--- title: Pre-Encumbrance Management description: Learn how pre-encumbrance works in Aclarian, how it affects purchasing workflows and budget tolerance checks, and how to review pending commitments in the Budget vs Actual report. --- [Skip to content](https://support.aclarian.com/aclarian-client-support-knowledge-base/pre-encumbrance-management#main-content) English - United States Show submenu for translations [Client Support Portal](https://support.aclarian.com/aclarian-tickets?hsLang=en-us) [![BRANDING ELEMENTS LIBRARY (11)](https://support.aclarian.com/hs-fs/hubfs/BRANDING%20ELEMENTS%20LIBRARY%20(11).png?width=500&height=141&name=BRANDING%20ELEMENTS%20LIBRARY%20(11).png)](https://Aclarian.com) Open main navigation Close main navigation - English - United States Show submenu for translations - [Client Support Portal](https://support.aclarian.com/aclarian-tickets) How can we help you? - There are no suggestions because the search field is empty. 1. [Aclarian Client Support Knowledge Base](https://support.aclarian.com/aclarian-client-support-knowledge-base?hsLang=en-us) 2. [Purchasing](https://support.aclarian.com/aclarian-client-support-knowledge-base/purchasing?hsLang=en-us) 3. [Data Management](https://support.aclarian.com/aclarian-client-support-knowledge-base/purchasing?hsLang=en-us#data-management) May 14, 2026 # Pre-Encumbrance Management ## How to reserve budget during purchasing workflows and report on pending commitments Pre-Encumbrance is a budget control feature that reserves available budget when a purchasing document is submitted for approval. This gives your team real time visibility into pending spending and helps reduce the risk of overspending. This article explains how pre-encumbrance works, which documents it affects, how to enable it, and how to review it in the Budget vs Actual report. ### How Pre-Encumbrance Works Pre-encumbrance applies when a document enters an approval workflow. The budget is reduced at submission, not after final approval. Once the document is fully approved, the pre-encumbrance is released and converted to a standard encumbrance. If the document is rejected or canceled, the pre-encumbrance is released and the available balance is restored. #### Pre-Encumbrance Lifecycle | Stage | What Happens | Budget Impact | | --- | --- | --- | | Submission | A purchase document is submitted for approval | Available balance is immediately reduced by the document amount | | Pending Approval | The document remains in workflow while approvals are in progress | Pre-encumbrance stays active and available balance remains reduced | | Approved | The document is fully approved and converted | Pre-encumbrance is released and converted to formal encumbrance | | Rejected or Canceled | The document is rejected or canceled at any point in workflow | Pre-encumbrance is fully released and available balance is restored | > **Note:** Pre-encumbrance only applies to documents that are pending approval in workflow. Once a document is fully approved, the amount moves to standard encumbrance. Completed or posted transactions are not affected. #### What Documents Are Covered Pre-encumbrance applies to these document types when they are submitted into an approval workflow: 1. Purchase Requisitions 2. Purchase Orders 3. Change Orders Each pre-encumbrance entry is tied to the originating document ID for accurate tracking and reporting. ### Configuration #### Enabling Pre-Encumbrance Pre-Encumbrance must be enabled by Aclarian Client Support. > **Important:** To add the Pre-Encumbrance feature, contact Aclarian Client Support at [ClientSupport@aclarian.com](mailto:ClientSupport@aclarian.com). #### Include Pre-Encumbrances in Budget Tolerance Configuration Pre-encumbrance inclusion is controlled by a setting in your budget tolerance configuration. This setting determines whether pre-encumbrances are included in budget availability calculations for purchasing documents. To configure this setting: 1. Go to your Budget Tolerance Settings. 2. Find the **Include Pre-Encumbrances** option. 