The policy sets forth certain basic requirements to define the PSU fiscal year, quarterly and monthly accounting periods, closing dates and the accounting transactions to be included with each accounting period.
FISCAL YEAR ACCOUNTING PERIOD: The fiscal year for PSU is July 1 through June 30.
QUARTERLY ACCOUNTING PERIODS: Each fiscal year is divided into four quarterly accounting periods. The quarterly accounting periods are:
- Quarter 1: July 1 through September 30
- Quarter 2: October 1 through December 31
- Quarter 3: January 1 through March 31
- Quarter 4: April 1 through June 30
MONTHLY ACCOUNTING PERIODS: Each fiscal year is divided into 12 monthly accounting periods. Each monthly accounting period goes from the first to the last day of that month. The monthly accounting periods are numbered 1 - 12:
- Period 1: July 1 through July 31
- Period 2: August 1 through August 31
- Period 3: September 1 through September 30
- Period 4: October 1 through October 31
- Period 5: November 1 through November 30
- Period 6: December 1 through December 31
- Period 7: January 1 through January 31
- Period 8: February 1 through February 28/29
- Period 9: March 1 through March 31
- Period 10: April 1 through April 30
- Period 11: May 1 through May 31
- Period 12: June 1 through June 30
In addition to the 12 monthly accounting periods, there is also a beginning balance period referred to as "period 00" and a fiscal year-end closing period referred to as "period 14."
The purpose of period 00 is to roll general ledger fiscal year-end balances to beginning balances for the current fiscal year. The beginning fund balances are static and remain the same throughout the year.
The purpose of period 14 is to accrue all year-end entries necessary for closing the books and preparing the annual financial statements.1
1 Banner accounting software allows for up to 13 accounting periods, a beginning balance period (00) and an accrual period (14). During the 1995 Banner FIS implementation, OUS chose to adopt 12 monthly accounting periods, along with the beginning balance period (00) and the accrual period (14). Although Banner allows for different methods of defining the FIS accounting periods, for year to year consistency, PSU accounting periods will not change.
SIGNIFICANCE OF PERIOD CLOSING DATES: Once an accounting period is closed, no additional accounting transactions may be posted to it. The closing date represents the institution's financial position as of the end of that accounting period. The accounting balances on the closing date represent a period-end measurement that does not change.
Once an accounting period is closed, it is not reopened. Under extreme circumstances, the Executive Director for Financial Services and Controller or his/her designee may authorize to reopen a closed accounting period.
TIMING OF PERIOD CLOSING DATES: Due to the month-end, quarter-end, and year-end accounting that must take place, PSU cannot close the accounting period at the end of business on the last day of the period. Instead, PSU records period-end accounting transactions in the beginning days of the subsequent period. Examples of period-end accounting include:
- Receiving, processing, and recording of invoices from vendors pertaining to goods or services received in the period being closed.
- Processing internal feeds of Banner subsidiary ledgers and institutional departmental billing systems related to the period being closed.
- Preparing travel reimbursements pertaining to the period being closed.
- Redistributing procurement card transactions to the correct funds and accounts.
- Other period-end processing, such as processing depreciation.
MEASURING OF PERIOD CLOSING DATES: Period end closing dates are to be determined based on the number of work days after the last day of the accounting period. A work day refers to a day that PSU is open and therefore does not include weekends or holidays.
Using the "number of work days after the last day of the accounting period" method changes the actual closing date from period to period, but allows PSU to plan the closing process and be assured that the same number of work days will exist for each period close process.
For specific closing dates, please see the closing schedule.