Sonoma State University - CMS Finance Page 1 of 6

Last Update 09/27/2011

Month End Closing PeopleSoft Functionality PeopleSoft General Ledger delivers significant flexibility for the period end closing processes. This document covers month-end closing procedures and concepts. Business Process Overview The PeopleSoft closing process is basically a calendar technique providing enhanced month end close flexibility not available in CSU legacy systems. PeopleSoft allows many accounting periods to be open simultaneously. This flexibility enables us to process transactions for the current period while we close a prior period. At Sonoma, the Associate Vice President determines monthly closing policy. Closing operations for the five Business Units is the responsibility of the University Controller. Open Period Function PeopleSoft General Ledger enables us to keep any number of accounting periods (and fiscal years) open at one time allowing for data input to any open period. This same flexibility makes it reasonably simple to close accounting periods, thus maintaining control over journal posting. Fiscal periods are numbered within PeopleSoft General Ledger as follows: Period 0 Contains the beginning balances of each year. (System use only.) Periods 901-912 Contain adjusting entries. Primarily used for GAAP. Period 998 Contains adjusting entries. They can be excluded or included in

reports and inquiries.

Period 999 Contains the results of year end closing, i.e. transferring revenues and expenditures into Fund Equity. (System use only.)

Periods 1-12 These periods correspond to each month in the Fiscal Year. For

the CSU, Period 1 is July and Period 12 is the following June. At Sonoma, the University Controller is responsible for maintaining open periods for all Business Units. (SOCMP, SOASI, SOFDN, SOSSE, SOSUI) Typically, we use Open Periods Mass Update functionality to manage open periods. Here are the steps involved in that process:

Sonoma State University - CMS Finance Page 2 of 6

Last Update 09/27/2011

Navigation: Set Up Financials/Supply Chain>Business Unit Related>General Ledger>Open Periods>Open Periods Mass Update Select Business Unit, Indicate GL for the PS Product, Put a % (the Percent sign) in Ledger Group, Click Search, Click Select All, Indicate Open From Year/Period and Through Year/Period, Click Apply. This choice can be migrated to Selected Subsystems (AP, BI and AR at SSU). Note: Individual subsystems can be closed before the GL closes as subsystem processing is completed.

Finally, check to ensure that the requested changes have been applied accurately to a Business Unit and its “products”.

Sonoma State University - CMS Finance Page 3 of 6

Last Update 09/27/2011

Navigation: Set Up Financials/Supply Chain>Business Unit Related>General Ledger>Open Periods>Open Periods Display

ChartField Maintenance Consideration should be given to ensure that Chartfield Maintenance is occurring prior to month end close and that effective dates are used appropriately. When Chartfield changes occur during the current period, reports can be impacted adversely if ChartFields are not managed properly. (i.e., balances excluded because they were outside the range of current queries and/or Tree definitions based on effective dates). At Sonoma, the Financial Information System Manager is responsible for maintaining the integrity of ChartFields. That position works with the University Controller to oversee Design ChartFields page entries, initiate Tree modifications, manage campus ChartField Request records and maintain the integrity of ChartField mapping. The Financial Information System Manager is responsible for Attribute Build and Combo Build processes and ensures that they are functioning properly and included in our nightly processes.

Sonoma State University - CMS Finance Page 4 of 6

Last Update 09/27/2011

SSU Month End Closing Process

Achieving efficiency, maximizing consistent rules among all five Sonoma State University Business Units, complying with State and CSU guidelines, maintaining the quality and integrity of campus financial records and ensuring the accuracy and timeliness of all reconciliations are the primary objectives that guide our business practices. Each month the University Controller sends an email to Financial Services staff to inform them of the closing date. Typically, the closing time is noon on the sixth business day of the month following the period that is being closed. We refer to this as the Soft Close. At that time, no additional transactions should be given an accounting date within the period being closed. Special Considerations

