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How Payments Impact Encumbrances

Find out how Disbursements reduces or removes encumbrances on your encumbrance ledger as payments are made.

After all payments are made against a purchase order, your department must remove any residual balances via an encumbrance journal voucher in Financiallink.

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Department Order (LVPO)

  • 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.

High Value Purchase Order

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%.

Blanket Order

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.

Federal Express/UPS, freight bills from carriers, payment authorization, payment request, utility invoice

A purchase order or an encumbrance is not associated with these payments; therefore, no encumbrance activity takes place upon payment.

Travel

Disbursements will remove the entire encumbrance when the trip is reconciled and paid for via MyTravel or Travel Expense Form (TEF).

Note: Your department is responsible for removing the encumbrance on an encumbrance journal voucher if the index on the TEF is different from the one originally encumbered for the trip.

Contacts

  • Payments: Ana Portlock, (858) 534-0972
  • Journals: Steve Ste. Marie, (858) 534-4951
  • Travel: Contact a Travel Team member

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