Year-End Closing Procedures

Why Year-End Matters

Each year, the University of Oregon publishes an audited financial statement that presents the university’s financial position and performance as of June 30th. This statement provides a snapshot used by stakeholders (the public, federal agencies, the NCAA, and creditors) to evaluate financial health, compare results across years, and assess the university’s stewardship of resources. A financial statement includes all activity from July 1 through June 30 and relies on accrual accounting, meaning transactions must be recorded in the fiscal year when goods or services are provided or received, regardless of when cash or budget is available. Year-end close ensures that all transactions are captured in the correct fiscal year. The university’s financial statements are incorporated into the State of Oregon’s Annual Comprehensive Financial Report (ACFR), contributing to the state’s overall accountability and transparency.

Fiscal Periods at Year-End

The university uses fiscal periods 01 – 12 for monthly activity. Period 14 allows time for corrections and missed accruals. Departments may post June-dated transactions through the period 14 departmental lock-out. After that date, only central offices may post to period 14.

Fiscal Year 2026 period 12 close: Thursday, July 9th 5:00pm
Fiscal Year 2026 period 14 departmental lock-out: Thursday, July 16th 5:00pm
Fiscal Year 2026 period 14 central office lock-out: Thursday, July 23rd 5:00pm

Year-End Training

Business Affairs Financial Services Department’s annual closing of the books training is available online. This presentation will provide you with an overview of important year-end concepts, instructions, and additional resources. Login to MyTrack, select Learning Library under My community, and search for year-end closing of the books.

Dating Banner Transactions

Departments should make every effort to post June transactions before period 12 closes. To allow time for transactions to clear approval queues, post them no later than 3:00pm. Because Banner transactions default to the current date, entries made beginning July 1 must have the transaction date changed back to June 30 to post in the correct fiscal year. Depending on the timing, follow these steps to ensure transactions are posted in the correct fiscal year:

  • July 1 through departmental lock-out - Complete Banner transaction using a 6/30 date.
  • After departmental lock-out, during the one-week central office processing window - Input a Banner transaction with a July date, leave it incomplete, and request that Business Affairs Accounts Payable or General Accounting departments complete it with a 6/30 date.
  • After the central office processing window closes - Notify Business Affairs General Accounting for assistance.

Which fiscal year is the right one? To record transactions in the proper year, consider when an activity took place, not when payment was made or received. When did the order arrive? When did the event take place? That’s the date the income or expense should be recorded.

Operating Ledger and General Ledger

The operating ledger and general ledger work together to show both the university’s annual activity and its financial position at a point in time. The operating ledger (FWIBUDG) records current year activity, functioning like an income statement for a single year. It includes revenue, expense, budget, transfers, and encumbrances. The general ledger (FGITBAL) summarizes the university’s assets, liabilities, and fund balance. It reflects the university’s financial position at a specific point in time. Throughout the year, operating ledger activity is summarized into the general ledger’s CXXXX account codes. 

When period 12 is closed, the general ledger is rolled to the new fiscal year. This creates “Beginning Balance” transactions in period 00 of the new fiscal year. 

  • Each fund’s asset and liability balances roll forward to the new year. 
  • Each fund’s CXXXX operating ledger balances are summarized into fund balances (D0010) for the new fiscal year. 

After the roll is complete, period 12 closes and period 14 opens. Transactions recorded during period 14 generate a corresponding period 00 entry in the new fiscal year and add to the beginning balance. A fund’s actual beginning balance is the general ledger roll balances plus any additional period 00 transactions created by period 14 activity.

Cash Receipts and Deposits in Transit

Cash Receipts

Cash receipts must be deposited by year-end deadlines.

  • On-campus deposits: Deliver all cash receipts to the Cashiers Office by 3:00pm on the last business day in June.
  • Off-campus deposits: Provide detailed information for final bank deposits to the Cashiers Office by 3:00pm on the last business day in June.

