Encumbrances and Expenditures

As you order, receive, and invoice items, Horizon tracks the encumbrances and expenditures against the budgets assigned to your PO lines.

An encumbrance is an amount that is committed to, but not spent against, a budget. These amounts are called “on-order” amounts. They show the amount of funds assigned to outstanding orders (in this case, orders that have not been paid). Funds are encumbered when you save a new order, no matter what type of order.

An expenditure is an amount that has been spent against a budget. These amounts are called “spent” amounts. The time at which funds are spent for items on a purchase order is always at statement approval. (For more information on statement approval and spent events, see Spent Event.)

The total encumbrance and expenditure amounts for a budget are displayed in the On Order and Spent fields on the budget record. The total encumbrance and expenditure amounts for all lines on a purchase order are displayed in the On Order and Spent fields in the PO window. Horizon updates these fields automatically as you perform ordering tasks. (You should not change the amounts in these fields unless instructed by Horizon Support.)

Besides encumbering and expending funds, Horizon also “unencumbers” or “unexpends” funds as you perform certain tasks. (For example, if the Spent Event field is set to “Statement Approval” and you undo the statement approval, Horizon unexpends and re-encumbers the budget on the PO line.)

These tables show the time and conditions under which funds are encumbered, expended, unencumbered, and unexpended:

Table 4-1: Encumbrances

Funds Are Encumbered at This Time

If the Spent Event Field Is

And These Conditions Have Been Met

Order Creation

Receipt and Statement Approval,

Statement Approval, or Create Invoice at PO Line Approval (Prepaid)

none

Undo of Statement Approval

Receipt and Statement Approval,

Statement Approval, or Create Invoice at PO Line Approval (Prepaid)

Line has been received, invoiced, and statement approved.

Table 4-2: Expenditures

Funds Are Expended at This Time

If the Spent Event Field Is

And These Conditions Have Been Met

Statement Approval

Statement Approval

Statement is approved.

Receipt and Statement Approval

Line has been received, invoiced, and statement approved.

Create Invoice at PO Line Approval (Prepaid)

Statement is approved.

Table 4-3: Uncumbrances

Funds Are Unencumbered at This Time

If These Conditions Are Met

Deletion of PO Line

Funds are encumbered at the time of the deletion.

Cancellation of PO Line

Funds are encumbered at the time of the cancellation.

Table 4-4: Unexpenditures

Funds Are Unexpended at This Time

If the Spent Event Field Is

And These Conditions Have Been Met

Cancellation of PO Line

n/a

Funds are expended at the time of the cancellation.

Undoing a Statement Approval

Receipt and Statement Approval

Line has been received, invoiced, and statement approved.

Statement Approval

none

Create Invoice at PO Line Approval (Prepaid)

Line has been received, invoiced, and statement approved.

Notes

The encumbrance and expenditure amounts are also updated if you change the budget assigned to a PO line.
If funds are unencumbered for a closed budget, the funds go back to the budget, even though it is closed.

 


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