Pre-Encumbrance (PE)

Staff can learn about the Pre-Encumbrance (PE) eDoc available in Kuali Financial Systems (KFS).  

The Pre-Encumbrance eDoc is a one-sided entry to earmark funds for which unofficial commitments have already been made. It sets aside future expenses that are not encumbered with a Purchase Order. 

Pre-encumbered amounts will be included in the “Encumbrance Amount” column on General Ledger Balance Inquiries.  

General Guidelines 

When completing the Pre-Encumbrance eDoc, keep the following items in mind: 

• All pre-encumbrances must be disencumbered, either automatically or manually. See examples 1 and 2.
• If the manual disencumbrance is chosen, you may use multiple disencumbrances to partially reverse a pre-encumbrance, until it is fully reversed. 
• Only expense object codes may be used on a Pre-Encumbrance eDoc.  
• Both the Balance Type and the Document Type are “PE” for a pre-encumbrance. 

Pre-Encumbrance Examples

Example 1: Pre-Encumbrance with an Automatic Reversal Date

Suppose the Department Head will be traveling to a conference in 4 months. In other words, you are certain of when the actual expense will occur.  

For this example, you would do the following:  

• Pre-encumber the expected travel expenses now to reduce the Expense Available Balance in the account.  
• Reverse the pre-encumbrance when the actual costs get charged to the account 4 months from now.  

To proceed,

1. Navigate to the ‘Pre-Encumbrance Details' line.
2. Enter a reversal date in the ‘Reversal Date’ field. On the entered date, the pre-encumbrance will reverse automatically.
3. Complete all the fields in the ‘Encumbrance’ line.
4. Leave all the fields in the Disencumbrance line blank.
   

Example 2: Pre-Encumbrance and Separate Disencumbrance 

You should follow this procedure if you are uncertain as to when the actual expense will be charged to the account.

To proceed,  

1. Under the ‘Pre-Encumbrance Details’ heading, leave the ‘Reversal Date’ field blank.
2. Make note of the eDoc number, as you will need this number later to disencumber the funds. In the image shown below, the eDoc number for this Pre-Encumbrance is 10007772.
   
3. Complete all the fields in the ‘Encumbrance’ line.
4. Leave all the fields in the ‘Disencumbrance’ line blank.
5. When the actual expense gets charged to the account, initiate a new Pre-Encumbrance eDoc.
6. Complete all the fields in the ‘Disencumbrance’ line.  
   • For the ‘Reference Number’ field, enter the eDoc number you noted in Step 2.
     

Other Examples

Available Balances Lookup

In the image below,  

• The pre-encumbrance amount is included in the ‘Encumbrance Amount’ column.  
• The pre-encumbrance amount reduces the Expense Available Balance. 
  
  

Open Encumbrance Lookup

In the image below,  

• The ‘Balance Type’ field has been left blank.
  

  Info

  Alternatively, you can enter “PE” in the ‘Balance Type’ field.
• The pre-encumbrance amount will be listed as an encumbrance on the account.  
• After the Disencumbrance is done, the $1,850 will display in the ‘Closed Amount’ column.
  
  

Pre-Encumbrance Support Resources

Help Menu

For help with the Pre-Encumbrance eDoc in KFS,  

1. Click on the small question mark icon next to the ‘Pre-Encumbrance’ heading.
   
   
2. You will then be directed to the eDoc’s help menu. Click on the links in the menu for support articles and examples.
   

Support Contacts

Staff can reach out to the individuals listed below for help with Pre-Encumbrance.

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