1. Perform Period-End / Year-End Closing
Show Slide #1: Perform Period-End / Year-End Closing
Title: Perform Period-End / Year-End Closing
SECTION I. ADMINISTRATIVE DATA
Academic Hours / Methods
4 hrs / 00 min Large group Instruction
1 hrs / 00 min Practical Exercise (Hands On)
/ 0 min Test
/ 0 min Test Review
5 hrs / 00 min Total Hours
SECTION II. INTRODUCTION: Today we are Reviewing the Period / Year End Close Process
Method of Instruction. Conference / Discussion
Instructor to Student Ratio: 1:24
Time of Instruction 2 hrs 50 mins
Media: Large Group Instruction
Motivator: Period-end closing procedures are extremely important to ensure a successful year-end closing. The year-end close-out is a very busy time of the year. Essentially, it is a time to shut off spending throughout the command. The goal at year-end is to be fully obligated or at least obligated to the targeted obligation rate. Since Congress sets time limits on funds, agencies are demonstrating their compliance at year-end.
Student Materials:
DFAS-IN Regulation 37-1, Finance and Accounting Policy Implementation
DFAS-IN Manual , The Army Management Structure
DODFMR R, Vol 10, Department of Defense Financial Management Regulation
References:
DFAS-IN MANUAL FY, The Army Management Structure
GFEBS Performance Support Website

2. Terminal Learning Objective
Action: Perform Period-End / Year-End Closing
Conditions: In a classroom environment using doctrinal and administrative publications, practical exercises, personal experience, handouts, discussion and access to GFEBS
Standards: With at least 80% accuracy, learners must demonstrate proficiency with:
Communicate period-end closing
Process year-end closing
Show Slide #2: Terminal Learning Objective
Facilitator’s Note: Read/State the TLO
Action: Perform Period-End / Year-End Closing
Condition: In a classroom environment using doctrinal and administrative publications, practical exercises, personal experience, handouts, discussion and access to GFEBS.
Standards: With at least 80% accuracy:
- Communicate period-end closing
- Process year-end closing
SAFETY REQUIREMENTS: In a training environment, leaders must perform a risk assessment in accordance with DA PAM , Risk Management. Leaders will complete a DD
Form 2977 RISK MANAGEMENT WORKSHEET during the planning and completion of each task and sub-task by assessing mission, enemy, terrain and weather, troops and support available-time available and civil considerations, (METT-TC). Local policies and procedures must be followed during times of increased heat category in order to avoid heat related injury. Consider the
work/rest cycles and water replacement guidelines IAW TRADOC Regulation
RISK ASSESSMENT LEVEL: Low
ENVIRONMENTAL STATEMENT: Environmental protection is not just the law but the right thing to do. It is a continual process and starts with deliberate planning. Always be alert to ways to protect our environment during training and missions. In doing so, you will contribute to the sustainment of our training resources while protecting people and the environment from harmful effects. Refer to FM Environmental Considerations and GTA ENVIRONMENTAL-RELATED RISK ASSESSMENT.
EVALUATION. You will be given an exam which will include Review Detailed Expenditure Accounting Documents. A passing score on this examination is 80% and for International Students (80%).
INSTRUCTIONAL LEAD IN: In a fiscally responsible environment, the crucial activities of Period-Year End Close are carried out at the end of an accounting period and is used to measure the business performance of an entity. It also validates that the Army's General Fund GL reflects the financial status of the Army for that period. 2

3. Course Objectives • Introduction to Period-End Close
• Period-End Close Rules and Master Schedule
• Asset Depreciation
Run Payment Program
• Billing
• Reconciliation Postings
• Describe budget planning in ECC
Identify real-time funds and availability controls
Show Slide #3: Course Objectives
Section III. Presentation.
Learning Step / Activity 1. Communicate Period-End Closing
Method of Instruction: DSL - Discussion (large or small group)
Facilitator's to Learner Ratio: 1:25
Time of Instruction: 02 hr. / 00 min.
Media: PowerPoint Presentation, Handout
Facilitator’s Note: State the Course Objectives to students.
• Introduction to Period-End Close.
• Period-End Close Rules and Master Schedule
• Asset Depreciation
Run Payment Program
• Billing
• Reconciliation Postings
• Describe budget planning in ECC
Identify real-time funds and availability controls. 3

4. Course Objectives (Cont.)
• Introduction to Year-End Close
• Benefits of Year-End Close
• Close Canceling Funds
RM Periodic Processing
• Close Open Commitments
• Complete Close
• Year Start Activities
Reports
Show Slide #4: Course Objectives (Cont.)
Facilitator’s Note: State the Course Objectives to students.
• Introduction to Year-End Close
• Benefits of Year-End Close
• Close Canceling Funds
RM Periodic Processing
• Close Open Commitments
• Complete Close
• Year Start Activities
Reports 4

