Perform year-end processing to identify outstanding purchase order and requisition encumbrances, to cancel some or all of these encumbrances, and to carry forward encumbrance, budget, and funds available balances into the new fiscal year.

You can carry forward encumbrances into the next fiscal year. If you do not carry forward encumbrances, you might want to cancel existing requisitions and purchase orders behind the encumbrances. You can easily identify purchase orders and requisitions behind encumbrances.

Prerequisites

• Run receipt accruals in Purchasing if installed.

To perform year-end encumbrance processing:

1. Identify outstanding encumbrances in Oracle Purchasing to determine which encumbrances to cancel or to carry forward.

2. Review purchase order and requisition encumbrances by requesting the following reports:

   • Encumbrance Details Report in Oracle Purchasing

   • Other - Open Encumbrance Balance Report

     Suggestion: In addition to using these reports to identify outstanding encumbrances, request these reports before year-end carry-forward to create an audit trail of encumbrance balances.

     Attention: This report was designed specifically for government installations. You may use this report for commercial installations but you must verify its accuracy as it was not designed for this purpose.

3. Define the MassCancel criteria in Oracle Purchasing to select the encumbrances you want to cancel.

4. Run MassCancel in Oracle Purchasing to cancel selected outstanding purchase order and requisition encumbrances.

5. Post all encumbrance, budget, and actual journal entries. See: Posting Journal Batches.

6. Request the Encumbrance Trial Balance Report in General Ledger to review in detail encumbrance balances and activity for the general ledger accounts before year-end carry forward. See: Encumbrance Trial Balance Report

7. Close the last period of the current fiscal year. See: Opening and Closing Accounting Periods

8. Open the first period of the next fiscal year.

9. See: Opening an Encumbrance Year

10. See: Opening a Budget Year

11. See: Carry Forward Year-End Encumbrance and Budget Balances

12. Request the Encumbrance Trial Balance Report in General Ledger to review the year-end carry forward balances.

    Note: Requesting the Encumbrance Trial Balance report before and after year-end carry-forward creates an audit trail of encumbrance balances.

Other Sources

• Run MassCancel (Oracle Purchasing Reference Manual)

• Define MassCancel (Oracle Purchasing Reference Manual)