Encumbrances and life multiyear funds

Owned by Knowledge Assistant
Last updated: Jul 12, 2023 by Moriah Yorkey
1 min read
Description of Issue

How are encumbrances handled for multiyear funds when the year is closed?

Context

  • General Ledger

  • Encumbrances

  • Multiyear fund

Cause

Resolution

Life Multiyear funds

Encumbrances should not roll forward nor should carryforward BUA be created.

Why:

  • Life multiyear funds are set to carryforward if Budget has been posted. (if no budget has been posted then MUNIS goes by the multiyear settings in the Budget Settings program)

  • Ultimately, a Life multiyear fund that has budget (or has the roll set in Budget settings) will Carryforward the prior year available to the next year original budget.

  • If MUNIS also created a Carryforward BUA or brought forward the leftover encumbrances that would be including them twice in the current year. Ultimately overstating both the budget and encumbrances.

Additional Information

What happens if there are left over encumbrances of any kind which end up staying in a prior year.

Answer: Those encumbrances will show in the appropriate year in Account inquiry such as prior year 1 as an example.

However, they will NOT show in the Life column in Account inquiry.

Why: 

The encumbrance amounts in the Life column of Account inquiry will ONLY show the current year encumbrances. Any encumbrances from the prior year will NOT display in this field or the detail. This is correct functionality so its important to clear all prior year encumbrances on Multiyear funds.

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