jump to navigation

Reserve for Encumbrance June 13, 2007

Posted by Muhammad Habib in Oracle Applications, Oracle Financials.

Checking and reservation of funds is called encumbrance. If we have defined the budget e.g. US$ 50000, this amount will be saved in “Reserve for Encumbrance” account. When there will be a journal transaction of any amount e.g. US$ 2000, then “Reserve for Encumbrance” account will be credited by US$ 2000 and balance in this account will remain US$ 48000.



No comments yet — be the first.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: