AP Accruals Setup 2019-2020 · AP Accruals Setup 2019-2020 June 18, 2020 via Zoom. House Keeping...
Transcript of AP Accruals Setup 2019-2020 · AP Accruals Setup 2019-2020 June 18, 2020 via Zoom. House Keeping...
AP Accruals Setup
2019-2020
June 18, 2020 via Zoom
House Keeping
• Please Mute Audio, Video optional
• Use the Chat Box for Questions
• Time permitted we can have open
discussion and questions at the end
Understanding the Accrual Process
Goal is to Recognize Revenues and Expenses in the period incurred
• Ensure accurate presentation of Revenues and Expenses
• Record Revenues and Expenses at the time when services or
sales are made rather than when cash is actually paid or
received
• Review Requisitions that do not have the status of Complete,
Cancelled or Denied
• All requisitions must be closed or processed through the Year
End Closing activity
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Escape Year End Process Overview
What you should be working on Now:
• Clear All Prior Year Accruals
• Run PY Ledger02 Receivables/Liabilities Activity Report
• Resolve Any Outstanding Requisitions
• Resolve Unposted Journal Entries and Budget Transfers
What you should be working on in July:
• Work the Year End Closing List
• Clear all items on the Fiscal15 Fiscal Year End Checklist
• Final Fiscal15 submitted by LEA to SCOE Advisor
• Final Ledger02 Submitted by LEA to SCOE Advisor
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Final AP Check Processing June 24, 2020 by noon
Final Cash Deposit June 23, 2020 by 4:30 pm
DO NOT create AP batches between June 25 and June 30
DO NOT Create AR Receipts batches between June 24 and June 30
CAUTION: Escape does allow you to create batches after the last June
AP and Deposit dates through June 30. There are multitude of
implications if you create a batch during the select time, therefore, it is
recommended not to create any new batches until after July 1 cash roll.
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Clear All Prior Year Accruals
PY Payables (9510) and Receivables (9210) Object Codes
PY AP and ARs should be cleared prior to start of FY20 Close
• Run the Fiscal02 Account Summary Detail OR Fiscal03 Account
Transaction Detail by Object-Balance
Go to Finance – Reports – Fiscal – Fiscal02 or Fiscal03
• Closing Year = 2020 {2019/2020}
• Unposted JE? = Yes – Include unposted JE
• Assets and Liabilities =Yes – Include – change Object filtering
• Object = 9210,9510 (use comma no space)
• Click Go to generate the report
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Fiscal02 Account Summary By Object Balance
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Create Report Favorites to Save Time!20 Favorites
allowed in each Report
Enter the Search Criteria
Example Fiscal02
• If there are NO Balances, skip to next step!
• If there are Balances, need to research
• Run the Ledger02 Receivable/Liabilities for more detail
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Review PY Ledger02 Receivables/Liabilities Activity
Run the Ledger02 for prior year for more detail on pending
items. Determine if need to manually completed or
reprocessed through year end closing.
Go to Finance – Reports – Ledger – Ledger02
• Closing Year = 2019 {2018/2019}
• A/R or AP ? = Both is default or change to A/R or A/P
• Cleared Items? = No – Do NOT Show Cleared Items
• JE Source? = Yes – Include all JE Sources
• Unposted JE? = Yes – Select unposted JEs
• Click Go to generate the report
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Ledger 02 Receivable/Liabilities Activity
Enter the Search Criteria
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Example Ledger02
• Review list of pending items
• Determine if need to be cleared or reprocessed
• Clear a Requisition or Invoice, manually complete
• Or reprocess through Year End Closing activity
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Resolving Vendor Requisitions
There are different methods for reviewing outstanding Vendor
Requisitions in activity or by the ReqPay02 Requisition Listing Report
Go to Finance – Requisitions – Vendor Requisitions
Enter the search criteria:
• Fiscal Year: 2020 {2019/2020}
• Only Uncompleted: Yes
• Click Go to generate
the list to review
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Create Search
Favorites to
Save Time!
Review List of Outstanding Vendor
Requisitions• Sort by Outstanding
• Click on the column header to sort
• Open Requisitions to review
• Small Amounts Remaining most likely did not have the last
payment flagged as Final
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• Manually Complete if not receiving goods or services by June 30
• Go to Tasks to select Manual Complete
Review Vendor Requisition Report
Another option to review outstanding vendor requisitions is the ReqPay02
Requisition Listing. This can be sorted by site for distribution.
Go to Finance – Reports – ReqPay – ReqPay02 Requisition Listing
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• Fiscal Year: 2020 {2019/2020}
• Requisition Status: Open-
Submitted-Approved-Printed-
Ready for Pymt-Chk Pending
• Sort/Group 1: Order Location or
other options
• Click Go to generate report
Sort by Order
Location to
send to sites
Every Report
has Report
Sample Click
web link for
more
information
about report
Example ReqPay 02
• Review Enc column for Remaining Encumbered Balances
• Send to sites to review
• Research to determine if items or services will be received prior to June 30
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Now that prior year accruals have been cleared and vendor
requisitions have been resolved, it’s time to move to the
Year End Closing process.
