Pre encumbrence in SRM

[Former Member]

Hi,

Can anybody explain about pre encumbrence of shopping cart for Public sector in SRM.

Is SRM 5.0 support Pre encumbrence?

Regards,

Koushik.

[Former Member]

Approved and budget checked: Open requisitions (Pre-Encumbrance) / purchase orders (Encumbrance)

Used to control expenditures or revenues against a pre-defined budget.

Pre-Encumbrance is a declaration of intent to set aside funds in the future. Pre-Encumbrance entries are created in the General Ledger, and they post to a special Pre-Encumbrance amount field in the Actuals ledger. Pre-Encumbrances do not affect the Posted Total Amount in the Actuals ledger; they do reduce remaining spending authority as seen on monthly financial reports.

e.g.

BUDGET u2013 PRE-ENCUMBRANCE u2013 ENCUMBRANCE u2013 EXPENSE = AVAILABLE BALANCE

...$200 ..................... $20 ..................... 0 .......................... 0 ..... = ............... $180

...$200 ..................... -$20 -

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> $20..........................0.... = ............... $180

...$200 ..........................0 ..................... -$20 -

---

> $20.... =............... $180

Step 1: A pre-encumbrance is established by entering a requisition.

Step 2: A pre-encumbrance moves to an encumbrance once a purchase order is issued for the requisition.

Step 3: An encumbrance moves to an expense once the items are received and the invoice is paid.

Hope this helps.

Thanks

Ashutosh

[Former Member]

Hi,

Thanks for the explanation about pre encumbrence. I would like to know how can we handle this in SRM .Is it compatible with SRM Classic and extend classic scenarios.How it is?

Thanks,

Koushik.