when should credit to Encumbrance outstanding and Reserved for encumbrance?

  • Creator
    Topic
  • February 22, 2015 at 2:57 am #192193
    kukuna2008
    Participant

    Hi guys,

    I need help to clear up some concept confusion. I am studying governmental section of FAR. I am confused by the following two JE, what’s the difference? why use one over the other?

    For some purchase order, the JE indicated:

    Dr. Encumbrance

    Cr. Reserve for Encumbrance ( or budget control)

    However, others use:

    Dr. Encumbrance

    Cr. Encumbrance-outstanding

    Thank you so much!

    FAR - 83, 04/2015
    AUD - 73, 86, 08/2015
    REG - 75
    BEC - 71, rematch in 04/2016

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