RTA Auto Encumbrance

Beginning October 29, 2005 the Request for Travel Authorization (RTA or VE5/VE6) document will automatically encumber funds on accounts listed on the RTA document. This new requirement will affect the routing of the RTA by requiring approval from each Signature Desk of the accounts encumbered on the RTA and approval from the Signature Desk of the traveler's appointment.

How will routing work?

• The RTA document will route according to the traveler's appointment account first.
• If more than one account is encumbered, the document will route according to the master view of each account next.
• If a traveler has more than one appointment, the document will route according to the account encumbered on the RTA rather than the travelers' appointment account if the RTA account is in the same master view as the appointment.

Other enhancements to the RTA that were caused by this requirement are:

• Screen 3 - no longer shows the Dept. Encumber column.
• Screen 3 - requires an amount entered for each account listed.
• Automatically creates an encumbrance transaction on each account for its associated amount, except on the Faculty Travel Grant account.
• Forces the Faculty Travel Grant account to be the first account listed on Screen 3.
• Screen 3 on VE6 documents will allow a complete disencumbrance for employees and students.

Tips for completing a VP5 travel payment voucher:

• As before, you can not use both state and local accounts on VP5 payment transactions.
• Account field on disencumbrance transactions (object code 0510) will be updateable on partial payments "P".
• Each VP5 must be final approved in the Office of Accounting before the next payment for an RTA can be created.
• Any funds not disencumbered on a partial payment "P" VP5 will be auto disencumbered 60 days after the travel end date.

How to Avoid Errors on the VP5?

• Do not use a state account for expense transactions when the disencumbrance transactions include both a state and a local account.
  • To avoid this error, either use the local account to pay the expenses on a complete payment voucher "C" OR prepare a partial payment voucher "P" making sure the disencumbered account is the same account as the expense transaction.
  • Another way of avoiding this problem is to disencumber either the state account or the local account on a VE6 document before processing a VP5 payment voucher for employees or students.
    
    Note: With a partial payment you can change the account to be disencumbered by typing another account number over it. Choose the same account number for both the disencumbrance transaction and the payment transactions

 

New Travel Encumbrance Questions & Answers

Q: - What about direct billings for hotels, rental cars, or centrally billed airfare? Should I encumber the amounts to pay for these expenses?

A: - No. At this time, any amounts listed on an RTA are encumbered only to reimburse the traveler, and therefore will not be available for direct billings. It is recommended that you only encumber amounts needed to reimburse the traveler. If you expect no reimbursement to the traveler, encumber only one dollar for direct billing charges. Add notes to the document when you need to indicate the amount of expected charges for airfare, etc.

 

Q: - What happens if I do not encumber enough money for the trip?

A: - A trip can be reimbursed for more than the amount on a VE5 or VE6; however, if the encumbrance is too small, it is possible that there might not be enough money in the account for the traveler's reimbursement. An encumbrance amount makes sure there is enough money available in the account to reimburse the traveler after the trip is completed.

 

Q:– If I process a VE5 for a traveler and the trip is canceled, can I delete the VE5 to disencumber funds?

A:– If a VE5 can be recalled or returned, it can be deleted. If the VE5 has been final approved, you can process a VE6 as soon as you know the trip will not take place, and change the amount of the trip to zero. It is also recommended to enter NOTES on the VE6 stating that the trip has been canceled. If you do not process a VE6 document, the funds will be automatically disencumbered 60 days after the travel end date.

 

Q: - When the payment is made, will the VP5 automatically disencumber all remaining funds?

A: - The VP5 allows either a partial or complete payment of the traveler's allowable expenses. A partial VP5 will disencumber up to the amount of the expenses listed on the VP5 A complete VP5 will disencumber all remaining encumbrances.

 

Q:– We must use both state and local funds on our travel payments. Will this cause any problems?

A: - When both state and local funds are encumbered on an RTA, the payments must be separated, since both state and local accounts cannot be used on a single VP5. To avoid disencumbrance problems when state and local funds are used on a single RTA, we suggest two options.

1. Process the first payment as a complete payment and use the local account.
OR
2. Process all payments as partial payments and make sure the account used for the disencumbrance transaction (object code 0510) is the same account used for the expense transactions.

 

If you need assistance or have questions, please email oa.travel@austin.utexas.edu or
call the UT-Austin Travel Office at 471-7821.