Fiscal Close Instructions for SSAs

Summary of balance sheets used in these instructions (account reconciliation needed):

Refer to Fiscal Closing: Departmental Action and Cutoff Dates for a full list of dates. 

Departments must review their deposit clearing account balances to ensure that any balance in the deposit clearing account at year-end is zero using the General Ledger Transactions Details report in the General Ledger Panorama. 

Before subledger cutoff date, please complete the following:

1. Review AR aging on non-sponsored projects, identify unclaimed payments, and process all Accounts Receivable Transactions by the end of the day on July 9.
2. Confirm all Clearing Accounts have zero balances by July 10.

Refer to additional guidance below:

• Use the Chart of Account Panorama - Standard Account Hierarchy to see what deposit and cash clearing accounts are under 10100E (and look at 10000E if needed). 
• See Blink page for instructions on how to run the Receivables Aging Report. 
• For information on unclaimed payments, see the article on How to Claim Unidentified Payments (wires, ACHs & checks) (KB0032208).  
  • For support, use the Submit a Ticket to Budget and Finance Support form; More Specifically: Claiming Payments from Unapplied Receipts
• For information on recording credit card revenue, see How to Fill out a Merchant Receipt Template (KB0032670). 
  • For support, use the Submit a Ticket to Budget and Finance Support form; More Specifically: Merchant Receipt Form

All credit card activities must be cleared related to the prior fiscal year before COB (close of business) on July 9. Confirm all credit card account balances are cleared on July 10, the cutoff date for subledger close. 

• All credit card transactions settled during the fiscal year (which have been cleared by bank deposits posted in the clearing account by June 30) must result in a zero balance. These accounts cannot have credit balances. 
• A credit balance means that funding is outstanding in the clearing account that has not been transferred to departmental revenue accounts. 
• Departments must review their account balances using the General Ledger Transactions Details report in the General Ledger Panorama. 
• Use Account 101030 in the GL and specific activity codes related to the merchant account to determine the balance. 
• If there is a balance, determine if the transaction is in process or if the transaction needs to be cleared and submit a ticket accordingly. 
• Use the Chart of Account Panorama - Standard Account Hierarchy to see what credit card clearing accounts are under 10100E.
• For support, use the Submit a Ticket to Budget and Finance Support form; More Specifically: Credit Card Clearing Reconciliation Inquires

For fiscal year-end, physical inventories are required for all activities that hold supplies or materials: 

• Sale to other activities, departments, or customers either "as is" or in altered form. 
• Direct consumption in rendering services or fabricating items for others on a charge basis. 

Complete the Report of Physical Inventory for items on hand on June 30. Departments that find it necessary to take their physical inventory before June 30 must: 

1. Submit a transmittal with their inventory showing the value on the day the inventory was taken. 
2. Report any increased value of items received after the physical inventory and prior to July 1. 
3. Report any decreased value of items sold during the same period. 

Guidelines for Taking Inventory: 

• Valuation: Inventory items are to be listed at invoice cost, including sales tax. 
  • If the current value of an item is less than the original cost, the current value should be used.  
• Shrinkage: Inventory shrinkage refers to unrecorded decreases in inventory resulting from such factors as breakage, spoilage, and theft. 
• Obsolete Items: Obsolete items should be segregated from other items in the inventory report and listed at current value if less than cost, with a notation indicating the approximate cost. 
• Small Unit Value Items: The value of inventory items held in large quantities with unit values of less than fifty cents, such as screws and cotter pins, may be estimated. 
• Inventory Method: Under the Cost Accounting Standards (CAS) guidelines, the University is required to report the valuation method for taking inventories. The preferred method is FIFO (First In, First Out). 
  • If you are not using the FIFO method, please inform BFS-ICA using the Submit a Ticket to Budget and Finance Support form; More Specifically: Internal Controls Support; prior to taking inventory (using options in the previous image). 
• By July 10, prepare a journal entry to record inventory and attach a copy of the physical inventory report: 
  • Credit side:  
    • The Entity-Financial Unit-Fund-Project where the cost of the inventory is recorded to account code 520552-Inventory Accruals.  
    • Use account code 520501-Inv Adj and Price Adj to record shrinkage.  
  • Debit Side:  
    • For Sales of Services activities and Other Income Producing Activities: 
      • Use account code 136002- Inventories-Miscellaneous. 
    • For Auxiliary Enterprises (fund 11000) activities: 
      • Use account code 135000 - Inventories-Auxiliaries.

