LRC Fiscal close

NOTE: You do not need to manually change fund codes from "c" to "p" before performing fiscal close procedures! They will be changed automatically as part of the fiscal close process.

Fiscal Closing is the process of closing one set of financial books at the end of the current fiscal year and opening a new set of books for the coming fiscal year.

Starting in July 2007, two separate accounting units were created: Unit 1 = Copley, and Unit 2 = LRC. Each location (or unit) can determine when to do their fiscal close.

There are several methods to close the fiscal year. Starting in July 2008, both Libraries are now using "Method 2 (Two) Manual." This allows the libraries to work in two fiscal years simultaneously by using two sets of fund codes: current year and previous year. The fund code in the order record will designate to which fiscal year the invoice will be posted. Note that several years of funds can be combined into one previous year fund.

NOTE: Annually, the library will remove old order records from the system, either by copying the order information to a corresponding item record and then deleting the order record, or by simply deleting the order record if it is no longer needed.

Method 2 Manual allows the libraries to:

1. Post any outstanding invoices from the Invoice Session files (1-4) and any encumbrances

2. Run and print the Fund Activity Report, and clear the payment history file

3. Generate and print fund reports, vendor statistics, and other management reports

4. Copy the current funds and hierarchies to the old funds and old hierarchies area

5. Move the current fund appropriations and expenditures into the previous year funds, or clear the appropriations, expenditures and encumbrances allowing you to enter them manually.

6. Set up the new fiscal year's appropriations, and encumbrances

7. Update order records with the appropriate fund code

8. Reset the number of orders YTD and the number of payments YTD

9. Adjust the appropriation, expenditure and encumbrance amounts for the current and previous fiscal years

10. Post all the changes to the system

Checklist to Complete before Fiscal Close

Preparation before Fiscal Close

1. Near the end of the fiscal year each library determines the best date to run fiscal close for their accounting unit. For example, wait to do fiscal close until the majority of the bills have been paid for the current year.

2. Clean up any old order records (i.e. cancelled orders, old records with "previous" year fund codes) that you need to remove from the system by adding the order record information to the associated item or by deleting the order record if it is no longer needed. Order records can only be deleted if their status is 1 (on-hold), 2 (approval rejected), a (paid monograph), or d (paid serial).

3. Set aside at least 2 hours to complete the fiscal close. It is recommended that you run fiscal close early in the morning before any acquisitions work has begun.

4. Confirm that the method of fiscal close is set to Method 2 "Two" Manual. You can contact your Library Systems Manager to confirm the method, or you can go to the text-based system, type M→I→S→A (and move forward (F) to the second page if necessary) and check the "Fiscal Year Closing" line. If the method is correct, proceed.

   1. Note: Always verify this setting is selected: Method 2 "Two" Manual

5. Make sure there is a matching "previous year" fund for every "current year" fund. Add them before you start this process.

6. If you have old, unused fund codes that were not used in the current or previous fiscal year, it is recommended that you follow the "Delete Fund Codes" procedures and remove them from the system before you begin this process. (Appropriation, Expenditure, Encumbrance, Free Balance, and Cash Balance, will all be zero for unused fund codes.)

Preparation on Day of Fiscal Close

1. Survey all the order records you have on the system using Create Lists. Determine what statuses you have in your order records.

   1. Determine all the statuses that you use by using Create List of every order record for your library and running a statistical report on the review file or by exporting the order record number, fund code, and status to Excel.

   2. From this overall list, create sub-review files for each status and fund that you have on the system using the chart below. If there is "No Change" in the "LRC Change Fund To" column, you don't have to create the list. There are Saved Searches in the Create Lists program in Sierra to use in creating these review files. The query names begin with "LRC Fiscal Close …"

NOTE: Do not manually change the fund codes in the review files before continuing with this procedure! They will be changed automatically as part of the fiscal close process.

1. Make sure that a system backup completed the previous night. You can contact your Library Systems Manager to confirm that the backup completed, or go to the text-based system: *M->I->F* and check the dates on the "Time of last verified full backup" or "Time of last enterprise backup". If either has today's date, proceed.

2. Set aside at least 2 hours to complete the fiscal close. It is recommended that you run fiscal close early in the morning before any acquisitions work has begun.

3. Make sure no one else is working the Acquisitions module or modifying any order records.

4. Make sure there is paper in the printer. Otherwise you can send all reports to your email account by doing the following on your Acquisitions module: (File->Select Printer->Standard Printer->email printer->OK->Enter the email address that you want to send all subsequent print jobs->OK)

5. Close any miscellaneous applications on your system except for Sierra Acquisitions

6. Make sure that fund codes are displaying instead of fund names. Verify this in the Sierra Funds Function. To change this option, contact the Library Systems Administrator.

