Monitor Encumbrances (30.2.2)
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Monitor Encumbrances (30.2.2)
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Business Process Overview
Encumbrances are used to obligate Agency Appropriationss for goods or services ordered and subsequently are unobligated when the goods or services are received and approved for payment. State procurement activity, including the creation of Purchase Orders, is handled through procurement systems outside Florida PALM. These POs, are generated primarily from MFMP, are used to communicate to Suppliers an order for goods or services. All procurement activities including the creation of POs and the approval of goods and services received occur outside Florida PALM. Florida PALM uses interfaces from MFMP (and other Agency Business Systems, as applicable) to obtain the necessary data to create and update Encumbrances.
Business Process Diagram
Business Roles
The Business Process Flow Diagrams use horizontal swim lanes to depict where activities are performed by different parties or systems. Each swim lane is titled with a role, either agency-based or within DFS, and in some cases, are representative of an external entity or system. The swim lanes may change from page to page within a single business subprocess as more or fewer roles are required to execute sections of the business subprocess.
- Agency Encumbrance Processor: agency role responsible for entering/updating Encumbrances and monitoring Encumbrance errors into Florida PALM
- Agency Encumbrance Viewer: agency role responsible for managing and reviewing encumbrances.
- AP Reporter: role responsible for viewing AP Reports (role not shown as a swim lane on flow diagram
- Confidential AP Viewer: role responsible for viewing confidential data in AP Reports. (role not shown as a swim lane on flow diagram)
- Confidential PO Viewer: role responsible for viewing confidential data in Encumbrance Reports (role not shown as a swim lane on flow diagram)
Business Process Flows Details
The tables below describe steps in each business subprocess as reflected on the Business Process Flow Diagrams. The tables also reflect information associated with each step describing the intent of the specific process. Florida PALM screenshots are included within the sections to allow connections to be made from specific business subprocess steps to screens within Florida PALM. This information should be read in conjunction with the Business Process Flow Diagrams.
Process Step ID | Process Step Title | Description of Process |
|---|---|---|
1 | Monitor Encumbrance Errors | Each Encumbrance is subject to Budget Check to validate whether spending authority is available. If there is no available spending authority, the transaction fails and must go through exception handling to continue. The Agency Encumbrance Processor monitors encumbrances to ensure resolution of errors. Two types of errors exist: errors that require a budget resolution, such as a Budget Amendment or budget override, or an error that requires an accounting resolution, such as a ChartField edit on the encumbrance. If the error requires a budget resolution the transaction is subject to the Budget Execution and Management business process. In limited scenarios (e.g., statewide emergency), the Agency Encumbrance Processor may request the DFS Override Processor to override the failed transaction. If the budget error is resolved, the budget check re-runs, and the encumbrance is created. If it remains unresolved, the encumbrance is not processed. The Agency Encumbrance Processor uses the Budget and Cash Checking Exceptions/Warnings Report to manage the resolution of the budget exceptions. If the error requires an accounting resolution, the Agency Encumbrance Processor may return to the Create/Update Encumbrance step to make the necessary edit or delete the transaction and edit in the Source System. Each agency has the option to correct non-MFMP interfaced encumbrance errors within Florida PALM or correct them in the source system and resend the transaction. MFMP encumbrances may be monitored in Florida PALM, but all updates and addition of MFMP encumbrances will be sent via interface from MFMP. If a budget resolution or accounting resolution is unable to be completed, the Agency Encumbrance Processor may choose to delete the encumbrance. |
2 | Delete Encumbrance | An Encumbrance that has an error that cannot be resolved may be deleted as long as it has not been budget checked or dispatched. |
3 | Run Close Process | If monitoring determines whether a PO/encumbrance should be closed or it is at the end of the purchase order lifecycle, the close purchase order process is performed. If you have a dispatched PO/encumbrance with a balance you will not use or is no longer needed, the PO/encumbrance can be closed. Any amount remaining will be restored to your budget as long as the Budget Period is still open. |
4 | Run Re-Open Process | Florida PALM offers an option to re-open a PO/encumbrance you may have inadvertently closed in error. The process reverses the effects of the Close Purchase Order process. Budget will be consumed. |
5 | Manage/Review Encumbrances | Encumbrances are monitored and reviewed by the Agency Encumbrance Viewer using Budget and Cash Checking Exceptions/Warnings Report, and the the Outstanding Encumbrance Errors Report. The Agency Encumbrance Viewer provides direction as to the appropriate resolution of any exceptions or required actions to manage established encumbrances. |
Encumbrance Budget Information Tab:
Accounting Events
The accounting and budget events associated with this Business Process are cataloged in the Accounting and Budget Events Inventory. Each event in the BPM flow includes a unique Accounting Event ID, which links directly to a corresponding entry in the Accounting and Budget Events Inventory. This inventory provides detailed information on the accounting treatment and budget impacts of each event, including associated journal entries, ChartFields, and relevant modules. Agencies should reference the Accounting and Budget Events Inventory for a comprehensive view of how each accounting event is handled in Florida PALM.
Reports
Key Reports are displayed as icons with the Report Number on the Business Process Flow Diagrams. The table below provides the reports identified to be produced at a particular process step or is used to support the completion of a process step.
Report Number | Report RICEFW ID | Report Description | Report Source | Report Frequency | Audience |
|---|---|---|---|---|---|
R1 | KKR018 | Agency Commitments Report – A custom report that provides encumbrances and payables by ChartField combinations. | PeopleSoft | Daily, Monthly | Agency |
R3 | KKR058 | Budget and Cash Checking Exceptions/Warnings Report – A custom report that lists transactions budget and cash check exceptions and warnings along with transaction amounts, to include the type of exception and where an override was applied. | PeopleSoft | Daily, Monthly | Agency, DFS |
R6 | POR009 | Outstanding Encumbrance Errors Report – A report that lists unresolved encumbrance exceptions. | PeopleSoft | Daily | Agency |
Interfaces
The table below provides the Interface IDs for each interface identified on the Business Process Flow Diagrams.
Interface Number | Interface Description | Interface Frequency | Source | Target |
|---|---|---|---|---|
N/A |
Forms
The table below provides the Form Numbers for any forms identified on the Business Process Flow Diagrams.
Form Number | Form Description | Audience |
|---|---|---|
N/A |
Workflows
The table below provides the Workflow Numbers for any workflows identified on the Business Process Flow Diagrams.
Workflow Number | Workflow Description | Audience |
|---|---|---|
N/A |
Version History
Date | Revision Description |
|---|---|
12/22/2023 | Original Version |
| 07/02/2024 | Added Role: Confidential AP Viewer |
| 05/01/2025 | Administrative updates to apply the following changes based on the narrative updates dated 04/29/2025:
|
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