Closing Out the Year in Skyward: School Business Suite Edition Skyward Consulting & Support by Skyward Consulting & Support Skyward Consulting & Support Helping You Be Brilliant Read time: Closing Out the Year in Skyward: Business Edition School Business Suite closeout items and tips are divided into two sections: finance and human resources. These sections are further split into three categories: what you can do in preparation for the year-end, year-end processes themselves, and what to do after the process is complete. Please note: this checklist includes only general considerations. It is important to be aware of any specific processes that are run for your state. You may want to access our online documentation for Financial Management, Account Management, Year End, and Fiscal Year End Processes to reference additional items to consider in preparation for year end and state-specific items. ↪ Download the printable checklist. Finance Checklist + Purchase Orders 0/5 In Preparation: Set up next year’s starting purchase order/ requisition number. Doing so will enable your team to create purchase orders and requisitions in the new fiscal year. To expedite this process, a utility can be used to mass establish these starting numbers. Ensure all purchase orders that should be rolled into the new year are in an open status. Be sure to update any batch status or reversal purchase orders as well as close out any POs that were fully received. Run a list of open purchase orders you intend to roll forward, and verify the Reserve for Encumbrance balance equals the balance of the remaining encumbrance of the PO. Year-End Process: Run the Encumbrance Carry Forward or Expense Open Purchase Order processes. The encumbrance carry forward process will roll any remaining encumbrances into the new fiscal year. For the Encumbrance Carry Forward Process, if the amount is included in the budget, it will be reflected in the revised budget and may be reported with the Budget Carry Forward field. The expense open PO process will charge any remaining encumbrances in the old year and roll the purchase order into a new year with (typically) a liability account. After: If you notice any negative encumbrances in the new fiscal year, run the Encumbrance Carry Forward process with the closure date set to the last day of the old fiscal year. A negative encumbrance could have occurred if a PO that was encumbered in a previous fiscal year got expensed in the new fiscal year. + Accounts Payable 0/7 In Preparation: Ensure all accounts payable invoices are in an open status and update any batch status or reversal invoices. Complete check processing for any invoices that should be posted to the old fiscal year. Set up next year’s wire transfer and accounts payable ACH (automated clearing house) starting number. Year-End Process: If you are using pending receiving, roll any outstanding invoices into the new fiscal year. Verify that all open invoices are outstanding. Run the Open Invoice History Report using the last day of the fiscal year as the report date. Verify that the balance in the Accounts Payable Accrual Liability reconciles the open invoice amount. Run and review the following from FM\AM\AU\DI\AI: Master/Detail Invoice Activity Audit, Fix AP History Invoices Audit, Credit Card Activity, Check Requests, and Expense Reimbursement. Verify all check runs have been completed and posted for the closing year. + Inventory 0/1 In Preparation: Complete the Year End Expense Process, the Year End Requisition Roll, or Cancel Requisition Quantities using the Inventory Year-End Requisition Roll process. (It's only necessary to run one of these three processes. Consult our online documentation for more details.) + Fixed Assets 0/3 In Preparation: Tie asset values to the general ledger by batch updating any addition/disposal records. Year-End Process: Run Depreciation. After: Add the depreciation schedule for the new fiscal year. Once it is added, you will be able to run Depreciation for the new fiscal year. + Accounts Management 0/6 In Preparation: Create next year’s starting batch numbers. These numbers will allow staff members to enter journal entries, cash receipts, and make accounts receivable entries during the upcoming fiscal year. Verify all entries for the fiscal year have been recorded, including entries that may be done annually or infrequently. Reconcile all bank statements, cash accounts, payroll liability accounts, Accounts Payable liability accounts, and inter-fund accounts through the last month of the fiscal year. Run the Fiscal Year-End verification report. This report ensures there are no pending transactions that will prevent closing the previous fiscal year. Year-End Process: Complete the Fiscal Year-End process, the final step to closing out the year. Districts have 6 months from the last day of the previous fiscal year to complete this process. (Note - if you choose to run the fiscal year end close process prior to the completion of the audit, you can use Prior Year Adjustments to enter any audit adjustments.) Verify all entries for the fiscal year have been recorded, including entries that may be done annually or