Page 3 - Year-End Accruals and Reversals

F IN A N C E R EF ER EN C E G UI D E

4. Because the amount was greater than $5,000, Emory Procurement policies require acknowledgment that the goods or
services were received prior to a payment being made (sometimes referred to as receipting). The receipt was entered
in Emory Express on 9/1/2020 (FY 21 – new year).

5. With receipting complete, the payment was issued on 9/1/2020 (FY 21 – new year).

6. The expense posted in Compass on 9/1/2020 (FY 21 – new year).

The table below shows the budget impact to department 034038 after the completion of step 6 above.

F Y 2 0 F Y 2 1
E X P E N S E S E X P E N S E S
$0 $10,000
Should be $10,000 Should be $0

Click here for the Emory Procurement policy related to receiving goods and services. Click here for the
Compass job aid on receiving orders in Emory Express.

MOVING THE EXPENSE TO THE OLD YEAR

After the expense posted in the new fiscal year, journal entries are created by central Finance to:

1. Accrue (or post) the expense in the old fiscal year

2. Reverse the expense in the new fiscal year where it was originally charged.

The table below shows the budget impact to department 034038 after the completion of the two steps above.

F Y 2 0 F Y 2 1
E X P E N S E S E X P E N S E S
$10,000 $0

These entries can take several business days to work through the process and the system after you notice
the original payment posting in the new fiscal year.

Departments should monitor fiscal year-end calendars for key accrual and year-end cutoff dates and alert
the Finance team via a ServiceNow Finance General Inquiry if they have any concerns.

TRANSACTION DETAIL REPORTING

After the accrual and reversal process is complete for the invoice used above as an example, the transaction detail reporting in
Emory Business Intelligence (EBI) would reflect FY 20 and FY 21 activity as shown below. The notations on the right side
represent the following:

 Original expense posting because of the payment made in FY 21.
 Central Finance accrual to post the expense in FY 20.

EMORY ADVANCEMENT AND ALUMNI ENGAGEMENT | FINANCE REFERENCE GUIDE | Updated 10.19.21 2