Instructions for Cleaning up Outstanding Encumbrances
To insure accurate information during year-end closeout procedures, it is important to follow the steps below to eliminate encumbrances that are no longer needed. Departments should do this on a monthly basis.
1. Go to FAMIS screen 21 or Canopy (open commitment tab) and enter each account that you are responsible for reconciling.
2. Check each document to insure that it is a legitimate expense and decide whether the expense should be carried forward to the next fiscal year.
3. Once determined that an encumbrance no longer needs to exist, for example the document was cancelled or short paid proceed to FAMIS screen 243 (limited documents) or FAMIS screen 238 (exempt documents) and choose the option to complete the PO.
Warning! This is an irreversible action, be sure to research each document that you want to complete.
4. Once the PO has been completed view FAMIS screen 26 or FAMIS screen 66 (support accounts) to insure that you have done this successfully. On FAMIS screen 26 or FAMIS screen 66, you will enter the document number in the “Reference Number” field. Hit “enter” and you will see that the expense has been moved from the “Current” field to the “Adjustments” field. This means that the encumbrance no longer exists.
As a rule, departments should be reconciling each account they are responsible for on a monthly basis. Using these steps above departments should be able to clear up any encumbrances that do not need to carry forward to the next fiscal year.
Keep in mind that if a document has items that have been received it will show up as a payable at year-end. Therefore, if an encumbrance should no longer exist it is important to complete the document to keep the financial reporting accurate.
If you have any questions on the steps above or discrepancies with account information feel free to contact accounts payable at email@example.com.
If the department after reviewing these FAMIS screens notices, a “R” or “P” document that should have been completed or no longer encumbered you will need to contact Purchasing 3814 or firstname.lastname@example.org and ask for the appropriate buyer to assist you in completing the PO.
Thank you for all of you for your assistance with the transition into the new fiscal year.
This page was last updated on: January 06, 2012