Process invoices against future fiscal years
https://folio-org.atlassian.net/browse/UXPROD-4490
Problem(s):
Not everything is paid and resolved before the Fiscal year period ends. This leaves the library with commitments that need to be resolved but should not be resolved in the current fiscal year as they were committed to using monies from the previous fiscal year.
It is possible that budgets from the previous fiscal year don't exactly balance with the university accounting system after rollover has been completed. Libraries need a mechanism to correct these balances financials are archived correctly.
Use Cases & Requirements:
Legend |
Scope may require separate feature |
Pre-payment | ||
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| PENDING | >90% of subscription orders are paid in advance. For example, we're currently paying renewal fees for our 2022 subscriptions, ie we're making payments in our 2021 FY that will be accrued to the 2022 FY. It would help a lot if Folio allowed us to make these payments against the next FY's funds. |
| PENDING | Pre-payment invoices are primarily created manually but some vendors will share these invoices via EDIFACT |
| PENDING | Credit invoices could be required for these prepayments but the majority of the time any credit would be processed once that year actually begins. |
| PENDING | Purchase springer ebook collection and they publish starting august each year, occasionally we will pay a portion of it this year and a portion out of the next year. This is because our fiscal year begins on Jan 1. This is a lower priority as it is rare and we currently just pay these against. This could happen with renewals as well. |
| PENDING | The overwhelming majority of pre-payments are made against the next fiscal year. There have been situations where they are paid 3 or 5 years in advance but generally, these are just divided and invoiced each year. |
| PENDING | Pre-payment invoices are made in all currencies and the system will register the exchange rate at the time of approval. We don't generally update the exchange rates after but in extreme cases, this could be necessary. |
| PENDING | Budget allocations for the coming year are not likely known at this time so budget restrictions would not be helpful. |
| PENDING | Unlike paying against previous years pre-payments are part of the general acquisitions workflow. Users that are able to approve invoices should be able to make prepayments. However, we do not want people paying invoices against a future fiscal year at the beginning of the current one. We generally begin allowing users to make prepayments around August of the current fiscal year. |
| PENDING | Helpful to be able to filter for all prepayment invoices within a set of other criteria |
Proposed workflow:
Allow users with the correct permission to select a fiscal year for processing.
Questions:
Question | Status | Conclusion | Comments |
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For prepaid physical orders, when is shipping factored in? | Pending |
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When are invoices created and processed? Immediately after FYRO or later in the year? | Pending |
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Do encumbrances factor in, other than in tracking the “spend-down” of the original order? | Pending |
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Functionality Potentially Impacted by Changes:
Functional area | Records | Potential impact | Suggested Regression Testing |
|---|---|---|---|
Orders | Orders and order lines, encumbrances, pending payments, payments/credits | Approving and paying invoices for past years may update the wrong encumbrance Or it may change the statuses of the purchase order. | Test how orders line statuses behave when paying an invoice for the past year. It should not change. |