In the Kuali Financial System, you complete year end processing by following this sequence:
- Budget balances are carried forward or reverted, according to your institution’s own rules. Your school might carry forward available budget balances, for example, to cover outstanding encumbrances for the account, and then revert or lapse any remaining balances. Different organization units could have different rules. Typically, you would complete this process only for general funds accounts. You may set parameters to determine the fund group(s) to which the process applies, and you may exclude specific organizations, object codes, sub funds, chart codes and account numbers within a selected fund group. To set the appropriate Chart of Accounts (COA) parameters for this process, you access the Administration tab of the Main menu.
- All open purchase orders at the end of the old year are carried forward to the new fiscal year.
- All income and expense object codes (nominal accounts) in each account are closed to fund balances. Cash offset amounts for nominal accounts are reverted to predetermined reversion accounts, according to parameter settings. Asset and liability object codes are not affected, so after this process all accounts will have asset, liability and fund balance object codes only.
- Asset, liability and fund balances are brought forward as beginning balances in the new fiscal year. In addition, cumulative income and expense object codes in contract and grant accounts are brought forward as beginning balances, permitting either fiscal year or inception-to-date reporting for these accounts. Budgets are also brought forward for contract and grant accounts that continue in the new fiscal year, to enable budget balance available reporting. Unexpended plant funds may also have year end closing entries similar to contract and grant accounts.
Keep in mind that this overview provides only a general description of how year end processes work in the Kuali Financial System. When you handle year end closing, you have great flexibility in adapting these processes to the specific needs of your institution.