7. Make sure all your report options are checked "on" so that they are available during fiscal close. Go to AdminSettingsFunds and check the boxes next to: Statistics, Management (Fund) Reports, and Vendor Statistics.

Posting

1. Open Sierra Acquisitions module.

2. Click on the Fiscal Close Mode in the left-hand navigation bar.

3. The system checks to see if there are any outstanding invoices to post from Invoice Sessions 1-4 or if there are any encumbrances that need to be posted.

4. One of the following messages will display. Take the appropriate action:

Example message:

Example Posting Screen:

Open

1.  If there is anything to post, choose the printer in the Select Printer dialog box to which you want to send the posting register. NOTE: If you selected Email as the printer in the Preparation on Day of Fiscal Close section above, enter the appropriate email address.

2. Enter a heading for the posting register. The heading can be up to 29 characters. Click on OK.

3. After the system prints the encumbrance register and the invoice register, you are prompted as follows:

Invoice register has been printed Is printout okay?

1. If the printout is not okay, choose No. The data will be saved so that you can post the file again.

2. If the printout is okay, choose Yes. The data will be cleared while the rest of the reports are printed.

3. When the posting register prints, you are prompted:

OK to proceed?

1. If the printout is not okay, choose No

2. If the printout is okay, click on Yes.

3. After the orders and payment history are posted, the screen displays: Posting all done

4. Click on Continue at the bottom of the screen to repeat the posting process for all sessions that need to be posted.

5. After all invoice sessions are posted, click on Quit.

6. Click on Next to go on to the Printing Fund Activity Report section.

Printing the Fund Activity Report

1. If there is no Fund Activity to print it will indicate that there is no data to print in the lower-left corner of the screen. Click on Next and go to the Creating Fund and Statistical Reports section. Otherwise, go to the next step.

Example Fund Activity Report in Fiscal Close:

Open

1. Enter a Report Header.

2. Show All option: If you want to print all funds, including those that don't have any activity, select Show all. Otherwise, leave this box unchecked.

3. Click on Start.

4. When the system displays the Activity Summary dialog box, verify that the  information is correct and click on OK to continue.
   
   
   

5. 
   
   
   

    
   
   
   

6. The system loads the report (this may take a while). Upon completion, the status bar in the lower-left corner will show Fund Activity Report complete.

7. Verify that all funds are in balance.

   1. NOTE: If a message in the lower-right corner of the screen states that funds are out of balance, contact your Library Systems Manager.

8. Click on Print from the toolbar to Print the Fund Activity Report.

9. When the report has been sent to the printer, the following message displays: Printout is OK

   1. If no funds are out of balance and the report printed properly check the Printout is OK box to make the Clear payment history box become active.

   2. If the printout is NOT okay, do NOT check the Printout is OK box, and click on OK. Resolve the problem, and return to this step in the fiscal close.

10. Check the Clear payment history box and click on OK.

11. The status bar at the bottom of the screen displays: Payment history file cleared.

    1. NOTE: You must clear the payment history file to continue the fiscal closing process.

12. Click on Next to go on to the Creating Fund and Statistical Reports section.

Creating Fund and Statistical Reports

NOTE: Do not skip this step, even if you do not need any statistical reports for your files.

1. Go to the Fund Reports tab at the top of the screen, click on Current Funds in the left pane. When all current funds display with their appropriations, expenditures and encumbrances, click on Print in the task bar.

   1. NOTE: You will need this information for the last step in the process, Adjust Funds, below.

2. OPTIONAL: Go to the Statistics and Vendor Statistics tabs at the bottom of the screen and run reports if desired. You can print them before or after fiscal close.

3. Click on Next.

Changing Funds

1. The FIRST time you complete and process the information on this screen, check the box: Archive "Current Funds" amounts to "Old Funds", and "Hierarchies" to "Old Hierarchies".

2. Using the create lists that you created in the Preparation on Fiscal Close Day section above, to the following

   1. Select "Review" from the drop-down menu

   2. Select the appropriate review file in the "Review File" drop-down menu.

   3. Click on the "Limit to status" box, and select the status that applies to the review file. For example, if your review file includes order records that contain paid monographs (status "a") with fund codes from the current fiscal year (begin with a "c"), then in the Limit to status box enter "a".