Accrual, Carryover, Release Documents
• Requisitions in Open Status cannot accrue or carryover
• Documents with errors will not post
• Requisitions cannot be processed as negative amount
– Negative line items with a positive requisition total will redistribute when processed through Year End Closing
• The Accrual and Carryover fields on the list are editable
• If all fields are 0.00 the requisition will roll to the next fiscal year
– Manually Complete or use the Complete field
• Posting Accrual will create the necessary Journal Entries
– Debit FY20 Expense and Credit Liability 9529
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Carryover Option
• Vendor Requisition Default is Carryover; however not
recommended for our County with exception of Construction
Projects
• Changes the fiscal year of requisition
• Reverses outstanding encumbrances
• Encumbers amounts in new fiscal year
• History record created
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Release Option
• Changes the requisition status to Completed
(Both Accrual and Carryover Amounts are Zero)
• Reverses outstanding encumbrances
• No Journal Entries created in the next fiscal year
• History record created
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Other Documents
• Stores Requisitions DO go through Year End Closing
– Review in Finance – Store Requisitions
– Default is Release
• Work Order are DO NOT go through Year End Closing
– Must be resolved in Finance – Work Orders
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****Manual Accruals Due To/From Government Entities****
• Must use 9290/9590 objects for any accruals associated
with State or Federal programs (Example: Fund 13 Cafeteria)
• Manual Journal Entries will need to be done, as the Year
End Closing in the Processes activity does not allow the
use of objects other than 9229/9259
• Manual Journal Entries created with 9290/9590, balances
will remain in these object codes during the Asset/Liability
roll and will need to be manually reversed in the new fiscal
year
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REMINDER:
The Asset/Liability roll, which takes place after 2019-20 is closed,
will move the General Ledger amounts from object 9529 in FY20
to General Ledger object 9510 in FY21
• The Asset/Liability roll does not roll the requisition detail into
the next fiscal year, only the total beginning balance
Until the Asset/Liability roll is performed, there will be no balance
in the FY21 general ledger object 9510 to offset the payments
being made to the FY20 (accrued) payables
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Review Fiscal15 Fiscal Year End ChecklistThis report lists all outstanding requisitions, direct payments, employee
payments, journal entry encumbrances, invoices and receipts that must be
addressed to close the fiscal year.
Go to Finance – Reports – Fiscal – Fiscal15 Fiscal Year End Checklist
• Fiscal Year =2020 (System will default to 2021 after July 1)
• Payments = Yes – Include Payments
• Click Go to generate report
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This Report
Must be
clear
before
close of FY
Example Fiscal15
• Review the report for any outstanding items that should not be
accrued or carried forward
• Verify all balances and pending payments
• Remember to also check encumbrance amounts
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The Fiscal 15 report MUST be completely clear
(no entries present) in order to close the fiscal year.
Year End Closing Activities for Payables
Go to Finance – Processes – Year End Closing
This will provide a list of vendor requisitions to review
• Fiscal Year: 2020 {2019/2020}
(System will default to 2021 after July 1)
• Document Type: Vendor Req
• Review other fields to narrow search
• Click Go to generate the list
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Review Year End Closing List
• Items in Year End Closing must be addressed in order to close the FY
• Must be Accrued, Carried Over, Release or Completed
• Partial Amounts are allowed
Example list of active Vendor Requisitions in Year End Closing:
• Use the Quick Link button to go directly to the requisition or invoice for
detail or to edit
• In the Tool Bar Click on the Preview Button “Magnifying Glass” for
Snapshot with Payments
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Report Option
• Go to Tasks to select Year End Processing Report
• Reports all detail for the remaining items on the list
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Accrual Option
This is used when goods and services have been received on or before June 30 in FY20 and will be paid in FY21
• Payable Accrual Expensed in FY20 and the Liability moved to FY21
• Enter the amount of the Requisition or partial Amount in the Accrual Field
– Example: $1,500 of the items have been received
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Review Posted Accrual in Vendor Requisitions
Go to Finance – Requisitions – Vendor Requisitions
Once items are posted, the system will create the Journal Entries and
“move” the requisition to FY21
• Fiscal Year: Blank
• Reference Number: Enter Requisition or PO Number
• Open to review the Account Tab and History Tab for details
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Accrual Notes
Setting up Accruals will create Journal Entries in the closing FY20 and
set up the FY 21 Liability.
• Reverses the encumbrance in FY20
• Adds liability account in FY21
• If you pay more than the liability, Escape will Debit the base year
expense account in FY21
• If you pay less than the liability, Escape will Credit the expense
account in FY21
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*** Once the item is posted in the year end processing activity, the
requisition has “moved” into FY21 and can only be altered from FY21 ***
Carryover Option
This is recommended for Construction Projects that will carryover the Requisition without creating a liability
• The requisition will move to next FY with same PO Number
Example: $100,000.00 of the project was completed in FY20, the rest will
be completed in FY21.
• Review in the Vendor Requisition Accounts and History Tab
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Carryover Notes
Setting up a Carryover will allow Requisitions and POs to remain the
same between the years.
