The year-end close is performed to finalize transactional activity for the entire September-August fiscal year. All the standard processes are performed for the last time in a specific sequence, covering the entire fiscal year to ensure all transactions are posted and reflected on reports. The year is officially closed when these processes are complete (including posting). 

Several processes, in addition to the standard month-end processing, are required to close the fiscal year and prepare for the beginning of the next fiscal year.

Clearing of Organization Suspense Accounts for Labor

Organization Suspense Accounts (OSA) are accounts configured for every department to hold payroll transactions that either post in errors or are missing a labor schedule. Clear all OSA transactions on a quarterly basis per policy. Any remaining transactions after quarter-end deadlines are moved to that department's funded guarantee account and incur a $25 fee per OSA transaction line.

During the year-end close, Financial Management Services (FMS) performs an OSA sweep for transactions posted to OSA's account that are not cleared. A $25 per payroll transaction fee is charged for swept transactions. Additional sweeps for August payroll periods are also performed during the year-end close, but the fees are waived. Refer to Topic Overview: Organization Suspense Accounts for Labor and How to: Clear Organization Suspense Accounts for Labor for more information.

Clearing Fund Overdrafts

All fund overdrafts in excess of $1,000 must be cleared by fiscal year-end. Refer to How to: Clear a Fund Overdraft at Year-End for more information.

Accruing Revenue and Expense

Use accrual journals to record expenses and revenue that are recognized but were unable to be recorded in Oracle for the current fiscal year. Refer to Policy: Guideline for Accruing Expenses, Policy: Guideline for Accruing Revenue and Learn About System: iJournals for more information.

PTA Maintenance Blackout

PTA Maintenance Blackout is a system control that prevents updates to PTAs during year-end close activities. This control ensures minimal interruption to back-end processes that may fail because of PTA updates. Do not update PTA segments during this time. Refer to Learn About System: PTA Manager for information on creating, updating and closing PTAs.

Expenditure Type or Object Code Freeze

During year-end close, there is a temporary freeze on the setup of new expenditure types and object codes, and changes to existing ones.

  • The deadline for submitting requests is Aug. 1, 5:00 p.m.
  • The freeze is in effect beginning Sept. 1 and ending Oct. 31.
  • If you submit a request before the Aug. 1 deadline, every effort is made to process your request in time for the August close.
  • Requests submitted Aug. 1 through Oct. 31 are reviewed and processed beginning on Nov. 1 and are available only for the November month-end close.
  • Submit requests using Request New Expenditure Type or Object Code and Request to Change Existing Expenditure Type or Object Code.

PTA Carry Forward/Rollover Process

At the end of each fiscal year, project balances for all funds are consolidated and rolled into one General Ledger (PFOO) account for each fund. Balances are moved from this account back to the project for the new fiscal year by submitting a Carry Forward/Project Rollover request. This is typically done by auxiliary and service centers to facilitate annual budget and rate calculations.

Determining Fiscal Year-End Account Balances

A fund’s balance is determined by summing up all positive and negative project balances related to Expense and Revenue Object Codes 40000-59999 at the end of the fiscal year. The balance is automatically placed in the PFOO account 1000000-(FUND)-30001-ZZZZ.

Project Fund Object End FY Bal
1234567 ALAAA 42252 -100
1234567 ALAAA 51501 150
1234567 ALAAA 54801 200

What occurs automatically at the beginning of the fiscal year

Project Fund Object End FY Bal
1000000 ALAAA 30001 250

What will happen with the carry forward request

Project Fund Object End FY Bal
1234567 ALAAA 30001 250

To identify account balances in account 1000000-(FUND)-30001-ZZZZ after fiscal year-end, select the OBI Revenue and Fund Management Dashboard>Fund Statement Tab.

Requesting Carry Forward of Project Balances

Auxiliaries and service centers may request that balances are moved from account 1000000-(FUND)-30001-ZZZZ back to the project for the new fiscal year.

  • All projects and tasks associated with the award (FUND) are moved.
  • Requests to move specific project balances within an award or to move partial balances are not accepted.
  • Reclassifications may be requested only after the initial Carry Forward/Rollover request is completed.

The Systems and Reporting Operations (S&RO) department will create appropriate journal entries to process the request. Refer to How to: Request Carry Forward/Rollover of Project Balances at Fiscal Year-End for more information. 

At year-end, there are preliminary closes before the final close to allow end users to view August month-end close data in phases (e.g., after all expenditures are posted) and make additional corrections and adjustments. After the final close, no more corrections or adjustments may be applied.

  • All transactions occur in the last month of the fiscal year, i.e., August.
  • Prior months are not re-opened, so all adjustments are reflected in August.
  • During this time, transactions for the new fiscal year may be entered into the Oracle system, but are not posted into the new fiscal year until the prior year is finally closed.

The year-end close officially begins at the end of August. Refer to Year-End Close Interactive Calendar. There are five distinct closing stages for year-end close activities: 

  • Starts with July month-end close.
  • A high volume of expenditure transactions is being processed to meet deadlines related to Accounts Payable (AP), Org Suspense Account clearing, Form 1, Capital template and others.
  • AP module closes.
  • This is the final cutoff to process transactions for August for iJournals Public users and for Labor Distribution (LD).
  • By the end of this stage, all new expenditure transactions are finalized.
  • Review soft-close posted transactions, and process the necessary expenditure adjustments needed before Grants Accounting, Accounts Receivable (AR) and Fixed Assets modules close.
  • Expenditure adjustments are finalized.
  • This is the final cutoff for iJournals Specialist and Central users.
  • By the end of the stage, the hard close, Grants Accounting, Accounts Receivable and Assets modules are closed.
  • All General Ledgers (GL) journal transactions are processed and finalized.
  • General Ledger is closed, preventing any further entries.
  • Reports reflect complete fiscal year data.
  • All ledgers are opened for the new fiscal year.
  • Processing of September activity beings.
  • Catch-up processing begins, including other financial activities that span through October.

Questions?

S&RO (Systems and Reporting Operations)
arrow_upward
Back to Top