Encumbrance Information

An encumbrance system is a management tool used to reflect commitments in the accounting system for better budget management and to prevent overspending. Encumbrances allow organizations to recognize future commitments of resources prior to an actual expenditure. When a regular or standing purchase order is completed and approved in Banner, an encumbrance is automatically created. As payments are made relating to a purchase order, encumbrances are liquidated or unencumbered. 

Banner Documentation (Training Manuals and Workbooks)

• Finance Purchasing and Procurement Training Workbook 8.4
• Finance Security Training Workbook 8.0
• Finance Approvals Training Workbook 8.0
• Self-Service Finance Training Workbook 8.5
• Finance Fiscal Year End Processing Training Workbook 8.4
• General Navigation and Fundamentals Training Workbook 8.0