Disencumbrance

Concept. 1) To remove, relieve or reverse an existing encumbrance. A disencumbrance indicates that a portion or all of the original encumbrance has become an actual expense or is no longer expected. Examples:  relieving a portion of an employee's salary encumbrance when payroll expenses for a pay period are booked to the ledger; or reducing part of a Purchase Order encumbrance when a Payment Request is processed to disburse funds to a vendor.