   4. Do not check the Change Status, unless you want to also change the status of the order records in addition to the fund codes
      
      

       

   5. Do not check the Change fund for partials boxes, unless you have order records that have partial payments (status "q" or "e"). NOTE: If you don't select this option, these records will be put in a review file, and you can update each record later.

3. The table at the bottom of the screen lists all the current funds. For each of the current fund codes in the FROM FUND column that begins with "c", add the corresponding previous year fund code which begins with a "p" in the TO FUND. For example, if the current fund is "cbind" in the FROM FUND column, enter "pbind" in the TO FUND column.

   1. NOTE: Do not add a code for any of the previous year funds (i.e. if they begin with a "p") that appear in the FROM FUND column. Leave the TO FUND column blank.

   2. NOTE: You only have to do this process once for all the review files you are updating.

4. Once you have proofed your work in the TO FUND column, click on Process. This will do the following:

   1. Copy the current funds and hierarchies to the Old Funds and Old Hierarchies section of the Fund mode.

   2. Change the fund code in order records in the review file you selected as you specified in the TO and FROM columns.

    

5. When processing completes the Reports tab at the top of the screen will display a summary of changes and a section for encumbrance changes.

   1. NOTE: After a fund has been processed, its original amounts cannot be restored.

6. Click on Print on the toolbar to print the report.

7. WARNING!!

8. UNCHECK the Archive "Current Funds" amounts to "Old Funds", and "Hierarchies" to "Old Hierarchies"

• If you do not uncheck this box, you will zero out your old funds and hierarchies!!Click on the Funds tab at the top of the screen to process another review file

1. Return to step 2 above and repeat this process of each Review File that you generated.

2. After you have processed all your review files, click on Next and go to the Clear Funds section.

Clear Funds

1. OR, if the new year's appropriations are the same as the previous year's or there are only minor adjustments, DO NOT check the appropriations box so that the appropriations for both the current and previous funds will not be changed. You can Adjust both current and previous fund appropriations in the next step. Be sure to zero-out expenditures and encumbrances.Check all the boxes in the Appropriations for all funds, Expenditures for all funds, and Encumbrances for all funds.

   1. NOTE: You will be manually entering all the amounts for the current year's funds in the Adjust Funds section below.

2. Check the # Orders Year-to-Date for all funds box to reset the year-to-date number of orders to zero for the new year's funds.
   
   

    

3. Check the # Payments Year-to-Date for all funds box to reset the year-to-date number of payments to zero for the new year's funds.

4. Click Process. The amounts and fields on the fund records are reset to zero.

   1. NOTE: After a fund has been processed, its original amounts cannot be restored.

5. Click on Next and go to the Adjust Funds section.

Adjust Funds

1. Using the Fund Report you printed in the Creating Fund and Statistical Report section, enter the appropriate values for each of the funds.

   1. For the current year fund codes – starting with "c", enter the APPROPRIATIONS that you have received from your director for the next fiscal year. Also, enter the ENCUMBRANCES that you want to keep in the current year for open monographic and serial orders, and standing orders. You can find these amounts on the Fund Report under the Encumbrances column for the current year funds.

NOTE: If you DO NOT Clear out appropriations in the previous step, simply make sure that the amounts match the appropriations given to you by the Director.

1.  

   1. For the previous year fund codes - starting with "p" , enter the APPROPRIATIONS found on the Fund Report for the current year fund codes (i.e., enter the amounts from the "c" funds on the Fund Report in the "p" fund lines on the screen!) under the appropriation column. Also, enter the EXPENDITURES found on the Fund Report for the current year fund codes under the expenditures column.

NOTE: If you DO NOT Clear Out the appropriations in the previous step, simply make sure that they match the "c" funds appropriations.

1. After you have proofed your amounts, click on Post on the toolbar to apply your changes to the funds.

2. Click on Quit at the bottom of the box to complete the fiscal closing process.

3. The system displays the following message: Fiscal Close Complete!

4. Once you have successfully completed fiscal close, you may delete the review files you created earlier in this procedure.

• * Revised 7/2/2009 by Michael O'Brien

• Revised 6/29/2010 by Loren Stamper

• Revised 6/29/2011 by Loren Stamper

• Revised 6/29/2012 by Loren Stamper

• Revised 6/25/2013 by Derek Antler

• Revised 6/9/2014 (formatting changes only) by Derek Antler

• Revised 6/23/2015 by Derek Antler

• Revised 4/29/2016 (checklist added) by Derek Antler

• Revised 6/22/2016, 6/23/2016 & 6/24/2016 by Derek Antler