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what is the use of encumbrance account ?

Posted: Fri Apr 13, 2007 4:26 am
by muthyala
pls tell me the what is the use of encumbrance account

Posted: Sat Apr 14, 2007 2:58 pm
by cnubandi
Hai,

The primary purpose of tracking encumbrances is to avoid overspending a budget. Encumbrances can also be used to predict cash outflow and as a general planning tool.

<font color="blue">Regards,
cnubandi.</font id="blue">