Encumberance is Coming Negative in Funds Report

Hi,

We are facing an urgent issue because of which Business Users are seeing Negative Encumberance for various Account Code

This Issue has come up because of below reasons:

 

1.       When a Receipt is created for a PO, system automatically creates two Journal entries, first for the Accrual and second for the Encumbrance.

2.       As per the Standard Operating Process, if the invoice for the above Receipts are not created in the same month then, accrual entries should automatically get reversed upon opening of next GL Period, subject to Inv and PO Periods are already closed before the next GL Period is opened.