Purchase Reservation

To make use of the amount first requires the creation of a posting code to update the amount field. Second an offset posting code has to be created or selected from existing ones. Together, these two posting codes are then placed on an event type created to use them. Then that event type is then made allowed for one or more transaction types and then codes. Next BFY Staging is to be established to govern when the event type and transaction code(s) can be processed. Lastly, if the amount field is to be used for reserving budget authority and not just for tracking, budget amount formulas must be chosen or constraints configured that will use Purchase Reservations. After that setup, to reserve and release Purchase Reservations is similar to Pre Encumbrances and Encumbrances.

Purchase Reservations are unlike Pre Encumbrances and Encumbrances in every respect. Year-end programs for lapsing and rolling do not handle this type of budget activity. Purchase Reservations must either be lapsed or rolled manually or left open to be referenced in a subsequent year.

Below is a sample of Purchase Reservations being used for both tracking and controlling. For that control, the amount has been included in the formula for Uncommitted but not Unobligated. Pre Encumbrances has also been setup this way.  In this situation, there is likely a control using Uncommitted that has a lesser degree of error than one that uses Unobligated. The sample demonstrates that this type of reserve is one done by users without budget transaction security but rather procurement transaction security.