5. Period-End Close
Period-End Close are activities carried out at the end of an accounting period to measure the business performance of an entity and validate that the Army's General Fund GL reflects the financial status of the Army for that period. It also verifies that all data belonging to a period is finalized and that data is available for financial reporting and management purposes.
Show Slide #5: Period-End Close
Note: We will not be doing any transaction during this block of instructions, because it would wipe all staged data from the training client.
The Period-End Close process is executed at the end of the period (month) to accomplish three main tasks:
Determine the net effect of activities on the Army’s General Fund GL for the month.
Open a new period to track the transactions in the upcoming accounting period.
Report the Army’s financial status externally. This monthly close process usually begins on the last business day of the month and ends on the first business day of the next month. By finalizing financial data for the month, accurate and complete information is available for financial reporting and management purposes. 5

6. Period-End Close (Cont.)
The Period-End Close process is initiated when HQDA passes down the business rules for the Period-End Close. These business rules include policies and cut-off dates for the Period-End Close.
The Period Close Schedule Processor uses this information to compile the period closing schedule and enters it in GFEBS via the Schedule Manager tool using the Schedule Manager (SCMA) transaction code. When the schedule is finalized, it is communicated to all affected GFEBS users.
Show Slide #6: Period-End Close (Cont.)
Monitoring the Period-End Close Process in Schedule Manager allows the Period Close Schedule Monitor to monitor the Period-End Close process across all departments. Throughout the Period-End Close process, the Period Close Schedule Monitor coordinates and monitors the status of each task listed in Schedule Manager. Each task corresponds to a certain GFEBS closing activity that must be executed via a transaction code. Using the Schedule Manager tool, the Period Close Schedule Monitor can view the activities in detail, including if a task has been executed and when it was executed. Additionally, the Period Close Schedule Monitor can view if any tasks need to be repeated or have not been completed. If any closing activities are not conducted in the established timeframe, the Period Close Schedule Monitor must take corrective action to ensure each task is completed.
The Financial Reviewer Runs Initial Trial Balance. The Trial Balance serves as the baseline by which the progress of the Period-End Close is monitored. When each closing task is completed, the Financial Reviewer must run the Trial Balance to monitor the fund balance. 6

7. Financials and the Period-End Close
• The Financials (FI) business process area monitors and coordinates the closing processes for all business process areas in GFEBS.
• After the necessary closing activities have been completed, FI closes the period and produces the Trial Balance which is then sent to Defense Departmental Reporting System (DDRS).
• Each quarter and at fiscal year end, DDRS produces the Army General Fund financial statements and required external reports.
Show Slide #7: Financials and the Period-End Close:
– The Financials (FI) business process area monitors and coordinates the closing processes for all business process areas in GFEBS.
– After the necessary closing activities have been completed, FI closes the period and produces the Trial Balance which is then sent to Defense Departmental Reporting System (DDRS).
– Each quarter and at fiscal year end, DDRS produces the Army General Fund financial statements and required external reports. 7

8. End-to-End Period-End Process
Period Close Schedule Processor
Balance Forward Processor
Responsible for inputting the Period-End Close schedule into GFEBS.
Responsible for closing proprietary GL balances for the fiscal year-end and re-establishing them at the beginning of the next fiscal year.
Period Close Schedule Monitor
Open/Close Processor
Fin
ancial
Rev
iewer
Responsible for monitoring the Period-End Close progress and ensuring that all Period-End Close activities are completed in accordance with the Period-End Close schedule.
Responsible for coordinating and maintaining the opening and closing of financial periods in GFEBS for Period-End Close.
Responsible for analyzing and executing reports to produce the results of the Period-End Close process.
Accounting Processor
External Information Monitor
Responsible for making periodic accounting adjustments to ensure the accounting system accurately reflects the financial position of the reporting entity.
Responsible for ensuring that outbound financial data from GFEBS is reported and that it accurately meets Standard Financial Information Structure (SFIS) requirements.
Show Slide #8: End-to-End Period-End Process
This slide depicts the end-to-end process, and the roles involved. 8

9. Monitor Period-End Close Process in Schedule Manager
Schedule Manager allows the Period Close Schedule Monitor to monitor the Period-End Close Process across all departments.
The Period Close Schedule Monitor can view the activities in detail:
• If the task has been executed and when it was
executed.
• Any closing activities need to be repeated or have not
been completed.
Show Slide #9: Monitor Period-End Close Process in Schedule Manager
Schedule Manager allows the Period Close Schedule Monitor to monitor the Period-End Close Process across all departments.
The Period Close Schedule Monitor can view the activities in detail:
• Whether the task has been executed and when it was executed, or if any closing activities need to be repeated or have not been completed. 9

10. Monitor Period-End Close Process in Schedule Manager (Cont.)
• SCMA – Run Schedule Manager
Run Trial Balance by Fund at the Full Account Level
• S_KI4_ – Trial Balance by Fund at the Full Account Level
• S_KI4_ – Run Trial Balance by Fund at the Full Account Level Report
Show Slide #10: Monitor Period-End Close Process in Schedule Manager (Cont.)
The following transaction codes are used by the Period Close Schedule Monitor establish Period-End Close.
Schedule Manager
– SCMA – Run Schedule Manager
Run Trial Balance by Fund at the Full Account Level
– S_KI4_ – Trial Balance by Fund at the Full Account Level
– S_KI4_ – Run Trial Balance by Fund at the Full Account Level Report 10