3. Select **Yes** to include pre-encumbrances in budget calculations, or **No** to exclude them. 4. Save the configuration. The setting is global and takes effect immediately for new document submissions. | Setting | Effect on Budget Calculations | Effect on Reporting | | --- | --- | --- | | Yes | Available balance is reduced when each document is submitted. Tolerance checks and duplicate warnings include pre-encumbrance totals. | The Pre-Encumbrance column, detail tab, and report filter are visible in the Budget vs Actual report. | | No | Available balance is not affected by pending submissions. Only approved encumbrances affect budget calculations. | The Pre-Encumbrance column, detail tab, and report filter are hidden in the Budget vs Actual report. | > **Important:** If this setting is changed while documents are already in workflow, existing pre-encumbrances remain visible in reports. If the setting is changed to **No**, those existing pre-encumbrances will no longer be included in balance calculations for new submissions. ### Budget vs Actual Report #### Accessing Pre-Encumbrance Data When pre-encumbrance is enabled, the Budget vs Actual report provides additional visibility into pending document amounts. There are three ways to work with pre-encumbrance data in the report. #### 1. Report Filter On the Budget vs Actual report filter screen, the **Include Pre-Encumbrance** option lets you decide whether pre-encumbrance should be included in the remaining balance calculation. - **Yes:** Remaining balance subtracts both encumbrances and pre-encumbrances from budget - **No:** Remaining balance uses encumbrances only - If pre-encumbrance is not enabled at the system level, this filter does not appear #### 2. Pre-Encumbrance Column When pre-encumbrances exist and reporting is configured to show them, a **Pre-Encumbrance** column appears in the report summary. This column shows the total pending pre-encumbrance amount for each budget account row. - A value of **$0** or a blank value means there are no pending pre-encumbrance items for that account - The amount reflects all in workflow requisitions, purchase orders, and change orders tied to that account #### 3. Pre-Encumbrance Detail Tab A dedicated **Pre-Encumbrance** detail tab provides an itemized list of pending pre-encumbrance entries. Each row includes: 1. Form type 2. Form name 3. Vendor name 4. Fiscal year 5. Description 6. Amount 7. PO number > **Note:** Requisition Number and Form Status columns are planned for a future update to the Pre-Encumbrance detail dropdown. The totals in the detail tab match the amount shown in the summary column for the same account. #### Reading the Budget vs Actual Report with Pre-Encumbrance | Account | Budget | Actuals | Encumbrance | Pre-Encumbrance | Available Balance | | --- | --- | --- | --- | --- | --- | | 456.9089.542006 | $10,000 | $1,000 | $2,000 | $3,000 | $4,000 | | 456.9089.542010 | $25,000 | $5,000 | $15,000 | $0 | $5,000 | In this example, account **456.9089.542006** includes pending pre-encumbrance activity, which reduces the available balance. Account **456.9089.542010** has no pending pre-encumbrance, so the available balance reflects actuals and approved encumbrances only. ### Budget Tolerance and Duplicate Warnings #### How Pre-Encumbrance Affects Tolerance Checks When **Include Pre-Encumbrances** is set to **Yes**, budget tolerance checks include active pre-encumbrance amounts during document submission. The system evaluates the submission against: 1. Current approved budget 2. Actuals 3. Existing approved encumbrances, if enabled 4. Active pre-encumbrances for documents still in workflow If the submission would exceed the available balance, the system blocks or flags the submission based on your configured tolerance rules. ### Frequently Asked Questions #### Does pre-encumbrance appear on the Purchase Order or Change Order form? No. Pre-encumbrance does not display directly on purchasing document forms. Its impact appears in budget availability calculations and in the Budget vs Actual report. ### What happens if I cancel a document that has an active pre-encumbrance? The pre-encumbrance is fully released when the document is canceled. The available balance is restored immediately. #### Does pre-encumbrance affect completed or posted transactions? No. Pre-encumbrance only applies to documents that are pending in an approval workflow. Fully approved, posted, or completed transactions use standard encumbrance accounting. #### Can I see which documents make up the pre-encumbrance total? Yes. The Pre-Encumbrance detail tab in the Budget vs Actual report shows the pending documents that make up the total for each account. #### What happens if I change the Include Pre-Encumbrances setting while documents are still in workflow? Existing pre-encumbrances remain visible in reports. If the setting is changed to **No**, those existing pre-encumbrances are no longer included in balance calculations for new submissions. 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