Accrual Process for FY26 Accounts Payable Invoices Received After June 30

As we approach fiscal year-end, please review any goods or services that were received in FY26 but have not yet been invoiced by the supplier.

If an invoice for FY26 activity is not submitted to Accounts Payable by the July processing deadline, an accounts payable accrual may be required to ensure the expense is recorded in the correct fiscal year.

What You Need to Do

• Follow up with suppliers and payees who have provided goods or services in FY26 but have not yet submitted an invoice.
• Submit invoices to Accounts Payable as soon as they are received.
• Be prepared to provide information about goods or services received prior to June 30 if requested by Finance.

How Accruals Are Determined

Finance will review invoices exceeding $25,000 to determine whether an accounts payable accrual journal entry (JE) is required.

When necessary, Finance will:

• Calculate the portion of the expense that belongs in FY26 and FY27.
• Prepare a journal entry to either:
  • Move the entire expense to FY26, or
  • Allocate the expense between FY26 and FY27 based on when the goods or services were received.

A journal entry will only be processed when the amount attributable to FY26 exceeds $25,000.

Why Proper Fiscal Year Reporting Matters

Recording expenses in the correct fiscal year is an important component of accurate financial reporting.

Generally Accepted Accounting Principles (GAAP) require expenses to be recognized in the period in which they are incurred, rather than when payment is made. Proper year-end accruals help ensure that revenues and expenses are matched appropriately and that the University's financial statements accurately reflect its financial position and operating results.

Accurate financial reporting supports informed decision-making by stakeholders, including creditors, bondholders, accrediting bodies, and state and federal agencies, while also helping the University maintain compliance with reporting requirements.

Questions?

If you have questions about year-end accruals or outstanding invoices, please contact financecustomercare@ohio.edu. A member of the General Accounting team will be happy to assist you.