11. Asset Depreciation
The DoD requires the Army to recognize and depreciate Property, Plant, and Equipment.
• The depreciation is run at the end of each month.
• The depreciation amount is defined in the master record for each asset.
Show Slide #11: Asset Depreciation
Carry Out Depreciation Test-Run at the Installation Level – Prior to the Period-End Close, the Asset Master Data
Maintainer runs depreciation in “test mode” at the installation level.
• This runs a depreciation test for all assets belonging to the respective installation.
• The test run does not post depreciation. It performs a mock depreciation to test for errors.
• The Asset Master Data Maintainer must then correct any errors.
• The test run must be completed on every installation without errors by the date established in the Period-End Close schedule, which DFAS releases each month. In the near future, this ask will be performed at each activity/installation.
Run Depreciation at HQDA
– The Asset Close Processor at DFAS runs the depreciation for every asset in GFEBS at the end of the month.
– The Asset Close Processor performs a test run of depreciation for the entire Army using the Post Depreciation (AFABN) transaction code.
• If errors occur during the test run, the Asset Close Processor must contact the Asset Master Data Maintainer to determine the cause.
– After the test run executes without errors, the Asset Close Processor will run the depreciation and post it to the GL.
Transmit Depreciation Information to Logistics Modernization Program (LMP)
– After the depreciation posts in GFEBS as part of the Period-End Close process, the posted monthly depreciation for Army Working Capital Fund (AWCF) assets is transmitted to LMP via interface for reporting purposes.
– In the event that an error occurs in the transmission of the data to LMP, the LMP Depreciation Reviewer may also execute the interface on demand using the ZSFI_AWCF_LMP transaction code. 11

12. Payment Process
• Once invoices are received, recorded, and matched, payments are scheduled and disbursed to vendors according to contractual and regulatory/statutory requirements (e.g., Prompt Payment Act).
• Payments are processed by the Payment Program in GFEBS via the Automatic Payment Transactions
(F110) transaction code.
• This is performed by two roles: the Payment Processor and the Payment Certifier.
Show Slide #12: Payment Process
The Payment Program consists of the Payment Proposal and the Payment Run.
The Payment Processor first enters the payment parameters.
This information includes items such as date, vendor(s), and payment method.
The Payment Proposal is created after all parameters have been specified.
The Payment Certifier then verifies if the payment information is correct within the Payment Proposal.
Once the Payment Certifier accepts the Payment Proposal, he/she schedules the Payment Run, which creates the payment transaction file, called the Ready-to-Pay file.
After the creation of the Payment Proposal but before execution the payment run, a Certified Electronic Funds Transfer (CEFT) validation is performed.
The CEFT validation checks Electronic Funds Transfer (EFT) information for all vendors in the system with open items due for payment, but only updates vendors without a Contractor and Government Entity (CAGE) code. 12

13. Billing Reports
The standard reports provided in GFEBS allow users to track order status and for detailed (by customer) and batched information.
• S_ALR_ – Due Date Analysis for Open Items
• VF03 – Display Billing Document
• VF05 – List Billing Documents
• VF31 – Output from Billing Documents
VF11 – Cancel Billing Document
Show Slide #13: Billing Reports
• Canceling a Bill
– The Cancel Billing Document (VF11) transaction code is used to cancel billing documents.
– Billing documents can only be canceled before they have been issued to an external system.
• Re-generating a Customer’s Bill
– If customers request a copy of their bill, the Customer Billing Processor/Certifier can print the bill and send it via mail.
• This is accomplished by accessing the original billing document with the Change Billing Document (VF02) transaction code.
Transactions for Specific Sales Orders – For FMS Sales Orders, Expenditure Authority must be received before a bill can be processed.
• Transmit Bill
– Two types of forms are generated from the billing transaction:
• SF-1080 Form – for Federal Government customers
• DA-1857 Form – for public customers
The billing document indicates which system the bill is sent through: IPAC/ADS or Defense Cash Accountability System (DCAS).
– Customer Group of Federal and IPAC are listed in Payment Method “I.”
• Bill is sent to IPAC and routed through ADS.
– Customer Group of Federal and DCAS are listed in Payment Method “0.”
• 1080 transaction is sent via DCAS. 13

14. Tie Point Reconciliation
Tie Point Reconciliation is a trial balance reconciliation tool used to ensure that the Assets, Liabilities, Net Position, Revenues, Expenses, and Gains/Losses are in balance on the trial balance prior to submission.
• The tool also ensures that the respective proprietary and budgetary GL accounting codes are in balance and reconcile.
Show Slide #14: Tie Point Reconciliation
To carry out reconciliation postings, the Accounting Processor runs:
– Abnormal Balance Report
• Displays any GL account balances that do not reflect the normal credit or debit balance, as defined in the
USSGL.
– Reconciliation Analysis Report
• Confirms that the appropriate proprietary accounts equal the respective budgetary accounts. 14

