Posts tagged Close Cash Date
Friday Feature - JE Check Cash Closed Option

Continuing our discussion about close dates, Escape Online 5 provides you with more than just a date to decide how to close cash. We also give you the ability to define the level at which Escape Online 5 checks for changes in cash in a journal entry. 

In the Organization record, we have the JE Check Cash Closed Option, which is only available to all-org (or COE) users. (Of course, we also have cascading logic so that COEs can set this in the System table for the entire COE, instead of going into each organization. The field in the Organization record is really for overrides only.)

JECheckCashSetup.JPG

The JE Check Cash Closed Option levels include any cash, overall cash, Fund, SACS Fund and Resource. Each option looks at the journal entry to determine if it will affect cash and what should be done if it does. 

  • Any cash accounts – The journal entry will not post if there are any cash accounts in the journal entry, as determined by the cash object.
  • Change to overall cash – The journal entry will not post if there is a change in overall cash across funds. Users can post JEs that transfer cash between funds as long as overall cash is not changed.
  • Change to SACS Fund cash – The journal entry will not post if there is a change in SACS fund rollup cash.
  • Change to Fund cash – The journal entry will not post if there is a change in cash at the fund level. For example, if a journal entry were transferring between funds, the JE would not post. Users can post JEs that transfer cash between resources.
  • Change to Resource cash – The journal entry will not post if there is a change in cash at the fund or resource level. Users can only post JEs with changes to cash where the accounts are within the same resource/fund combination. In other words, if a user was transferring cash between funds — or even across resources within the same fund — that JE would not post.

That is an amazing array of options. We specifically created the Fund option when a Business Systems Support Coordinator of a COE requested the ability to close June cash for the month but still allow "our districts that are journaling for year-end close to move funds between resources." 

Great idea! 

Let's see how this works in the real world of handling school business in Escape Online 5. In fact, let's use the Business Systems Support Coordinator's example, setting the flag to the Fund level.

If a district creates a journal entry that transfers cash between resources in the same fund after cash is closed, that journal entry would post.

JECheckCashBetweenResources.JPG

But, if a district creates a journal entry that transfers cash between funds after cash is closed, that journal entry would not post. Instead, it would be put on hold, with a history record written giving the reason why it was not posted.

We are glad we could accomplish this difficult business logic that answers real world accounting issues of our customers. 




Friday Feature - Custom Close Dates

As I mentioned in last week's Friday Feature, Escape Online 5 gives you the ability to customize the close dates for journal entries. Not only can you enter separate close date for cash versus a close date for the period, but also the COE can define overall dates, while organizations can make them stricter. That was quite the sentence. Let' unpack it.

LIVE example of close dates from a current Escape Online 5 customer

LIVE example of close dates from a current Escape Online 5 customer

Cash Close Date

You can control when each accounting period (month) allows changes to cash. In other words, you can set a date, which stops any JE (manual or system) from posting to cash. Most of our customers enter a close cash date a few days earlier than the period close date.

Close Date

This is for the entire month. This is the date the ledger is closed. No more journal entries can be posted with a transaction date on or earlier than the date specified, period. 

COE and Organization Dates

In the System - Setup - Fiscal Year Status (System) activity, the COE can set cash and period close dates. This activity requires a user to have the System Manager role AND all-org access, which means that access is highly restricted.

In the System - Setup - Fiscal Year Status activity is also available to System Managers, but they can access it at the org-level. In this activity, organizations can leave all of the close dates "blank" in essence accepting the COE dates. Or, they can change the dates, but only if they make them more strict. For example, if the COE sets the July Close Cash Date to 8/5/2015, the organization can set the date to 8/4 or earlier, but the organization cannot set it to 8/6 or later.

Notice how the graphic has different dates for Cash and Close and that there are no dates for June. If the COE leaves the dates blank, that means that the COE is giving full flexibility to the organizations for year-end closing. Each organization can enter whatever date best suits their workflow. If the organization leaves the dates blank, that means that the organization is accepting the dates as defined by the COE. For this COE customer, both the COE and the organization leave the June dates blank, allowing them to work their year-end process without the constraints of artificial deadlines.

When ready to close the fiscal year, the COE and/or the organization can enter the dates and then, that is that. For example, it is August 2 and the year has been reconciled for ABC Charter. All ABC Charter's system manager has to do is enter 8/2/16 in the June Close Cash and the June Close dates and no more journal entries can be written against the fiscal year.

