Perform Month-End Close (10.3.1)
  • 05 Feb 2024
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Perform Month-End Close (10.3.1)

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Article Summary

Business Process Overview

Note: This Business Process Model is in draft format and provided in preparation for the Segment III Business Process Model Review Workshops.

DFS opens the General Ledger (GL) and Source Module accounting period for agencies to perform transactions. Transactions process on a continuous basis within Florida PALM and eventually post to the GL. Agencies proactively review, monitor, and correct source module transactions that are in an exception status or have not posted to the General Ledger. For example, a transaction that lacks a budget does not post within Florida PALM and is held in an exception status until the transaction is addressed and successfully posts.


At the end of each period, DFS closes the source modules to prevent transactions from further processing within the period. Agencies proactively utilize the automated source module to GL reconciliation pages to ensure source module transactions are posted to the GL. Additional Florida PALM reports are available to monitor for transactions that are in exception or error status. The source module reconciliation and Florida PALM reports can be used by agencies to perform additional internal analysis of agency balances. If balances require correction, the source module should be updated with the correct information to ensure the source module and GL are in sync. In limited circumstances where a source module update is not possible, the balance can be adjusted manually within the GL. Account balances update as agencies process corrections. Balances should be continuously monitored to ensure accurate reporting. At a designated time, DFS officially closes the prior period source module and GL periods.

Business Process Diagram

Business Process Diagram for 10.3.1 Perform Month End Close

Business Roles

The Business Process Flow Diagrams use horizontal swim lanes to depict where activities are performed by different parties or systems. Each swim lane is titled with a role, either agency-based or within DFS, and in some cases, are representative of an external entity or system. The swim lanes may change from page to page within a single business subprocess as more or fewer roles are required to execute sections of the business subprocess. 

Business Process Flows Details

The tables below describe steps in each business subprocess as reflected on the Business Process Flow Diagrams. The tables also reflect information associated with each step describing the intent of the specific process. Florida PALM screenshots are included within the sections to allow connections to be made from specific business subprocess steps to screens within Florida PALM. This information should be read in conjunction with the Business Process Flow Diagrams.

Process Step ID

Process Step Title

Description of Process

1

Open Current General Ledger and Source Module Period

The DFS Close Processor opens the GL and source module operational period for the current month to allow agencies to perform transactions.

2

Run Source Module Reconciliation

The automated source module reconciliation process runs daily and performs a reconciliation between the source module accounting entries (source transactions) and the GL.


3

Proactively Monitor Source Module Reconciliation

Proactive reconciliation helps limit the number of agency corrections at month-end. Throughout the month, the GL Reconciliation Processor proactively monitors the source module reconciliation screens and links to identify source module transactions which


  • have created source module accounting entries but have not posted to the GL,
  • have been summarized by the Journal Generator (j-gen) process but have not been edited to post to the GL,
  • have been summarized by the j-gen process and posted to the GL,
  • have not posted or whose accounting entries have not been generated within the sub module due to being in an exception status


The reconciliation screens and links offers GL Reconciliation Processors the ability to drill down to the original transaction pages for a more detailed review of transactions. Accounting entries that have been created within the source module and have not posted to the GL are considered reconciling items.


4

Request Correction in Appropriate Source Module

After reviewing the reconciling transactions, the GL Reconciliation Processor requests a correction within the appropriate module (AM, AP, AR, CM, IU, PR). Internal agency policy dictates how the request should be made and the appropriate documentation to support the correction.


5

Review Transactions in Exception Status

Source module transactions that have not created accounting entries may be transactions that are in exception status. The GL Reconciliation Processor should monitor and work with the appropriate source module processor to resolve these exceptions.


The GL Reconciliation Processor and source module processors can use the source module work center reports or the Budget and Cash Checking Exceptions/Warnings Report to monitor for transactions that are in error or exception status.


6

Notify Agencies of Month End Close

The DFS GL Close Processor notifies agencies that the month end close process is starting. DFS enterprise policy will provide guidance on the month end closing process.


7

Review Month End Source Module Reconciliation

Before the source modules close, the GL Reconciliation Processor reviews the month end source module reconciliation to ensure all Source Module transactions have posted to the period. Any items that have created accounting entries which have not posted to the the GL are considered reconciling items and should be addressed before the source module period closes.


8

Request Source Module Correction

After reviewing reconciling items, the GL Reconciliation Processor requests a correction within the appropriate module (AM, AP, AR, CM, IU, PR). Internal agency policy dictates how the request should be made and the appropriate documentation to support the correction.


