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What is Manual Encumbrance?

April 26, 2017encumbrance manual

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What is Manual Encumbrance?

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Manual Encumbrance journals (open commitments) are used to place funds aside for a particular transaction that you know will happen in the future. As expenses occur for this transaction, you have to manually create journals to reduce the encumbrance journal. The Encumbrance journals will be reflected in financial reports and will be included in your account balance calculations.