The encumbrances is the name of the account that is debited when a purchase order is issued.
The encumbrance system can be defined to mean the method that is used in budgetary control to take care of the appropriation which is kept in order to take care of particular expenses that have been made such as the purchase orders, the contracts and the salary.
It is the commitment that a person would make that has to do with the fact that they would spend money for a particular reason at a date in the future. Hence we can say that The encumbrances is the name of the account that is debited when a purchase order is issued.
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