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Finance EOY Process

The purpose of this document is to guide users through the process to end the old fiscal year 2017-2018 (FY8) and begin the new fiscal year 2018-2019 (FY9). The following processes are covered in this document:

Copy the 2017-2018 fiscal year (FY8) funds to a new file ID 8 so you can continue to access data and information for FY8.
Close the 2017-2018 accounts for revenues, expenditures, other resources, and other uses in file ID C.
Copy the balance sheet accounts (cash, accounts payable, etc.) from FY8 funds to fiscal year 2018-2019 (FY9) funds in file ID C.
Delete all FY8 transactions and funds in file ID C (the transactions are still accessible in file ID 8) unless the district chooses to keep some FY8 funds open with prior year transactions.
Move the approved budget for FY9 to Finance file ID C.
Prepare to move next year payroll to current year payroll.

It is important to address the following questions as you proceed with the end of fiscal year closing process. Based on your responses to the following questions, the process can have variations that may require a different path. Review the Finance > Finance Checklists > Finance Fiscal Year Option B and Finance Fiscal Year Option B Supplement checklists for additional information:

Are all of the payroll runs and adjustments interfaced?
Are all of the payroll TRS reports interfaced?
Is the TRS On-Behalf Journal posted?
Are the payroll accruals balanced?
- For August year-end LEAs, if only the 10-month employees are accrued and the EOY accruals are not posted, then all 2161 and 2211 object code balances should be zero.
- For June year-end LEAs, accrual amounts should exist for contract balances.
Is the cutoff date updated on the District Administration > Options > Purchasing > Current Year and Next Year pages, if necessary, to prevent purchasing requisitions from being created?
Is the cutoff date updated on the Finance > Tables > District Finance Options page to prevent budget amendment requests from being created?
Are all of the unpaid finance checks printed?
Have all purchase orders been processed, and the final check run completed?
Are you bringing balances forward now in or in the future (after the audit)?
Did you prepare the journal entry to move the 3700 budgetary fund to 3600 fund balance accounts for each fund that will be carrying forward balances? The budgetary fund balance should be zero when moving to the new year.
- Payroll processes cannot be posted against the historical file ID.

If you are an, ensure August payroll accruals are processed and interfaced to Finance, and then refer to the Address August Accruals document.

If you are a June year-end district, use the Address EOY Accruals for June Year-End Schools document to address payroll accruals.

This document assumes that you are familiar with the basic features of the TxEIS Business System and have reviewed the TxEIS Business Overview guide.

Click here to print a PDF of this page.

Before You Begin

Before you begin.

Review the following information and/or complete the following steps before you begin the Finance EOY closing process.

Terms:

Term	Description
CYR payroll frequency	Current year payroll frequency in Payroll.
June Year-End (early fiscal year)	A Finance fiscal year that runs July through June.
Export	A backup file of data as it stands at the time it is exported from the system. Export or backup files can later be used to restore data to its original state at the time of extraction.
File ID C	Current year file ID in Finance.
Historical file ID	Refers to any prior year file ID that is not the current year file ID.
LEA (Local Education Agency)	Refers to the educational entity (e.g., charter, district, etc.).
NYR payroll frequency	Next year payroll frequency in Payroll.
August Year-End (standard fiscal year)	A Finance fiscal year that runs September through August.

EOY Flowchart for September Start LEAs

IMPORTANT

Consider the following information when closing the fiscal year:

❏ Will you select to increment or continue funds on the Fiscal Year Close utility?

❏ Review each action and the corresponding results to make an informed decision.

Note: For continuing funds, verify that there is not a balance in the Budget offset account (e.g., 3700) prior to running the Fiscal Year Close process. If there is a balance prior to running the process, the fund will be out-of-balance by the amount from the Budget offset account.

