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Pre-Encumbrances, Encumbrances & Expenses. Purpose. This session is designed to explain what pre-encumbrances, encumbrances & expenses are and how to monitor them. Agenda. 1. Basics of Pre-Encumbrances, Encumbrances and Expenses 2. Review the Processes
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Purpose • This session is designed to explain what pre-encumbrances, encumbrances & expenses are and how to monitor them.
Agenda 1. Basics of Pre-Encumbrances, Encumbrances and Expenses 2. Review the Processes 3. Monitoring Pre-Encumbrances and Encumbrances
Basics of Pre-Encumbrances • What are Pre-Encumbrances? • Entry & Approval of Requisitions • Budget Checking • Canceling a Requisition
Basics of Encumbrances • What are Encumbrances? • Purchase orders • Purchase order numbering • Health eShop VS Special Order Reqs
Basics of Expenses • What are Expenses? • Accounts Payable Vouchers • PO vouchers • Check Requests • Travel • Transactions that hit the Journal lines • PCard • Phone Bill / Mail Charges / Copy Charges • IDRs & Cost Transfers • Payroll expenses
Basics of Pre-Encumbrances, Encumbrances & Expenses • Basic terms
Pre-Encumbrance Process Requisition is Created (make sure that all required fields are entered and have valid codes) Start Requisition Keyed Requisition is Budget Checked (makes sure that the commitments & expenditures will not exceed the total Budget) Req is approved by the Dept. Must pass Budget Check to continue! When the Budget check is Valid, then the Pre-Encumbrance is made. Continue Approved requisitions are marked to be processed into a Purchase Order by the Purchasing Department after review for non-Health eShop Orders. Health eShop orders less than $2,999 are automatically processed by the system to a Purchase Order. Continue *Any Edit or Budget checking errors will be referred back to the department for resolution.
Encumbrance Process Reqs are assigned Purchase Orders and Purchase Orders are generated by the Buyer or the system. Purchase Order is Budget Checked (makes sure that the commitments & expenditures will not exceed the total Budget) Must pass Budget Check to continue! When it is Budget Checked to Valid, then the Pre-encumbrance is reversed, and the PO amount is Encumbered. Requisition Marked for PO Purchase Orders are then dispatched to the Vendor to fulfill the good or service.
Expense Process Invoice is received by Accounts Payable with Purchase Order number listed on Invoice. Purchase Order is Required to continue! If the Purchase Order is set up for 3-way match then the lines must be received in PeopleSoft by Receiving or the Department. Must be received to continue! PO Ready For Payment Voucher Keyed Voucher is Budget Checked (makes sure that the commitments & expenditures will not exceed the total Budget) Must pass Budget Checking to continue! When Budget Check is Valid, then the Encumbrance is reversed, and the Voucher Amount is expended. Journal generate is run and vouchers are posted to the Journal Lines Continue Check printing assigns each voucher with a check number. Check is remitted to vendor for payment. Funds were Pre-Encumbered, Encumbered & Expended. All Steps are Complete! Check is Printed *Budget checking errors will be referred back to the department for resolution.
How Can I see these Entries? • Budget Transaction Detail Report • Comprehensive Financial Report • Open Encumbrance Report (just shows outstanding encumbrances)
Monitoring Pre-Encumbrances, Encumbrances & Expenses • Why? • Use it or lose it • Errors • Who? • Your Department • How? • Budget Transaction Detail Report • Comprehensive Financial Report • Open Encumbrance Report
Monitoring Pre-Encumbrances, Encumbrances & Expenses • If it is Encumbered and received, but not Expended • Take action • Who to contact • Expensed (Payment) Amount vs. Encumbered amount Differences • Cancellations
Helpful Websites • Supply Chain/Purchasing • Go to the A to Z index and click on the M and Materials Management > Purchasing > Purchasing Home > Buyers Commodity Listing • Controller’s Division > Contacts • Go to the A to Z index and click on C and the Controller’s Division > Contact Us