po/requisition encumbrance update po/requisition encumbrance update sheri hardison, assistant vice...
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PO/Requisition Encumbrance Update
PO/Requisition Encumbrance Update
Sheri Hardison, Assistant Vice President for Financial Affairs & University Controller
Mary Simon, Senior Director for Budget Planning & Development
Yvette Medina, Purchasing Business Analyst
Sheri Hardison, Assistant Vice President for Financial Affairs & University Controller
Mary Simon, Senior Director for Budget Planning & Development
Yvette Medina, Purchasing Business Analyst
Encumbrance UpdateEncumbrance Update
• The Original Problem– UTShare used manual roll-forward process to move FY2014 PO
open encumbrances to FY2015
– Open encumbrance balances were moved to FY2015 by journal entry, but active PO document remains in FY2014
– Change orders, closing and sometimes payments on FY14 PO’s causes problems in FY2015 encumbrance balance
• Encumbrance moves between months• Double encumbrances/re-encumbrance may occur• Encumbrances may be released in the incorrect fiscal year
• The Original Problem– UTShare used manual roll-forward process to move FY2014 PO
open encumbrances to FY2015
– Open encumbrance balances were moved to FY2015 by journal entry, but active PO document remains in FY2014
– Change orders, closing and sometimes payments on FY14 PO’s causes problems in FY2015 encumbrance balance
• Encumbrance moves between months• Double encumbrances/re-encumbrance may occur• Encumbrances may be released in the incorrect fiscal year
Encumbrance UpdateEncumbrance Update
• Where We Are Now– Purchasing, Budget and Accounting working together
– Tested and attempted large scale solutions that caused new problems
– Requested outside assistance for global solution
– Processing specific fixes, when possible
– Each problem is a little different and requires help from all 3 departments
• Where We Are Now– Purchasing, Budget and Accounting working together
– Tested and attempted large scale solutions that caused new problems
– Requested outside assistance for global solution
– Processing specific fixes, when possible
– Each problem is a little different and requires help from all 3 departments
Encumbrance UpdateEncumbrance Update
• FY2015 Close FY2016 Start
– High Priority Request to System to use automated rollfoward process in UTShare
– Will involve campus in identifying what should be rolled forward – stay tuned…
• FY2015 Close FY2016 Start
– High Priority Request to System to use automated rollfoward process in UTShare
– Will involve campus in identifying what should be rolled forward – stay tuned…
Procurement to PaymentProcurement to Payment
Journal Generate
‘Pre-Encumbrance’ ‘Encumbrance’
‘Expense’
Vendor Ships; Sends Invoice
Purchase Order
Requisition
Approve; Post Voucher; Process
Payment
Create Voucher
Receiving
Documents flow through Commitment Control to budget check and hold funds for payment. Entries are recorded in ‘ledgers’ sourced by module
processing activities from Procurement, Travel and Disbursements
Encumbrance ScenariosEncumbrance ScenariosIssue Requested Action Point of Contact
Don’t know how to find encumbrance detail (PO #, requisition #, etc.)
Budget Overview training – PS205.02 Managing Dept Expense & Revenue Budgets
Encumbrance Amount & Remaining Spending Authority (RSA) is incorrect
1. Obtain PO/req. detail from Budget Overview.
2. Contact Purchasing to verify encumbrance.
3. Purchasing will work with Budget and/or Accounting for a possible solution
[email protected] (If no PO/Req. #, then [email protected])
Encumbrance has moved in a previously reconciled month and RSA is correct
1. Keep original reconciliation.2. Make a note on new month’s
reconciliation that change was noted but RSA is correct.
N/A
Encumbrance ScenariosEncumbrance ScenariosIssue Requested Action Point of Contact
Awaiting correction on encumbrance issue and don’t have adequate RSA
Contact Budget to override a specific transaction.
To close a PO and add back the balance to RSA
Contact Purchasing. FY2015 will be closed quickly.
FY2014 PO’s will be held momentarily.
To see the remaining encumbrance balance on a specific PO
See next slide. [email protected]
Encumbrances – See Remaining Balance on a PO…
Encumbrances – See Remaining Balance on a PO…
Purchasing Purchase Orders Review PO Information Purchase Orders
Encumbrances – See Remaining Balance on a PO…
Encumbrances – See Remaining Balance on a PO…
To see full detailed purchase order encumbrance activity , please follow the Reviewing PO Activity instructional guide.
Reviewing PO Activity
How to drill down into Encumbrances
How to drill down into Encumbrances
BUDGET OVERVIEW SCREENBUDGET OVERVIEW SCREEN
Budget OverviewMain Menu>Commitment Control>Review Budget Activities>Budget Overview
Budget OverviewMain Menu>Commitment Control>Review Budget Activities>Budget Overview
Activity LogActivity Log
Drill DownDrill Down
Go to Source EntryGo to Source Entry
PO InformationPO Information
In summary, Budget Overview provides drill down ability to view more information on requisitions, purchase orders and vouchers.
• Requisitions can be found under the Pre-Encumbrance Column
• Purchase Orders can be found under the Encumbrance Column
• Vouchers can be found under the Expense Column
In summary, Budget Overview provides drill down ability to view more information on requisitions, purchase orders and vouchers.
• Requisitions can be found under the Pre-Encumbrance Column
• Purchase Orders can be found under the Encumbrance Column
• Vouchers can be found under the Expense Column