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Encumbrance calculation for Multi period accounting (MPA)



When you use budget control and MPA the accrual account holds all the future expenses which are already fixed. If your accrued expenses are not calculated as encumbrances, then your budget control is wrong since it doesn't consider all future expenses that are already accrued.

The idea is to add a calculation to the MPA accounting which will calculate the encumbrance (the charge account) for the MPA. The encumbrance calculation will be created in parallel to the MPA accrual calculation. Each time the accrual is getting release the encumbrance will be released accordingly


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