Fund Accounting System

When you finish closing out Human Resources, Warehouse Inventory, and Fixed Assets, there are several processes involved in closing the old year in Fund Accounting and preparing the system to process transactions in the new year.

Important
If you encounter an out-of-balance condition at any stage of the fiscal year-end process, contact PowerSchool for assistance.

Complete the following steps after all data entry for the current fiscal year has been completed:

If you do not want to roll specific prior year encumbrances forward into the new year, use the Fund Accounting > Periodic Routines > Periodic Processing > Close Purchase Orders option to liquidate these encumbrances.
or
If you want to roll encumbrances forward to a liability or equity account, add the account and its offset account to the Balance Sheet.
Run the following reports:
- Fund Accounting > Reports > Audit Trails options for Period 12 of the current fiscal year.
- Fund Accounting > Reports > System Maintenance > Check Ledger Balances. Users must be out of the database when you run this report.
Run reports for each batch in the following Fund Accounting > Entry & Processing batch options by selecting the option, selecting the batch from the list, and then clicking Print:
- General Ledger > Batch Journal Entries
- Budget Ledgers > Batch Budget Adjustments
- Budget Ledgers > Batch Budget Transfer
- Payable Entry > Batch Accounts Payable
- Vendor Checks > Batch Manual Checks
- Receipts > Batch Receipts
- Receipts > Batch Receivables
- Encumbrances > Batch Encumbrances
Run the Fund Accounting > Reports > Accounts Payable Reports > Cash Requirements option to determine if any payments should be processed. Then, process the payments as needed.
Run the Fund Accounting > Reports > Financial Statements > Encumbrance Status Reports option to determine if encumbrances should be closed, paid, or left open. Then process the encumbrances as needed.
Run a set of balance sheets for each of the following Fund Accounting > Reports > Balance Sheets options:
- Print Balance Sheets by Fund
- Print Combining Balance Sheet
- Print Consolidated Balance Sheet
Run any other reports your organization wants for retaining a record of prior year information.
Complete entries in the old fiscal year and rerun reports as needed to retain documentation of the system's data.
If you want the entries to be recorded on Day 1 of the new fiscal year, select Fund Accounting > Periodic Routines > Periodic Processing > Change System Date to set the transaction date to the appropriate date of the new fiscal year.
Run the Fund Accounting > Periodic Routines > Year-End > Year End > Create New Year Ledgers option, and then select General Ledger to create General Ledger accounts with zero balance for the new fiscal year. We highly recommended that all checkboxes in the Create New Year Ledgers option be selected and rerun.
With this option, the following processes are run:
- General Ledger accounts are created for all funds in the new year Organization Chart.
- Funds from the previous year that do not appear in the new year Organization Chart are documented on an error log.
  You can correct errors and run this option as many times as needed to ensure that all new year General Ledger accounts are properly set up.
  Although the Create General Ledger option was run previously during FYE processing, you must run it again before using the Update Ledgers option in the next step.
Run the Fund Accounting > Periodic Routines > Year-End > Year End > Update Ledgers option to:
- Update the Fund Accounting Profile to Period 1 of the new fiscal year.
- Roll the old year's Period 12 balances to the new year.
- Roll the old year's expenditure control and revenue control balances into the fund balance of the new year.
- Roll the old year's reserve for encumbrance and encumbrance control balances into the fund balance of the new year.
- Roll the old year's budget expenditure control and budget revenue control balances into the budget fund balance of the new year.
- Create a balance sheet report for the new year.
- Creates a project ledger for the new year for all open projects.
- Sets the fiscal year-to-date paid amounts on vendor and payer lists to zero.
Run the Fund Accounting > Reports > System Maintenance > Check Ledger Balances > Per Fund option to verify that all funds are in balance. Users must be out of the database when you run this report.
Minimally, run the following Fund Accounting > Reports > Audit Trails options to verify your budget codes are in balance:
- General Ledger Audit Trail
- Expenditure Ledger Audit Trail
- Revenue Ledger Audit Trail
- Project Ledger Audit Trail (if applicable)
Rerun the following Fund Accounting > Reports > Balance Sheets options and compare the balance sheets with those created in Step 6 to review changes in the General Ledger accounts:
- Print Balance Sheets by Fund
- Print Combining Balance Sheet
- Print Consolidated Balance Sheet
Run Fund Accounting > Reports > Financial Statements > Trial Balance option and verify the new ledgers.
