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SWIFT Update March 21, 2019

Negative Encumbrances of Purchase Order Lines

Purchase order lines with negative encumbrance balances create unauthorized spending authority in appropriations. This unauthorized spending authority can lead to appropriations being over-obligated or over-expended once budgets are closed.
Please make every effort to close any unneeded negative encumbrances. Users can search for negative encumbrances using the M_PO_GBL_NEG_ENCUMB_KK query in SWIFT's Query Viewer. MMB’s Accounting Services recommends that buyers and budget staff review this query frequently and remedy negative encumbrances as needed as the end of the budget year approaches.
Negative encumbrances generally fall into three categories:
1) The purchase order line is originally established as a positive encumbrance, but now has a negative encumbrance balance.
The purchase order currently has a negative encumbrance balance and is in "Valid" Budget Check status. If the encumbrance is in the current budget period, increase or close these lines immediately to eliminate the negative encumbrance.

2) The purchase order line is closed, but the negative encumbrance balance remains.
The purchase order has a negative encumbrance remaining and is in “Error" Budget Check status. Make sure to check that there are funds in the budget to close this type of negative encumbrance. If the encumbrance is in the current year, agencies may need to adjust budgets for the budget check to succeed. If the encumbrance is in a closed budget period, please contact the SWIFT Help Desk.
3) The agency created a valid negative purchase order line.
Agencies may have intentionally entered the purchase order line as a negative value. Please review and verify that these lines are still needed. Also make sure that there is an offsetting positive encumbrance on the same purchase order. If there is not an offsetting encumbrance, the appropriation budget may be over-obligated upon budget close at fiscal year-end.
Please contact the SWIFT Help Desk with any questions or requests for assistance.

Notice on New Local Taxes 

The Minnesota Department of Revenue will be administering the following new sales and use taxes effective April 1, 2019:
•    Redwood County 0.5% Transit Sales and Use Tax
•    Waseca County 0.5% Transit Sales and Use Tax
The sales and use tax rate changes apply to sales made on or after April 1, 2019. They will be in addition to all other taxes in effect. Local sales tax applies to retail sales made and taxable services provided within the local taxing area (county/city limits). The tax applies to the same items that are taxable under the Minnesota sales and use tax law.
Purchase orders entered in SWIFT on or after April 1, 2019, will calculate the new tax rates for each county/city. Existing purchase orders and/or their vouchers will need to be adjusted to pay the correct tax if delivery occurs after various dates. Please note that the dates will be different based on whether goods or construction materials are being delivered. Check the tax notice for the affected city for the correct dates.
For assistance in changing the sales tax on a PO, please consult the Sales Tax Settings on Purchase Orders guide.

Impact of the New Local Tax 

Please see the Minnesota Department of Revenue tax notice for the appropriate city for guidance in handling purchase orders and payments during the transition period.

Impact on Accounts Payable:
Vouchers entered in SWIFT on or after the tax effective date will calculate the new tax rates for each county/city if the Invoice Date is on or after the tax effective date. If the Invoice Date is before the tax effective date, SWIFT will exclude the new tax rates. Please review the tax calculation carefully prior to payment on all vouchers with Ship To locations within these jurisdictions.

Impact on Purchase Orders:
SWIFT will be updated with the new tax codes for all existing Ship To addresses located in the affected cities. New purchase orders, created on or after April 1, 2019, will calculate the new rate of tax for the ship to addresses within those counties/cities. Existing purchase orders may or may not need to have the tax code updated on the PO if payment can be processed during any allowed grace period(s), again, see the general notice for each county/city. Previously any Ship To addresses in affected cities may have used the tax code of 0000, State Tax only. To calculate the new combined rate, state and local tax rate, the tax code(s) on the purchase order must be updated to the new tax code(s) from the 0000 tax code. Because of the various transition rules, these codes will not be updated by SWIFT and must be updated by the purchase order buyer.

SWIFT Help Desk

Contact the SWIFT Help Desk for any questions, concerns or issues you have with SWIFT:
651-201-8100, option 2 or by email

Hours: 7:30 a.m. to 4:00 p.m., Monday through Friday; closed holidays.

When emailing the SWIFT Help Desk, be sure to include all details regarding the issue. Information to include with your message:

  • Issue Description
  • Business Unit
  • Module (Accounts Payable, Purchase Orders, etc.)
  • Transaction ID (Voucher ID, PO ID, etc.)
  • Error Message Print Screen

Additional assistance can be found on the SWIFT Reference Guide page.

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To find SWIFT training, open Employee Self-Service and select the Learning folder. Then, search the Catalog using the keyword “SWIFT” to find and enroll in classes currently scheduled. Classes are free of charge and open to everyone.

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