encumbrances with an Open Balance
  1. Create a session. (Transactions>Auto-Close Encumbrances).
    • If a status of Online Posting is selected, the system posts each document as it is completed and saved. Consequently, you would skip the posting steps in this checklist.
    • Enter a document description.
    • Enter the Close Encumbrance as of date or accept today’s date as default.
    • Optional, select the Create Session Reversal as of check box and enter a date.

      • Note: If you elect to only Close Encumbrances, a Transaction Source of ENL (Encumbrance Liquidate) will be used. If you elect to also create a reversal session, a Transaction Source of ENC (Encumbrances) will be used.

    • Click Start to begin the session.
  2. On the Auto-Close Encumbrances form, use the filter to reduce your displayed records.
    • Select the check box next to the Vendor ID.
    • If the Create Session Reversal as of check box was selected and a reverse date was entered on the Transaction Session form, the Reverse check box is also selected.
    • Click OK to begin the close procedure.
  3. A message displays - 2 Encumbrances will be closed and 1 will be Reinstated. Do you wish to continue? Click Yes.
  4. Print a list of unposted encumbrances (Reports>Transaction Reports>Unposted Encumbrance Transactions).
  5. Compare the encumbrances to the printout, and make any necessary edits or additions to the batch (Transactions>Encumbrances>Enter Encumbrances).
  6. Post the encumbrances, which have a transaction type of ENL (Activities>Manage Sessions>Post Transactions).
  7. Review posted encumbrances (Reports>Transaction Reports>Posted Encumbrance Transactions).