Encumbrance Accounting -PR or PO
1. What are the setups required to have encumbrance accounting in 11i and R12 architecture? For 11i: a) Enable the check box for PO encumbrance,INVOICE encumbrance and REQ encumbrance (if required) with unique encumbrance types for REQ,PO and INVOICE. Navigation: Purchasing > Setup > Organization > Financial Options > Encumbrance tab b) Enable the Budgetary Control flag and define the Reserve For Encumbrance (RFE) a/c for the Set of Books. Navigation: General Ledger > Setup > Financials > Books > Define c) It is preferred to enabled the 'Reverse Encumbrance' check box in Inventory > Setup > Organization > Parameters > Costing tab and define the Encumbrance account in Other Accounts tab if requisitions/purchase orders are created with inventory destination for inventory asset items in encumbered environment. d) Purchasing period under which the GL date of purchasing document falls and AP period under which the GL date of invoice falls s...