Fiscal Year-End Process
Overview
Objectives
• What is a fiscal year?
• What happens at the end of a fiscal
year?
•Annual Financial Report
•Document Processing
•Fiscal Year End adjustments
• Roll Over, Roll Forward
•13th and 14th Month processes
•Departmental Ledgers
• What resources are available?
What is a Fiscal Year?
The University of Texas operates on
a 12 month fiscal year which runs
from September 1 to August 31.
Budgets, appointments, and other
transactions are all recorded within
this 12 month period.
Accounting balances are maintained
on a current basis, but also on a
monthly and fiscal year basis.
What is a Fiscal Year?
 Each month throughout the year
closes usually on the 5th working day
of the following month.
 August usually closes a day or two
earlier.
 When August closes,
the Fiscal Year also closes.
Annual Financial Report
At the end of the fiscal year, the
Office of Accounting prepares an
Annual Financial Report (AFR).
This report is sent to UT System
and is combined with reports from
other UT campuses.
Document Processing
Accounting processes must briefly
stop at the end of the year, so that
the AFR information is accurate.
Document processing deadlines are
established for this reason.
These deadlines are published by
the Office of Accounting and are
available through askUS.
Document Processing
Documents not processed by the
deadlines are automatically returned.
Many documents can be converted
into the new fiscal year, once the
new year has started.
More Document Processing
Some documents in the old fiscal
year may have service dates in the
new fiscal year.
These transactions will then
“Roll Forward” into the new year.
More Document Processing
Preliminary documents are created
so that departments may see which
transactions will roll forward.
Adjustments can then be made
to the documents with these
transactions before the actual
roll forward.
More document processing
How does this work exactly?
1) *DEFINE will display a list of
preliminary document ID numbers.
2) Paste these document ID numbers
into the GT6 screen, misc field, to see
what transactions are in your view.
3) The original department doc ID
numbers will be in the transaction
descriptions.
More document processing
4) Enter the original doc ID numbers in
the GT6 screen to see their transactions.
5) Enter a “T” next to a transaction to
Travel to the original document.
6) Then go into the line items and blank
out the moreable on the far right side. >
7) Review and adjust the department
service dates, if necessary.
Roll Forward Transactions
 Get Preliminary Document ID
and paste in GT6
 Get Original Document ID
and paste in GT6
 Travel to original document
and go into the line items section
 Blank out the moreable, then adjust
Departmental Service Dates
Fiscal Year End Information
Accounts are fiscal year specific.
At the end of each fiscal year,
accounts are copied into the new
fiscal year. This process is called
“Roll Over”.
Transactions are not copied, but
remain fiscal year specific.
Fiscal Year End Information
Many account balances are brought
forward into the new fiscal year
(depending on the account group
rules). This process is called
“Balance Forward”.
Other accounting adjustments are
also made for the fiscal year end
and for the new fiscal year.
Fiscal Year End Information
Examples of these other accounting
adjustments include:
•
•
•
•
•
•
Initial Balance Forwards
Correcting object codes
Correcting account numbers
Adjusting Inventory
Clearing overdrafts
Lapsing expired account balances
Fiscal Year End Information
Balance Forward Rules
Different Rules for each account group.
Many accounts move balances and
encumbrances forward, some do not.
All rules are listed with the Account
Groups handout in the Handbook
of Business Procedures.
Fiscal Year End Information
Extra processing time is needed for
the balance forwards, adjustments
and to prepare the AFR.
Two extra months provide this time
within the Fiscal Year:
 13th month – end of old year
 14th month – start of new year
13th Month
The 13th month is a “virtual month”
which runs during the calendar
months of September, October
and sometimes November.
Any activity in the 13th month is
recorded in the old fiscal year with
August 31 as the record date.
Transactions and balances are
displayed in records for “THR”.
14th Month
Once the 13th month is closed, the
ending balances for the month are
copied into the 14th month.
The 14th month is always recorded
in the new fiscal year and only
includes balance forward entries.
The 14th month shows the true
beginning balance for the new
fiscal year.
Departmental Ledgers
 Departments using code schemes
must copy them into the new year.
 Only office managers or delegates
can do this – using UC3 in *DEFINE.
 This can only be done once!
Departmental Ledgers
 Departments who reconcile their
accounts using LMM should post the
year end transactions “as is”.
 Material encumbrance adjustments
with 0299 object codes can be safely
rejected – using LP8.
REVIEW
The UT Fiscal Year is September 1
through August 31.
Documents have processing
deadlines before the year closes.
The year closes when August closes.
Accounts “roll over” into the new
year (unless they expire).
REVIEW
Initial balances “balance forward”
into the new year (depending on
the rules).
Transactions with service dates in
the new year also roll forward.
REVIEW
A 13th month happens at the end of
the fiscal year – and runs until the
October or November.
Adjustments are processed during
the 13th month.
REVIEW
A 14th month happens at the
beginning of the new fiscal year –
after the 13th month closes.
The final balance of the 13th month
becomes the balance of the 14th
month – and shows adjusted balance
forward for the new fiscal year.
REVIEW
 Once the fiscal year end process
is completed and all adjustments
have been made, an Annual
Financial Report (AFR) is prepared
for UT Austin.
 This report is sent to UT System.
REVIEW
Code schemes should be copied
forward using UC3.
Departmental records should be
posted as they appear. Those with
object code 0299 may be rejected.
RESOURCES
Document Deadlines
Fiscal Year-End Handout
Account Group Rules
RESOURCES
Training Resources
http://www.utexas.edu/business/accounti
ng/et/training/training.php#fye
AskUS: askUS@austin.utexas.edu
https://austin-utexas.custhelp.com/
User Services Helpline: 512-471-8802