9

Perform Internal Analysis

Once all the source module transactions have updated the GL balances, the GL Reconciliation Processor can start to perform an internal balance analysis using the trial balance, schedule of allotment balance report, or any other fianacial report available within Florida PALM. Internal analysis may include:


  • Trial Balance Review
  • Schedule of Allotment Balance Review
  • Cash Reconciliation


Internal agency policy should dictate the level of analysis needed to ensure all financial balances are reported accurately for the period and the associated documentation required to substantiate the balances are accurate.


10

Request Source Module Correction

If balance corrections are found during the internal analysis process, the GL Reconciliation Processor must determine the appropriate place for the correction. Corrections typically start in the source module to ensure the source module and the GL are in agreement. The GL Reconciliation Processor requests or initiates corrections within the appropriate module (AM, AP, AR, CM, IU, PR). Internal agency policy dictates how the request should be made and the appropriate documentation to support the correction.


Corrections which can not be addressed in the source module can be entered within the GL by initiating a GL Journal. For more information related to the GL Journal process, please see business process model 10.2 Enter and Process Journals.


11

Produce Reports

Once balances have been corrected, the GL Reconciliation Processor is able to produce reports for other end users or instruct the appropriate end users to run reports related to their business needs. The GL Reconciliation Processor may choose to set up a distribution email from the report run control menu to send reports to other Florida PALM users, or save reports externally and share to users outside of Florida PALM.


12

Close Source Module Period

At the predefined time, the DFS GL Close Processor closes the source module period. Upon the source module period closing, transactions can not be posted to closed periods.


13

Close GL Period

At the designated closing date, the DFS GL Close Processor closes the GL period. GL balances can not be updated once the GL period is closed.


14

Notify Agencies Periods Are Closed

The DFS GL Close Processor notifies agencies that the source module and GL periods are closed.


If this is the last period within the fiscal year, the GL Reconciliation Processor continues with year end activities including initiating agency accrual entries, completing any necessary DFS forms, and performing final reconciliations to ensure balances are accurate for reporting purposes. The Agency Financial Statement Processer as outlined in Business Process10.4 Close GL and Consolidate Results to assist in compiling data needed to support accrual or adjusting entries.


If it is not the end of the fiscal year, the process restarts with opening a new GL and Source module period to continue the fiscal year.

Accounting Events

Accounting events originate during transaction processing in the applicable source module. The accounting events impact the source module, Commitment Control ledgers, and the General ledger (Actuals).

  • Source Module accounting entries require user input (I) of the primary line (i.e., expenditure, revenues) with an automated (A) system offsetting line (i.e., payable, receivable) during transaction entry. The source model transaction must pass Edit Check, Budget Check, and Cash Check (on applicable entries) prior to posting the transaction.
  • The Run Budget Check (Commitment Control) process automatically affects balances in the appropriate budget ledger (i.e., appropriation, spendable cash) if the transaction passes the budget check process.
  • After the transaction is posted in the source module, an automated system process summarizes and posts the entries in the General Ledger module to the Actuals Ledger.

The table below provides the most common accounting events applicable to this business process.

Acct Event ID 

Accounting Event

Commitment Control

Ledger(s) Impact

Source Module

 Accounting Entry

General Ledger (Actuals) Entry

N/A





Reports

Key Reports are displayed as icons with the Report Number on this Business Process. The table below provides the reports identified to be produced at a particular process step or is used to support the completion of a process step.

Report Number

Report RICEFW ID

Report Description

Report Source

Report Frequency

Audience

R1

KKR058

Budget and Cash Checking Exceptions/Warnings Report  A custom report that lists transactions budget and cash check exceptions and warnings along with transaction amounts, to include the type of exception and where an override was applied.

Peoplesoft

Periodic

Agency, DFS

R2

GLR099

Trial Balance Report – A custom report of summarized balances (debits and credits) pulled from Actuals Ledger by ChartField string based on a particular fiscal year, the selected accounting period range and other parameters selected.

Peoplesoft

Periodic, Monthly

Agency, DFS

R3

KKR008

Schedule of Allotment Balances Report –Custom report reflecting recorded allotments, encumbrances, expenditures, and associated remaining balances for designated time periods grouped by designated ChartFields and ChartField combinations.

Peoplesoft

Periodic, Monthly

Agency, DFS

Note: A complete list of reports may be found in the Reports Catalog.

Interfaces

The table below provides the Interfaces identified on the Business Process.

Interface Number

Interface Description

Interface Frequency

Source

Target

N/A



Note: A complete list of interfaces may be found in the Interface Catalog.

Forms

The table below provides the forms identified on this Business Process.

Form Number

Form Description

Audience

N/A



Workflows

The table below provides the workflows identified on this Business Process.

Workflow Number

Workflow Description

Audience

N/A



Version History

Date

Revision Description

02/05/2024

Original Version

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