Skip to main content

Encumbrances and Purchase Orders


Once a Requisition is processed into Banner, the funds or encumbrance is taken from the budget and held in suspense until the order gets paid. When the invoice is processed by the Accounts Payable Department, against the Purchase Order, - the encumbrance gets liquidated and the funds are used for payment. If an invoice is sent to the Accounts Payable Department without referencing the correct Purchase Order, the account will be charged twice for the purchase and the encumbrance will need to be liquidated manually. Please avoid this problem, by making sure all invoices have the correct Purchase Order number assigned to them for proper payment.

All operational fund encumbrances will be closed out at the end of each fiscal year.

Purchase Orders

Purchase Orders are the legal form that the Purchasing Department issues to a vendor to contract to buy goods and/or services. Vendors look for Purchase Orders, as they are confirmation that the Purchasing Department is involved and are authorized transactions that will ensure payment once items are received. Purchase Orders are contracts. They have been approved by Fordham University’s Legal Department and they cannot be changed or modified without the express permission of the Purchasing Department.

After the Requisition is processed, all pertinent information is entered into the Banner System.

Banner then:

  • Issues a Purchase Order Number
  • Confirms the FOAPAL information
  • Encumbers the funds
  • Performs a Budget Check
  • Generates a Purchase Order Document

Note: A Purchase Order cannot be completed if any of the above information is missing or incorrect. If there are insufficient funds, the Budget Office is contacted for assistance, approval, and to clear the Banner hold.

The Purchasing Department then prints out the three copies of the Purchase Order:

  • One copy is mailed, faxed or emailed to the vendor.
  • One copy is sent to the Originating Department for its records.
  • One copy is attached to the Requisition for the purchasing file.

Our Purchase Orders are printed with our Terms and Conditions which form the contractual agreement of the transaction. They may not be changed or modified.

Once the Purchasing Department sends out a Purchase Order, the Purchasing Department must be contacted if there are any changes needed to the original order.