• Reverses the encumbrance in FY20
• Changes the Fiscal Year of the Requisition Accounts Tab
• Encumbers the new amount in FY21
• Recommended for Construction Projects
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*** Once the item is posted in the year end processing activity, the
requisition has “moved” into FY21 and can only be altered from FY21 ***
Release OptionUse this option when items or services are NOT received on or before June 30
• The encumbered amount of the requisition will be released back into the
expense account
Example: Enter 0.00 in the Carryover field, the Release amount will automatically
populate
• Review in the Vendor Requisition Accounts and History Tab
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Complete Option
Requisitions on the list with 0.00 or small amounts are usually
because the last payment not flagged as Final payment
Recommended to Complete instead of carryover 0.00 Requisition
• Enter 0.00 in the Carryover field if small amount
• Enter Yes in the Complete
• Go to Tasks to Post
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More Examples for Accrual, Carryover, Release and Complete options are on pages 28-34
Review Errors
• Review the Message Column for “Post failed error”
• Hover over the error or expand the column to see full message
Examples:
Amounts cannot be negative
Expired Accounts
• Use the Quick link next to the Requisition to review
• Update the requisition based on the error
• Review the Year End Closing list again to verify that these items have cleared
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Year End Closing Tips
• Use the Enter Key to move within the Year End Closing Activity
• Requisitions with negative total can not be processed
• Requisitions with negative line items will redistribute amounts among
accounts
• Multiple Users may get an error:
– “Cannot process requisition, it is already in fiscal year 2021”
• Accrued items can be corrected prior to FY Close
Three Options:
• Rollback Year End Processing in the Vendor Requisition to edit
is the best option
• Cancel the Requisition (If no payments), copy and make
payment on new req
• Direct Payment in CY and Manual Complete in next FY
Pages 24-25
Continue Working and Clearing the
Year End Closing List
Requisitions in Open Status Cannot Process through Year End Closing Activity
Enter Search Criteria:
• Fiscal Year: 2020
{2019/2020}
• Document Type: Vendor Req
• Req Status: Open
• Click Go to get list
• Use Quick Link to get to req
to cancel or submit for
approval
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Important Reminder
All Government Due To/Due From Requisitions Cannot
be processed through Year End Closing Activity
• The Year End Closing Activity only allows the Liability Objects 9229/9529
• Must do a manual Journal Entry using 9290/9590
Example:
• Fiscal Year: 2020 {2019/2020}
• Document Type: Vendor Req
• Fund: 13 {Cafeteria Fund}
• Click Go to get list
• Use Quick Link to get to req
to manually complete
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AP Payments for 2019/2020 in FY21
Without Using Year End Closing
July 1 this option will setup accruals and make the necessary JEs
Enter Payment Types as usual
• Fiscal Year: 2020 {2019/2020}
• Do not combine fiscal years
• Enter Payments
• Enter Direct Payments
• Enter Employee Payments
• Payment Transactions (Batch Format)
• Payments
• System will automatically create the Journal Entries for each year
FY20: Debit Exp/Credit 9529
FY21: Debit 9529/Credit 9510
FY21: Debit 9510/Credit 9110
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Rollback Year End Processing
• Leave the Fiscal Year Blank
• Enter the Requisition Number
• Notice the Status is Complete
• Open the Requisition Line
• Go to Tasks to select
Rollback Complete/Cancel
• Make Edits
• Save/Close
• Reprocess through Year End
Go to Finance – Requisitions – Vendor Requisitions
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REMINDER:
Last AP Check Processing June 24, 2020 by noon
Last June Deposit June 23, 2020 by 4:30 pm
DO NOT create AP batches between June 25 and June 30
DO NOT Create AR Receipts batches between June 24 and
June 30
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Final Reports for Submission
Fiscal15
Page 36
• Must be Clear (No Items on report)
• Signed by LEA Authorized Signature
• Submit with Closing Documents to SCOE Advisor
• Fiscal Year: 2020
{2019/2020)
• Click Go to
generate report
Go to Finance – Reports – Fiscal – Fiscal15 Fiscal Year End Checklist
Final Reports for Submission
Ledger02
Page 36
• Signed by LEA Authorized Signature
• Submit with Closing Documents to SCOE Advisor
• Fiscal Year: 2020
{2019/2020)
• A/R or AP?: Both
• Cleared Items: Yes
• JE Source?: Yes
• Click Go to generate
report
Go to Finance – Reports – Ledger – Ledger02 Receivables/Liabilities Activity
After FY20 Closed – Resolving
Vendor Requisitions
Go to Finance – Requisitions – Vendor Requisitions
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If a Requisition was processed through the Year End Closing activity
• Should have been closed
• Amount was incorrect
• Direct Payment was made but not applied to the original requisition,
• Manually complete the Requisition.
– Go to Tasks and select Manual Complete or Cancel
– In Tasks DO NOT select Return the Requisition to Open
Submit an email to
Schedule a one-on-one meeting through Calendly
Marie White https://calendly.com/mwhite-22
Tracy Lehmann https://calendly.com/tlehmann-1
Kimberly Lingle https://calendly.com/klingle-1