Create and post approved budgets to the Fund Accounting System. Although the Create options have been run previously during the FYE processing, you must still run them again before running the Post options. This can be done in either:
- Budget Preparation > Entry & Processing > Budget Preparation > Budget Administrator > Post Budget. You must select the appropriate boxes in the Create option first, then click OK and return to the Post option.
  or
- Fund Accounting > Periodic Routines > Year-End > Year End > Create New Year Ledgers. Select the checkboxes for the Expenditure Ledger, Revenue Ledger, and Project Ledger only. Do not select the checkbox for the General Ledger. Then select Post Ledgers to post the budget.
Run the Fund Accounting > Reports > System Maintenance > Check Ledger Balances > Per Fund option to verify that all funds are in balance. Users must be out of the database when you run this option.
Minimally, run the following Fund Accounting > Reports > Audit Trails options to verify your budget codes are in balance:
- General Ledger Audit Trail
- Expenditure Ledger Audit Trail
- Revenue Ledger Audit Trail
- Project Ledger Audit Trail (if applicable)
Update the following fields in the Fund Accounting Profile, if needed: Next Req Number, Next PO Number, Next JE Number, Next Vendor Number, and Next Budget Transfer Number.
Change the Disburse Fund, Payroll Fund, Cash, and Payroll Cash fields in the Fund Accounting Profile, if needed.
Run the Fund Accounting > Reports > Financial Statements > Encumbrance Status Reports and Encumbrance Activity Reports options to retain a record of prior year information.
Use the Fund Accounting > Periodic Routines > Year-End > Year End > Roll Prior Year Encumbrances option to roll encumbrances from the old year to the new year. You can run this option multiple times. Processing is as follows:
- You can roll encumbrances into the same account, a liability or equity account, or an "R" account. If the budget unit for an encumbrance record is not found in the new year's Organization Chart, the encumbrance is not rolled.
- The rollover liquidates encumbrances from the Expenditure and Expenditure Budget ledgers in Period 13 of the prior year, creates a new encumbrance record in the new year (transaction code 17), and enters a change encumbrance transaction record in the prior year (transaction code 18).
- The system also deletes the original purchase orders. To maintain copies of the purchase orders in the prior year, select the Retain Rolled PO's checkbox. This rolls over the purchase orders, but preserves the originals and prevents them from being processed.
Run the Fund Accounting > Reports > System Maintenance > Check Ledger Balances > Per Fund option to verify that all funds are in balance. Users must be out of the database when you run this option.
Minimally, run the following Fund Accounting > Reports > Audit Trails options to verify your budget codes are in balance:
- General Ledger Audit Trail
- Expenditure Ledger Audit Trail
- Revenue Ledger Audit Trail
- Project Ledger Audit Trail (if applicable)
Run Fund Accounting > Periodic Routines > Year-End > Year End > Interim Close option to roll the balance of Period 13 general ledger, project, and revenue and expenditure control transactions from the prior year to Period 1 of the new year. You can run the Interim Close option multiple times.
Complete the following in preparation for your final close:
- Make sure all transactions to Period 13 of the prior year are entered and your audit is complete.
- Run the Fund Accounting > Reports > System Maintenance > Check Ledger Balances and Fund Accounting > Reports > Audit Trails options. Review the reports to ensure that all funds and accounts are in balance.
- Run the Fund Accounting > Reports > Balance Sheets options as needed to retain a record of prior year information.
- Run the Fund Accounting > Reports > Project Status Reports options to retain project information.
Run Fund Accounting > Periodic Routines > Year-End > Year End > Final Close option to do a final close for the prior year. Processing is as follows:
- In the new year, the Fund Balance account is updated with Period 13 revenue transactions minus expenditure transactions.
- The new year's Budgetary Fund Balance account is the Budget Revenue Control ledger minus the Budget Expenditure Control ledger.
Verify balances as follows:
- Run the Run the Fund Accounting > Reports > Balance Sheets options as needed to review changes in the fund balances, budget fund balances, and general ledger balances.
- Run the Fund Accounting > Reports > Audit Trails > General Ledger Audit Trails and Expenditure Audit Trail options.
- Run the Fund Accounting > Reports > System Maintenance > Check Ledger Balances > Per Fund option to verify that all funds are in balance. Users must be out of the database when you run this option.
If you need to change the control account numbers in the Fund Accounting Profile, contact PowerSchool for assistance.