Departments must follow established procedures found at Cash Handling and Departmental Deposits, including depositing receipts promptly throughout the year and avoiding the accumulation of funds for a single final deposit.

Department Deposit in Transit

Record a deposit in transit entry for payments you have received but cannot deposit before the Cashiers' Office deadlines. To record deposit in transit in the month the payment was received:

Debit — Department index — Account code A0951 Cash-Department Deposit in Transit
Credit — Department index — Account code Revenue, Unearned Revenue, AR, etc.

To make the physical deposit with Cashiers the following month, use TWADEPO:
Debit — CASH, CHEK, or CARD
Credit — Department index — Account code A0951 Cash-Department Deposit in Transit

Purchase Orders and Encumbrances

Prior to the close of period 12, review all open encumbrances and determine whether each item is still needed. If an encumbrance or purchase order is no longer needed, liquidate it using the appropriate method below. Departments can view their open encumbrances using Banner page FGIOENC.

  • Duck Depot encumbrances – close in Duck Depot
  • General encumbrances and Banner purchase orders
    • If all sequences are $0, close the encumbrance in FGAJVCD using rule code E032
    • If any sequence has a remaining balance, close the encumbrance in FGAJVCD using rule code 2ELQ.
  • Payroll encumbrances do not require review, they are liquidated automatically by Business Affairs Payroll

All remaining encumbrances with a non-zero balance will be rolled into the new fiscal year’s operating ledger when period 12 closes. Once rolled forward, they can only be adjusted or paid in the new fiscal year.

Accrual Entries

Account Reconciliations

General ledger account codes beginning with A or B must be supported by subsidiary ledgers – detailed listings of the transactions that make up the balance in a particular fund and account code. Transactions and balances in general ledger account codes can be viewed on Banner page FGITBAL, using fund and account code.

Below is a list of commonly used general ledger account codes requiring detailed back-up and reconciliations. This list is not comprehensive; other account codes may require supporting documentation. Departments are required to maintain subsidiary ledgers and account reconciliations for these types of general ledger balances to support year-end reporting and audit review.

A3103 Misc Accounts Receivable, also requires aging report
A3106 Sundry Receivable, also requires aging report
A3702 AR from Affiliated Foundation
A4002 Organized Storeroom Inventories
A5019 Prepaid Services & Supplies
A5020 Prepaid Travel
A5021 Prepaid Subscriptions/Memberships
A5022 Prepaid Capital Assets
A5023 Prepaid Software Expenditures
A5030 Prepaid Miscellaneous Expense
B0101 Year-end A/P Accrual
B0190 Received Items Payable
B0191 Duck Depot Card Payable
B5120 Prepaid Tuition & Fees
B5801 Undistributed Revenue
B5802 Unearned Revenue
B5817 Unredeemed Gift Cards/Certificates

Accounts Receivable

Departments must accrue accounts receivable at year-end for amounts owed by external customers. In addition to keeping a subsidiary ledger, at fiscal year-end departments are required to:

  • Review AR balances for uncollectable accounts.
  • Write off uncollectable amounts.
  • Submit a detailed aging report to Business Affairs Financial Services. A template is available at Year-End Accounts Receivable Form. 

The aging report must include:

  • Customer name
  • Description of goods or services provided
  • Date goods or services were provided
  • Amount owed

Common non-student accounts receivable account codes:
A3101 Misc Advances Receivable-Non SIS
A3103 Misc A/R
A3106 Sundry Receivable
A3110 Travel Advance Receivable-Non SIS

To record revenue and receivable in the period the goods or services were provided: 
Debit — Department index — Account code A3103 Misc AR
Credit — Department index — Account code 06XXX Revenue

When payment is received, departments should use TWADEPO to reduce the receivable; revenue should not be recorded a second time:
Debit — CASH, CHEK, or CARD
Credit — Department index — Account code A3103 Misc AR

To write-off amounts that are uncollectable:
Debit — Department index — Account code 28711 Bad Debt Expense
Credit — Department index — Account code A31XX Accounts Receivable

Receivables from the UO Foundation

Funds requested from the foundation after the foundation’s June cutoff and before the university’s close of period 14 should be accrued in June as a foundation receivable when all the following conditions are met:

  • Expenses were incurred and meet the restrictions of the applicable foundation fund.
  • Sufficient funds were available in the appropriate foundation fund at fiscal year-end.
  • The reimbursement request was submitted to the foundation before the close of period 14.
  • The university receives the funds in a timely fashion.

