What You Should Know
Preparing for Year End Close
As the University prepares to close its fiscal year using Prime Financials, there are a number of actions departments should take to understand and be prepared for the close. More information on the overall close process and schedule can be found on the Year End Close webpage. The year end close process affects virtually every aspect of Buying & Paying and Travel & Expense processes as outlined below:
Purchase Orders Across Fiscal Years
On a regular basis, departments should review all open purchase orders (PO) to ensure that those POs are necessary and accurately reflect current business. Run FIN038 (Purchase Order Summary), FIN040 (Purchase Order Detail), or FIN065 (Current Open Purchase Order Encumbrances) to assist with this review. A purchase order that is open at the end of FY17 will remain open at the start of FY18 but cannot be managed through the requisition.
Prime Financials automatically closes purchase orders where all distribution lines are fulfilled and when no match exceptions exist. POs with no or small balances or that are inactive, are being closed centrally by Finance and Treasury. Please email the Financial Service Center at firstname.lastname@example.org if you identify additional POs that you would like to close.
Please note that, after July 1, 2017, departments will not be able to execute any changes to POs created in FY17 or earlier via the requisition. Those changes may be made by sending an email to email@example.com. POs created July 1, 2017 or later may be updated by departmental users by following the processes to Create a PO Change Request or Change a PO Distribution Line.
Pending Vouchers at Fiscal Year Close
Vouchers that are in match exception or have pending workflow approvals at fiscal year close will incur special handling:
- Unapproved vouchers that have been outstanding 30 days or more will be deleted centrally by Finance and Treasury. For PO vouchers the encumbrance balance will be restored by the amount of the deleted voucher.
- For those outstanding less than 30 days, the vouchers will be reversed in June of FY17 and re-posted in July of FY18. Note: For PO vouchers this includes the associated encumbrance transactions.
Manual accruals are not necessary to ensure that appropriate expenses are booked in the proper fiscal year. Prime Financials can create receipt accruals at fiscal year close to account for expenses that are associated with purchase orders that are $2,500 or greater in total. POs under this amount cannot be accrued.
To ensure your expenses are booked in FY17, please take the following actions based on the total value of the PO:
- POs less than $2,500 - The invoice(s) must be received in Procurement Services by June 21, 2017. In order to ensure timely receipt, suppliers should be instructed to send invoices, with the appropriate PO number listed, directly to firstname.lastname@example.org for guaranteed FY17 processing.
- POs greater than or equal to $2,500 - Acknowledge receipt of any goods or services you have received by performingreceiving in Prime Financials. The receiving process is an acknowledgement that you have physically received the goods or had the services performed as outlined on a purchase order. You may receive individual lines or the entire PO, but you should only receive those goods that have physically been received or services rendered. The invoice does not need to be received in FY17 in order to accrue for these expenses.
For POs over $2,500 - You will see receipt accruals reflected in your financial reports as follows:
- FY17 -- The expense associated with the Prime Financials receipt will post in June 2017 financial reports. This is the receipt accrual.
- FY17 -- You will see a credit to the encumbrance associated with the PO where the receipt accrual was posted in June 2017 financial reports.
- FY18 -- An offsetting credit for the receipt accrual will post in July 2017.
- FY18 -- An expense will post when the invoice with PO number indicated is sent by the supplier to email@example.com in FY18. The offsetting credit that was posted in July 2017 plus the amount of the actual expense of the invoice should net to $0 financial impact in FY18.
FY18 -- You will see a credit to reduce or liquidate the encumbrance associated with the PO when the invoice with PO indicated is sent by the supplier to firstname.lastname@example.org in FY18.
University Credit Card Transactions and Out-of-Pocket Expenses
To ensure your expenses are posted in FY17, Travel and Expense Card activity and any requests for reimbursement must be submitted on an expense report in Concur and approved by June 23, 2017. Accounts Payable will continue to process expense reports received after this date on a first-in, first-out basis.
Departmental Purchasing Card (P-Card) holders will see two statement reports in Concur for their June activity. Your final statement report for FY17 will reflect the activity posted to your P-Card between June 1 and June 15. This activity should be submitted and approved in Concur no later than June 23, 2017 in order to ensure the activity posts in FY17. Transactions which post to your P-Card after June 15, 2017 will be included on your July Concur statement report. Your July 2017 Concur statement report will cover a 6-week period to include all charges which posted to your card between June 17 and July 31. These charges will post in FY18.
- Use the weekly unexpensed transaction report to identify transactions older than 30 days and encourage users to substantiate and submit that activity in Concur as soon as possible.
- Out-of-pocket expenses incurred more than 60 days prior to their submission in Concur will require additional review and processing time. Late submissions may be subject to taxation and may not post in time for FY17.
- If more information about an expense is required or if its allowability by university policy is unclear, additional details or approvals may be requested and the processing time for that expense report may increase as a result.
Spring Clean Up for Year End Close
This list will give you a head start on steps you can take now to close out fiscal year 2017. As a best practice, you can include these steps as part of a monthly process.
- Match exceptions – make sure that any match exceptions are cleared. Run FIN041 and select “Match Exceptions Exist” in the “Match Status” selection box to report on match exceptions for your department. Check the Match exceptions reference guide for more details.
- University credit cards – review, substantiate, and submit any travel and expense credit card transactions that are more than 30 days old, or any departmental purchasing card transactions from all closed statement periods.
- Place your orders now – if you have goods or services that you plan to purchase this fiscal year, ensure that the supplier is added, and enter the requisition and submit for approval. Allow the appropriate amount of lead time for receipt of the order. Suppliers should send invoices directly to Accounts Payable at email@example.com.
- Complete receiving in Prime Financials when goods or services have been received. When you receive goods or services against a PO in Prime Financials, the Prime fiscal year close process will create a receipt accrual to book the expense at the time of receiving, regardless of when the actual invoice is received and paid. A reversing accrual will automatically be generated and post in the first week of the new fiscal year, and will correctly offset the actual invoice payment when it happens in FY18.
- Process reimbursements due – whether it’s faculty, staff, or student reimbursements using an expense report in Concur, or guest reimbursements via a non-PO payment request, submit reimbursements in a timely manner. Remember that reimbursement requests submitted more than 60 days after the expenses were incurred will require additional review and approval, as well as additional processing time, and may not post in time for FY17. Late submissions may also be denied or may be subject to taxation. See the University’s Reimbursement Policy for more details.
- Cash advances -- cash advances should be substantiated or returned to the University no later than 120 days after being received. Outstanding cash advances of more than 120 days may be deducted from the individual’s pay.
- Supplier adds – are you hosting a guest speaker and expect to pay an honorarium or request a guest reimbursement this spring? Collect the appropriate documentation and begin the supplier add process now.
- Prime Purchase Orders -- Prime Financials will automatically close any purchase orders created in Prime where all distribution lines are fulfilled when there are no match exceptions. Review step-by-step guides – including Create a PO Change Request and Change a PO Distribution Line -- to clean up any PO information. PO’s that are not fulfilled and are no longer needed may be closed by emailing the PO number to the Financial Service Center.
- Approvals – If you’ve created requisitions or non-PO payment requests that have not yet been approved, work with your approver to complete the approval process. Run FIN038 (Purchase Order Summary) or FIN041 (Payables Detail) and select “Approval Status: Pending” to see your pending activity.