Accounts Payable is the amount of money OWED BY a department for goods or services purchased from vendors. The amount should be recorded as a liability and the expense recognized in the proper fiscal year. Specific instructions on invoices that have been processed in IRIS by the payables deadlines can be found here. The Office of Budget & Finance can accrue current year payables that were not entered in IRIS by the payables deadlines to recognize the liability in the proper fiscal year. NOTE: The accrual will be reversed in the new fiscal year. Thus, departments should process the invoice in the new fiscal year.
Debit Balances in Accounts Payable: Amounts due to be received by a department, either as a result of over paying an invoice or as a result of a refund due to the department for returned goods, may be reclassified as an asset (Accounts Receivable), if significant.
Each department is required to provide a Cover Memo along with supporting schedules and other documentation to report the department’s Accounts Payable as of June 30, 2022 to the Office of Budget & Finance. Please refer to the reminder schedule for due date(s). The documents listed below are required for each A/P fund maintained by the department. If the department does not have an A/P account but needs one to be established, contact Melissa Johnson firstname.lastname@example.org to request a new account. Otherwise the payable will be posted to the departmental expense cost center.
A/P Reporting Package (click link to open file):
- The Cover Memo should be completed for each A/P fund. If there was no activity and/or the fund balance is zero, check the “No Activity and/or Zero Balance” box, and identify the Contact Person. The department head must sign the cover memo to attest to the accuracy of the balances, including zero balances. An e-signature is fine; otherwise print, sign and attach the cover memo as pdf document. (Required).
- Schedule 1: Detailed list of payables by individual invoice. If no activity, complete Section B only when there is an A fund. Schedule 1 is required for each active A/P fund at year-end.
- Schedule 2: Vendors with debit balances. Depending on the amount of the balance, our office may reclassify the balances for financial statement reporting, if significant. Schedule 2 is required for each A/P fund to be adjusted at year-end, if any debit balances exists.
- A/P Template: Use this template to record the journal entry per the instructions included in the spreadsheet. A template is required for each A/P fund to be adjusted at year-end.
Return completed reporting package as an excel file and other supporting documents as a pdf, via email, to Pam Arrowood email@example.com by the due date.
Remember to process invoices in new fiscal year!