Why Did My Encumbrance Amount Disappear After I Disabled a Purchase Order?

What Is the Problem?

You disabled a Purchase Order that had a remaining balance. You expected the amount to show up somewhere in your Budget vs. Actual report. Instead, it disappeared completely.

This is not a bug. It is expected behavior.

What Is an Encumbrance?

An encumbrance is a reservation of budgeted funds. Think of it like putting money on hold.

When you create a Purchase Order, the system sets that money aside. It does not actually move the money yet. It just reserves it so it cannot be spent elsewhere.

The money only moves when a payment is made.

What Happens When You Disable a PO?

It depends on whether any payments were made against the PO.

When you disable a PO with no payments, the reservation is released. The funds return to your available budget balance. Because no real payment was ever made, there is no entry to move into Actuals. The amount will not appear in the Actuals column.

Where Did the Money Go?

The funds returned to your available budget balance. They were never actually spent. The encumbrance was just a hold, and that hold has been released.

To confirm this, check your available budget balance for the associated account. It should reflect the returned funds.

What If Payments Were Made Before the PO Was Disabled?

Any payments that were processed against the PO before it was disabled will still appear in the Actual Detail section of your Budget vs. Actual report. Those payments created real GL postings and will remain in the report.