“Reserved” checkbox (ENCUMBERED_FLAG) in PO lines: Urgent Inquiry

Dear Community

I have an urgent inquiry about the behavior of reserving funds in standard purchase orders (Oracle Purchasing – Release 12.1.1)

My inquiry is about the “Reserved” checkbox (ENCUMBERED_FLAG) in PO lines. Assuming that I have an PO with multiple lines (for simplicity, assume each line has only one shipment and one distribution), when checking the Reserve check in Approve Document and one of the distributions failed funds check while other lines pass (in this case the status of PO will return to Incomplete):

• Does the Reserved checkbox is checked for PO lines that pass funds check (partial reservation)?
• Currently, my testing results say that if one line fails funds check, the reservation will not occur for any line