Below are some reminders about key details and functionality related to encumbrances as a refresher.

• The encumbrance calculation is different from the payroll actuals calculation.
• Funds are not encumbered for hourly compensation plans.
• For fixed term employees with compensation ending 1/15, Workday applies encumbrances for the full month.
• The Workday job costing tool calculates amounts based on the payroll actuals calculations.

For more information and guidance, refer to the Encumbrances section of the Workday Financial Transaction Guidance webpage.