Continuing Fund	vs.	Increment Fund
Continuing funds are funds that will be continued into the new fiscal year (i.e., funds maintaining the fiscal year even after the LEA begins the new fiscal year). If a fund is continued, the following actions are automatically completed when the Fiscal Year Close utility is processed: • The 1XXX-4XXX account balances are carried forward (the Carry Forward Balances field is automatically selected). • The 5XXX-8XXX account balances are created (the Create 5XXX-8XXX field is automatically disabled). • The budget amounts that match the ending balances in the historical file ID are set up for the 5XXX-8XXX accounts. For example, if only $8,000 of a $10,000 grant has been received, then the difference of $2,000 is established as the estimated revenue. • The difference between revenue and expenditures will post to the Obj.Sobj in the Actual Fund Balance Obj.Sobj field on the Finance > Tables > Account Codes > Fund tab. • In the new historical file ID, accounts are inactivated for all continuing funds. Incremented funds remain active. • Only purchase orders that include continuing funds are re-encumbered. Purchase orders that are split-funded and include funds where the fiscal year is only being incremented will be deleted. For example, if a purchase order is split between 211 (continuing fiscal year) and 199 (incremented fiscal year), then you will have to re-enter the purchase order in the new file ID. • Be aware that purchase orders containing continuing funds will be displayed in both the historical and new current file ID but should be paid in the new file ID. • The fiscal year is not updated on credit memos. • The fiscal year is not updated on outstanding Accounts Receivable invoices. • The fiscal year is not updated on payroll and PMIS distributions.		Incremented funds are funds that will be incremented in the next fiscal year (i.e., funds that will change their fiscal year at the same time that the LEA’s new fiscal year will begin). The increment option is not available if the incremented fund already exists. For example, in September 2023, funds 211/3 and 211/4 already exist; therefore, 211/3 can only be continued or deleted. If a fund is incremented, the following actions are automatically completed when the Fiscal Year Close utility is processed: • The fiscal year is incremented on credit memos. • The fiscal year is incremented on outstanding Accounts Receivable invoices. • The fiscal year is incremented on the payroll and PMIS distributions for active employees only. • Only purchase orders that include continuing funds are re-encumbered. Purchase orders that are split-funded and include funds where the fiscal year is only being incremented will be deleted. For example, if a purchase order is split between 211 (continuing fiscal year) and 199 (incremented fiscal year), then you will have to re-enter the purchase order in the new file ID. The following are optional: • Carry Forward Balances • Create 5XXX-8XXX Accounts

1

Create an Export of File ID C

Create an export of file ID C.

2

Delete 1099 Data

Delete 1099 data.

3

Reverse Soft Encumbrances

Reverse soft encumbrances.

4

Generate, Print, and Review the Outstanding Purchase Orders Report

Generate, print, and review the Outstanding Purchase Orders report.

5

Reverse Purchase Orders

Reverse purchase orders.

(If applicable) Reverse purchase orders

Log on to file ID C.

If your LEA uses the purchase orders functionality in the Purchasing application, use one of the following methods to reverse purchase orders:

Finance > Utilities > Fiscal Year Processing > Mass Purchase Order Reversal > Reverse PO by Fund OR Reverse PO by Range

Reverse the applicable purchase orders by fund or range.

Note: Keep in mind that the Fiscal Year Close process automatically re-encumbers purchase orders for continuing funds in the new file ID. If a purchase order should not be re-encumbered because it was not fully liquidated but should have been or it was not fully liquidated and will be canceled, use the Reverse PO by Range tab to delete the purchase orders by number.

Prior to reversing outstanding purchase orders, determine if purchase orders are going to be paid against your historical file ID.

It is recommended to proceed with the reversals and pay the purchase orders with a payment authorization in the historical file ID if needed. Be sure to reference the purchase order number.

If you have additional questions about this process, contact your regional ESC consultant.

❏ Select the fund/years for which you want to reverse purchase orders. Use the arrow buttons to move fund/years from the left side to the right side of the page. Only select the fund/years that are not staying in the current year. For example, if you have a multi-year fund that will continue into the new year, do not move it over.

❏ Click Execute. A preview report is displayed with a list of purchase orders to be reversed.

❏ Click Process to continue.

❏ If you receive a message about deleting related requisition records, click Yes. A message is displayed indicating that the process was completed successfully.

❏ Click OK to close the message box.

Use the Finance > Inquiry > General Ledger Inquiry > General Ledger Account Summary tab to verify the reversals. Enter a 4310 object code and mask (X) the rest of the account code to verify the reversals.

