From a budgetary perspective, when a government records an encumbrance it means an amount that it appropriated is no longer available for the government to spend.

Question

Quizplus · Accepted Answer

From a government's budgetary perspective, a portion of the appropriation effectively is "used up," or encumbered, at the point it orders supplies-even though the supplies have not yet been received.

From a Budgetary Perspective, When a Government Records an Encumbrance