Exam MB-310 topic 3 question 11 discussion

YES When you enable encumbrance processing by selecting Enable encumbrance process on the General ledger parameters page, posting definitions must be used to record encumbrances to the general ledger for any accounts that should be reserved. In most cases, all expense accounts are reserved on the balance sheet.

Agreed with what denilson16 said about encumbrances.

With posting definitions you can setup PO Encumbrances. So that when you confirm the PO, the encumbrance is posted to the GL and the amount is reserved.

the Prepayment action reserves funds for the PO So correct answer is B

https://docs.microsoft.com/en-us/dynamics365/supply-chain/procurement/purchase-order-approval-confirmation Answer: B Because : the Prepayment action reserves funds for the PO

Example: Purchase order encumbrances When you enable encumbrance processing by selecting Enable encumbrance process on the General ledger parameters page, posting definitions must be used to record encumbrances to the general ledger for any accounts that should be reserved. In most cases, all expense accounts are reserved on the balance sheet. Posting definitions for encumbrances are set up for the Purchasing module on the Posting definitions page. Then, in the Purchasing area of the Transaction posting definitions page, you can select the Purchase order transaction type to associate the posting definition with purchase orders. All voucher transactions for purchase order encumbrances must balance (that is, debits must equal credits) in each unique dimension on a voucher.