Fiscal Year End Process
Introduction: During the end of a fiscal year (the month of June), Purchasing will receive requests for purchases to be issued either in the old fiscal year, or in the new fiscal year. Many departments are spending the remaining money that they have for one year, or are dipping into next year's funds a little early.
- Year End Hours
To accommodate us entering purchase orders into both fiscal years in CUFS, FSS arranges for CUFS to open the new year for one hour each morning so PA's can enter purchase orders in the new fiscal year. Then FSS changes CUFS back to the old fiscal year and we enter purchase orders the rest of the day in the old fiscal year. Only one Fiscal Year can be open (active) at one time.
On the last working day of the old fiscal year (last working day on or before June 30th), that we can enter purchase orders into CUFS, FSS arranges for the entire day to be dedicated to the old fiscal year. This is to ensure that we get all of the last minute requests into the old year.
- Document Cutoff
Department Accounting personnel are notified of Purchasing's document cutoff date. They must have their documents to our office before NOON on the stated date. This is to allow us time to enter those documents in. If a request comes in after noon on that day and it is possible to get it keyed into CUFS, do it. All staff must be cautious to watch for any requisitions that come in at this late date, so we are able to meet our commitment to the departments and enter the order. Missing the entry of a document potentially means the department may lose the money or grant funds if they can not prove it was encumbered in CUFS by a certain deadline.
- The New Year
Starting on the first work day on or after July 1, CUFS will now only show the new fiscal year. Purchase Orders should not be entered in the old fiscal year.
- Roll Over
Around the 3rd week of July, FSS runs a report that moves any open purchase orders into the new fiscal year using a system generated modification. Now any old purchase orders that were still open in the old fiscal year are rolled into the new fiscal year and are available for invoices to be processed against them. The Office Manager has a significant responsibility in this area. See also Fiscal Year End Closing.
- Change Orders
Doing change orders is a tricky task during this time. During June, when you may be entering original documents in either an old fiscal year or the new fiscal year, you MUST be sure that any change orders are done exactly the same accounting period and fiscal year as the original order.
If an original order and change order get processed in separate fiscal years (and CUFS does allow this), there will not be an error message, but later in August when FSS is officially closing out the last fiscal year and "balancing the books", they will not be able to balance since the encumbrance is recorded across two years. This is not an easy fix and causes much explanation by everyone.
Last Revised: December 12, 2001
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