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Reserve for Encumbrance June 13, 2007

Posted by Muhammad Habib in Oracle Applications, Oracle Financials.
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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.

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