Business Rules for Closing Encumbrances

Core Modules > General Ledger (GL) > Year-End Processes > Closing Encumbrances

Business Rules for Closing Encumbrances

• Internal encumbrance, external encumbrance and pre-encumbrance balance types are eligible for close.

• Internal encumbrances for labor distributions balance type/origin code (as defined in the parameter FORWARD_ENCUMBRANCE_BALANCE_TYPE_AND_ORIGIN_CODE) combinations are ineligible.

• Pre-encumbrances related to CG balance type/fund group combinations are eligible to be carried forward into the new fiscal year.

• Encumbrances that do not have a zero balance are eligible.

• The object code must be valid.

• If the unit of work qualifies for closing encumbrances, the encumbrance beginning balance entry and its corresponding offset are created as GL pending entries.