15. Posting Periods
At the end of each month in GFEBS, the Open/Close Processor closes posting periods for the previous period and opens new posting periods.
Opening balances for the new period are derived from the closing balances of the previous period.
The periods maintained in GFEBS by FI are Material Management (MM) Periods, Controlling (CO) Periods, FI Account Periods, and Funds Management (FM) Periods.
Show Slide #15: Posting Periods
Opening/Closing MM Periods
– The MM period should be “rolled forward” at the end of each period.
– Opening a new MM period allows you to track and perform goods movements in the new period and in the previous period.
Lock CO Periods
– Closing the previous CO module period allows you to lock out cost management activities for the previous period.
• Specific cost transactions can be locked for posting.
• Only unlock one CO period at a time for posting 15

16. Close/Open FI Account Periods
• Maintaining FI Account periods controls the accounting periods that are open for financial posting.
• You can define the eligible intervals for Customer, Vendor, Material, GL Account, Material Account, and Asset postings.
• Only one FI posting period should be open for posting, with the exception of the special posting periods during the Year-End Close process.
Show Slide #16: Close/Open FI Account Periods
Close/Open FM Period
– As a result of maintaining FM periods, GFEBS is able to be sure that postings using a specific fund element occur only in the current, open period.
– Only one FM period should be opened at a time. 16

17. Open/Close Posting Periods
• MMPV – Close Period for Material Master Records
• OKP1 – Lock Controlling Period
• OB52 – Open FI Posting Periods
Show Slide #17: Open/Close Posting Periods
The Open/Close Processor does the following transaction during the period end process:
– MMPV – Close Period for Material Master Records
– OKP1 – Lock Controlling Period
– OB52 – Open FI Posting Periods
As state in an earlier slide, we will not be running these transaction in the training client. 17

18. Period-End Close Reporting
The Period-End Close reporting process consists of two major activities:
• Internal Reporting
• External Reporting
Show Slide #18: Period-End Close Reporting
Internal Reporting
The Financial Reviewer runs the following internal reports during the Period-End Close:
• GL Line Item Report
– Run to view cleared, open, or all items posted to an Account
• GL Account Balances Report
– Run to view the G/L account balances, such as the account balance carry forward, total of debits or credits, and the accumulative balance.
External Reporting
GFEBS sends a Trial Balance to DDRS, which then produces all budget and execution reports and the Army’s General Fund Financial Statements. 18

19. External Reporting Requirements
Standard Financial Information Structure (SFIS) is a standard for categorizing financial information to support financial management and reporting functions.
It provides a common foundation to track, process, and report DoD business transactions.
SFIS data structure supports requirements for budgeting, financial accounting, cost/performance management, and external reporting.
Show Slide #19: External Reporting Requirements
GFEBS compliance with Standard Financial Information Structure (SFIS)
– To meet SFIS standards, GFEBS links to the appropriate SFIS attribute and DoD reporting Chart of Account number.
– GFEBS automatically links each USSGL account to its corresponding SFIS GL account and converts the postings into SFIS format.
– An integral part of the DoD’s quarterly and annual financial reporting process is the submission of data to the Treasury.
– DoD submits its consolidated Trial Balance to the Federal Agencies’ Centralized Trial-Balance System (FACTS I) at the end of each fiscal year and to Federal Agencies’ Centralized Trial- Balance System (FACTS II) quarterly. 19

20. Other External Reports
The Treasury Report on Receivables (TROR) is a quarterly report that the Treasury requires from U.S. Government agencies.
It serves as a management report that informs Federal decision makers of the gross book value of the payables owed to Federal agencies by the public and the status of the Federal Government's debt portfolio.
The External Information Monitor sends the Army’s necessary financial data to DDRS via the TROR interface at the end of each quarter.
Show Slide #20: Other External Reports
The Treasury Report on Receivables (TROR) is a quarterly report that the Treasury requires from U.S. Government agencies.
It serves as a management report that informs Federal decision makers of the gross book value of the payables owed to Federal agencies by the public and the status of the Federal Government's debt portfolio.
The External Information Monitor sends the Army’s necessary financial data to DDRS via the TROR interface at the end of each quarter. 20

21. Reports Run GL Account Balances Report
• S_ALR_ : Run GL Account Balances Report
Run the Trial Balance by Fund at SGL Account Level
• S_KI4_ : Run Trial Balance by Fund at Standard General Ledger (SGL) Account Level Report
Run the SFIS Trial Balance
• ZSFI_SFISREPORT: Run SFIS Trial Balance
Show Slide #21: Reports
The following transaction codes are used by the External Information Monitor:
Run GL Account Balances Report
– S_ALR_ – Run GL Account Balances Report
Run the Trial Balance by Fund at SGL Account Level
– S_KI4_ : Run Trial Balance by Fund at Standard General Ledger (SGL) Account Level Report
Run the SFIS Trial Balance
– ZSFI_SFISREPORT: Run SFIS Trial Balance 21

