Your customer has enabled encumbrance accounting. You have a control budget with the advisory level set at control. For November 2015, your budget for a given combination is $5,000 USD. You have an approved requisition of $900 USD and you have an approved purchase order of $2,500 USD. An adjustment encumbrance journal is created in the General Ledger for the obligation type for
$1,600 USD. You then cancelled the approved PO line of $400 USD. For November 2015, you created a new invoice by matching to the PO for $2,100 USD.
Which two statements are true?
- A: Purchase order encumbrance will be released for $2100 USD.
- B: As there are cancellations for $400 USD, the system will partially reserve the funds in November 2015 and fully reserve it in December 2015.
- C: As you are matching to a purchase order, the system will allow the user to create an invoice with the reservation status of Reserved.
- D: Encumbrance entries are created only for nonmatched Invoices, so the system will not create any encumbrance accounting entries.
- E: The system always consumes budget of future periods if the limit for the current period is expired, so December 2015 budget will be considered for reservation.