Beginning Balances

The beginning balances process uses the ending balance from the previous fiscal year to establish beginning balances for the new fiscal year. The beginning balances process creates an entry to establish the beginning balance for balance sheet objects (assets, liabilities, fund balance) and to move net income/net expense balances to net assets (fund balance).

The beginning balances process also establishes cumulative beginning balances for each revenue and expense object code, using the ending balance from the previous fiscal year as the beginning balance of the new fiscal year.

Description: exclaim     These cumulative balances are erroneously called 'Contract & Grant Beginning Balances' in the GL Balance table because those balances were all that was originally accounted for in that field.

All GL balance entries for the fiscal year being closed are examined. These entries can be summarized by Chart of Accounts code, account number, sub-account number, object code, sub-object code, balance type, and object type. Each combination is considered as a unit of work in the application of the following business rules.


Business Rules