Purchase Order (PO) Encumbrance Amounts

Purchase order encumbrance entries are handled differently because a single purchase order may have several document numbers in the KFS. Each time the purchase order is amended or otherwise modified, a new document number is generated for that transaction but the purchase order number remains the same. To ensure that the open amount updates correctly and payments are properly associated with the right purchase order number, the parameter ENCUMBRANCE_OPEN_AMOUNT_OVERRIDING_DOCUMENT_TYPES defines the document types that should always update the open amount of the Encumbrance table. This parameter contains all the document types used to identify purchase orders.

The purchase order number is included in the Reference Document Number field of entries from these document types and the Encumbrance Update Code is set to 'R.' This creates a new or edits an existing open encumbrance amount using the purchase order number as the reference. Payment requests or credit memos applied to the PO also include the purchase order number in the Reference Document Number field and have an Encumbrance Update Code of 'R.' Because these values are not in the ENCUMBRANCE_OPEN_AMOUNT_OVERRIDING_DOCUMENT_TYPES parameter, they always increase or decrease the Encumbrance Close Amount column for that item.


Future Reversal Update