infrequently. Reconcile all bank statements, cash accounts, payroll liability accounts, Accounts Payable liability accounts, and inter-fund accounts through the last month of the fiscal year. Human Resources Checklist + Payroll 0/5 Year-End Process: Complete the Fiscal Year-End process to capture benefits. You will not be able to run any payrolls two months after the start of the new fiscal year until this procedure is completed. Verify payroll processes are complete, including payroll runs, retirement system processes, and on-behalf expense batch journal entries, as necessary. Post Payroll Accruals as appropriate. If you post monthly accruals or use the payroll encumbrance process, reverse all accruals or liquidate all encumbrances. Reverse any prior month salary accruals in the system or liquidate any prior Payroll Encumbrance processes. Process Payroll Payables in accordance with your fiscal year start (July or September). + Employee Management / Salary Negotiations 0/4 In Preparation: Create calendars and matrices for the new year. Use the same calendar code from year to year (the calendar description, however, can be unique). Using the same code will be helpful when rolling calendars in employee management and substitute tracking. It will also allow employees to request time off in the next fiscal year. Add a unique identifier to any assignments that should not be rolled into the next fiscal year. For example, a job code called ‘temporary’ could be created and tagged to any assignments that should not be rolled into the new fiscal year. During the roll process, these temporary assignments can easily be excluded. Refer to our online documentation for further details on either closing the year in Employee Management or starting the New Year in Salary Negotiations. The module used is typically dictated based on your state residence. After: Use Employee Letters to create salary notices or contract letters. These forms can be displayed within Employee Access for employees to verify electronically. + Time Off 0/1 Year-End Process: Allocate time off for the new fiscal year. Allocation amounts are determined by the setup on an employee’s time off code. Be sure to check whether your state has any additional items to consider. + Insurance Tracking 0/4 Year-End Process: Run the Insurance Tracking Roll process if necessary. This process may or may not need to be run, depending on your district’s insurance year. Verify that all cash receipts have been entered and updated in the system. Verify that all Estimates and/or Billings have been run and updated in the system. Run the Insurance Tracking Roll process if necessary. + Sub Tracking 0/1 Year-End Process: Roll calendars and reset each substitute’s counter for the upcoming year. + Employee Access 0/1 Year-End Process: Update employees’ calendars attached to the Time Off tab in Profile. Updated calendars will allow employees to request date ranges of time off. Use either Mass Assign Profile Calendars (found under Time Off Date Range Entry Set Up within Employee Access) or the Calendar Codes Mass Change process (found within the time off utilities). + TrueTime 0/1 Year-End Process: Update calendars on timekeeping rule groups. Doing so will assign any paid holidays or non-working days in the new year to employees’ time sheets. + Fast Track 0/1 Year-End Process: Roll posted positions to the new employee management plan. (This process could also be handled when running the year-end processes within Employee Management.) + Accounts Receivable 0/7 In Preparation: Clear all batch activity by updating or deleting. If any batch activity exists, the year-end process cannot proceed. Verify that reversal records have been updated for all fiscal years. Update all batch payments. Run the Open to History update to verify that all fully paid, open invoices have been moved to history status. Verify that all Accounts Receivable refunds have been processed for the fiscal year. Run the Accounts Receivable Aging report through the last day of the fiscal year with a sort by accrual account and a page break on accrual account. Verify the total due vs. Accounts Receivable asset accrual account balance. + General Inputs 0/3 In Preparation: Verify that there are no WIP and batch activity entries in the following areas: Journal Entries, Cash Receipts, Accounts Receivable, Student Billing, and Previous Year Adjustments. Approve or deny any submitted journal entries. Delete or update any WIP or batch activity, as appropriate. + Budget Management 0/3 In Preparation: Verify that there is no WIP and batch activity in the Budget Revisions or Budget Transfers area. Approve or deny any submitted transfers. Delete or update any WIP or Batch activity, as appropriate. We hope these checklists will help you simplify your year-end processing. You can also check out SkyDoc for detailed documentation about each of these procedures. If you need further assistance, reach out to us. We are always just a phone call (or a click) away. Skyward Consulting & Support Helping You Be Brilliant Share this story: Want tips, tricks, and feature updates delivered to your inbox once a month? Sign up here!