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Why is the Encumbrance Still Showing in General Ledger?

In Accounts Payable, you've entered an invoice, but the encumbrance has not been reduced (disencumbered) in General Ledger yet. The disencumbrance occurs when the accrual journal entry has been posted in General Ledger. At that time, the Encumbrance amount is reduced, and the Actual Amount is increased.

Navigation: General Ledger>Inquiries>Account Summary Inquiry

In the example below, you'll see encumbrances of $4,078 were recorded in October. In November, you can see the encumbrances were reduced (disencumbered) by $4,078; this amount is now part of the Actual Amount of $4,325.

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In order for the disencumbrance to occur, the accrual in Accounts Payable must be run and the journal entry created by that process must be posted in General Ledger.

Navigation: AP, Invoicing, & Payment>Vendor Invoice/Check Processing

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Navigation: General Ledger>Journal Entries

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For more on the accounts payable process: Edit Invoices and Manual Checks - Screen Overview

For more on posting journal entries: How do I post a Journal Entry

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