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What is differens between Budget & Encumbrance ?
Posted: Fri Feb 20, 2009 4:08 am
by k_amjad
ANY one tell me
What is differens between Budget and Encumbrance
advance thanks
khan
Posted: Fri Feb 20, 2009 6:00 pm
by Erikson
Budget is Funds Estimate
Encumbrance is Funds Reservation from Budget.
Example:
Budget = 1000
There is a Purchase Order for 400 which is not converted to Invoice, this 400 is the Encumbrance.
When the Purchase Order is converted to Invoice, then Encumbrance will become zero which will be moved to Actual.