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Pre-Encumbrance Management FAQ

Common questions about how pre-encumbrances affect budget availability and reporting in Aclarian

A pre-encumbrance is a temporary hold on budget funds.

It is created when a purchasing document enters the approval workflow. Think of it as a reservation. The funds are not spent yet, but the system sets them aside so your budget balance stays accurate.

Without pre-encumbrance, your available budget may appear higher than it really is. This can increase the risk of committing more money than is available.

This FAQ answers common questions about how pre-encumbrances work in Aclarian.

Important: Pre-encumbrances only apply when the Include Pre-Encumbrances setting is turned on. If you are unsure whether your organization uses this setting, check with your system administrator.

Key Terms

Review these terms before reading the FAQs.

Term What It Means
Pre-Encumbrance A temporary budget hold created when a purchasing document enters workflow for approval. It is released or converted once the document is fully approved or canceled.
Encumbrance A firm commitment of budget funds. This applies after a document is fully approved and posted.
BvA Report The Budget vs Actual report. It shows your budget, what has been spent, what is encumbered, and what is still available.
Available Balance The amount of budget that has not been spent or committed. Pre-encumbrances reduce this number while a document is in workflow.
Purchasing Document A form used to request or authorize a purchase. Examples include Purchase Orders, Change Orders, and Check Requests.

Frequently Asked Questions

Does pre-encumbrance appear on the PO or Change Order form?

No. Pre-encumbrance does not appear on the form itself.

You will not see it directly on a Purchase Order, Change Order, or other purchasing form. Its impact appears in the budget availability calculation and in the Budget vs Actual report.

To review the detail, open the Pre-Encumbrance Detail tab 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 you cancel the document.

This happens immediately. You do not need to complete any additional steps. The available budget balance is restored as soon as the cancellation is processed.

Tip: Confirm that cancellation is the correct action before proceeding. Canceled documents cannot be resubmitted. To continue, you must create a new document.

Does pre-encumbrance affect completed or posted transactions?

No. Pre-encumbrance only applies to documents that are currently in an approval workflow.

A document typically moves through these stages:

  • Pending approval: Pre-encumbrance applies
  • Fully approved, posted, or completed: Standard encumbrance accounting applies

Once a document is fully approved and posted, it is no longer treated as a pre-encumbrance.

Can I see which documents make up the pre-encumbrance total?

Yes. The Budget vs Actual report includes a Pre-Encumbrance Detail tab.

This tab provides an itemized list of the pending documents that make up the pre-encumbrance total. You can review the detail by account to understand exactly where budget is being held.

Where to find it: Budget vs Actual Report > Pre-Encumbrance Detail tab

What if I change the Include Pre-Encumbrances toggle while documents are in workflow?

Existing pre-encumbrances remain visible in reports. Changing the toggle does not remove them.

However, the change affects future budget calculations and new submissions:

  • If the setting is changed to No, existing pre-encumbrances are no longer factored into balance calculations for new submissions
  • New documents submitted after the change do not create pre-encumbrances

Coordinate this change carefully, especially during active purchasing cycles, because it can change how budget availability is calculated for your team.

Note: Only users with administrative access can change the Include Pre-Encumbrances setting. If you need this updated, contact your system administrator.

Need help? If you have questions about Pre-Encumbrance Management, contact the Aclarian Client Support team for assistance.