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AJS 574 Week 3 DQ 3

AJS 574 Week 3 DQ 3
AJS 574 Week 3 DQ 3 -

We encumber funds when we create a purchase order for goods and/or services. When these goods or services are delivered and completed, we then approve the payment of an invoice and the encumbered funds become a completed expenditure. What happens when an encumbrance is made at the end of the fiscal year? Is the expenditure paid out of the current fiscal year's budget or the next fiscal year's if the purchase is completed in the next fiscal year?

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