Finance Update Sessions FY14

Fiscal Year End
Review Session
Year End Schedule
Dual Year Processing
Review of Indexes
Purchase Order
Commodity Level Accounting for PO’s
Accounts Payable
Key Year End Dates
– June 25 - DPRs, JVs and IDVs to be included
in FY14 are due to Fiscal Monitor.
– June 27 - Last day to purchase items from
Bookstore. The Bookstore will not be closed
during year end.
– June 30 - any FY14 ELRs must be completed
and approved by all parties.
– July 1 - Preliminary 1 Close
Key Year End Dates, cont.
– July 7 - P-Card transactions through
6/19/2014 will be posted to Banner.
– July 7 - Deadline for JVs from Business
Managers and Research Centers
– July 10 - Preliminary 2 Close
– July 17 – Controller Close – starting at
– July 22 - Final Close reports available after
Dual Year Processing
• You may begin processing FY15 purchase
requisitions on June 2, 2014
• Creating a FY15 requisition during the Dual
Year period:
-Transaction Date must be >June 30, 2014
-Delivery Date must be > Transaction date
Dual Year Processing, cont.
Transaction Date vs.
Activity Date
• Transaction Date – Banner posts transactions to
fiscal years and periods based on the transaction date.
• Activity Date – The date a transaction is actually
entered into Banner.
Reviewing Funds
• General Ledger Review
– Review Assets, Liabilities and Fund Balance
• Look for reverse balances
• Compare for no change from prior year
• AFR exception reports will help identify issues,
but don’t wait for them.
Reviewing Indexes
• Unrestricted Funds
– I&G and Non I&G Funds
• Compare current year activity to prior year
• Question any expense with a credit balance
• Verify that there is not any YTD expense
activity in account code 799800
• Compare budget to actual expenses
Reviewing Indexes, cont.
– I&G Funds
• There should not be any YTD activity in
the following account codes
– Revenue accounts
– Resale accounts
– Applied charges accounts, 795xxx (except in
specific circumstances)
Reviewing Indexes, cont.
– Non I&G Funds
• Question any revenue that has a debit
• Verify that any resale account codes,
77xxxx are appropriate on that index.
Reviewing Indexes, cont.
• Zero all default P-card account codes - 738010
and 738011
• Federally excluded account codes
• Requesting back up documentation for journal
vouchers versus using various reports with
transaction detail (ex: COGNOS, JV text or
Reviewing Indexes, cont.
• Restricted Funds
– Various State of New Mexico billings have a
quicker than normal turnaround time.
• Be prepared to submit final expenditures in order to
avoid the risk of late billing which could result in the
agency refusing to pay.
– Departments should continuously review any
accounts receivable balances that are 120 days or
older and support SPA in collection efforts, to
avoid the write off of receivables at year end.
• Clean up Incomplete Purchase Requisitions
– Review Banner FOADOCU (Document by User)
– Refer to Banner Finance Manual for process to
delete a requisition
Purchasing, cont.
PCard FY 14 Deadlines
• Last FY14 PCard cycle 6/6/14 – 6/19/14
• PCard transactions posted in WellsFargo by
6/19 will be posted to FY14
• PCard transactions posted in WellsFargo after
6/19 will be posted to FY15
• Business managers will be contacted to assist
with outstanding PCard balances in their areas
• Review Open Reservations and Open
– Use Finance Self-Service
• View Reservations
–Budget Queries
–Operating Ledger Data Column, check
–Input Index
Encumbrances, cont.
Check Reservations
Encumbrances, cont.
Drill down on account code
Encumbrances, cont.
View list of reservations
Purchasing, cont.
• View open encumbrances
– Encumbrance Query
– Input Index number
Purchase Order, cont.
All POs for fiscal year will appear
Purchasing, cont.
• Completion of Receiving
– Banner FOIDOCH
• Document History
Purchasing, cont.
Purchase Order
• Purchase Order History
– Finance Self-Service
• View Documents by Purchase Order
– All transaction associated with Purchase
– Invoice will show summary of Purchase
Purchase Order, cont.
All transactions related to PO
Purchase Order, cont.
Summary of PO
Commodity Level Accounting for PO’s
• Commodity Level Accounting is a way of processing
requisitions in which each “line” (commodity) of the
requisition has its own accounting distribution
-When using multiple FOAPALS, you can
identify a specific item to be paid by a certain
-Payment distribution can specify a dollar amount
given for a FOAPAL
-Once invoiced each line will be paid as
indicated on FOAPAL distribution
-A change in FOAPAL can be made
Commodity Level Accounting for PO’s,
• Commodity Level accounting is the default on
all purchase requisitions
• Use Commodity Level in these instances:
– Mixed Commodities
– Asset Tags required
Commodity Level Accounting for PO’s,
Original PO
Commodity Level Accounting for PO’s,
Commodity Level Accounting for PO’s,
Invoice, cont.
• Reminders on Purchase Requisitions using the
– Requestor/Delivery Information tab
• Input phone number and email address
– Item text versus Document Text
• Item text expands on description of item
• Document text applies to information related to the
whole purchase requisition (example: enter free form
information and select clauses)
Purchasing, cont.