22. Reports (Cont.)
Run the Trial Balance by Fund at the SGL Account Level and the SFIS Trial Balance:
• S_KI4_ : Run Trial Balance by Fund at Standard General Ledger (SGL) Account Level Report
• ZSFI_SFISREPORT: Run SFIS Trial Balance
Run DDRS Outbound Interface:
• ZSFI_DDRS_TRL_BAL: DDRS Trial Balance Interface Program
Show Slide #22: Reports (Cont.)
Run the Trial Balance by Fund at the SGL Account Level and the SFIS Trial Balance
– S_KI4_ : Run Trial Balance by Fund at Standard General Ledger (SGL) Account Level Report
– ZSFI_SFISREPORT: Run SFIS Trial
Balance
Run DDRS Outbound Interface
– ZSFI_DDRS_TRL_BAL: DDRS Trial Balance Interface Program 22

23. LSA #1 Check On Learning
Q: Payments are processed in the Payment Program (in GFEBS) via what transaction code?
A: F110
Q: The Period-End Close process is initiated when _____ passes down the business rules for the Period-End Close.
A: HQDA
Q: The Period-End Close reporting process consists of what two major activities?
A: Internal and External reporting
Show Slide #23: LSA #1 Check on Learning
NOTE: The answer to each question will appear when you hit enter.
Q: Payments are processed in the Payment Program (in GFEBS) via what transaction code?
A: F110
Q: The Period-End Close process is initiated when _____ passes down the business rules for the Period-End Close.
A: HQDA
Q: The Period-End Close reporting process consists of what two major activities?
A: Internal and External reporting 23

24. LSA #1 Summary 24 Show Slide #24: LSA #1 Summary Facilitator's Note:
On the first part of this lesson, we discussed the period-end close rules and the master schedule. Also, the asset depreciation and the run payment program. We also covered posting periods, along with the two major activities in the period-end close reporting process.
“Or”
NOTE: Have one learner from each group to explain the most important take away to them from this lesson. Facilitate a discussion on each answer. 24

25. Year-End Close
Year-End Closing is a set of activities carried out at the end of the year to close the books, clear outstanding items, return unused appropriations to the Treasury, and provide the data necessary for future budgeting and appropriation purposes. It’s kicked off at the end of the year when HQDA passes down the Closing schedule and business rules.
Show Slide #25: Year-End Close
Learning Step / Activity 2. Process Year-End Closing
Method of Instruction: DSL - Discussion (large or small group)
Facilitator's to Learner Ratio: 1:25
Time of Instruction: 02 hr. / 00 min.
Media: PowerPoint Presentation, Handout
Year-end Closing is a set of activities carried out at the end of the year to close the books, clear outstanding items, return unused appropriations to the Treasury, and provide the data necessary for future budgeting and appropriation purposes. It’s kicked off at the end of the year when HQDA passes down the Closing schedule and business rules. 25

26. Benefits of Year-End Close
• Each installation, division, and branch can more effectively manage its account information.
• Provides greater visibility of information across the organization.
• Schedule Manager tool in GFEBS allows for real-time coordination of closing tasks.
Show Slide #26: Benefits of Year-End Close
Coordination: Coordination for the new Year End Close process is critical. The new process requires coordination, as each division, branch, and installation can more easily manage their account information efficiently. Furthermore, the Schedule Manager tool in GFEBS allows for real-time coordination of the closing tasks. 26

27. Data Accessibility
Reports are available in GFEBS to analyze year-end data at any time.
• ECC Reports reflect real-time data (available information is accurate and up to the minute).
• ECC Reports eliminates the down time currently needed when the system is down for the Year-End Close process.
Show Slide #27: Data Accessibility
Data Accessibility: Users can run year end reports in GFEBS to analyze year end data at any time. These reports reflect real-time data, meaning that the information available in GFEBS is accurate to the current minute.
Efficiency: GFEBS drastically reduces the time needed to coordinate and perform the Year End Close tasks. GFEBS enables greater productivity; it eliminates the system downtime that is currently necessary during the Year End Close.    27

28. Organization Responsibilities
Headquarters, Department of the Army (HQDA)
Department of Defense – Defense Finance and Accounting Service (DFAS)
The Office of the Secretary of Defense (OSD)
Office of Management and Budget (OMB)
General Accountability Office (GAO)
United States Treasury
Show Slide #28: Organization Responsibilities
Key Organizations – GFEBS interacts with and, in some cases, relies on the following organizations during the Year End Close Process:
Organization Responsibilities:
Headquarters, Department of the Army (HQDA) - This is the highest-level headquarters in the Army and exercises directive and supervisory control. HQDA is composed of the Office of the Secretary of the Army; Office of the Chief of Staff, Army; the Army Staff; and designated staff support agencies. HQDA sends the Year End Close schedule to GFEBS.
Department of Defense (DoD) – Defense Finance and Accounting Service (DFAS) - Provides accounting and finance services for the military departments and defense agencies. DFAS executes the majority of the activities involved in the Year End Close Process, as it is the centralized accounting and finance service for the Army.
The Office of the Secretary of Defense (OSD) – The principal staff element of the Secretary of Defense in the exercise of policy development, planning, resource management, fiscal, and program evaluation responsibilities.
Office of Management and Budget (OMB) – Provides guidance for budget preparation, budget execution, reporting, financial statement form and content, and object classification reporting.
General Accountability Office (GAO) – Examines the use of public funds, evaluates federal programs, and audits activities to help Congress make effective oversight, policy, and funding decisions.
United States Treasury – Serves as the central bank for all Government agencies, the Department of Defense, including the Army. Within the Treasury, the Financial Management Services (US Treasury FMS) provides central payment services to federal agencies; operates the federal government’s collections and deposit systems, and government-wide accounting and reporting services. 28

