Closing Encumbrances
This process closes and carries forward pre-encumbrances and internal and external encumbrances into the new fiscal year. The process also carries forward pre-encumbrances for Contracts and Grants accounts. It examines all GL encumbrance entries for the fiscal year being closed. These entries are summarized by chart code, account number, sub-account number, object code, sub-object code, and balance type. Each combination is considered as a unit of work in the application of the following business rules. The rules are divided into two categories—business rules associated with closing encumbrances and business rules associated with cost share carry forward.
Business Rules for Closing Encumbrances