6

Address Unprocessed Payment Authorizations

Address unprocessed payment authorizations.

7

(If necessary) Reverse/Delete Credit Memos

Reverse/delete credit memos.

8

Delete CY Budget Amendments

Delete CY budget amendments.

9

Review File IDs

Review file IDs.

10

Delete File IDs

Delete file IDs.

11

Copy Current File ID to New File ID

Copy current file ID to new file ID.

12

Prepare the Current File ID

Prepare the current file ID.

13

Review the Account Code Table

Review the account code table.

14

Close Funds

Close funds.

15

Perform the EOM Closing Process

Perform the EOM closing process.

16

Delete Deduction Check Transactions

Delete deduction check transactions.

17

Delete Liability Transfer Transactions

Delete liability Transfer Transactions.

18

Mass Update Payroll Accounts

Mass update payroll accounts.

Mass Update Payroll Accounts

Log on to the CYR payroll frequency.

Payroll > Utilities > Mass Change Payroll Account Codes

This utility is used to select a fund/year number and change it to another fund/year number, taking the transactions from the old fund/year to the new fund/year.

When logged on to the current year, only accounts for active employees are changed. When logged on to next year, accounts for all employees are changed.

Mass change account codes:

Field	Description
From Fund/Yr	Type the account code elements to be corrected.
To Fund/Yr	Type the corrected account code elements. Note: Verify the fund/year code fields for accuracy. The system will change what is in the From Fund/Yr field to what is in the To Fund/Yr field, even if it is not correct.

❏ Under Current Year Frequency, select from the following options:

4 - Biweekly
5 - Semimonthly
6 - Monthly

❏ Under Options, select from the following options:

Update Distributions - Only active employee records are updated.
Update Transmittals (Unprocessed) - Processed transmittals are not updated.
Update Job Code Table
Update Extra Duty Table
Update PMIS Distributions

❏ Click Execute to initiate the mass change of the selected payroll account codes.

If any errors are encountered, the Mask Crosswalk Error Listing Report is displayed.
If no errors are encountered, the Mass Change Payroll Account Codes Report is displayed.

❏ Click Process. You are prompted to create a backup. A message is displayed indicating that the process was successfully completed.

❏ Click OK to close the message box.

19

Update Employee Distribution Fiscal Year

Update employee distribution fiscal year.

20

Create New Accounts

Create new accounts.

21

Verify the Bank Account Group Fund Fiscal Year

Verify the bank account group fund fiscal year.

22

Delete Prior Year Funds

Delete prior year funds.

23

Delete Old Account Codes

Delete old account codes.

24

Move Budget to Finance

Move Budget to Finance.

Move Budget to Finance

Log on to file ID C.

Finance > Utilities > Fiscal Year Processing > Move Budget To Finance OR Budget > Utilities > Move Budget To Finance

IMPORTANT: If you perform this process in Finance, it is recommended that you manually create a backup (export) using the Finance > Utilities > Export by File ID page. If you perform this process in Budget, the system will prompt you to create a backup (export) automatically.

Once the next year budget is approved and in the Approved column, the Budget is ready to be moved to Finance.

❏ Click here if you need to copy Budget from the Recommended level to the Approved level.

❏ It is important to address account locks prior to moving Budget to Finance.

Use the Maintenance > Budget Data or Budget Data - Quick Entry pages to review account locks.
Use the Budget > Utilities > Mass Lock/Unlock Funds page to unlock funds.

Use one of the following to ensure accuracy:

❏ Run an inquiry on the Budget > Inquiry > Budget Account Codes Inquiry page and compare the Next Year Approved column to the board-approved budget.

❏ Generate the BUD2050 - Budget Board Report by Function report and compare it to the board-approved budget.

❏ It is recommended that the federal fund budget is verified with the NOGA/Grant application.

❏ All federal and state grant funds should be in balance (estimated revenues = appropriations).

When data is moved from Budget to Finance, the following occurs:

The JV Number Description field is populated with MOVE BUDGET TO FINANCE.
The Reason field is populated with OPENING ENTRY.