29. Process in Schedule Manager
Once the Closing schedule has been passed down from HQDA and compiled, the Period Close Schedule Processor enters/updates the Year-End Close schedule into the Schedule Manager Tool in GFEBS.
Show Slide #29: Process in Schedule Manager
Schedule Manager (SCMA) allows the Period Close Schedule Monitor to plan and monitor the Year End Close Process across all departments. Throughout the Year End Close Process, the Period Close Schedule Monitor coordinates and monitors the status of each task listed in Schedule Manager. Each task corresponds to a certain GFEBS closing activity that must be executed via a transaction code. The Period Close Schedule Monitor can view in detail if and when a task has been executed, tasks that need to be repeated and those that have not been completed. If any closing activities are not conducted in the established timeframe, the Period Close Schedule Monitor must take corrective action to ensure each task is completed. 29

30. Future Funded Expense
GL account that records the amount of accrued expenses that are required to be funded from future-year appropriations.
Canceled AP balances are posted to Future Funded Expense account 6800 and Contingent Liability account 2920 in the Canceling fund as 10/1/XX"
Show Slide #30: Future Funded Expense
G/L Account that records the amount of accrued expenses that are required to be funded from future-year appropriations. Canceled Accounts Payable balances are posted to the Future-funded Expense account, G/L 6800. 30

31. Close Canceling Funds
As part of pre-closing activities, the Year-End Processor must close Canceling funds.
• A fund is canceled after five (5) years with Expired status.
When this happens, the appropriation becomes unavailable for new obligations, adjustments to obligations, or liquidations of obligations.
Show Slide #31: Close Canceling Funds
As part of the Pre-Closing Activities, the Year End Processor must close canceling funds. A fund is canceled after five years with Expired status. When this happens, the appropriation becomes unavailable for new obligations, adjustments to obligations, or liquidations of obligations. The Federal Accounting Standards Advisory Board (FASAB), Treasury, and the DoD Financial Management Regulation (FMR) require that all DoD entities properly manage their canceled Accounts Payable. 31

32. Treasury Requirements
All unobligated balances and unpaid obligations must be identified at the time of cancellation.
• Liabilities must be paid using a current appropriation that would otherwise have been chargeable in both purpose and amount.
• If there is residual budget in a Canceling fund, the budget is rolled up to a higher-level funds center within the Army and returned to Treasury.
Show Slide #32: Treasury Requirements
To comply with these requirements, GFEBS identifies the unobligated balances and all unpaid obligations at the time of cancellation. Liabilities must then be paid using a current appropriation which would otherwise have been chargeable in both purpose and amount. Payments must not exceed the lesser of the unexpended balance of the canceled appropriation, or one percent of the total amount of the appropriation being charged. The unexpended balance is the sum of the unobligated balances plus the unpaid obligations at the time of cancellation which are incurred or made subsequent to the cancellation of the appropriation. If there is residual budget in the canceling fund, the budget is rolled up to higher level Funds Center within Army and returned to Treasury. 32

33. Close Canceling of Funds
Run Cancel A/P Transaction:
• Finds open FI payables for the fund being canceled. Reverses the payables and establishes a future funded expense for the amount of the canceled fund.
Run Cancel MM Transaction:
• Finds open MM payables for the fund that is being canceled, cancels the open A/P balances, and establishes a future funded expense for the amount of the canceled obligation.
Show Slide # 33: Close Canceling of Funds
Each of the following transactions transfers open amounts in the canceling funds to new funds:
The Cancel A/P Transaction finds open FI payables for the fund being canceled. It reverses the payables and establishes a future funded expense for the amount of the canceled fund.
The Cancel MM Transaction finds open MM payables for the fund that is being canceled, cancels the open A/P balances, and establishes a future-funded expense for the amount of the canceled obligation.
To complete each of these transactions in GFEBS, you must specify the canceling funds. To do this, enter the canceling funds from the Index of Funds report in the Fund field. 33

34. Asset Depreciation
The Asset Close Processor must be sure that all Asset Transactions have been posted to the current fiscal year, and that depreciation for each period in the fiscal year is correctly posted.
Show Slide #34: Asset Depreciation
The Year End Close transaction closes out the old fiscal year. Once you close the fiscal year, no assets can be posted using value dates in the old fiscal year. Therefore, the Asset Close Processor must be sure that all Asset Transactions have been posted to the current fiscal year, and that depreciation for each period in the fiscal year is correctly posted. (This depreciation run should have already happened during the 12th period-end closing). Importantly, the Asset Close Processor role is assigned to a single person at the centralized level. 34

