When Encumbrance Management is being configured, it is recommended that all other users log out of Dynamics GP.
To set up Encumbrance Management, perform the following steps:
Open the Encumbrance Setup window in Dynamics GP by selecting Purchasing from the Navigation Pane on the left, and then clicking on Encumbrance Management in the area page under Setup.
Mark the Enable Encumbrance Management checkbox.
Leave Budget Type set to General Ledger Budgets. Encumbrance Management also allows encumbrances against Analytical Accounting and Grant Management budgets, but in this book we will focus on using the standard General Ledger budgets that we looked at in Chapter 3, Budget Creation and Maintenance.
Set the Tracking Method to Period so that the purchase order line amounts are compared to the budget and actual amounts for the period. The other options available for Tracking Method are:
Fiscal Year, where the purchase line amount is compared to the total budget and...