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Administrative Policy & Procedures Manual » FIS Manual » 800 Fiscal Year End Processing.

OSU FIS 800: Closing the Books

Fiscal Operations Manual
Section 800: Closing the Books
Effective: 01/01/2003
Revised: 07/11/2008

801   Closing of the Books

Each year, during the 4th week of May, the Office of Business Affairs distributes Year End Closing instructions to campus departments with specific dates and deadlines for that year.

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801-01 Cash  Receipts

All cash receipts must be received by the Cashiers Office by noon on the last working day of June, for inclusion in the current fiscal year accounting records.  Deposit all cash receipts in a timely manner.  Do not accumulate receipts for one final deposit.

Off campus locations (e.g., Ag. Experiment Stations and Extension offices), after making the final deposits at the bank, must provide detailed receipt information, including the final deposit information, to the Cashiers Office (by fax at 541-737-0625 or by e-mail at cashiers@oregonstate.edu) by noon on the last working day of June.  Don’t follow these fax or e-mails with hard copy.  Cashiers Office closes at 3:00 PM on that day.

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801-02 SIS Accounts Receivable

For inclusion in the current fiscal year accounting records, all accounts receivable transactions to be entered by Business Affairs must be received by on the date specified in the year-end closing instructions.

Departmental entry of SIS accounts receivable transactions must be completed by the last working day in June.

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801-03 Invoices

For all Funds: For current fiscal year invoices that represent goods or services received on or before June 30th, process each invoice in the current fiscal year accounting records by using a June transaction date (current fiscal year, period 12).  See each year’s schedule for deadlines for all departmental approvals, and the date that all paper invoices must be received by the Business Affairs Accounts Payable office.

For all funds:  For current year invoices received after the specified July date, maintain listings of all current fiscal year invoices processed in the new fiscal year accounting records that represent goods or services received on or before June 30.

  1. For current fiscal year invoices received during the July time period specified in the current year’s schedule:
    Record each invoice on the Year-End Accrual Spreadsheet and process in period 01 of the new fiscal year accounting records by using a July transaction date.

  2. For current fiscal year activity (goods and services received by June 30) for which invoices have not been received as of the date specified in the current year’s schedule:
    For each invoice yet to be received, enter an estimated amount on the Year-End Accrual Spreadsheet.  When the invoices are finally received, they should be processed in the new fiscal year accounting records by using the then current date as the transaction date.

  3. Completion of Year-End Accrual Spreadsheet:
    All Year-End Accrual Spreadsheets must be received in the Business Affairs Accounts Payable office on the date specified in the current year’s schedule as both a printed copy and an email file -- deliver to Office of Business Affairs, Attention Business Affairs Accounts Payable office, Year-End Closing.  Off-campus Extension offices send their electronic file to the Extension Business Office.

For invoices for the new fiscal year, process each invoice in the new fiscal year accounting records by using the current date as the transaction date.  For off-campus Extension locations, follow instructions issued annually by the Extension Accounting Office.

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801-04 Auto Pays (including Purchasing Card)

Auto Pays (e.g., Boise Cascade, OSU Bookstore) are expenditures charged directly by the Office of Business Affairs to departmental accounts via journal voucher (“VXxxxxxx” documents).  OSU has approximately 40 direct pay vendors and each direct pay vendor sets its own billing cycle.  To be sure that purchases from direct pay vendors are included in the current fiscal year accounting records, complete those purchases by the date specified in the current year’s schedule for year end close.  Purchases made between that date and June 30 may appear in either the current fiscal year or the new fiscal year accounting records based on the auto pay vendor’s billing cycle.

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801-05 Travel

All travel advances and reimbursements for travel incurred up through June 30 must be included in the current fiscal year accounting records.  The reimbursement requests must be completed and in the Business Affairs Accounts Payable office by noon on the date specified in the current year’s closing schedule. 

Airfare purchased in the current fiscal year with departure dates in the new fiscal year must be reflected in the new fiscal year accounting records.  The Office of Business Affairs processes the airfare billings from the travel agencies.  Any expenses that have not posted by period 12 close should be put on the accrual spreadsheet.

When a trip spans the end of one fiscal year (June 30) and the beginning of the next fiscal year, there are various options for processing the reimbursement.

Option 1:  The amount of the trip that has not already been processed can be entered on the Accounts Payable Accrual Spreadsheet Report so the total cost s recorded in the fiscal year the trip began.

