Document Sample
					                                     WVFIMS ENCUMBRANCE MODULE

                                              GENERAL OVERVIEW

The West Virginia Financial Information Management System (WVFIMS) Encumbrance (Purchase Order) module
is available for use by state agencies. The Encumbrance module provides agencies with the ability to encumber
funds for the current fiscal year of a contract, while recording the total amount of the contract if it is for more than
one fiscal year. All current Department of Administration, Division of Purchasing guidelines, procedures, and
regulations in place continue to be in effect and must be adhered to for purchasing functions, unless you are notified
of any changes by the Division of Purchasing.

                                            MODULE COMPONENTS

The Encumbrance module is comprised of three main components as follows:

        WVFIMS Purchase Orders
        WVFIMS Purchase Order Adjustments
        WVFIMS Purchase Order Maintenance

The WVFIMS Purchase Order module component provides the mechanism for agencies to encumber funds for a
contract for the current fiscal year. Agencies have the ability to enter the total purchase order amount to encumber
for the current fiscal year and then split this total amount to appropriate expenditure financial code combinations.
The WVFIMS Purchase Order will retain all transaction history for a contract even if the contract spans multiple
fiscal years.

The WVFIMS Purchase Order Adjustment module component provides the mechanism for agencies to modify or
adjust a WVFIMS Purchase Order once the purchase order has a transaction status of COM-Complete. There are
two types of Adjustments – Accounting and Contract Change Orders. A few adjustment options include:

        Increase the WVFIMS Purchase Order amount
        Decrease the WVFIMS Purchase Order amount
        Add, Modify, or Delete Expenditure Financial Code Combinations
        Change WVFIMS Remit To Vendor

The WVFIMS Purchase Order Maintenance module component provides the mechanism for agencies to correct
specific transactions that have been processed that are associated with a WVFIMS Purchase Order that has a
transaction status of COM-Complete. There are five types of WVFIMS Purchase Order Maintenance transactions as

        Transfer a paid invoice amount within a WVFIMS Purchase Order
        Transfer a paid invoice between WVFIMS Purchase Orders
        Remove a paid invoice from a WVFIMS Purchase Order
        Add a paid invoice to a WVFIMS Purchase Order
        Apply a deposit refund transaction to a WVFIMS Purchase Order

Of course, all of the transactions will either be reviewed by the Division of Purchasing, the State Auditor’s Office,
or both for appropriateness.

                                                  MODULE EDITS

The WVFIMS Encumbrance modules have many edits in place to prevent errors when WVFIMS Purchase Order
transactions are entered and electronically approved to a central organization. The most notable edit relates to
allotments or spending authority. One edit will not permit an agency to encumber more than the total available
spending authority remaining for a fund and an expenditure activity combination. This edit will prevent agencies
from encumbering funds for an amount that is greater than available spending authority at any given time throughout
the fiscal year.

Shared By: