What is commitment accounting?
- Commitment Accounting utilizes “funding” to reference the General Ledger (GL) expenditure chart string. Funding sources are used for the GL interface and encumbrance processes.
- Commitment Accounting runs the encumbrance process to encumber the annual salary.
- Commitment Accounting also runs actuals distribution to attach funding sources to payroll costs.
What processes does the module handle?
- Change Position funding
- Encumbrance calculations
- Invalid funding maintenance
- Payroll to GL interface
- Express Direct Retro Redistributions
What is an encumbrance?
Relative to OneUSG Connect, an encumbrance is a projection/claim for personal services dollars for a particular period, whether it be a month, quarter or fiscal year. It is
a projection of future expenses based on the situation, as you know it today. Encumbering funds isn’t the same as spending them or even guaranteeing that you will spend them. It just means that if the situation as it exists today does not change, you’ll spend all of those funds by the end of the fiscal year.
What are actuals in OneUSG Connect?
- Actuals are what you have spent to date for payroll costs. When you process money for payment, for example, by running a payroll, you are creating actuals.