Book Image

Microsoft Dynamics GP 2013 Financial Management

By : Ian Grieve
Book Image

Microsoft Dynamics GP 2013 Financial Management

By: Ian Grieve

Overview of this book

Microsoft Dynamics GP 2013 is a mature accounting software, ERP application, which is aimed at making life easier for financial professionals. This book is to assist readers in improving their use of Microsoft Dynamics GP by showing them how to get the most out of the financial aspect of the system. Microsoft Dynamics GP 2013 Financial Management is intended to add value to your organization by making use of additional modules and processes by introducing readers, new or experienced, to some of the financial management modules of Dynamics GP, such as Analytical Accounting, Cash Flow Management, and Encumbrance Management. Microsoft Dynamics GP 2013 Financial Management introduces the six essential financial modules. You will get acquainted with accounting to enable reporting, before gaining an oversight into inflow and outflow of cash. Budget studies cover all aspects of budget use in Dynamics GP for comparing actual figures against the budgets created and maintained within the system. The final chapters cover PO Commitments and Encumbrance Management; two sides of the same coin. Both modules allow for the control of purchasing by either committing or encumbering the transactions and preventing overspending.
Table of Contents (14 chapters)
Microsoft Dynamics GP 2013 Financial Management
Credits
About the Author
Acknowledgement
About the Reviewers
www.PacktPub.com
Preface
Index

Chapter 6. Encumbrance Management

Encumbrance Management enables funds to be reserved from a budget when a purchase order is created. The creation of encumbrances reduces the risk of overspending and ensures that funds will be available when payments become due. This module is often used by non-profit organizations as a part of their budget and fund accounting.

Encumbrances and PO Commitments are very similar in form and function, but there are differences in how Dynamics GP handles them. The basic differences are:

  • Encumbrance Management tracks history in Dynamics GP, whereas PO Commitments does not

  • Encumbrance Management requires each open year to have a budget selected for encumbering transactions, whereas PO Commitments allow individual years to have a budget defined against them

  • Encumbrance Management does not integrate with Business Portal Requisition Management, but PO Commitments does

In this chapter we will take a look at the setup of Encumbrance Management, entering purchase orders,...