Understanding the year-end process related to labor encumbrances and labor redistributions is essential for a successful year-end close. See below for important details to keep in mind:
Labor Encumbrances
- All FY25 labor encumbrances are fully liquidated in Banner as of 7/5/25, except for future-year encumbrances associated with multi-year grant funds and federal appropriations (which roll into FY26 beginning balances).
- Be aware that there is a delay between the liquidation of the encumbrances and the posting of the related payroll charges to Banner, as outlined below:
- Expenses for the FY25 portion (approximately 50%) of the 2025 MN7 pay event are expected to post by Wednesday, 7/9/25.
- Expenses for the FY25 portion (approximately 60%) of the 2025 BW14 pay event are expected to post by Thursday, 7/10/25.
- Units should be mindful of this timing difference when reconciling and reviewing available budget balances during the year-end close process.
Labor Redistributions
- All FY25 labor redistributions must be approved (i.e., at disposition 60) in Banner by 5:00 PM on Thursday, 7/10/25, to appear on the Period 12 statements.
- Redistributions for all pay events (excluding 2025 MN7 and 2025 BW14) must use a June transaction date to ensure they post in FY25.
- Redistributions involving pay periods which cross fiscal years (i.e., 2025 MN7 and 2025 BW14) must follow special instructions to ensure the correct transaction date is used and to ensure the entry posts to the appropriate fiscal year.
- Redistributions processed and submitted after the 7/10/25 deadline will post to Banner in FY26.
- Finally, as outlined in a previous weekly tip, the 2025 MN7 and 2025 BW14 pay events will process consecutively on 7/8/25 and 7/9/25, which is a change from prior years. Due to this timing, it’s critical that all redistributions be completed accurately and promptly before these dates.
Training Resources
- For further guidance, refer to the following training resources:
Contact
For further questions, contact UAFR by searching “payroll accounting” on the Business & Finance Who to Ask list, or send an email to uafrpayrollacctg@uillinois.edu.