Under Update Amount Options:

Full Amount

Select if you are moving your budget to Finance for the first time. If Capture Original Budget Flag is selected on the Tables > District Budget Options page, Finance is populated with the original budget. The estimated revenues, appropriations, and if necessary, a 3XXX balancing account are updated/created each time this option is performed. If an account has an existing balance in Finance, the Budget amount is added to the existing balance (e.g., an existing account has a $1000.00 balance, and the Budget amount is $1500.00; the Budget amount is added to the balance to equal $2500.00).

Other options include:

Difference

Select if an account has an existing balance in Finance, the difference between the Budget amount and the existing balance is added to the account (e.g., an existing account has a $1000.00 balance, and the Budget account is $1500.00; only $500.00 is added to make it $1500.00, or if Finance has $1500.00 and Budget has $500.00, $1000.00 is subtracted to make it $500.00). If Capture Original Budget Flag is selected on the Tables > District Budget Options page, Finance is populated with the original budget. The Estimated Revenues, Appropriations, and if necessary, a 3XXX balancing account is updated/created each time this option is performed.

Original Budget Only

Select to allow to capture the original budget. No other columns in the Finance general ledger are updated, and no transactions are inserted. If the account does not exist in the general ledger, it is created. When this option is used, Capture Original Budget Flag on the Tables > District Budget Options page is ignored. If an account has an existing original budget amount in Finance, the Budget amount is added to the existing original budget amount (e.g., an existing account has a $1000.00 balance, and the Budget amount is $1500.00; the Budget amount is added to the original budget amount to make it $2500.00).

If you need to run the utility again, contact your regional ESC consultant before proceeding, as your selections could significantly impact the results.

A warning message is displayed with a preview of the accounts informing you that account codes with balances exist in Finance.

❏ Under Copy Account Options, select the following option to ensure that any new account component is available in Finance. If there is a missing account code component, Finance will not update the budget. If you select Copy zero balance accounts, general ledger accounts that do not have a value in the Approved Budget column are created.

Copy Account Code Tables

Select to add this account code table to the existing Finance account code table for all funds, functions, objects, etc. that do not exist in the current Finance account code table. If accounts do exist in the current Finance account code table and changes were made to the descriptions, the existing description in the Finance account codes are replaced.

Note: If you manually added the new account codes to the Finance account code table, this option does not need to be selected. However, if the account codes do not exist in the current Finance account code table and this option is not selected, database errors may occur.

❏ Select one of the following Accounting Period options:

If Current (Open) Accounting Period is selected on the Finance > Tables > District Finance Options > Accounting Periods tab, Current is selected by default.
If Next Accounting Posting Period is selected on the Finance > Tables > District Finance Options > Accounting Periods tab, Next is selected by default.

JV Number	Set to 999999 by default but can be changed. Type an alphanumeric journal voucher number. If a duplicate journal voucher number other than 999999 is entered, an error message is displayed. If a duplicate journal voucher number other than 999999 is typed, an error message is displayed. This field is required.
Transaction Date	Defaults to the system date but can be changed. Type 09-01-20XX for standard fiscal year LEAs. Type 07-01-20XX for early start LEAs. This field is required.

❏ Select the current fund/years. Use the arrow buttons to move the selected fund/years from the left side to the right side of the page.

❏ Click Execute to move the budget funds to the Finance general ledger. If performing this process in Budget, you are prompted to create a backup (export).

Review the error report, if available.

If an error report is not displayed or if Process is clicked on the error report (for out-of-balance), the following reports are displayed:

Note: The first report displays the account changes (i.e., fund balance entries) and the second report displays the budget data.

While users may manually enter fund balances, Account Change Notifications are produced if a fund being moved is not in balance (e.g., Estimated Revenues + Other Resources does not equal Appropriations + Other Uses). The journal voucher number and the transaction date are displayed in the report header. If the budget is not in balance, the move can still be processed. The difference is automatically entered in the Budgetary Fund Balance, or you can cancel the move and correct the budget. All federal and state grant funds should be in balance (estimated revenues = appropriations).

A general journal is produced if any accounts are updated for Finance. The journal voucher number and the transaction date are displayed in the report header.

