In preparation for year-end, please review the important tips below related to the year-end processing of labor encumbrances and labor redistributions:
Labor Encumbrances
- All FY26 labor encumbrances will be fully liquidated in Banner as of 7/3/26, except for future-year encumbrances associated with multi-year grant funds and federal appropriations, which will roll into FY27 beginning balances.
- Please keep in mind that there is a timing delay between the liquidation of encumbrances and the posting of the related payroll charges to Banner. The expected posting timeline is as follows:
- 2026 MN7 Pay Event: Expenses for the FY26 portion (approximately 50%) are expected to post by Wednesday, 7/8/26.
- 2026 BW14 Pay Event: Expenses for the FY26 portion (approximately 70%) are expected to post by Thursday, 7/9/26.
- Be aware of this timing difference when reconciling and reviewing available budget balances during the year-end close process.
Labor Redistributions
In addition to the points covered in an earlier communication regarding year-end labor redistributions, please also note the following:
- Redistributions for FY26 pay events that do not cross fiscal years (i.e., all FY26 pay events except 2026 MN7 and 2026 BW14) must use a June transaction date to ensure they fully post in FY26.
- Redistributions involving pay periods that cross fiscal years (i.e., 2026 MN7 and 2026 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 7/9/26 deadline (see Deadlines for Labor Redistributions) will post to Banner in FY27.
Contact
If you have questions on this topic, email uafrpayrollacctg@uillinois.edu and one of UAFR’s subject matter experts will be happy to assist.
