R12 Purchase Order Status Approved, reserved

In R12 Purchasing when you are using encumbrance, At PO Approval the status of the all the purchase orders will change to "Approved, Reserved". Even if we enter non-project PO's, the PO's are still being approved and reserved.

I tried changing the GL Account Qualifier "Allow Budgeting" to "No" for the whole account string, but still the PO satus becomes "Approved, Reserved" at approval .

As per the Doc Ids 653163.995 & 397988.995 it's the Intended functionality for 11.5.8, is it the same for R12??

Thanks in Advance,

Saurabh Mehta