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Does Encumbrance Accounting only work with Accrue at Receipt for expenses

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My client is using is looking to move from EBS to Cloud.

They are using Encumbrance accounting in EBS and will continue to do so in Cloud. They do not have or use Inventory. All purchases taking place are of Destination Type = Expense.

Will Encumbrance Accounting only work with Expense Accruals set to 'At Receipt' ? Can they use Expense Accruals at 'Period End'? What will the impact of choosing one over the other?

Thanks in advance

Regards

Harry

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