Re: [IUG] Fiscal close questions

["Seeman, Corey" <cseeman at bus dot umich dot edu>]

Hi Leah - 

Ah...the first Fiscal Close question of the season...excellent...

OK...I will give it my best shot.  Please see my notes below.

-----Original Message-----
From: innopac-bounces at innopacusers dot org
[mailto:innopac-bounces at innopacusers dot org] On Behalf Of Black, Leah
Sent: Wednesday, May 07, 2008 12:40 PM
To: innopac at innopacusers dot org
Subject: [IUG] Fiscal close questions

We are preparing procedures for closing in MilAcq as we approach the end
of our fiscal year on June 30.  Since moving to Millennium our fiscal
close experience has been troublesome (to say the least) and we are
trying to figure out what we need to do to improve this process.  I have
attended various IUG sessions and heard wonderful stories of
trouble-free closings and would very much like to know how to accomplish
this! 

NOTE:  It really can be pain-free!  Honest!

We have read the manual describing the 3 different methods that can be
used for fiscal close and we think it is clear that we should be using
method 2 (we keep one set of funds for the current year and another set
for the previous year, and we change fund codes and status values in
outstanding order records as part of our fiscal close process).  This is
the MilAcq method we've used for several years, with less than wonderful
results.

NOTE:  You always want to use the method that matches with your
governing body.  If MSU lets you take orders for items that are not
received and sweep them into "previous year" funds, then you want to use
Method 2.  If you have a use or lose model (that many, if not most,
organizations have, then you will want to use Method 1.  If the method
chosen does not match with the governing body, then the financial totals
will never really match up.  

We thought perhaps we were mis-reading the manual and decided to run a
test of fiscal close method 1 to see what would happen.  We have a
"test" server and had Innovative set it up for fiscal close method 1,
and this morning tried that method using some sample records created
especially for this test.  We were very encouraged when offered the
option to "archive current funds amounts" in tab 4, but tab 5 did not
offer an opportunity to globally change fund codes and status values,
which method 2 offers, and which we must do. 

NOTE:  The premise behind Method 1 is that you use the same setup of
funds year in/year out.  So an outstanding order for the economics book
fund (as an example) will not be changed in the following year.
Outstanding orders in Method 1 are just carried forward into the new
fiscal year.  The encumbrances are carried forward as well.  While many
view this as a bad thing (the fact that you start the fiscal year with a
large chunk of encumbered money from purchases not yet received, it does
mean that you can spend money in June like a member of congress, a
sailor on shore leave, a librarian at a bookstore, a teenage boy at Best
Buy/Circuit City...you get the idea.  So the fact that you cannot
globally change fund codes during Method 1 is part of the design.  With
Method 1, you are not going to need to change fund codes.  

Here are my questions:

Q. Is it true that using method 1 for fiscal close does not allow you to
change funds and status values?  For example, can you change current
monograph encumbrances to a carryover fund as part of fiscal close?  If
you're using method 1 and can do this, we would LOVE to hear from you.
A. Yep!  You cannot change funds for outstanding records because
(technically) you do not have to.

Q. We need a fiscal close method that allows us an option to archive the
previous year's report and also have an option to change funds in
orders.  If you're doing this as part of fiscal close would you be
willing to share with us how it's done?
A. For people that use Method 1 or Method 2, you will have two years of
financial reports that are maintained within the system.  You will
always be able to see the current year's financial reports and also see
the previous year's financial reports.  You can also modify the previous
year's financial reports.  This is very important as you will always be
paying invoices in the current year.  But sometimes, a bill paid in July
could be applied towards the previous year and you want those numbers to
be accurate.  If you choose Method 3, you have a separate set of funds
and reports for each year, so you can have three or four years of
information at any given time.  But this assumes that you are getting a
new set of funds each year.  

Q. Is there a library out there who is successfully using fiscal close
method 2? Again, we would LOVE to hear from you.
A. I think there should be a bunch that can help.  While I pretend to be
the guru of fiscal close, I actually have only seen Method 2 once during
training.  I am really a Method 1 guy!  

The million dollar question for my green friends to the north...what was
not working in regards to Method 2?  There is a known issue, but it is
resolved in Release 2007 which is out.  Please go to CSDirect.iii.com to
view the Known Issues page.  There might be a better way to work with
the acquisition system, but it is critically important to match up the
method with what the governing body is expecting.

Hope this helps.

Best - Corey


Corey Seeman

Director
Kresge Business Administration Library
Stephen M. Ross School of Business
University of Michigan
701 Tappan Street, K3330
Ann Arbor, Michigan 48109-1234
(734) 764-9969
Cell Phone (734) 717-9734
Fax (734) 764-3839
cseeman at umich dot edu 

http://www.bus.umich.edu/kresgelibrary/
http://www-personal.umich.edu/~cseeman/index.html  

-----------

Thanks.


Leah Black
Head of Print Resources Acquisitions and Cataloging
Michigan State University Libraries
100 Library
East Lansing, Michigan 48824

517-432-6123 x149
517-353-8969 (fax)
blackl at msu dot edu

"If everyone is somebody, then no one's anybody"


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