What This Process Does


  • This process can be used in conjunction with the Encumber Payroll feature to remove any remaining encumbrances at the end of the fiscal year.
  • It creates activity (expenditure and balance sheet type) for posting (on the Post Activity range screen, select Other Transactions).


Best Practices


  • Use to remove Payroll Encumbrances Only – Encumbrances created through the Purchase Order module should not be removed with this process. You would use Add PO Vouchers and Close PO/Remove Encumbrances processes for purchase order encumbrances.
  • Isolation - To isolate encumbrances on payroll account codes, range on Reference Type. If reference types have not already been assigned to payroll account codes, they can be assigned in mass from Financial Management → Setup → Reference Types → Expenditure → Set / Change Expenditure Reference


Remove Encumbrances from Expenditure Accounts


  1. Finance → Financial Management → Maintenance → Financial Years/Current Month → Year End → Remove Encumbrances From Expenditure Accounts
  2. Type in Fiscal Year where encumbrances will be removed.
  3. Type in Fiscal Month where encumbrances will be removed.
  4. Select either Process Exceptions (make edits to encumbrances) or Automatic (to automatically remove encumbrances).
  5. Range accordingly – recommend ranging on Reference Type to isolate payroll encumbrances
  6. Click Select.


FIELDSOpt.Rec.Req.Description
Fiscal Year----♦The fiscal year where encumbrances are removed
Fiscal Month----♦The fiscal month where encumbrances are removed
Definition Type----♦Advanced setup for Enterprise customers only
Select By----♦Process Exceptions (edits allowed) or Automatic (encumbrances automatically removed)
Range Criteria--♦--Range accordingly (To isolate encumbrances on payroll account codes, range on Reference Type)
Opt. = Optional  Rec. = Recommended  Req. = Required