Budget and Encumbrances

[anu_uma]

In the current set up, budgetary control is not enabled, but encumbrances account is enabled and provided the account and in the payables RFQ, PO encumbrances are enabled in the Encumbrances tab.

Accounting Method Used is Accrual with Encumbrance Accounting.

Budgetary Control is not enabled in the account manager setup but require budget journals is enabled. Budget for 2012 is uploaded with the control as None and budget journals are created.

There are reserve for encumbrances is created but I am unable to see the encumbrances entries in GL.

Implications of having budgetary controls at different levels (GL, Purchasing, Payables )

Budget Hierarchy - Is it required, can be decided only after seeing the budget sheets. (Do we need to create opex and capex budget separately - No project costing is involved, but project segment is there in the COA).

Encumbrances Carry forward - How is it handled? (Budget carry forward is there and we can do encumbrances alone as carry forward to make it as open balances for the new year) Apart from this any other way?

What are the best practices for handling prepayments while using budgeting? how the encumbrances or actual's are considered?

Budget is not defined for 2013 in the application, but encumbrances are available and how it will be handled when we upload the budget for Jan-2013.

A scenario is Budgeted amount 10000, PR/PO 5000 and Actual's is 1000 which is not entered in AP and this actual is entered in GL as Accrual amount of 1000. In this case the Encumbrance will not get reduced to 4000. How do we handle it?

Month Budget Encumbrance Actual's Funds Available
Jan 10000 5000 1000 5000

In the above, the actual is not raised as invoice, if we capture this as GL accrual entry how it will be handled?

Rest after seeing some response... Thank you all in advance