Encumbrance Accounting

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Oracle General Ledger provides a variety of powerful encumbrance capabilities to prevent you from spending beyond your budgets. Oracle General Ledger lets you access funds available on-line so you always know how your encumbered and actual expenditures compare with your budgets. And, Oracle General Ledger is fully integrated with other Oracle Financials products to provide a complete solution to your encumbrance needs.
Business Needs
With Oracle General Ledger you can:
•        Enter manual encumbrances as well as allocate your encumbrance balances
•        Adjust your obligations and commitments just as you would your actual data, with complete on-line entry, audit trails and validation  
•        Ensure that your actual and planned expenditures do not exceed your available funds
•        Review your funds available
•        View period-to-date, quarter-to-date, year-to-date or project-to-date funds available balances
•        Integrate encumbrance accounting with your existing systems
•        Carry forward your encumbrances, encumbrances with an equivalent budget amount or funds available balances into beginning balances of the following year
Major Features
On-line Entry
You can easily enter encumbrance entries on-line. Oracle General Ledger validates the data as you enter it to ensure that your information is complete and accurate.  You can easily review and adjust your encumbrance entries on-line before posting.
MassAllocation of Encumbrances
Allocate your encumbrances across any cost center, department, or division using a simple formula. For example, you can allocate encumbrances associated with the construction of a new facility across multiple cost centers which will use the facility. Oracle General Ledger validates your allocation formula before you run it and reports any errors.
Integration With Oracle Purchasing and Oracle Payables
Oracle Purchasing automatically creates an encumbrance entry in Oracle General Ledger when you approve and print purchase orders. Then when you match an invoice to a purchase order, Oracle Payables automatically creates an obligation entry in Oracle General Ledger to relieve the purchase order encumbrance.
Journal Import
With Journal Import, you can automatically import encumbrance data from your non-Oracle systems. Journal Import lets you integrate Oracle General Ledger with new or existing applications such as purchasing, accounts payable, payroll or other feeder systems.
Encumbrance Posting
Control the posting of your encumbrance entries in Oracle General Ledger. With a few keystrokes, post any, or all, of your encumbrance entries. And Oracle General Ledger automatically balances your encumbrance entries to your Reserve for Encumbrance account.
Summary Encumbrance Balances
With Oracle General Ledger, you can easily define a summary account whose balance is the sum of other detail accounts. Define a number of summary accounts quickly by using summary account templates. Whenever you update the balance of your detail accounts, Oracle General Ledger automatically updates your summary actual, budget and encumbrance balances at the same time. Use summary accounts in on-line funds availability inquiries, formulas, allocations or in reports you create with the Financial Statement Generator.
Encumbrance Reporting
Using the Financial Statement Generator, report encumbrances as easily as you report actual or budget amounts. And, you can design and build your own custom Funds Available reports without programming. Many Oracle General Ledger standard reports, including the Posted Journals report, give information on encumbrances as well as expenditures. You can even request a Posted Journals report for only those journal entries of a specific encumbrance type.
Funds Available Inquiry
Oracle General Ledger provides on-line access to funds availability so you always know how your expenditures and commitments compare with your budgets and/or appropriations. Inquire on funds availability at different authority levels from detailed line items, summary account balances, total expenses or any level between. Inquire on period-to-date, quarter-to-date, year-to-date or project-to-date funds available balances.
Year-End Encumbrance Processing
You can carry forward encumbrance balances into the following year. Carry forward encumbrances only, encumbrances and an equal budget amount or funds available balances. Oracle General Ledger carries forward your encumbrance and budget amounts into the beginning balances of the following year. Print a preview report that shows the effects of your year-end carry forward before you initiate it.