This process enables departments to reduce encumbrances on Standing Purchase Orders (SPOs) to reflect a more realistic dollar amount for departmental budgetary purposes.

The step-by-step process outlined below will help you:

• Determine if you need to reduce an encumbrance on a Standing Purchase Order.

• Estimate by how much the encumbrance should be reduced, using the following Banner forms.

Note: Journal Vouchers should not be used to adjust SPO encumbrances because the changes will not be reflected properly on the purchase order. Purchasing will need to issue a change order to the original purchase order to correctly reflect encumbrance changes.

1. Use Banner form FGIENCD. In the Encumbrance field, type the Standing Purchase Order number. Click Next Block . This form shows you the original encumbrance, the liquidated amount (dollar amount of invoices already paid against this Standing PO), and the remaining balance left on this Standing PO. Make a note of the remaining balance.

2. Use Banner form FOIDOCH. In the Doc Type field, type PO, and in the Doc Code field, type the Standing PO number. Click Next Block.

   Look for Invoices with a "blank" status. Invoices with a "P" or an "A" status are already included in the liquidated balance.

   These "blank" status invoices are incomplete and unpaid and have not been subtracted from the encumbrance totals in FGIENCD.

   Note: To look at the dollar amount on an invoice in FOIDOCH, highlight the invoice number, click Options from the menu toolbar, and select Invoice Information [FAIINVE]. This takes you into the Invoice query form. You can use Next Block to move through the Banner invoice and see the invoice dollar amount.

3. Calculate all unpaid ("blank" status) invoices and also estimate any anticipated expenses for the remainder of the fiscal year. Add these amounts together.

4. Take the balance listed on FGIENCD and subtract the calculated total from step 3.

5. With the results from step 4, if your SPO is on a state fund or expired grant fund, contact the Purchasing Division on your campus. The buyer will issue a change order to de-encumber the SPO by the amount you provide from your calculation above.

The email should be sent to the Purchasing Office for your campus:

• UIC: uicpurchasing@uillinois.edu

• UIS: uispurchasing@uillinois.edu

• UIUC: urbanapurchasing@uillinois.edu