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Negative Encumbrance Handling

edited Aug 26, 2025 5:38PM in Budgetary Control 7 comments

Summary:

Negative Encumbrance reflecting in FY25.


Content (please ensure you mask any confidential information):

We have a situation where the client booked an Invoice with an FY25 Budget Date (June 1, 2025), but the related PO was mistakenly booked with an FY26 Budget Date (July 1, 2025).

  • FY25: July 2024 – June 2025
  • FY26: July 2025 – June 2026

Since the PO is recorded in the next fiscal year while the Invoice is in the prior year, this has resulted in:

  • A negative Encumbrance balance in FY25
  • A positive Encumbrance balance in FY26, which has not been offset.

As the PO is already closed, we are unable to update its Budget Date to FY25 to clear the balances.

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