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Encumbrances and encumbrance types allow you to classify and track expenditures according to the purchasing approval process. The General Ledger standard (pre-defined) encumbrance types are generally:
Commitments: recorded when you complete a purchase requisition
Obligation: recorded when a requisition is turned into a purchase order
You may define (or disable) encumbrance types in General Ledger.
To define an (additional) encumbrance type (like your pre-encumbrance example):
1. In General Ledger, navigate to the Encumbrance types window.
2. Enter a name and description.
3. Enable the encumbrance type.
4. Save
Although you do not indicate what version of the apps you are using, the information given here is from 11.5.9 and should be applicable.
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