A reversing entry is recommended to record current year balance, refer to article: KB0033420: How to Create a Fiscal Year End Reversing Journal Entry.

Below is an example of how to manually reverse the prior year’s inventory amount.

Example to record FY2026 inventory amount:

Example to reverse FY2025 inventory amount:  

Activities, such as machine shops, illustration services, printing services and so on, which produce or fabricate items for sale, may have items in the production or fabrication process at June 30.

1. For internal UC customers, see section below for Process Recharges: Process Recharges - Interdepartmental (Internal to UC San Diego) for the portion completed.  Do not record a journal entry for recharge transactions.
   1. In accordance with SSA guidance in Blink: Self Supporting Activities - Billing, units initiate recharge or other billing transactions when goods and service are provided. Per PPM 300-87, originating department bills customers for services performed on a monthly basis or other approved schedule.
   2. If the PPM transaction cannot be completed before PPM closes, then process the transaction in the next fiscal year (July).
2. For Non-UC (external) customers process reversing journal entry by July 10.
   
   1. The value of work-in-process is the cumulative June 30 cost of labor provided to items in process and the cost of material used for items in process. Use the Report of Work-In-Process (WIP) template.
   2. Refer to Steps to Process Reversing Journal Entry section. 
   3. For non-UC (external) customers: 
      1. Credit: The Entity-Fund-Financial Unit-Account-Project* is used to record the activity’s revenue account code 4xxxxx. Do not record to 7xxxxx accounts because these transactions are external to UC. 
      2. Debit: The same Entity-Fund-Financial Unit-Account-Project except use account code 136003-Service Dept-Work-In-Process.

Example for non-UC customer:  

Prepaid expenses are costs incurred in the current fiscal year that may, entirely or in part, benefit the subsequent fiscal year or years.

For example:

• If an annual maintenance contract was purchased for $12,000 on May 1, 2026, two months from the contract apply to the current fiscal year ($2,000) and ten months ($10,000) apply to the next fiscal year.  
• The $10,000 that benefits the current fiscal year should be recorded as a prepaid expense on the June 2026  ledger.  

Departments must complete a top-level reversing journal entry to record prepaid expenses on or before July 10. Refer to article: KB0033420: How to Create a Fiscal Year End Reversing Journal Entry.

Debit to Sales and Services and Other Income-Producing activities:  

• For short-term (up to 12 months) prepaid expenses, use aaccount code 140001-Prepaid Exp-Short Term. 
• For long-term (longer than 12 months) prepaid expenses, use aaccount code 171600-Prepaid Expenses Long Term. 

Example using short-term account:  

Debit to Auxiliary Enterprises (fund 11000): 

• For short-term (less than 12 months), use Account 140004-Prepaid Expenses-Aux Entity Short Term. 
• For long-term (more than 12 months), use Account 171600-Prepaid Expenses Long Term. 

Expenditure accruals reflect the cost of goods and services received before July 1 that have not yet posted to the June ledger. For more details, visit: AP Accruals for Fiscal Close (Blink). 

Recommended Department Actions (Before June 30) 

• Oracle AP Invoices: 
  • Review and approve assigned AP invoices promptly. 
  • Coordinate with IPPS-AP team to resolve invoice hold issues.
• Concur Transactions: 
  • Ensure monthly reconciliation by assigning charges to Concur expense reports, coding properly, and obtaining final departmental approvals. 
• Submission Deadlines: 
  • By June 18: Submit Oracle IDR invoices (via email invoices@ucsd.edu) and Non-PO Payment Requests (via Services & Support) to Disbursements. 
  • By June 5: Submit Concur travel and event reports, reimbursements, gift card requests, and human subject payments with final departmental approval to the appropriate IPPS team. 

What IPPS Will Accrue (for activity on or before June 30) 

• Oracle AP Invoices: 
  • In the system but not validated (i.e., not posted to GL/PPM). 
  • Validated but pending approval (also not yet posted to GL/PPM). 
  • Note: Invoices emailed to invoices@ucsd.edu or Non-PO Payment Requests submitted via Services & Support that haven’t been entered into Oracle will not be accrued. 
• Concur Charges: 
  • Procurement Card, CTS Card, and T&E charges posted in Concur but not reconciled. 
  • CTS/T&E charges applied to expense reports with pre-June 30 business travel or event dates will be accrued. 
  • If not applied to expense reports, charges will still be accrued unless travel/event dates are after June 30. 
• Concur Cash Advances: 
  • Assigned to incomplete or unreconciled trips (excluding trips after June 30). 

