The purpose of the document is to assist Unit Financial Managers creating Accrual Entries for transactions that occurred during one Fiscal Year that were not entered into Oracle until the following Fiscal Year.

• Compensation-based Accruals are applied via a process in Workday.
• Internal Billing invoices should be processed in the period that they are incurred via the Payables modules and should not involve any accruals.

 

Entity and Organizational Financial Mangers (EFM / OFMs) need to identify any goods and/or services they have received on or before 6/30 and then review their ledgers to identify any that have not been recorded as of Fiscal Year End (FYE). Additionally, EFM/OFMs should identify any goods and/or services that have been provided but not accounted for before the 6/30 FYE. These transactions will need to be Accrued accordingly.

 

There are number of ways to do this, depending on your workflow, security/role access, and the financial reports you are used to reviewing.

 

The Invoice Inquiry Summary and Detailed report (located in the Payables Management Dashboard) is one.  For this report, you can run a report that shows everything that has been charged to your Entity / Organization(s).  Once you have created the report, export it to Excel and filter the results to show Unaccounted invoices, and then review the lines to identify any goods/services that were rendered before FYE.  This process will need to be completed multiple times during the month of July as invoices will likely be processed to Oracle over time.

 

You can also use the reports in the Oracle Central Finance Reporting Hub, which can be found in the Reporting Hub module in Oracle. When using this report, you can select Fiscal Year (FY) as one of your filters to identify transactions that have posted to the later FY that you want to Accrue back to the previous FY (or transactions in the previous FY that you want to Defer to the later FY).

 

You should also continue to review any invoices for your Entity / Organization(s) post after June 30^th to confirm that the expense was incurred on or after July 1^st, otherwise these will also need to be accrued back to the previous FY.

 

For additional guidance in navigating Orbit reports, review the following Quick Reference Guides in ServiceNow’s Knowledge Center:

• Navigating Orbit Report Fundamentals
• Reviewing Unit Financial Dashboards
• Reviewing the Payables Management Dashboard

 

Once identified, the following processes should be used to accrue the Revenue or Expense:

• Accruing an Expense (non-compensation and not Internal Billing)
• Accruing Revenue (non-compensation and not Internal Billing)
• Deferring an Expense, such as a Pre-Paid Item
• Deferring Revenue
• Recognizing Revenue and Expense from an Internal Billing Invoice

 

Create a Journal Entry (use this link for a QRG on how to Create a Journal Entry).

 

Use Accrual with Reversal as the Category and update the Accounting Date to June 30^th.

For the Account segments of the COA, use

• 7xxxx (Expense Category for the transaction) for the Debit
• 22400 (Accr–Manual–General) as the Credit
  • Note: 22400 is a Liability account, so the Purpose segment for this line will be 010 (Balance Sheet)

 

Create a Journal Entry (use this link for a QRG on how to Create a Journal Entry).

 

Assuming that you plan to create an AR Invoice in July, you should use Accrual with Reversal as the Category.  Otherwise, you should use Accrual without Reversal. In either case, update the Accounting Date to June 30^th.

 

For the Account segments of the COA, use

• 11455 (Accr–Manual–General) as Debit, and
• 5xxxx (Revenue Category for the transaction) for the Credit
  • Note: 22400 is a Liability account, so the Purpose segment for this line will be 010 (Balance Sheet)

 

Create a Journal Entry (use this link for a QRG on how to Create a Journal Entry).

 

Use Accrual with Reversal as the Category and update the Accounting Date to June 30^th.

 

Use the following Account segments for your COA, use

• 133xx (Prepaid items) as Debit
• 7xxxx (Expense Category for the transaction) for the Credit

 

Create a Journal Entry (use this link for a QRG on how to Create a Journal Entry).

 

Use Accrual with Reversal as the Category and update the Accounting Date to June 30^th.

 

Use the following Account segments for your COA, use

• 5xxxx (Revenue Category for the transaction) for the Debit
• 241xx (Prepaid items) as Credit

 

As long as Accounts Payable (AP) has not closed the month of June, Internal Billing Invoices can be processed to account for the previous Fiscal Year by editing the Accounting Date on each line of the Internal Billing Invoice. While technically not an accrual, this will achieve the same result.

 

If an Internal Billing Invoice was processed after 6/30, the submitter of the Invoice may edit the Distributions of each line to reflect 6/30, which will recognize the transaction for the previous Fiscal Year.

 

Use this link for more information on How to Correct an Internal Billing Invoice – Edit Distributions.