What are the advantages of using an encumbrance approval system?
An encumbrance system requires that proper authorization must be obtained before a purchase takes place and before a financial commitment occurs. An encumbrance system enables the Student Association to approve a purchase before it takes place. An encumbrance approval system recognizes budgetary constraints. By insuring that the available balance in a budgetary account is sufficient to allow the purchase commitment, the organization is prevented from over-spending before the commitment takes place.