– Assign clauses
• 03 Federal Grant
• 04 Federal Contract
• 08 Delivery Before July 1
• 14 Delivery After July 1
• 63 End of Year Payment Delay
– List commodity items separately, do not combine
Purchasing, cont.
• FGRIDOC (Incomplete Document Listing)
– E-print
• FPIOPOF (Open Purchase Orders)
– Banner Screen
Accounts Payable
• Notable Dates
– Remaining FY14 PO invoices will not be paid
between 2nd and 3rd close
– FY15 PO invoices will not be processed until July 1st
– Between 2nd and 3rd close, only FY15 PO invoices
will be paid. FY14 encumbrances will not be rolled
forward to July until 3rd close (July 17)
– NOTE: All DPRs received after June 30, 2014 will be
posted in FY15
• Full accrual financial statements require income to be
reported when earned and expenses to be reported
when incurred.
• Our financial statements must include all revenue
earned and expenses incurred in FY14, even if the
transactions have not been completed. The year end
accruals adjust the revenues and expenses that are in
Banner to amounts required for full accrual financial
Accruals, cont.
• Types of Accruals
Three-way match
Two-way match
Accruals, cont.
Purchase Order Definitions
– Two-way match
• The terms of the PO requires that the invoice be
matched to a line on the PO before the invoice
can be paid.
– Three-way match
• The terms of the PO require that the invoice be
matched to the PO, and that the goods/services
have been received in Banner, before the
invoice can be paid.
Accruals, cont.
• There is a process that automatically identifies and
posts three-way match PO accruals. The criteria used
to identify the amount to be accrued are:
– As of June 30, 2014
• A valid three way match PO exists
• Goods/services have been received in Banner
• The Invoice has not been posted in Banner
Accruals, cont.
• The accrual process for two-way match POs isn’t that
easy - you must tell us which of your two-way POs
should be accrued and how much we should accrue.
• COGNOS form is FI-Det-Two Way PO Encumbrance
– If you received the goods or services on or before
June 30, 2014 the value of those goods or services
should be accrued.
• PO balances for plant funds charged to account codes
754x, 782x, 783x and 792x will not appear on the twoway report. These POs are included in the Construction
or Subcontract accrual reports.
Accruals, cont.
• Subcontract accrual process:
– AFR uses a COGNOS report to identify
– Banner Subcontract form is FGIENCD
– Each department will be sent a list of their
subcontracts and asked to provide information on
any services rendered before 7/1/14 that have not
been billed to the University.
– Based on information received, AFR will post the
subcontract accrual.
Accruals, cont.
• Construction accrual process:
– Facilities and Services are given a list of open PO
balances associated with large construction
– Facilities and Services personnel review the POs
and if necessary, contact the vendors to determine
the appropriate accrual.
– AFR posts the accrual based on information
Accruals, cont.
• Details of the Two Way Accrual Process:
– AFR runs a COGNOS report that lists open two-way
match POs.
– Each department will receive a list of their open twoway match POs for review.
– Departments are asked to review the information and
provide AFR with a list of the POs should be accrued
for year-end, and the amount of each accrual based on
invoices or correspondence from the vendor.
FIP JV Processing
• Electronically Routed JVs (JEC/JED, B4C/B4D)
– These must be routed through Banner queues for approval, so
consider the timing when close to month end
• Electronic JVs (JE16s, CR05s, &c)
– Consider FIP and Fiscal Monitor deadlines
– Hard copies requiring fiscal monitor signatures
– Physical copy & electronic copy sent to fiscal monitors who
forward them to FIP after review
• Manual entry (IDVs, CR05s, &c)
– Less than ten lines
– Consider FIP and Fiscal Monitor deadlines
• Plan ahead! Errors cause delays.
FIP JV Processing
• Electronically routing JVs– Remember that year
end is a busy time, so plan ahead to avoid delays.
• Uploads requiring signatures– Non-routing
uploads (JE16s, etc) must come to FIP from fiscal
• Posting schedule– Uploads submitted late in the
period may be delayed by errors. Timely and early
submission to fiscal monitors will help avoid delays.
FIP JV Processing
• Errors will cause delays in processing
• Tips to avoid common errors:
Make sure index is valid (i.e., not termed, etc.)
Make sure username is authorized to post
Double-check account numbers
Use the correct spreadsheet (JE16 vs. JED, etc)
Make sure transaction date is in the current open
• Electronic Processing (Uploads) of Budget,
Journal Vouchers, and Cash Entry Vouchers is
mandatory for entries with over 10 lines.
• Routing Reminders:
– If there are any restricted funds - route the
electronic file to SPA.
– If there are no restricted funds – route the
electronic file to AFR
Upload Templates
Ben Glickler – FIP [email protected]
Cynthia Vigil – AFR [email protected]
Lesley Doyle – AFR [email protected]
Rennette Apodaca – Purchasing [email protected]
Robert Valdez – Property Accounting
[email protected]

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