Perfect!

The Close Cash and Close dates in Escape Online 5 give everyone, COE and organization, the flexibility they need for each month of the year.




Friday Feature - Controlling Cash

While cash is always important, this time of year the control of cash is imperative. Districts and County Offices of Education need to close cash and make sure that nothing changes in the closing fiscal year. Fabulously, Escape Online gives you the control you need. Not only can you control when cash is closed, but also at what level. Let me explain.

The When

The “when” is controlled through the cash and close dates in the Fiscal Year Status activities. (Districts only need to fill in these dates if they want cash to close on a date earlier than defined by their COE.)

For each month, you have two fields that control the closing of cash:

  • The Close Cash field defines the date when cash for the level can no longer be changed.
  • The Close field defines the date when the ledger is closed.

At What Level

The “at what level” is controlled by the JE Check Cash Closed Option field in the Organization record. (COE control is in the System table.)

This field defines at what level users will be stopped from posting journal entries that move cash after the cash is closed. Levels include:

  • Any – JEs will not post if there are any cash accounts in the journal entry, as determined by the cash object.
  • Fund – The journal entry will not post if there is a change in cash at the fund level. For example, if a journal entry transferred between funds, the JE would not post. However, users can post JEs that transfer cash between resources.
  • Overall – JEs will not post if there is a change in overall cash across funds. Users can post JEs that transfer cash between funds as long as overall cash is not changed.
  • Resource – JEs will not post if there is a change in cash at the fund or resource level. Users can only post JEs with changes to cash where the accounts are within the same resource/fund combination. In other words, if a JE transferred cash between funds — or even across resources within the same fund — that JE would not post.
  • SACS Fund – JEs will not post if there is a change in SACS fund rollup cash.

What Happens

When you attempt to post a JE, Escape Online checks to see if the JE affects cash and at what level. Then, it checks the appropriate date in the Fiscal Year Status: the Close Cash Date or the Close Date.

  • Affects cash for level specified - Checks today’s date against the close cash date for the Fiscal Year status month of the transaction date. If today’s date is after the close cash date, the journal entry is automatically put on hold (instead of posted) and a history record is written.
  • Does not affect cash for level specified - Checks today’s date against the close date for the Fiscal Year status month of the transaction date. If today’s date is after the close date, the journal entry is automatically put on hold (instead of posted) and a history record is written.

Fabulous! Escape Online puts you in control of the cash!




Friday Feature - Closing Cash

There is no denying it: cash is king. Really, at any time, but especially at year end. When it is time to stop spending cash, cash must be closed (by order of the king or COE or district). Escape Online gives you an easy-to-use tool to enter cash-close dates and a cascading hierarchy for COEs and districts to work in tandem. We actually give you two activities to control the dates: the Fiscal Year Status (System) activity for COEs and the Fiscal Year Status activity for districts. Of course, the system activity takes precedence. But they both work on the same premise.

The dates entered control when each accounting period stops allowing changes to cash (no journal entries – manual or system – can post to cash), and when the period is completely closed (no transactions can be posted).

Fiscal Close Dates
Fiscal Close Dates

Check it out!

See how you can enter separate dates for cash and close. I took a peek at how our customers are using this and there is a wide variety of philosophies.

Some COEs enter the dates in their activity and then their organizations enter even more restrictive dates. Other COEs don't enter any dates, giving their organizations complete control.

One of our stand-alone districts only has close dates for interim reporting. Another stand-alone district only has close dates for the end of the year.

As always, Escape Online provides tons of flexibility!

Let's take a closer look at the live sample shown here, particularly the June dates, marked with the red arrow.  Notice how the dates are different. Let's talk about what that means.

The June Close Cash date is 7/31. If a user tries to post a journal entry (manually or through a system process) that affects June cash after July 31, Escape Online is NOT going to post that journal entry. Instead, it is going to give the user an error message, put the journal entry on hold, and write a history record to the journal entry stating why the JE did not post.

The June Close date is 9/30. This works the same as the close cash date, except it goes past worrying about affecting cash. It simply won't allow any journal entry transactions to post for June after September 30.

Now that kind of control is worth a kingly sum.