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 to an appropriate PTA).
This page gives an overview of the stages of year-end close, specific processes, and reporting resources to help complete these processes. For key deadlines and guidance for the current year-end close, see the year-end close news page. To stay informed of YEC deadlines, subscribe to our year-end close email list.
At year-end, there are preliminary closes before the final close to allow schools/units 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 period, transactions for the new fiscal year can be entered into Oracle Financials but will not be posted until the prior year is fully closed.
The year-end close officially begins at the end of August. 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 meet to meet deadlines related to payment and reimbursements (such as Accounts Payable and Expense Requests system transactions), organization suspense account clearing, Form 1, capital template, endowment payout, and others.
- AP module closes.
- This is the final cutoff to process transactions for iJournals Public users and for Labor Distribution Adjustments users.
- By the end of this stage, all new expenditure transactions are finalized for inclusion for August.
- 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 Ledger (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.
- Processing of all pending data for September activities begins. Complete data will be reflected in reports by the end of September
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. For specific deadlines for the current fiscal year-end close, see Year-End Close Calendars.
Approval of Form 1
Form 1 for capital and non-capital projects must be approved by Aug. 1, 5 p.m. for inclusion in the current fiscal year. For more information, refer to Form 1 System (Project Initiation).
Questions? Email Capital Planning and Space Management (LBRE) at @email.
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 impacted payroll line.
During year-end close, departments should clear all transactions on 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 the new fiscal year. OSA sweep fees are waived for the last sweep of the fiscal year.
- To clear all transactions posted to OSAs (AAQxx with suspense expenditure type 51610), including vacation earnings (SOV/VCR) and retro salary payments for previous pay periods, refer to How to: Identify and Clear Organization Suspense Accounts (OSAs) for Labor.
- To view 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.
- Submit requests using Request New Expenditure Type or Object Code and Request to Change Existing Expenditure Type or Object Code.
Impact
- 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.
Resources and support:
- For details about the request and approval process, see Topic Overview: Request New or Change Existing Expenditure Type or Object Code.
- Questions: Contact Contact Matt Savage at @email in Financial Analysis and Information Reporting.
PTA Maintenance Blackout
PTA Maintenance Blackout is a system control that prevents updates to PTAs during year-end close activities to ensure minimal interruption to back-end processes that may fail because of PTA updates. Please refrain from updating PTA segments during the blackout period. Refer to Learn About System: PTA Manager for information on creating, updating, and closing PTAs.
Reasons why transactions may fail during the blackout period:
- Award status: The status of the award was changed to Closed or On Hold.
- Project status: The status of the project was changed to Closed.
- Closed PTA end dates: The end date of the project, task, or award was shortened. Note: Extending the end date of the project, task, or award is allowed.
- Transaction controls: An expenditure type was added to the Transaction Controls list, of a project or task, to prevent charges.
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
- To find pending transactions that need to be completed, use aging reports:
- To find invoices that are on hold or aging and need action before they can post to a PTA, use Procure to Pay at a Glance.
- How To: Clear Organization Suspense Accounts for Labor provides instructions on how to find and clear organization suspense accounts (OSAs). For inclusion in the current fiscal year, submit and approve all labor distribution adjustments by the deadline indicated in the YEC Interactive Calendar. Year-end close OSA sweep fees are waived.
- Two ways to monitor the status of LDAs:
- Review LDAs in your At-a-Glance page in the Labor Distribution Adjustments system.
- Run the Labor Distribution Adjustments (Real-time) Report.
- Two ways to monitor the status of LDAs:
- Additionally, processors and approvers can use the Oracle Financials Inquiry Tool: Pending Transactions to both see the status of and, in some instances, take action on pending transactions.
Manage funds
- Fund Statement helps monitor available balance to find awards that are in overdraft, especially cost shares which need clearing.
- Transfer Detail Report shows the transfers to and from your awards. Enter AUG-YYYY for both Beginning and Ending Period to limit to August only transfers.
- Projected Budget Variance compares actuals with expected amounts for both revenue and expense to suggest variances for investigation.
- Inactive Awards Report shows unused funds, while Unused and Underwater Endowment Funds Dashboard identifies endowments that are underutilized and building up balances or underwater and unavailable to be used.
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.
- Year-End Close Calendar
- Interactive version (filter by close stage or business function; monthly calendar view)
- Printable version (monthly calendar view; multi-page PDF)
- Year-End Close Summary of Deadlines (list view; one-page PDF)
