About U.S. Federal Financials Year-End Close

The year-end closing process is a set of activities that enable federal agencies to comply with Office of Management and Budget (OMB) requirements regarding the closing of appropriation accounts, preparing for the next fiscal year, and reporting on those activities.

The U.S. Federal Financials year-end close process is different from the Oracle Fusion General Ledger year-end close process. For more information about the Oracle Fusion Cloud General Ledger year-end close process, see Overview of Closing Journals.

U.S Federal Financials year-end close spans two functional areas, General Ledger and Budgetary Control. The General Ledger close originates in Oracle Fusion General Ledger and budgetary close originates in Oracle Fusion Budgetary Control. The GL year-end closing process enables agencies to close accounts and carry ledger amounts forward at the end of the fiscal year according to OMB requirements. The process includes liquidation of unobligated commitments, generation of closing entries in General Ledger, and carrying forward obligated balances to the next fiscal year. When budgetary close closes the budget balances, it should reverse the remaining available budget and mark the budget with a status of closed so that no other transactions can pass a check against the budget. For federal agencies, the remaining available balances must be rolled back up to the highest level before they're available for redistribution in the next fiscal year. Not all budgets are available for redistribution.

This chapter describes the U.S. Federal Financials GL year-end closing process.

Before agencies can create closing journal entries for year-end close, an administrator must configure the year-end closing rules using the Calculation Manager of Oracle Fusion General Ledger. You access the Calculation Manager using the Create Allocation Rules task in the Journals work area. You configure the closing rules to define the General Ledger accounts to be closed (source account) and the corresponding GL accounts to which the closed balance will be moved (target account).