For Sales & Service and Other Income-Producing Units 

• Only accrue expenditures not yet in Oracle or Concur as of July 5, and not already accrued by IPPS. Note: IPPS will start their accrual process on July 8, and reflect in the GL on or before July 13.
• How to Check Invoice Status 
  • Use Oracle’s Manage Invoices screen.
    • Tip: Click Advanced → Add Fields → include Invoice Creation Date.
    • Invoices dated after July 6 will not be accrued by IPPS. 
  • Use the report: Budget & Finance > UCSD DSH Procure to Pay Panorama > Procure to Pay Transaction Inquiry → to check for missing June invoices. 

Departmental Journal Entries 

If needed, departments must record accruals with a top-level reversing journal entry by the departmental journal entry cutoff, July 16. 

• Use balance sheet account: 200019 – Audited Vouchers Accounts Payable with the same chart string. 
• Refer to article: KB0033420: How to Create a Fiscal Year End Reversing Journal Entry.

Process Recharges - Interdepartmental (Internal to UC San Diego) 

An interdepartmental recharge reflects the sale, at approved rates, of goods or services by an approved activity to other departments/units. 

• Process recharges via the Recharge Plus Application or other appropriate recharge application.  
• KB0033521: How to Process Transactions in the Recharge Plus Application. 
• The deadline to process is July 10 at 12:00 PM.
• For general information on recharges, review the Blink pages for Sales and Service Activities and  Recharge Activity.
• Resolve any PPM Unprocessed Costs from Recharge Operations or approved Cost Integrations, including cost transfers submitted in OFC by July 10.
• KB0033470: How to View and Resolve PPM Cost Transfers Not Processed

Financial Reporting Guidance:

*The Department receiving the goods/service will get a Debit to an Account starting with 770xxx or 772xxx.

*The Department providing the goods/service will get a Credit to an Account starting with 775xxx or 777xxx.

To review GL account balances, use the General Ledger Transactions Details report in the General Ledger Panorama.

Process Recharges - Intercampus (Between UC San Diego and other campus locations) 

An intercampus recharge reflects goods or services for an expense reimbursement by an activity to another UC campus (through Financial Control).

• Use the Intercampus Recharge Request form in Services & Support.
• Departments must complete intercampus recharge processing on or before June 29.
• Departments that encounter a problem in meeting the aforementioned deadline submit a ticket before June 27 (two business days before the above deadline), using the use the Submit a Ticket to Budget and Finance Support form; More Specifically: Other General Accounting Inquiry.

June Invoices must be submitted through PPM Contract Billing and Accounts Receivable on or before July 10. 

• Note: For PPM and AR subledgers, the Event Completion Date must have a date entered in the current fiscal year if goods/services were provided on or before June 30. 
• Events before June 30 with an invoice date in June (or earlier) will be booked in June only IF the June  period is open for PPM and Receivables. Once the June subledgers are closed, even if the events are in June, they will post to July. 
• If an accrual is needed using a journal entry, then use Account 129020. 

For guidance on creating invoices, see KB0032793: How to Create a Project Portfolio Management (PPM) Billing Invoice in Oracle and KB0032814: Creating an Invoice in Receivables.  

During the current fiscal year, Departments occasionally will receive and record income that relates to future periods. 

• For example, during the current fiscal year a shop might receive $10,000 to do a job for a non-UC entity, but not start work until the next fiscal year. A journal entry to record income in the proper fiscal year is required, referred to as deferred income. 
• Please note that activity having only recharge income should never have the income to defer since University policy permits recharging only when goods or services have been provided. Recharging in advance of providing goods or services is not allowed. 

Departments must complete a top-level reversing journal entry to record deferred income by July 10.  Refer to article: KB0033420: How to Create a Fiscal Year End Reversing Journal Entry.

• For Sales and Services and other Income Producing activities, Account 223001-Unearned Rev Clearings Non-Aux should be credited. 

Example:  

• For Auxiliary Enterprises (fund 11000), Account 222000-Unearned Revenue should be credited. 

Example:  

Activities that depreciate equipment must be processed on or before the PPM subledger cutoff date.

Refer to this article for guidance: KB0033274: How to Transfer Funds (Depreciation) to a Renewal and Replacement Reserve Fund.

Please note that not all Recharge Operations will have an Equipment Renewal and Replacement Reserve Fund.

