1. All remaining asset and liability balances must be transferred to another account. This is also true of fund balances with the exception of the 9899 object code. Fund balance object codes must be moved on a JV document. If you have a fund balance in an object code other than 9899, for example 9897, contact your auxiliary consultant to move this balance.

   It is not necessary to clear the account of income and expense balances. Income and expense balances close to fund balance (9899) at the end of the fiscal year through the automated year end closing process; therefore, they will be cleared from the account at that time.

   Example:
   Account 60-449-07 must be closed. The account currently has balances as follows:

   Object Code	Object Name	Amount
   1500	Sales and Services	$500
   500	Misc Expense	$200
   8000	Cash	$1,000
   8119	Accounts Receivable	$3,000
   9041	Accounts Payable	$2,000
   9899	Fund Balance*	$1,700

   *(Fund Balance is Carried Forward from the prior year.)

   The income and expense balances will close to object code 9899 at the end of the fiscal year, so no entry is needed to move them. However, the asset and liability balances must be transferred to another account. A decision was made by the department to transfer both of the balance sheet amounts to account 60-449-00. Two transactions must occur to facilitate the closing of the account. The first transaction will be carried out via the distribution of income and expense (DI) document as follows:

   Account	Object Code	From	To
   60-449-07	8119	$3,000
   60-449-00	8119		$3,000
   60-449-07	9041	$2,000
   60-449-00	9041		$2,000

   The offset to each of these line items is object code 8000 (Cash). After the DI above has posted, the new cash balance in account 60-449-07 will be $2,000.The second transaction will be required to move any existing cash out of the account to be closed. This balance should be transferred via the transfer of funds (TF) document as follows:

   Account	Object Code	From	To
   60-449-07	9900	$2,000
   60-449-00	9915	$2,000

   After the TF document above has posted, the only balances remaining in the account will be Income of $500 (object code 1500); Miscellaneous Expenses of $200 (object code 5000) and Transfers Out of $2,000 (object code 9900) respectively. The net of the income and expense numbers above (-$1,700) will close to fund balance at the end of the year, resulting in a zero balance in the account at June 30th. No further entries are required.

2. Any existing pending ledger entries must clear the account prior to its closing. Pending ledger entries can be checked in the FIS by selecting Inquiries/Balances from the menu options. From the Balances Report Menu, select Pending Ledger Entry, which will present a window titled General Ledger Pending Entry Report Criteria. Enter the account number of the account to be closed and select the Report button. This will present a listing of all current pending ledger entries with the exception of pending labor entries, which are discussed in the next paragraph. The account cannot be closed if entries still exist here.

   Pending labor entries occur with the creation of salary transfer and benefits transfer documents, or the creation of a journal voucher affecting labor object codes. Pending ledger entries created via the salary transfer and benefits transfer documents may be viewed by retrieving the unapproved document(s) via the FIS document search window. Once the document(s) appear(s) in the document search window, double-click on the Amount field to display the pending ledger entries for that document. (This report can also be displayed by opening the document and double-clicking on the Org Doc # field.)

3. All encumbrances must be closed and pre-encumbrances must be reversed. If purchase requisitions are submitted electronically, encumbrances should be closed by the department through the TOPS system. If assistance is needed in closing encumbrances or reversing pre-encumbrances related to purchase requisitions, the University Purchasing department should be contacted. Travel Management Services must be contacted to remove travel encumbrances. Please note that these procedures are likely to change with the conversion of the purchasing system to EPIC in calendar year 2006.

4. There can be no current or base budget in existence for the account. This can also be determined via the FIS. Select Inquiries/Balances from the menu options. From the Balances Report Menu, select General Ledger Balance, which will present a window titled General Ledger Balance Report Criteria. Enter the account number of the account to be closed, change the default balance type from AC to CB for current budget or BB for base budget, and select the Report button. This will present the corresponding budget balances for the account. The account cannot be closed if balances still exist here.
   (Note: Adjustments to the base budget should not be made without first contacting the University Budget Office and campus business office.)

Once the above criteria have been met, the account can be closed by completing the Account Maintenance document in the FIS. This document is located in the Chart of Accounts document maintenance group. If assistance is needed to complete the document, contact your chart manager, your auxiliary consultant, or FMS Customer Service. (Note: When completing the Account Maintenance document, be sure that the appropriate account expiration date is entered and check the Closed box at the bottom of the document.)

General Ledger - The official repository for University financial transactions. The general ledger is updated nightly.

Encumbrance - An accounting term used to describe funds that have been earmarked, or set aside, for a specific purpose.

Base Budget - A budget generally (though not always) established during the budget construction process designating an ongoing fiscal commitment.

Current Budget (FIS Balance Type 'CB') - is a copy of the base budget at July 1 that can be modified to reflect non-recurring items for the current fiscal year.

Pending Ledger Entries - Entries stored in the pending ledger until final approval of an FIS document is received, which triggers its transfer to the general ledger during the nightly batch cycle.

See FIS Training Documentation: Budget Adjustment

See Indiana University Purchasing Department website