35. RM Periodic Processing
Write Down Sales Orders
• At the end of the fiscal year, all sales orders citing reimbursable authority that are Expiring must be written down to the obligation amount.
Re-Establish Sales Orders
• Once the write-down occurs and the new fiscal year is open, re-establishment of the customer's order is based on the contract end date or funding period of availability
• This is completed by the RM Period Processor
Show Slide #35: RM Periodic Processing
These tasks are performed by the RM Period Processor.
Write Down Sales Orders
The process generally includes:
Identifying the Sales Order items with expiring reimbursable authority.
Determining the obligation amount.
Reducing the amount of the Sales Order item to the level of the obligation amount.
Reducing the amount of the reimbursable authority to the level of the obligation amount.
Liquidating any open customer advance balance in excess of the total obligated and unbilled amount, and refunding to the customer or transferring to the new program fiscal year for continued execution of the sales order.
Sales Orders cannot be Written Down Until these prerequisites are met:
 All interfaces for obligations are posted.
All rejected items are cleared.
Write-down of commitments are written down.
The reimbursable orders billing run is finished.
DCAS transactions are posted.
During the lecture provide an overview of Reimbursable Periodic Processing.
Continue discussing:
Re-establishing Sales Order
A direct charge agreement is an internal Army reimbursable, where one part of the Army provides a service for another part of the Army.
Use the concepts slides for additional information.
At the end of the lecture ensure participants understood the information provided.
Re-establish Sales Orders
There are certain cases when an order written down in the old fiscal year needs to be re-established in the new fiscal year. These cases are when the performer’s reimbursable authority expired in the previous fiscal year but the Sales Order is not closed. Sales Orders may not be closed in the following situations: Project Orders that are not complete (have extensions), or orders that are funded by those customer’s multi-year appropriations that did not expire in the previous fiscal year.
With Direct Charge Agreements, the performing organization and customer must discuss the alternatives. If the performing organization does not have the ability to obligate the funds in the years of availability, the customer can either request return of the funds near the end of the fiscal year (to use for other executions), or the customer must decide to allow the performing organization to continue to execute against the funds with the knowledge that excess funds could be left to expire if not used before the end of the year(s) of availability.
The RM Period Processor determines in what cases and at what amounts new Sales Order items are to be established.
This process includes:
Identifying the Sales Order items and amounts to be re-established in the new fiscal year.
Creating the new Sales Order line items.
A prerequisite for re-establishing a sales order is that budget is available to establish the reimbursable authority for the new Sales Order items.
System Functions
Processing year-end activities uses the same functions and processes used to manage routine reimbursable orders. 35

36. RM Periodic Processing (Cont.)
• VA02 – Change Sales Order to Decrease Funding
• FMFG_RPT_E_UNFILLED – Close Out Unfilled Orders
• VA01 – Create a Sales Order Line Item to Re-establish Annual Funding
Show Slide #36: RM Periodic Processing (Cont.)
These are the transactions codes the RM Periodic Processing uses to accomplish task:
• VA02 – Change Sales Order to
Decrease Funding
• FMFG_RPT_E_UNFILLED – Close Out Unfilled Orders
VA01 – Create a Sales Order Line Item to Re-establish Annual Funding 36

37. Close Open Commitments
As part of the Year-End Close process, the Year-End Processor must:
• Close all open PR for Expiring and Expired funds.
PRs should be closed routinely at the departmental level throughout the year. This is the final, centralized closing of all PRs for Expiring and Expired funds across the Army.
• GFEBS sends committed amounts to GL Account 4610.
Show Slide #37: Close Open Commitments
Close Open Commitments
In GFEBS, commitments are referred to as Purchase Requisitions. As part of the Year End Close process, the Year End Processor must:
Close all open Purchase Requisitions prior to the Year End Close for expiring and expired funds. To carry out this task:
Upload the .txt files you created during the Preparation Activities—which list the expiring and expired funds—into the Fund field on the FMMC – Close Open Items transaction.
Enter the required additional information (i.e. Company Code, posting date, posting period, etc).
Check the following box on the FMMC screen:
Purchase Requisition: Set Completed Indicator
Click execute. Open Purchase Requisitions for expiring and expired funds will be automatically closed.
This transaction automatically returns the committed amounts to G/L Account 4610.
After the FMMC transaction has executed, the Year End Processor must review any remaining open documents for expired and expiring funds to ensure that they are closed out.
The Year End Processor can validate this by running the Trial Balance by Expiring and Expired Funds, and verifying that Account 4700 has a zero balance.
Commitments in multi-year and no-year unexpired funds will be properly accounted for during the Year End Close process. 37

38. Complete Close Nominal Accounts
• Period accounts that are zeroed out at Year-End.
• Examples include revenues, expenses, gains, and losses.
Permanent Accounts
• Annual accounts that have beginning balances.
• Examples include assets, liabilities, and net position.
Show Slide #38: Complete Close
Nominal Accounts
G/L Accounts which require a zero balance at the beginning of each year. This includes all revenue 5000 series and expense 6000 series accounts plus some budgetary accounts, depending on the status of their fund.
Permanent Accounts
Annual accounts that have beginning balances
Examples include assets 1000 series, liabilities 2000 series & net position 3000 series. 38

