welcome accounts payable fy2010 year-end closing workshop presented by: sandra king, accounts...
TRANSCRIPT
Welcome
Accounts Payable FY2010
Year-End
Closing Workshop
Presented by: Sandra King, Accounts Payable Manager
Office of Business Services
Importance of Year-end Closing
The College meets its obligations: Legal Financial Budgetary
BY Robert M. Preston, M.B.A., M.S.
Director of Financial Reporting and Operations
GOAL
To close the accounting books on time
To close the accounting books accurately
Ensure all vendors, employees and students payments are recorded in the proper year
Topics of Discussion Fiscal year-end processes Your role in the closing Key due dates and submitting documents
related to: Vendor Invoices and Travel Related Payments Petty Cash & Employee Reimbursements Invoices Corrections Accruals Carry Forward Purchase Orders Check Deposits
Your Role in the Closing
Ensure all deadlines are met You have followed the year-end close
processes. Ask questions if you need help!
How are we going to achieve our goal?
staying current ensure all payment requests for FY 10 has been forwarded to Accounts Payable
Meeting the deadlines (making sure invoices are in the hands of Accounts Payable and not inter office mail by the due dates)
Asking for clarification and help Ensuring you have received invoices from
vendors for all Goods & Services completed and received by June 30, 2010.
What is the Fiscal Year? Montgomery College’s fiscal year runs
from July 1 to June 30th
New Fiscal Year for FY11 starts on July 1st 2010
Specific year end deadlines are set in order to close the books and prepare annual financial statements
What Determines the fiscal Year?
The Date of Receipt of Goods and Services
Determines the fiscal year expenditure
If received before June 30th - FY10
If received after June 30th - FY11
Travel & Employee Reimbursement
All local and long distance travel completed as of 6/30 should be recorded as an expense of FY 2010
All travel reports and employee reimbursements processed before 6/30 will be charged to FY 2010
All travel reports and employee reimbursements submitted after 7/10 will be paid out of the next fiscal year FY11 budget.
The department must submit paper work and original receipts to Accounts Payable by June 30, 2010.
Blanket Purchase Orders
All (B#) Blanket Purchase Orders will be closed as of June 30th.
Departments must make sure they have received and approved all invoices for the blanket purchaser orders
Example –June payment for a lease
What happens?
If the final June invoice is not received by June 30th for Blanket Orders or other types of payments, you must contact the vendor immediately to forward an invoice to Accounts Payable
If no invoices is received by July 10th, you must submit an accrual listing with complete information and backup to Accounts Payable
Accrual
What is an accrual?
If goods have been received or services performed by June 30, 2010, the invoice amount is accrued to be booked in the correct year (FY10).
Accruals – continue
At the end of FY10, Accounts Payable has to accrue our obligations. An obligation is any amount that the College owes. The obligation amount is based on: Amount of unpaid invoice. Amount of items received, but not yet paid. Amount reported by college or
departments.
Accruals - continue
Accruals will appear on your June –FY10 ledger
If invoices are over the accrued amounts the differences will be charged to the next fiscal year- FY11
Accruals – continue Example of Accrual
Submit a PO for a computer costing $3,200 in May -The computer is received in June
The invoice is received and processed in July (in new fiscal year)
Because the computer was received before year- end, it represents an expense to fiscal year 2010
Fiscal Year _____________ MONTGOMERY COLLEGE
ACCOUNTS PAYABLE
ACCRUAL REQUEST FORM
Fund, org, account, program
Dollar Amount Vendor Name PO#
Inv or Order #
Date Received-
goods/services Reason For Accrual
Example
1110-225558-6020-0010 $1,500.00 Formost Printing Inc 50944555 A2588891 6/11/09Invoice not received by
6/30 `
NOTE: ONLY FOR GOODS & SERVICES RECEIVED PRIOR TO JUNE 30. **SUPPORTING BACKUP DOCUMENTATION MUST BE ATTACHED (Contract, Packing List, Quote, Invoice) Must be received in Accounts Payable no later than July 10.
