Encumbrances are accounting entries in the UNC-GA FRS (Financial Records System) that reserve or earmark funds for specific purposes in the departmental budget. This process ensures that fund availability is taken into consideration prior to any UNC-GA purchase, travel or other activity takes place.
a. Funds may be encumbered using one of the following documents:
· Purchase Orders
· Personal Service Contracts
· Real Property Leases
· FRS encumbrance forms
b. Encumbrances into the UNC-GA FRS are required for all purchase orders.
c. An encumbrance may be liquidated in full or as a partial liquidation by the means of:
· Accounts payable invoice payments referencing a purchase order
· A cancellation of a purchase order. (See change order policy in Pur. Pol. 2.0)