Submit Accruals and Deferrals Starting July 9 // Period 12 Deadline is July 15

[Accounting and Fiscal Services]

Accounting & Fiscal Services Update – Interim Week In this message: Submit Accruals/Deferrals Starting July 9, Review Abnormal Object Code Balances, Period 12 Deadline is July 15, Account Edit & Copy Disabled Fiscal Year-End Close Submit Accruals and Deferrals Starting July 9 The Year-End Department Accrual (YEDA) e-document will be available for use starting Thursday, July 9. KFS users who need to submit accruals and deferrals for expenses and income should use the YEDA to do so no later than 3 p.m. on Wednesday, July 15. What Must be Accrued or Deferred? Accrual and deferral entries are recorded based on a materiality threshold, which is $10,000 for FY 2026. Individual transactions should be evaluated for accrual/deferral. If they meet or exceed the above threshold, they must be recorded to the appropriate fiscal year using the YEDA e-document. The threshold of $10k applies to most expenses and income, but some limited exceptions are listed in the fiscal closing instructions. Other Considerations: Purchase Orders (encumbrances) do not need to be accrued. Invoices (Payment Requests and Credit Memos) that post to the wrong fiscal year may need to be accrued or deferred if they meet the materiality threshold. PREQs post to the fiscal year based on the date of the vendor’s invoice but should be recorded to the same fiscal year the items were received or service was performed. C&G Accruals No contract or grant funding should be used on the YEDA e-document. If departments have any accruals for C&G funds, provide the information to Griselda Duran at gri...@uci.edu by Monday, July 13. Emails requesting expense accruals on C&G funds must include the following: fund number, Purchase Order (PO) number, a brief explanation, and a copy of the invoice. What Documentation is Required? The YEDA document requires specific documentation. Before you submit an accrual or deferral, please make sure you’ve provided the following:   A brief explanation for why you are submitting your accrual or deferral. The explanation must be very clear (i.e., to an outside auditor) as to why the accrual or deferral is needed. For accruals – An invoice and other supporting documents must be provided that verifies that the goods/services were received or provided during FY 2026 but booked in FY 2027. For deferrals – An invoice and other supporting documents must be provided that verifies the goods/services will be received or provided in FY 2027 but booked in FY 2026. Please also provide any workbooks that contain calculations that support the entry. Backup documents should be attached using the Notes & Attachments tab in the YEDA document. YEDA Approval Routing The YEDA document is automatically routed to the Unit Lead Finance Officer (usually the MAABO) as an assigned role in the YEDA document. No additional ad-hoc routing is required for approval. Exception: If the Unit Lead Finance Officer initiated the document, they must ad-hoc route the YEDA document to their supervisor for review and approval. Reminder: Ensure your unit has a current Unit Lead Finance Officer appropriately assigned to avoid YEDA documents going into exception. If you are not sure if you need to create an accrual or deferral transaction, please discuss the potential transaction with your organization’s financial management and then contact General Accounting as needed. Fiscal Year-End Close Review Abnormal Revenue & Expense Object Code Balances As part of year-end close, campus units should review the Revenue/Expense Object Code Balances by KFS Account report to identify abnormal balances at the KFS account level and determine if ledger corrections are needed. General Rule: Revenue object codes (IN, IC) normally carry a credit balance. Expense object codes (EX/ES, EE) normally carry a debit balance. An abnormal balance does not necessarily indicate an error: it flags an item requiring evaluation. Be prepared to explain why the abnormal balance exists and why it is appropriate if no adjustment is to be made. If a correction is needed, submit the appropriate GEC/GECR no later than 3 p.m. on July 15. These documents may route for central approvals, so submit early. Attach all supporting documentation to the Notes & Attachments tab and include a clear explanation in the Document Overview tab. If you are unsure whether a correction is needed, discuss the transaction with your organization's financial management and contact General Accounting as needed. Reminder Deadline for GEC/GECRs and BA/BATs is Only a Week Away The last day to have all GEC-type documents finalized – as well as budget adjustments – is July 15 before 8 p.m. The deadline for Capital Asset GECs is July 13. These docs may route for central approvals, so submit early! July 15 is also the last day to adjust any auto-approved PALCard General Ledger transactions from FY 2026. After Period 12 closes, no adjustments to tax accrual or GL entries/default can be made. Fiscal Year-End Close Deadline for All Period 12 Activity is July 15 All campus units must submit their accruals and deferrals, final budget alignments, and error corrections no later than Wednesday, July 15. No exceptions will be made. Departments must close the fiscal year in a solvent condition. All KFS documents must be final to be included in the period. Cancellation of Non-Final Period 12 & Period 1 Docs At the end of the day on July 15, any GEC, BA, BAT, YEDA, or AV documents for period 12 of FY 2026 and period 1 of FY 2027 that are not in final status will be canceled by the system. It is recommended that any FY 2027 documents be initiated after July 15 to avoid unintended system cancelation. If a transaction in a canceled document should be recorded in period 1, it will have to be re-entered or copied. Chart of Accounts Account Edit & Copy Disabled Per the fiscal year-end closing instructions, the edit and copy features in the Account Lookup on ZotPortal are currently disabled. This was done intentionally to limit account changes and creation during fiscal year-end close. Sub-Object Codes: Similarly, campus units should also refrain from making changes to sub-object codes at this time because edits will not be copied over to the new FY 2027. The Account Global Document is still available for changing fiscal officers and other account responsibility attributes. Please contact Contracts & Grants Accounting if you have a C&G account that requires a modification. Reminder Don’t Forget Supporting Documentation During Fiscal Close! To ensure your transactions can be approved as efficiently as possible, please make sure all relevant supporting documents are attached to your KFS documents. For financial transactions like error corrections, accruals/deferrals, and other financial journals, this means uploading supporting documents to the Notes and Attachments tab. Additionally, be sure to put a detailed explanation in the Document Overview tab to describe the purpose/transfer of the journals.

UC Irvine Accounting & Fiscal Services 228 Aldrich Hall | Irvine, CA 92697-1050 | accounting.uci.edu

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