Encumbrances are pre-expenditures. The primary purpose of tracking encumbrances is to avoid overspending a budget. Encumbrances can also be used to predict cash outflow and as a general planning tool.
Blanket Purchase orders will not show as encumbrance because they are essentially a blue print or template for an actual purchase order. You may create regular purchase orders from a Blanket purchase order. To see a blanket purchase order affect encumbrance, generate a regular purchase order.
To generate a regular purchase order, follow these steps:
1. Select Record > Purchase Orders 2. Open the desired Blanket Purchase Order 3. On the top bar click Purchase Order > Generate Regular Purchase Order... Note: You will not see this option
Note: The line item(s) in a Purchase Order will reflect the encumbrance