Missing Encumbrance Journal for Expense Item – Accrue at Receipt

Summary:

Hello,

I am currently testing the Expense Item – Accrue at Receipt accounting flow with Encumbrance Accounting enabled.

According to the expected accounting flow (attached screenshot), Journal #4 should be generated to reverse the PO encumbrance when PO is received

However, in my test case, Journal #4 is not being generated.

Could you please advise:

• Under what conditions is Journal #4 created?
• Are there any setup configurations that should be verified to enable this accounting entry?
• Is there any additional process or program that must be run before this journal is generated?

I have attached the expected accounting flow for reference.