format_list_bulleted Topic Overview

Year-End Close

The year-end close (YEC) is performed to finalize transactional activity for the entire September-August fiscal year. All 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). 

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 Oracle Financials, 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), 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 (GA) and Fixed Assets (FA) modules close.
  • Expenditure adjustments are finalized.
  • This is the final cutoff for iJournals Specialist and iJournals Central users.
  • By the end of this stage, the GA and FA modules are closed.

  • All General Ledgers (GL) journal transactions are processed and finalized.
  • Accounts Receivable (AR) and GL are closed, preventing any further entries.

  • Reports reflect complete fiscal year data.
  • All ledgers are opened for the new fiscal year.
  • Processing of September activity begins.
  • Catch-up processing begins, including other financial activities that span through October.

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.


Accruing Revenue and Expense

Use accrual journals to record expenses and revenue that are recognized but were unable to be recorded in Oracle Financials 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.


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.


Clearing of Organization Suspense Accounts

An organization suspense account (OSA) is a PTA assigned to every organization (org) to capture payroll transactions when they fail to post successfully to their original PTA. Departments are required to clear OSAs soon after payroll posts in Oracle Financials or by the OSA clearing deadlines; any remaining transactions after the deadlines are moved to that department's OSA Sweep PTA and incur a $35 fee per OSA transaction line.

During year-end close, departments should clear all transactions posted to their OSA through the final (Aug. 31) pay period via a fully submitted and approved labor distribution adjustment by the published YEC deadline. Otherwise, unapproved adjustments will carry over into FY25. OSA sweep fees are waived for the last sweep of the fiscal year.

Recommended action
Clear all transactions posted to OSAs (AAQxx) with suspense expenditure type 51610, including:

  • Vacation earnings (SOV/VCR)
  • Retro salary payments for previous pay periods

To view and manage suspense account information (AP Default PTA, OSA PTA, and OSA Sweep PTA) for your budget unit, use the Suspense Account Query Tool; only authorized budget officers may request changes to suspense accounts.

To monitor the status of LDA transactions, review them in the LDA system’s At-a-Glance page or run the Labor Distribution Adjustments (Real-time) Report.

Questions/support: Submit a support request.


Expenditure Type and 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 p.m.
  • The freeze is in effect beginning Sept. 1 and ending Oct. 31.
  • If you submit a request by the Aug. 1 deadline, every effort is made to process your request in time for the August close.
  • Requests submitted Aug. 2 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.

Resources and support:


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.


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 & 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. 

These helpful OBI reports and instructions help you prepare for and complete year-end close:

Record all expenses

Manage funds

Schedule delivery of BI Publisher reports

OBI How To Guide: Scheduling BI Publisher Report Jobs provides step-by-step instructions to receive BI Publisher reports, such as the Fiscal to Date Fund Statement (Current year and prior year only) (153A) and Monthly Expenditure Details Statement (285), via email at the frequency you prefer – daily, weekly, or on a specific date and time.

Last Updated: Jul 22, 2024