Sent to the AFS-Update mailing list on July 10, 2020
The Year-End Department Accrual (YEDA) e-document will be available for use starting Saturday, July 11. KFS users who need to submit accruals and deferrals for expenses and income should use the YEDA to do so no later than 4 p.m. on Friday, July 17.
What Must be Accrued or Deferred?
Accrual and deferral entries are recorded based on a materiality threshold, which is $10,000 for the 2019-20 fiscal year. Individual transactions should be evaluated for accrual/deferral. If they meet or exceed the above threshold, they must be recorded to the appropriate fiscal year using the YEDA e-document.
Keep This in Mind: Purchase orders (encumbrances) do not need to be accrued. Invoices (Payment Requests and Credit Memos) that post to the wrong fiscal year may need to be accrued or deferred if they meet the materiality threshold. No contract or grant funding should be used on the YEDA e-document.
The threshold of $10k applies to most expenses and income, but some limited exceptions are listed in the fiscal closing instructions. If you are not sure if you need to create an accrual or deferral transaction, please discuss the potential transaction with your organization’s financial management and then contact General Accounting as needed.