Created by: Patrick Rice
Modified on: Fri, 14 Dec, 2018 at 11:17 AM
What is “overexpensing”?
When the total vouchered (expense) amount exceeds the PO distribution line (encumbrance) amount.
To identify a PO with an overexpensed distribution line:
- Go to Purchasing > Purchase Orders > Review PO Information > Purchase Orders.
- Click the Schedule icon to open the line’s shipping schedule.
- Click the Distributions/Chartfields icon to open the shipping schedule’s accounting distributions.
- Compare the Merchandise Amount on the Chartfields tab with the Expensed to Date on the Budget Information tab. If the Expensed to Date amount exceeds the Merchandise Amount, then the PO distribution line is overexpensed.
How can I prevent “overexpensing”?
- Currently, there is no way to tell what the PO distribution line’s encumbrance balance is from the voucher processing pages.
- When entering vouchers, check the PO distribution line’s encumbrance balances using the Purchase Order Encumbrances BI dashboard. The associated voucher distribution lines should not exceed the remaining encumbrance balance of the PO distribution line.
How does “overexpensing” impact me?
- Inability to demonstrate that encumbrance was established for the appropriate amount before invoicing.
- In some cases, overexpensing will not liquidate the PO encumbrance as desired, which leaves an overstated encumbrance balance on the PO. An overstated encumbrance balance minimizes the available budget balance.
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