R12 Encumbrance Accounting and PO Blanket Agreements

Hello

I was wondering if I enable encumbrance accounting and I some PO Blanket Agreements, does the encumbrance accounting still work ?

Acrual Method = On Receipts

As far as I know the PO Encumbrance will be created for the Agreement hence funds are reserved for the PO. Later several releases will be done against the PO Blanket Agreement and it will be relieve when the goods are received for expense items and inventory items as well.

Please Advise

Thanks