These instructions are to be followed to inactivate any project or non-project cost center.  For project cost centers, the cost center first must be closed before the inactivation process can begin. 

1.  Run a current period 1074.1 and 6.

2.  Verify the following.  You may use the Sample 1074.1 and 6 for assistance.

    a.  Assets are zero (1074.6).

        i.  Each asset code listed on the 1074.6 should have a zero balance.

        ii.  If any asset code does not have a zero balance, contact General Accounting as listed in #3 below.

    b.  Liabilities are zero (1074.6).

        i.  Each liability code listed on the 1074.6 should have a zero balance.

        ii.  If any liability code does not have a zero balance, contact General Accounting as listed in #3 below.

    c.  Fund equity is zero (1074.6).

        i.  The total fund equity balance should be zero.

        ii.  If the total is not zero, contact the DBA for assistance.  The cost center cannot be closed.

    d.  Base budget balance is zero (1074.1).

        i.  The total revenue and expense budget balances should be zero.

        ii.  If the totals are not zero, contact the DBA for assistance.  The cost center cannot be closed.  Note that if the cost center is in this state, you may also wait until a fiscal year change, at which point the budget falls off to zero unless it is funded in BDM.  If the budget is funded at a full dollar amount (no cents), you may reduce the budget to clear the budget to zero.

    e.  Open Commitments is zero (1074.6).

        i.  The total open commitments balance should be zero.

        ii.  If the total is not zero, run a 1074.4 (Open Commitments) to see exactly what is causing the nonzero balance.  Contact the department purchaser and/or the department payroll coordinator for assistance in clearing the balance. 

3.  Clear asset and liability balances on the 1074.6

    a.  Asset and liability balances must all be zero for each asset/liability account code listed on the 1074.6.  If any are not zero, they must be cleared out, which should be a simple request to General Accounting.

    b.  Contact Dante Banks in General Accounting for Ledger 1 cost centers.

    c.  Contact Gretta McClain in General Accounting for Ledger 2 cost centers.

    d.  For Ledger 4 cost centers, try Gretta, but you may need to search them down.

    e.  For grant cost centers, Research Financial Services handles this clearing, or can tell you who to contact.

    f.  After all asset and liability balances are zero, start this process again at #1.

4.  Confirm no additional revenue:  Confirm that the cost center is not tied to an endowment and does not expect additional revenue in the near future. You can obtain DBA approval in lieu of this confirmation.

5.  Non-sponsored Project Cost Centers:  Complete the Cost Center Action Form to inactivate the cost center.   You may use the Cost Center Inactivation Guide for assistance.  Sponsored Project Cost Centers:  put an office action in RD2K to inactivate the grant, due within one month.

6.  Navigate in VNet FMP to Budget – Award Entry, and change the status to “Pending Closure.”

7.  Non-sponsored Project Cost Centers: Obtain approval on the form from the cost center manager and the DBA. 

8.  Scan the inactivation form and 1074  (or RD2K office action request) into the cost center folder in R:\Cost Centers with a filename in the format, Inactivation.<speedtype>.MMDDYY.pdf.    If there is no cost center folder, use the folder template of the same ledger number to create a folder for the cost center. 

9.  Non-sponsored Project Cost Centers Only:  Then email the form and 1074 to Fred McGhee fmcghee@uh.edu, and cc the DBA and the main reconciler.  Keep the inactivation form hard copy to followup.  Fred will forward to Martha Tamez in the budget office upon his approval.

10.  Wait one week and rerun the 1074 for each specific cost center choosing the option “Print Inactive Cost Centers Only.”

    a.  If the 1074 does not print, it means that it has not been inactivated in PeopleSoft.  Follow up with the Budget office.

    b.  If it does print, review the 1074 to ensure that nothing has posted since the original request.  If nothing has posted, make a note on the form that it is “Inactive as of Date <Current Date>.”   Navigate in VNet FMP to Budget – Award Entry, and IF there is not an End Date entered in the field, enter the current date as the “End Date.”  Make a note in the Account Comments, “This cost center was Inactivated by Date <Current Date>.”  Change the status from "Pending Closure" to "Closed."  After making the comments in VNet, the hard copy document can be shredded.

11.  Check each cost center that is still active weekly with these instructions on #10, and notify the DBA of inactivation delays over one month.