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

Page 3

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

Page 3

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.

Page 3

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

Page 4

Fiscal02 Account Summary By Object Balance

Page 4

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

Page 4

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

Page 5

Ledger 02 Receivable/Liabilities Activity

Enter the Search Criteria

Page 5

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

Page 5

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

Page 6

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

Page 7

• 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

Page 8

• 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

Page 9

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

Page 10

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

Page 10

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

Page 11

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

Page 11

****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

Page 12

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

Page 12

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

Page 13

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

Page 13

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

Page 14

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

Page 14

Report Option

• Go to Tasks to select Year End Processing Report

• Reports all detail for the remaining items on the list

Page 15

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

Page 17

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

Page 17

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

Page 19

*** 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

Page 20

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

Page 21

*** 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

Page 22

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

Page 23

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

Page 23

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

Page 26

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

Page 27

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

Page 26

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

Page 31

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

Page 35

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

Page 37

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

helpdesk@scoe.org

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