❏ Click Process to post the selected accounts to the Finance general ledger. Either the estimated revenues, appropriations, or balance columns are updated based on the account class and the accounting period.

A message is displayed indicating that the Move Budget to Finance process was completed successfully.

❏ Click OK.

25

Due to Funds

Due to Funds.

(If applicable) Address due to funds for credit cards

Log on to file ID C.

Finance > Tables > Credit Card Codes > Due To Fund

This tab is used to determine the new fiscal year for any new entries that are created using existing credit card transactions.

Retrieve a starting fund:

Field	Description
Starting Fund	Type the starting fund from which you want to retrieve data. Click Retrieve. A list of fund codes equal to and greater than the entered starting fund is displayed.

Add a fund:

Fund	Type a fund from which the credit card transaction was created.
To Fiscal Year	Type the fiscal year to which the new transactions created from the Fund field will be posted.
Description	Type a user-defined description for the due to fund. The field can be a maximum of 30 alphanumeric characters.

❏ Click Save.

26

Update Finance Options

Update Finance options.

Verify/update Finance options

Log on to file ID C.

Finance > Tables > District Finance Options > Finance Options

Verify that the data is accurate for the new fiscal year and update the fields as needed.

❏ Under Finance Options, ensure that the following fields reflect data for the new school year:

Current Finance Fiscal Year
Previous Year File ID
School Year and Starting Accounting Period - These fields should be automatically updated after the Fiscal Year Close utility is processed. The starting accounting period should be either 07 for June year-end LEAs or 09 for August year-end LEAs.

IMPORTANT: If the School Year and Starting Accounting Period fields were not automatically updated, contact your regional ESC consultant for further assistance.

While on this page, you can also update your next available numbers under Finance, Purchasing, and BAR if you choose to.

It is recommended that you incorporate the year in the next available number sequences. In this example, for fiscal year 2025-2026, 6 is the second digit in the next available numbers.
Do not update the Next Available Vendor Number as this number should remain in the same sequence from the prior year(s).

Notes:

If applicable, update the Student Activity Fund/Year field.
If your LEA has started using the revenue and expenditure codes for the Student Activity Fund, then this section should be blank.

Finance > Tables > District Finance Options > Clearing Fund Maintenance

Update the Finance and Payroll Clearing Fund/Fiscal Year fields. Be sure to verify your offset accounts for the new fiscal year.

Verify that the data is accurate for the new fiscal year and update the fields as needed.

IMPORTANT: Some LEAs may have old data for fiscal year 6; therefore, it is required to complete the following steps to ensure that you are creating a new fiscal year 6 record.

❏ In the Codes for Fiscal Year field, select 6 and click Retrieve. If data exists for fiscal year 6, it is displayed.

❏ Click Delete. The following message is displayed.

Click Yes to continue.
Click Save to save the changes.
Click Add to create the 6 fiscal year record and complete the following fields:
- In the Finance Clearing Fund/Fiscal Year field, type the applicable fund (e.g., 164/6, 864/6, etc.) according to your LEA.
- In the Payroll Clearing Fund/Fiscal Year field, type the applicable fund (e.g., 163/6, 863/6, etc.) according to your LEA.

Review and complete the other fields on the page as needed.

The fiscal year value is automatically populated in the Overpayment Account field.

❏ Click Save.

Review the fields under Payroll Automatic Posting Defaults to ensure that all fields are correctly populated.

27

Update HR Options

Update HR options.

Update payroll clearing fund/year

Log on to the current year.

Payroll > Tables > District HR Options

Update the Payroll Clearing Fund/Year field.

Payroll Clearing Fund/Year	This field is automatically populated with the payroll clearing fund/year selected on the Finance > Tables > District Finance Options > Clearing Fund Maintenance tab. If not, click to select the fund/fiscal year for the current year to be used as the clearing fund/fiscal year when interfacing to Finance.

28

Update the Accrual Table

Update the accrual table.

Update accrual expense table

Log on to the current year.

Payroll > Tables > Accrual Expense

If your LEA accrues, the accrual expense table must be updated.