To record revenue and receivable in June:
Debit — Department index — Account code A3702 — AR from Affiliated Foundation
Credit — Department index — Account code 03651 — Campus Affiliated Foundation Gift

To record the reversal in July:
Debit — Department index — Account code 03651 — Campus Affiliated Foundation Gift
Credit — Department index — Account code A3702 — AR from Affiliated Foundation

Please forward copies of these disbursement requests to Phil Davis in BA Financial Services at pdavis@uoregon.edu.

Prepaid Expenses

A prepaid expense must be recorded when an expense of $5,000 or more is paid for goods or services that will be received in a future fiscal year. Purchases under $5,000 should be expensed in the current year.

Tax reportable expenses must first be coded to an expense account code when processing an invoice to ensure proper 1099 tax reporting.

For expenses of $5,000 or greater that are posted in the current year but relate to future fiscal years, record a prepaid expense and reverse the expense:

To record the prepaid expense and reverse the current year expense:
Debit — Department index — Prepaid Expense Account Code
Credit — Department index — Expense Account Code

To reverse the prepaid and recognize the expense in a future fiscal year:
Debit — Department index — Expense Account Code
Credit — Department index — Prepaid Expense Account Code

Reversing entries may be posted in advance if the future fiscal year is open. Prepaid amounts must be reversed and expensed in the appropriate year.

Common prepaid expense account codes to review using Banner page FGITBAL:
A5019 - Prepaid Services & Supplies
A5020 - Prepaid Travel
A5021 - Prepaid Subscriptions/Memberships
A5022 - Prepaid Capital Assets
A5023 - Prepaid Software Expenditures*
A5030 - Prepaid Misc Expense

*Prepaid software expenditures totaling more than 12 months and $100,000 must be recorded as a SBITA. See Subscription Accounting for more information.

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Invoices Payable

A payable must be recorded when goods or services are received by June 30 and an invoice will not be received before the period 14 departmental lock-out. You can also record a payable when an invoice is mistakenly paid with a transaction date in the new fiscal year to ensure the expense is recognized in the correct fiscal year.

To record the expense and payable in the period the goods or services were received:
Debit — Departmental index — Expense account code 2xxxx
Credit — Departmental index — Account code B0190 – Received Items Payable

To reverse the accrual in the new fiscal year:
Debit — Departmental index — Account code B0190 – Received Items Payable
Credit — Departmental index — Expense account code 2xxxx

After period 14 close, please notify Financial Services (pdavis@uoregon.edu) of invoices that were paid but should have been recorded as an expense in the prior fiscal year.

Additional items to note:
Business Affairs will accrue Duck Depot, Motor Pool, Concur P-card, and Concur Travel expenses at year-end.

Unearned Revenue

Unearned revenue should be recorded when payments are received for goods or services that have not yet been provided. A journal voucher needs to be processed in the future period or year when the goods or services are to be provided.

