The biweekly payroll from June 19 to July 2 spans two fiscal years. The FY2015-16 portion from June 19 to June 30 will be estimated and posted as an accrual using a financial journal entry in accounting period 12 of FY2015-16 prior to prelim close, and will not be reflected on the Distribution of Payroll Expense (DPE) in FY2015-16. The actual costs for the entire biweekly June 19 to July 2 period will be calculated and posted in the General Ledger and the DPE in period 1 of FY2016-17. The accrual portion from June 19 to June 30 that was estimated and posted in period 12 of FY2015-16 using a financial journal entry will auto-reverse in period 1 in FY2016-17 in order to properly prorate the expenses between fiscal years.
Refer to the article in the June Newsletter for further details including sample accrual calculations and Account codes.