39. Close Accounts for Unexpired Funds
Complete Close (Cont.)
Close Accounts for Unexpired Funds
• At the end of the year, all residual unexpired authority must be reapportioned.
• To comply with this requirement, GFEBS closes out residual unexpired budget authority in USSGL account 4610 to account 4450.
• For multi-year unexpired authority, these closing entries must be reversed at the beginning of the new fiscal Period 1.
Show Slide #39: Complete Close (Cont.)
During the final closing, the Year End Processor runs the FMFG_YEAR_END_CLOSE transaction to close accounts for unexpired funds and nominal accounts. These two transactions must be run in “Closing” mode, accomplished by selecting the “Closing” radio button on the FMFG_YEAR_END_CLOSE screen.
Close Accounts for Unexpired Funds
At the end of the year, unexpired authority must be reapportioned. Although these funds are still available for Army use in the upcoming fiscal year, unexpired authority must be technically redistributed at the beginning of the new year, in accordance with OMB directives. However, in GFEBS the funds/budget will not be redistributed. Instead, they are closed temporarily in the Unapportioned Authority Account (4450) within the SGL. These unexpired funds are then moved back to their proper SGL accounts during the Year Start activities. GFEBS accomplishes this by reversing the entries which moved the funds to 4450. 39

40. Close Accounts for Expiring Funds
Complete Close (Cont.)
Close Accounts for Expiring Funds
• At Year-End, residual expiring authority must be transferred from 4610 to 4650.
• Budget in FM BCS is not transferred back up the Army Command.
• Residual expired authority remains at distributed level to support adjustments for follow-on activities.
Show Slide #40: Complete Close (Cont.)
Close Accounts for Expiring Funds
At Year-end, residual expiring authority must be transferred from 4610 to 4650.
Budget in FM BCS is not transferred back up the Army Command.
Residual expired authority remains at distributed level to support adjustments for follow-on activities. 40

41. Year-start Activities
Re-Classify Unexpired Funds
• At the year start, the Year-End Processor must re-classify Unexpired funds.
• To do this, the Year-End Processor must reverse the entries that moved unexpired budget authority to SGL 4450.
• This returns the Unexpired funds to their proper SGL accounts.
Show Slide #41: Year-start Activities
As discussed previously, unexpired funds were moved to SGL Account 4450 during the Year End Close. When this transaction was run, the Year End Processor saved the output list of all the entries created to move the unexpired funds to 4450 as a .txt file. At the start of the year, these entries must be reversed to re-classify the unexpired funds to their proper SGL accounts. The Year End Processor uploads this .txt file into the F.80 Mass Reversal Transaction and reverses the entries. This moves the unexpired funds back into their original SGL accounts. GFEBS is now ready for budget distribution and a new fiscal year. 41

42. LSA #2 Check On Learning Q: What is a TROR report?
A: Treasury Report on Receivables: A quarterly report that the Treasury requires from U.S. Government agencies.
Q: True or False: BI Reports reflects real-time data (available information is accurate and up to the minute).
A: False – ECC Reports (Ref: slide 27)
Q: A fund is canceled after ____ years with Expired Status.
A: five
Show Slide #42: LSA#2 Check on Learning
NOTE: The answer to each question will appear when you hit enter.
Q: What is a TROR report?
A: Treasury Report on Receivables: A quarterly report that the Treasury requires from U.S. Government agencies.
Q: T/F: BI Reports reflects real-time data (available information is accurate and up to the minute).
A: False – ECC Reports (Ref: slide 27)
Q: A fund is canceled after _____ years with Expired Status.
A: 5 42

43. LSA #2 Summary 43 Show Slide #43: LSA #2 Summary Facilitator's Note:
During the final part of this lesson, we discussed the year-end close process, along with the benefits of year-end-close. We also, covered when to close canceling funds and the treasury requirement, as well as the importance of closing open commitments.
“Or”
NOTE: Have one learner from each group to explain the most important take away to them from this lesson. Facilitate a discussion on each answer. 43

44. Practical Exercises 44 Show Slide #44: Practical Exercises
Practical Exercise: Period-End / Year-End Closing (60 Minutes Apply) 
Method of Instruction: PE - Practical Exercise (Hands-On/Written)
Facilitator to Learner Ratio: 1:25
Time of Instruction: 01 hrs. / 00 min.
Media: Printed Reference Material, Practical Exercise, Handout 
General Information: (Introduction / Objective) this practical exercise measures your knowledge of Period-End / Year-End and other topics already covered in a knowledge-based format.
Special Instructions: N/A 44 44

45. Questions? 45 Show Slide #45: Questions?
NOTE: Field any questions that may not have been answered throughout this lesson. 45

46. TLO Summary Action: Perform Period-End / Year-End Closing
Conditions: In a classroom environment using doctrinal and administrative publications, practical exercises, personal experience, handouts, discussion and access to GFEBS
Standards: With at least 80% accuracy, learners must demonstrate proficiency with:
Communicate period-end closing
Process year-end closing
Show slide # 46: TLO Summary
Facilitator’s Note: Reiterate the TLO .
Action: Perform Period-End / Year-End Closing
Condition: In a classroom environment using doctrinal and administrative publications, practical exercises, personal experience, handouts, discussion and access to GFEBS.
Standards: With at least 80% accuracy:
- Communicate period-end closing
- Process year-end closing 46