To deposit payment through TWADEPO:
Debit — CASH, CHEK, CARD, or BANK
Credit — Department Index — Account code B5802 – Unearned Revenue

To recognize the revenue in a future period or fiscal year:
Debit — Department Index — Account code B5802 - Unearned Revenue
Credit — Department Index — Revenue Account Code

Common unearned revenue account codes to review using Banner page FGITBAL:
B5120 – Prepaid Tuition & Fees
B5802 – Unearned Revenue
B5817 – Unredeemed Gift Cards/Certificates

Undistributed Revenue

Undistributed revenue is revenue that has been received and is pending distribution. This could be because the department, index, or account code is unknown. The revenue must be allocated to the appropriate department index and account codes as soon as possible. Undistributed revenue account codes must be cleared by the end of the fiscal year. To deposit payment through TWADEPO:

Debit — CASH, CHEK, CARD, or BANK
Credit — Department Index — Account code B5801 – Undistributed Revenue

To distribute revenue from B5801 to the appropriate department and account code:
Debit — Index — Account code B5801 Undistributed Revenue
Credit — Department index — Account code Revenue Account Code

Accrual Entries Central Does For You

The following accruals are completed centrally by Business Affairs. Departments should not record these on their own.

Duck Depot – 

Expenses are accrued based on orders that were received but not invoiced by June 30, and for invoices dated June 30 and prior that are matched in the new fiscal year.

Concur P-card – 

  • Expenses in Concur through the June statement period that were not approved by year end are accrued prior to the period 14 departmental lock-out.
  • Expenses approved in late June that posted to Banner with a July transaction date are accrued in June. The July Banner transaction is reversed to prevent duplication.

Concur Travel – 

Expenses for travel that occurred before the end of the fiscal year but were outstanding in Concur after year-end are accrued prior to the period 14 departmental lock-out. Travel that spanned fiscal years is prorated.

Summer Session Deferral – 

Revenue from summer session is allocated between fiscal years based on the percentage of summer classes occurring in each year.

Real Property Accounting – 

Real property accounting records are added to Banner at year-end. This includes capitalizing construction in progress expenses, moving debt from plant funds to operating funds, converting completed projects into Banner fixed assets and starting depreciation, and componentizing research buildings.

 

Storeroom Inventories

As part of year-end procedures, all university storerooms must complete an itemized physical inventory count. A member of Property Control will contact storeroom managers in May or June to schedule a time to observe inventories and review the department's counting and valuation methods. After the storeroom inventory is complete, departments must compare the physical count to the Banner inventory balance (account code A4002). If an adjustment is needed, enter the following journal voucher:

To increase the Banner inventory balance to match the physical count:
Debit — Department Fund — Account code A4002 Inventory
Credit — Department index — Account code 28723 Inventory Write-off

To decrease the Banner inventory balance, reverse the entry above.

A final copy of the completed inventory must be submitted to Property Control by close of fiscal period 14.

Funds with Negative Balances

Funds may not have negative fund balances at fiscal year-end. Departments are responsible for monitoring and maintaining the fund balance of their proprietary funds and other funds they are responsible for. Any entries needed to resolve a deficit must be recorded before the fiscal period 14 departmental lock-out.

Banner page FGTIBAL shows fund balance. A credit balance indicates a positive balance, while a debit balance indicates a deficit. For more information on moving resources between funds, see Internal Sales, Transfers, and How to Move Revenue & Expense.

Inactive Funds

As part of year-end closing procedures, Business Affairs is required to identify and terminate inactive funds. Departments are encouraged to notify Business Affairs of any unneeded funds that can be terminated.

Payroll Adjustments

Payroll adjustments must follow the annual deadlines published by the Payroll Office. For current cutoff dates and instructions, visit Payroll Accounting Adjustment Deadlines for Fiscal Year-End. 

Period 12:

PAA Forms
Departments may submit PAA forms to correct pay for inclusion in the standard year-end period. Forms must be received by Payroll by the deadline published on their website and must include a note indicating “Posting Date June 30” on top of the form. 

PHAREDS Adjustments
Departments with PHAREDS access may complete current quarter redistributions for period 12 posting. Adjustments must be complete by Payroll’s period 12 deadline and must override the default posting date to June 30.

Period 14:

Only PAA forms are accepted for period 14. Forms must be received by Payroll by noon on the deadline published on their website and must include a note indicating “Posting Date June 30” on top of the form.