Option 2:  Final travel costs are not recorded until the reimbursement is processed in the fiscal year when the trip ended.

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801-06 Payroll

See the dates on the Payroll calendar and on the current year’s schedule. Redistributions for the current fiscal year need to be made by the period 12 payroll redistribution deadlines.  Any attempt to make prior year redistribution’s in the next fiscal year will be reviewed for the effect on the financial statements.  No retroactive redistributions will be allowed which affect Program Codes or are between funding sources (restricted, general, and auxiliary).

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801-07 Purchase Orders

  1. See the current year’s schedule for purchase requisition deadlines.

  2. See the schedule for the date that Period 01 of the next fiscal year is open for entry of new fiscal year purchase orders and   encumbrances.

  3. Purchase orders remaining “open” at the end of the current fiscal year period 12 will be rolled into period 01 of the new fiscal year accounting records.  It is critical that the “open” purchase orders are indeed “open” and do not include those for which final payment has already occurred. 

  4. Before the last Friday in June, please use the FGROPNE report to locate all purchase orders for which final payment has already occurred.  These encumbrances should be liquidated with a JV.  By the time and the date specified in the current year schedule, verify that all completed current year purchase orders are closed.

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801-08 Manual Encumbrances

Manual encumbrances (“E” documents) remaining in the current fiscal year accounting records will be rolled into the new fiscal year accounting records.  Therefore, all manual encumbrances must be correct on the last working day in June.

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801-09 Journal Vouchers

Non-budget

  1. Inter-institutional journal vouchers for the current fiscal year must be submitted to the Office of Business Affairs by noon on the date specified in the current year schedule.
  2. All other journal vouchers for the current year accounting records may be processed after June 30, so long as they contain a June transaction date and are completed by the July date specified in the current year schedule.  Starting July 1, head each JV “text” with the fiscal year that the transaction is for.
  3. Redistributions for the current fiscal year need to be made by the deadline for period 12 JV’s.  Any attempt to make prior year redistribution’s in the new fiscal year will be reviewed for the effect on financial statements.  No retroactive redistributions will be allowed which affect Program Codes or are between funding sources (restricted, general, and auxiliary).
  4. Beginning on the date specified in the current year schedule, only adjustments and accruals may be recorded for the current fiscal year period 14 (such entries must use rule code 3JV1 & June 30 of the current year as the transaction date).

Budget

  1. Budget Office current fiscal year budget adjustments for over/under realized revenue, grad fee remission and grad RRD support will be completed and posted to departmental indexes by the date specified in the current year schedule.

  2. All current year budget change requests between units and/or between funds (those that cannot be completed using departmental 1xxx rule codes) must be submitted to the Budget Office by the date specified in the current year schedule.

  3. All current fiscal year departmental budget change JVs (using departmental 1xxx rule codes) processed after the close of business on June 30 must carry a June transaction date.  Departmental budget change JVs must be completed and approved by the date specified in the current year schedule for year end close.

If departments or colleges have a budget adjustment need after the specified July date, contact the Budget Office at 737-4121 or send e-mail to budgets@oregonstate.edu.  There will be a time period in July when only administrative budget offices (OSU Budget Office, Agricultural Experiment Station, Extension Service and Forest Research Lab) will be allowed to process budget adjustments for the current fiscal year. 

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801-10 Funds with Negative Cash Balances

Gift Funds (M’s, FS, FE, 438xxx, and some FA).  Gift Funds require a positive cash balance.  Cash received and posted after noon on the last working day in June will be reported in the next fiscal year and will not show as cash (A0901) in the current fiscal year.  Therefore, it is important that gift fund balances are closely watched and that expenditures are not made against those funds unless cash is positive, or funds are available at OSU Foundation for immediate reimbursement.  

All funds must have a positive cash balance at the close of period 12.  If there is an overdraft at that time, the expenses will be moved to the departmental general funds to clear the negative cash balance.  Reminder – direct payments such as Printing/mailing, Transportation services, Telecommunications, and OSU Bookstore process with June 30th or before dates, and because these are JV’s, they immediately affect cash even though the process may be run up to period 12 close (in July).

FSxxxx OSU Foundation reimbursement funds are considered gifts to the university and must also be positive at year-end.  Be aware of this when processing requests to OSU for payment and then making a request to OSU Foundation for reimbursement.  All checks written on or before June 30th will affect the cash balance and cash must be received from OSU Foundation by the last working day in June for these payments.  Remember, payroll and OPE may post after June 30th, but with a June 30th transaction date.

