| Type of transaction |
Encumbrance activity after payment |
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Department Order (LVPO)
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When the order has one item only, Disbursements automatically drops the entire encumbrance when the initial invoice is paid.
When the order has more than one item, Disbursements reduces the encumbrance based on the amount paid on each item.
Note: In these instances, invoices for back orders and partial shipments will be paid up to the total amount of the Department Order.
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High Value Purchase Order
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Disbursements reduces encumbrances based on the invoice amount paid.
Note: Invoices for back orders and partial shipments will be paid up to the total amount of the purchase order, and in certain instances, the amount paid may exceed the purchase order by 20%.
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Blanket Order
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Disbursements reduces encumbrances based on the invoice amount paid. Invoices will be paid through the "blanket end date" reflected on the purchase order provided the period of performance is within the date as reflected on the purchase order.
Note: Blanket orders are for an estimated amount; therefore, paid amounts must be tracked by the department to ensure that the periodic payments are being processed as services/ goods are received.
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Federal Express/UPS
Freight bills from carriers
Payment Authorization
Payment Request
Utility invoice
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A purchase order or an encumbrance is not associated with these payments; therefore, no encumbrance activity takes place upon payment.
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Travel |
Disbursements will remove the entire encumbrance when the trip is reconciled and paid for via a Travel Expense Voucher (TEV).
Note: Your department is responsible for removing the encumbrance on an encumbrance journal voucher if the index on the TEV is different from the one originally encumbered for the trip.
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