Accrual Process for FY25 Accounts Payable Invoices Received After June 30

If you received goods or services in FY25 but did not send the invoice to accounts payable by the July deadline, an accounts payable accrual Journal Entry (JE) may be necessary to accurately reflect the expense in FY25. Finance will review invoices exceeding $25,000 to determine if a payable journal is necessary. Finance will calculate the amount of expense that belongs in each fiscal year and prepare a JE to either move the entire invoice or split the invoice between fiscal years by moving the expense out of FY26 into FY25. The calculated value to be moved to FY25 must be greater than $25,000 before a JE will be made.

Please follow up with your suppliers/payees who have not sent an invoice for goods or services received in FY25.

Why does it matter that invoices are recorded in the proper year? Because it ensures that invoices are recorded in accordance with Generally Accepted Accounting Principles (GAAP) which requires expenses be recorded in the period they are incurred, not when they are paid. Finally, recording invoices in the appropriate fiscal year ensures that revenues and expenses are matched correctly, providing a true representation of the university's financial performance. This alignment is crucial for stakeholders, such as creditors, bondholders, accrediting bodies, and the state and federal government who rely on financial statements to make informed decisions about financial health and compliance.

Questions? Please contact financecustomercare@ohio.edu and someone in General Accounting will follow up with you.