❏ Click +Add to add a row.

Field	Description
Fund	Type a three-digit fund that may be in the employees’ distribution history (accrual) records where an alternate fiscal year needs to be used for the posting of the accrual expense. The first search is for a specific fund (all three digits match). If the fund is not found, the next search starts with the first two digits of the fund, and if not found, it searches for the first digit of the fund. If no match is found, no change occurs, and the accrual expense is posted according to what is in the account distribution history. Note: A complete fund mask (XXX) cannot be used.
Expense Fiscal Year	Type a one-digit code to be used in conjunction with the Fund field to identify employee distribution history (accrual) records that need to be posted with a different fiscal year (see the step above).
Description	Type the fund description. The field can be a maximum of 30 characters.

❏ Click Save.

29

Perform Purchasing Maintenance

Perform Purchasing maintenance.

30

Update the Purchasing Cutoff Date

Update the Purchasing cutoff date.

31

Update User Accounts

Update user accounts.

32

Proceed to Human Resources

Proceed to Human Resources.

33

Create ASCII file

Create ASCII file.

Create ASCII file

Log on to the historical file ID.

Finance > Utilities > Finance Audit Extract

When all of the necessary end-of-year entries are posted and the auditor requests the ASCII file, use this utility to create the file.

Note: The utility can be run more than one time; however, all necessary end-of-year entries must be posted prior to running the utility.

Field

Description

Current General Ledger

Select this option to display the balances for all accounts in the current month only (not next month balances) (e.g., use this option if the last month of the fiscal year has not been closed in the file ID you are extracting from).

CAUTION: If the extract is run a second time and saved to the same drive or CD on the same day, the file is not overwritten as indicated, but all records are added to the first file. It is important to note that if you are doing multiple extracts on the same day, it is highly recommended that you rename your path or folder so you have both copies. Submit the copy that reflects your August 31 balances.

❏ Leave the Year 1 and Year 2 fields blank.

❏ Click Execute. A text file is created with the current balances, which your auditor can upload.

34

Addendum

Addendum.

35

(Optional) Duplicate Auditor Adjusting Entries

Duplicate auditor adjusting entries.

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Table of Contents

Finance EOY Process

Before You Begin

Create an Export of File ID C

Delete 1099 Data

Delete 1099 Data

Reverse Soft Encumbrances

Generate, Print, and Review the Outstanding Purchase Orders Report

Generate, print, and review Outstanding Purchase Orders Report

Reverse Purchase Orders

(If applicable) Reverse purchase orders

Address Unprocessed Payment Authorizations

Address unprocessed payment authorizations

(If necessary) Reverse/Delete Credit Memos

Delete CY Budget Amendments

Review File IDs

Review file IDs

Delete File IDs

Delete file IDs

Copy Current File ID to New File ID

Copy Current File ID to New File ID

Prepare the Current File ID

Review the Account Code Table

Verify actual fund balance obj.sobj codes

Close Funds

Perform the EOM Closing Process

Delete Deduction Check Transactions

Delete Liability Transfer Transactions

Delete Liability Transfer Transactions

Mass Update Payroll Accounts

Mass Update Payroll Accounts

Update Employee Distribution Fiscal Year

Update Employee Distribution Fiscal Year

Create New Accounts

Verify the Bank Account Group Fund Fiscal Year

Verify bank account group fund fiscal year

Delete Prior Year Funds

Delete Old Account Codes

Delete unused funds

Move Budget to Finance

Move Budget to Finance

Due to Funds

(If applicable) Address due to funds for credit cards

Update Finance Options

Verify/update Finance options

Update HR Options

Update payroll clearing fund/year

Update the Accrual Table

Update accrual expense table

Perform Purchasing Maintenance

(If applicable) Clear/move NYR requisitions to CYR

Update the Purchasing Cutoff Date

Update Purchasing cutoff date

Update User Accounts

Update user accounts

Proceed to Human Resources

Notify HR/Payroll to proceed with the first payroll

Create ASCII file

Create ASCII file

Addendum

Addendum

(Optional) Duplicate Auditor Adjusting Entries

(Optional) Duplicate Auditor Adjusting Entries

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