The Accounts Payable Manger directs the AP staff to stop entering prior month vouchers into the AP system on the fourth business day after month end. During the next two business days, the AP Manager budget checks and posts the remaining prior month’s vouchers. During the evening of the sixth business day, the final AP transactions for the prior month are Journal Generated and posted to the General Ledger. During the morning of the seventh business day, the Sponsored Programs Administration Manager runs the Indirect Cost process and posts associated Journal Entries. IDC is always the final transaction posted to the SOCMP General Ledger for the period being closed. When that is completed, the University Controller closes the period in SOCMP and advises Financial Services staff that SOCMP is closed for the previous month. This is the Hard Close. At this point, no other prior period transactions can post to SOCMP’s General Ledger. At that time, we are ready to derive SOCMP to SOCSU. As final transactions are posted in the Auxiliary Business Units, Auxiliary Accountants advise the Deputy Controller - Auxiliaries that each Business Unit’s work is complete for the prior month. The University Controller closes the period for each Business Unit and confirms that the close is final. The day after completion of each Business Unit’s monthly close, Financial Services staff advise end users that their monthly reports are available for review in the Data Warehouse.

Sonoma State University - CMS Finance Page 5 of 6

Last Update 09/27/2011

Campus Checklist of Monthly Closing Activities Subject to Review, Update and Continuous Improvement To ensure quality, these activities must occur on a regular basis during the course of each month Cash Receipts and Accounts Receivable

Enter Cash Receipts and prepare deposits daily Book Accounts Receivable, analyze and adjust as needed List, balance and reconcile dishonored checks Reconcile Financial Aid programs Balance and Adjust Uncleared Accounts Reconcile Student Fees to the GL Purchasing and Accounts Payable

Verify all Req’s/PO’s/Vouchers have been processed/posted Run encumbrance and PO system reports and reconcile to the GL Review and expedite open orders Run and submit claims for reimbursement by the SCO

Input CD 102’s - Reconcile Claims Prepare Open Item Reconciliation Review Backup Withholding Sponsored Programs Run IDC and post Journal Entries at month end after all processing completes Budget

Prepare Analysis of Allocation orders Ensure that all department budget transfer requests are posted Ensure that the month’s Allocations and Cross Postings are recorded on campus books Validate LCD transactions and post HRS JE to the GL

General Accounting

Retrieve and Load the SAM 99 Files - mid month and month end Once loaded, check balances randomly against the Tab Run to ensure file integrity Process SCO JE's for the month being closed as they are issued

Use CIRS/ACL on line, View Direct, SAM99 files loaded into PS Query the SAM99 Tape Table in PS to verify that SSU has processed all SCO JE's Query campus Fund Balance Clearing transactions and Interagency transactions to ensure they are posted correctly Process Campus JE's/Reclass Requests as they are submitted to Financial Services Prepare Pre Close SAM 99 reconciliation by SCO Fund

Sonoma State University - CMS Finance Page 6 of 6

Last Update 09/27/2011

Process correcting entries identified during the prior month's reconciliations Process Chargebacks - Postage, Facilities, Public Safety, IT, Phone

Process all pending PFA's Retrieve the Pay file from the SCO and submit for LCD processing Review LCD Payroll Clearance report Reconcile LCD Clearance amounts to Tab Run

Review Wells Fargo CEO to reconcile receipts daily Retrieve and Load Paid Checks Files Record CO/CMO CPO’s in CSU Fund 541 and detail PS funds Prepare Pre Close Bank Reconciliation

Prepare Pre Close reconciliations for Due To/Due From’s and Transfers In/Out Use the Data Warehouse and queries to review Trust Cash and Fund Balances Resolve deficits before close

Review Journal status daily to confirm that all Journals have been posted and that no Journals are in Error or Incomplete status. Resolve errors as they occur Verify Journal Generator has fed all subsystem current month Journal Entries Verify accuracy of Subsystem feeds – Recon to GL

Cash Receipts and Accounts Receivable Purchasing and Accounts Payable

Verify fixed asset entries Items occurring after month end close:

Finalize SAM 99 Reconciliation Finalize Fund Balance Clearing and Interagency Transactions Reconciliations Finalize Bank and Investment Reconciliations Finalize Due To/Due From’s and Transfers In/Out Reconciliations Reconcile Revolving Fund Derive SOCSU monthly Ensure that BU’s are in Sync Prepare entries to clear any SOCSU issues Submit FIRMS quarterly Prepare Correcting Entries and PFA’s as needed Submit PFA’s needed to clear DT/DF’s expeditiously Validate SCO cash sufficiency Re review Trust Cash and Fund Balances Advise end users to run month end reports in the Data Warehouse