Dynamics Community Forum Thread Details

Travel Requisition Reset does not release Budget Encumbrance in Dynamics 365 Finance and Operations

Dear team,

Hope all are doing well.

We are experiencing an issue in Dynamics 365 Finance and Operations related to Travel Requisition and Budget Control.

Issue Description:
When a Travel Requisition is submitted and approved, the Budget Control status becomes Confirmed, and the corresponding budget encumbrance is created as expected.

However, when we reset the Travel Requisition back to Draft, the existing encumbrance is not released or reversed. If we modify the amount and submit the requisition again, the system creates a new encumbrance while the previous one remains active. As a result, the budget is reserved twice.

Steps to Reproduce:

Create a Travel Requisition for an amount (for example, 10,000).
Submit the requisition through the workflow.
Approve the requisition.
Verify that the Budget Control status is Confirmed and an encumbrance is created.
Reset the Travel Requisition to Draft.
Change the amount (for example, from 10,000 to 8,000).
Submit and approve the requisition again.

Actual Result:

The original encumbrance remains confirmed.
A new encumbrance is created for the updated amount.
The total reserved budget becomes the sum of both encumbrances.

Expected Result:
When the Travel Requisition is reset to Draft, the previous encumbrance should be released or liquidated before a new encumbrance is created, so that only the current amount remains reserved.

Could you please confirm whether this is the expected product behavior, a known issue, or a product defect? If it is a known issue, please provide the related Hotfix, KB article, or recommended solution.

Environment Details: