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Office of the University Controller Indiana University

Closing Sub-Accounts and Accounts

Unless Contract and Grant reporting guidelines require you to close sub-accounts and accounts by a specific time, please consider waiting until after Final Closing in order to avoid general ledger transaction posting errors during year-end processing.

If you must proceed now, please note the following special conditions when cleaning up and closing sub-accounts and accounts:

Closing/Inactivating Sub-Accounts

KFS will allow you to inactivate sub-accounts – even if they contain pending ledger entries and encumbrances. To prevent problems with year-end posting of transactions, please perform the following due diligence before inactivating sub-accounts:

  • Look for Encumbrances. Use the Open Encumbrances Lookup in KFS, BUY.IU PO Encumbrance Detail Report in the Controller's Office Reporting Tools website or the Outstanding Encumbrances report in IUIE, to identify encumbrances that need to be removed. Purchase Orders and Payroll Encumbrances may need to be adjusted in the host system to properly transfer outstanding encumbrance balances off the sub-account that is being inactivated.*

  • Look for Pending General Ledger and Pending Labor Ledger Entries. Use the Pending General Ledger Entry Lookup and Pending Labor Ledger Entry Lookup in KFS to identify entries that must be finalized.*

Closing Accounts

KFS will not allow you to close accounts if they contain any of the following:

  • Assets, Liabilities, or Fund Balance. All Cash, Receivables, Payables and other Balance Sheet items need to be transferred off the account in order to close. The system will determine if closing Income and Expense to Fund Balance would net Fund Balance to zero (do not attempt to adjust Fund Balance).*

  • Base Budget. During Budget Construction, Base Budget is locked and cannot be edited again until the new fiscal year. If your account has a Base Budget balance, you must wait until FY24 and then complete a Budget Adjustment document.

  • Outstanding Encumbrances. Use the Open Encumbrances Lookup in KFS, BUY.IU PO Encumbrance Detail Report in the Controller's Office Reporting Tools website or the Outstanding Encumbrances report in IUIE, to identify encumbrances that need to be removed.*

  • Pending general ledger, nor pending labor ledger entries. Use the Pending General Ledger Entry Lookup and Pending Labor Ledger Entry Lookup in KFS to identify entries that must be finalized before account closure.*

Alternatively, you may use the Account Closing Ledger Errors Report in IUIE to help you identify the errors on a given account that will prevent its closure.

*Important Note: Ledger entries from finalized KFS e-docs post to the general ledger and labor ledger during the nightly accounting cycle. Please wait until the entries post before closing your accounts and sub-accounts.