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801-11 Funds with Negative Fund Balances

Specific funds may not have negative fund balances at June 30.  The necessary adjusting entries to resolve any negative fund balances must be recorded in the current fiscal year accounting records by the specified date on the current year’s schedule, using a June 30 transaction date. 

  1. Negative Designated Operations (05XXXX) Fund Balances:
    Determine the Fund Balance as of June 30 by using Banner screen FGITBSR.  If the fund balance shows as negative (Debit Balance) and funding is necessary, process a journal voucher that debits the departmental general fund index using account code 24901 and credits the designated operating index using account code 09398.  This is the only time a 09xxx account code can be used on funds other than 09XXXX funds.

  2. Negative Service Center (090XXX) Fund Balances:
    Determine the Fund Balance as of June 30 by using Banner screen FGITBSR.  If the fund balance shows as negative (Debit Balance) and funding is necessary, process a journal voucher that debits the departmental general fun index and account code 24902 and credits the service center index using account code 09398.

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801-12 Clearing Funds (095XXX)

At year-end, no balances can remain in any operating ledger accounts (AXXXX, BXXXX, CXXXX) of clearing funds.  Departments with clearing funds have until the date specified in the current year’s schedule to complete journal vouchers using a June 30 transaction date to make the necessary adjustments.  (Note:  If the transaction is done in period 12, use the rule code 3JV1.  If the transaction is done in period 14, rule code 3YEC must be used.)

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801-13 Inactive Funds 

  1. For inactive funds with a $0 dollar balance, submit all requests for termination of FOAPA chart of accounts elements and indexes to the Budget Office by the May date specified in the current year’s schedule for Year End Close.
  2. For inactive funds with a dollar balance, discuss appropriate action necessary to clean up funds with Business Affairs staff.

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801-14 Balance Sheet Analysis

Balance Sheet Reconciliation:  General Ledger

Purpose:  The purpose of Balance Sheet Account Code reconciliation is to ensure and demonstrate that:

  • The ending balance for a balance sheet account is equal to the total of all supporting detail.
  • All amounts in the ending balance are appropriate for that account (for example, an accounts payable item contained in the reconciliation detail list is owed to a vendor).
  • The items contained in the detailed list are current items.

All reconciliation detail schedules of Balance Sheet Accounts will be available to the OUS Controller’s Division and the independent auditors of OSU’s Financial Statements to support the reported balances.  The auditors may use them to confirm balances with vendors or customers and subsequent tracing to disbursements or cash deposits in order to verify the reported balances.

Requirement: The following requirements relate to all Balance Sheet Account Code reconciliation for all Fund Groups: 

  • Prepare a detailed reconciliation for all Balance Sheet Account Codes A1XXX, A2XXX, A3XXX, A5XXX, B03XX, B4XXX, and B5XXX that appear on your specific Fund’s Balance Sheet (i.e. 05XXX, 09XXX, 1XXXX, 9XXXX).  Submit the completed listings to “Closing of the Books, Office of Business Affairs” by the date specified in the current year’s schedule for Year End Close.
  • When preparing this reconciliation only Fund numbers are used in conjunction with account codes beginning with “A” or “B”.  Indexes are not used.  List vendor or person amounts are owed to or from, the date and the amount.
  • Note: Refundable cash deposits (Account Code B4XXX) for keys, uniforms, telephone, facility rental, plan & specs, etc. are recorded in Fund 001998.
  • Exclude:  Do not reconcile Account Codes posted by the SIS Accounts Receivable System.  This is done by the Office of Business Affairs.

BALANCE SHEET AND REPORTS ARE REQUIRED FOR ALL FUNDS AS OF JUNE 30 of the current fiscal year. 

Note that different fund groups have additional requirements specific to the type of fund involved.

In addition to the requirements in this portion of these instructions, be sure to follow the specific instructions for the fund group or groups which apply to your area. 

Note:  All of the revenue and expense accrual Journal Vouchers entered in the current fiscal year must be reversed during July of the new fiscal year by using a July transaction date.  

Use Rule Code 3JV1 for accrual entries during period 14 and a June 30 transaction date.  Use rule code 3JV1 to reverse accrual with July date.

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