Account Manager's Signature: Date: Ext.______________
Account Manager (Print)
Department:
PRINT FORM MAIL TO: Accounts Payable , MKE 230-Attn Sandra King , AP Manager
Accounts Payable Accrual Diagram
ACCURALSTRANSACTION
TYPEPO
EncumberedFY10
Received Goods and Services (06/30/10)
InvoiceReceived
07/01-07/09
Accrual Required
If not paidin Banner)
Process
Direct Payment Invoice
NOPO Required
Actual goods or services rec’d by
06/30/10.
YES or NO YESComplete On-line
Accrual FormSubmit to AP with
invoice or supporting back-up
Purchase OrderExpenditure
YESActual goods or services rec’d by
06/30/10)YES YES
Complete On-line Accrual Form
Submit to AP with invoice
Purchase Order Expenditure
YES Actual goods or services rec’d by
06/30/10
NO Invoice
Estimate Accrual
YES Complete On-line Accrual Form
Submit to AP with PO copy, supporting
back-up
The accrual form
Use the accrual form to submit your request. The form is located on the Accounts Payable website
www.montgomerycollege.edu/departments/obs
Required information
Please include: Vendor name Amount Account number Account manager approval Purchase order number Supporting Backup Reason for Accrual
Supporting Documents
Documentation To support your accrual you may include the following: Copy of the PO, Contract for services Packing Lists Order Form/Confirmation Proof of Delivery Receipts Written documentation from vendor on letterhead
Carry forward Encumbrances/Purchase Orders
What are carry forward encumbrances/purchase orders? Purchase orders that are
established in current fiscal year (FY10), but no payment and receipt of goods or services are completed by June 30, 2010.
What should be done to request carry forward purchase order?
A listing must be completed using the carry forward request form and forwarded to Accounts Payable by July 10, 2010.
Written details supporting the carry forward purchase orders must be provided
The Balance of the purchase order can be carried forward to be used in FY11.
Important to Know about Carry Forward Purchase Orders
Payment will not be made to vendors until August -of the next fiscal year once FY10 budgets are rolled and the year is closed.
Invoice Corrections
Journal entries-account cleanup
CUT off Date is July 10, 2010 for all corrections
Invoice journal correction form must be completed and forwarded to Accounts Payable with supporting backup documentation.
Prepayments
Expenses for the coming fiscal year that require payment prior to July 1st can be submitted to Accounts Payable clearly marked FY 11 Examples: Subscriptions and membership
renewals, insurance.
Closing Deadlines
June 15th Last day for P-card Charges June 30th Last day to submit the following
Petty Cash Reimbursement Local Travel under $25
July 10th, all FY10 invoices, travel, employee reimbursements
Final Cut off Date All invoices, travel and requests for
payment must be received in Accounts Payable no later than July 10, 2010 at 5:00 p.m.
Accrual listing and supporting backup must be received July 10, 2010 at 5:00.
Carry forward purchase order requests form are due by July 10, 2010.
Closing- PO (Encumbrances)
Encumbrances balance on Purchase Orders as of June 30, 2010 are carried forward to FY 2011
If the departments is not using open purchase orders in FY11, the PO can be closed.
please submit the request to Accounts Payable by June 30th.
Deficits/Over Expenditures
Units are responsible for monitoring balances in their accounts throughout the year.
A deficit is when the cash balance in general ledger is negative.
Deficits must be cleared in a timely manner, but no later than June 30th (fiscal year end)
Refund checks for deposit Do not hold checks. Please bring all checks
sent directly to your department to the Cashier’s window as they are received.
Cash Closing – done on June 30th June 30th deposits will be recorded to fiscal
2010 If you deposit money after 6/30 , the funds
will appear on your FY11 ledger.
Where do you go for help?
Visit Accounts Payable Website:
www.montgomerycollege.edu/departments/obs
Contact Accounts Payable at X75338
Email Accounts Payable [email protected]
Questions?