Steps to take:

1. Determine the depreciation amount using the depreciation schedule (use the depreciation sheet from the rate proposal as the template and include any adjustments that are applicable). 
2. Process in the Recharge Plus Application or other appropriate recharge application before July 10 at 12:00 PM. How to Process Transactions in the Recharge Plus Application. 
   1. Use expenditure type 774010 - To/From Reserves

Rates for sales made by Academic Support, Service Enterprise, and similar self-supporting activities (in funds 12100, 12304, 12310, 12316, 15006, and 15029) to the general public must include an overhead rate factor unless the activity has an exemption approval from remitting the full Differential Income. 

• Exemption is defined as an activity whose granting agency prohibits paying overhead.
• Exemptions are approved by the Vice Chancellor - Finance and Administration.
• Consult the Costing Policy & Analysis Office for more details on exemptions.

In most cases, the overhead, known as Differential Income, is distributed in two parts:

1. To Central Administration.
2. To Departmental Support or to the Vice Chancellor responsible for the activity.

Central Administration Differential Income

• For rates, refer to Blink: ASSA Administrative Overhead/Differential Income.
• No action by units for the central administration differential income portion.
• Campus has been charging units the central administration differential income assessment a month in arrears (so for income in June, central administration differential income is processed in the July ledger once Period 12 is closed) at the Entity, Fund, Financial Unit, Function, and Project level using Account  773009-Campus Administrative Debit. 

Department Support Differential Income

• Each Vice Chancellor area may also require a minimum Differential Income portion to be remitted to the Vice Chancellor responsible for the activity.
• Consult your Vice Chancellor’s office for more information.

Important Submission Dates: 

• Record Department Support Differential Income in the Recharge Plus Application or other appropriate recharge application by July 10 at 12:00 PM. 
• Refer to the article for guidance: KB0033254: How to Record Departmental Support Differential Income. 
• All Departments will be required to use Account 773002 – Department Tax for recording Differential Income incurred.

*Note: SOM activities are assessed DI on a monthly basis by the VCHS Controller’s Office and also Campus Budget Office (CBO) for the Central Administration portion. SOM activities will be reviewed if Differential Income true-up journal is necessary for fiscal close. If you have any questions, then please contact VCHS Controller’s Office at vchsfinman@ucsd.edu. 

Unrelated Business Income

For those activities that submit data for the Unrelated Business Income Tax reporting, please be aware that we will need information based on the fiscal year. We recommend you begin gathering the information previously provided as we will be requesting it by October. We will send you a separate notice later in the year indicating the due date.

Editorship Funds

Editorship funds were established for professional journals. The funds cannot be used for editing service contracts. Please make sure to review the funds for compliance with University policy.

Corporate Sponsorships

In earlier years, we treated corporate sponsorships as additional income for conferences and other activities. A few years ago, UCOP determined that almost all corporate sponsorships are gifts. Please review the conference and similar funds for activities which should be recorded as gifts.

ASSA Administrative Overhead

The ASSA Administrative Overhead is assessed on specific Self Supporting Activities processed by the Campus Budget Office. The assessment is set as a percentage of revenues and for fiscal year 2026/27, the rate for Academic/Educational is 3.4% and the rate for Auxiliaries is 7.25%. Note the .25% increase in the Auxiliaries rate over the 2025/26 level.  Annual rate increases of .25% will continue through fiscal year 2031/32, with the rate increasing to 8.5%.

The assessment is recorded in account code 773009 - Campus Administrative Debit (please note that activity in account 773009 needs to net to zero with accounts that start with 77xxxx at fiscal close). For more information on the ASSA Administrative Overhead, please contact Alice Ku at ahyku@ucsd.edu.

Equipment/Renewal and Replacement Funds

For activities with Renewal and Replacement funds [with DFFs fund under 163003 Equipment Clearing and supplies and expenses related to equipment (accounts beginning with 5XXXXX)]. Any payroll (accounts beginning with 50XXXX, 51XXXX,) or travel (accounts beginning with 53XXXX) expenditures should be transferred to the operating task. Review operating tasks (with DFFs fund under 12100) to ensure that there are no expenditures for equipment. Any such expenditure should be transferred to the Renewal and Replacement fund 17000 via cost transfer in PPM before July 10 (see Cost Transfer Guide (KB0033191) or Cost Transfer Best Practices - Justifications and Consequences (KB0033189).

Account 773046 Reconciliation

Account 773046 is a PPM clearing account and is treated like a balance sheet account which should always net to zero. There are two primary ways that this account gets out of balance: Recharge Activity and Costed and Accounted Entries. Complete review and reconciliation by June 30. See How to Review and Fix Common 773046 Recharge Reconciliation Variances (KB0035252).