Relieving payroll encumbrances

How can I clear the encumbered amounts in the GL when an employee leaves or transfers to a new position?

• Enterprise ERP
• Payroll
• General Ledger
• Encumbering
• Encumbrances

There are a few ways to clear the encumbrance balances in the GL. 

Option 1: Utilize the Zero Out Accounts option on the Encumbering menu

1. Access Account Master (Financials > Set Up/Chart of Accounts > Account Master)
2. Search for the account, click Update, check box for Payroll Encumbrance Account, click Accept
3. Continue checking this box for all payroll encumbrance accounts
   1. Can use Global Update option in Account Master to update groups of accounts, see How to update multiple accounts at the same time in Account Master
4. Access Encumbrance Proof/Post (Payroll > End of Period > Payroll Encumbering > click Encumbrance Proof/Post)
5. Click Define, and enter the criteria, check box for Zero Out Accounts, click Accept, click Output/Post

Option 2: Enter an encumbrance journal in Financials, see How to Create an Encumbrance Journal

Option 3: Reset the encumbrances in Employee Job/Salary and Employee Deductions

If an employee is leaving:

1. Set the Remaining salary amount to $0.00 in Employee Job/Salary for all encumbered pays
2. If encumber benefits, set the Employer Remaining to $0.00 in Employee Deductions for all encumbered deductions
3. Post the Encumbrance Proof/Post report

If an employee is transferring to a new GL account:

1. Set the Remaining salary amount to $0.00 in Employee Job/Salary
2. And, if encumber benefits, set the Employer Remaining to $0.00 in Employee Deductions
3. Post the Encumbrance Proof/Post report
4. Enter the new GL account in Employee Job/Salary.  Enter the remaining salary that is left for the year
5. If encumber benefits, enter the Employer Remaining amount that is left for the year in Employee Deductions
6. Post the Encumbrance Proof/Post report

• Please note that GL accounts used for encumbering payroll, should only be used for payroll encumbering and not other types of journal entries.
• See also Understanding Payroll Encumbering