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Encumbering Carry Forward Amounts using the
Departmental Encumbrance

Background
Departments should be carrying forward balances by encumbering the amounts in their general fund, special state funds (including lottery), and registration fee fund accounts. If there are account balances that are not currently encumbered through various purchasing documents, Accounting & Financial Services recommends the use of the Departmental Encumbrance (DE) or Year End Departmental Encumbrance (YEDE) documents to enter liens against these current year accounts. All DE documents created must be fully approved by the fiscal close calendar due date in order to post in the June Preliminary Ledger. YEDE documents must be fully approved by the fiscal close calendar due date and will post only to the June final ledger.

Use of the Departmental Encumbrance

• Include a detailed explanation of the encumbrance in the description field (i.e. "summer salary for visiting scholar Dr. Smart" or "equipment for teaching lab per quotes received but PO not yet processed")
• Additional information may be provided in the notes section, if necessary.
• Include a reversal date for automatic reversal of the DE document in the new fiscal year.
• Reversal dates cannot be removed once the document has entered the system.
• Manual reversal of a DE that has an auto reversal date will result in duplicate reversals and a credit lien, which can only be cleared by General Accounting.

For more information on using the DE, see the Online Reference Manual

Use of the Year-End Departmental Encumbrance (YEDE)

• YEDE documents are available for usage for departments and for deans and vice-chancellors (see fiscal close calendar for days available).
• YEDE documents will post in the June final ledger only and are designed to create new liens that will carry forward into the new fiscal year.
• YEDE documents cannot be used to reverse regular DE documents.
• If YEDE documents are processed without a reversal date, a DE document may be prepared in the fiscal new year to reverse the lien.
• Information above for the DE applies also to the YEDE.
• YEDE documents cannot be templated from prior years for use in this year's fiscal closing process: new YEDE documents must be created.
• Once the June final ledgers are closed, the YEDE documents will not be available for viewing in TP. In order to trace the entry, the following steps are recommended :
  • Print a paper copy as you prepare the YEDE, and/or
  • Use Current Encumbrance Balances (46) in Decision Support to view all liens.

For more information on encumbrances - what they are and how they work - see the Encumbrance Class handouts.

Lien Queen Tip!
If you are working with a large number of departmental encumbrances, developing a spreadsheet to track them can prevent duplicate encumbrances and reversals.

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