Budget & Finance Knowledge Base - Steps to Complete a Financial Unit Reorganization

Steps to Complete a Financial Unit Reorganization

Overview

This guide provides a complete checklist of steps and best practices to help departments plan and execute a Financial Unit reorganization. Following this process will ensure accurate financial reporting, correct routing and approval structures, and a smooth transition from the old FinU to the new.

Essential Information

Use this guide when any of the following apply:

A department is being realigned under a new school or division
Leadership directives require restructuring financial oversight
A department is splitting or combining units
Oracle routing or approval structures need new FinUs rather than updates
You need to retire an outdated FinU and migrate to a new one

This checklist can also be used for planning, project coordination, and monitoring progress throughout the transition.

Financial Unit Reorganization Checklist

Below are the steps necessary to ensure accurate financial reporting, correct routing and approval structures, and a smooth transition from the old FinU to the new.

Step 1: Request & Set Up New Financial Unit Purpose: Establish the new FinU and ensure proper approvals
	a) Obtain department approval	Secure approval from department leadership to create the new FinU. Use a unique Financial Unit (FinU) name (do not reuse old names) to avoid data integrity issues.
	b) Coordinate with the Budget Office	Confirm approval for the new Financial Unit and hierarchy setup. Set the FinU start date to the first potential expenditure item (or transfer) date.
	c) Submit request to Internal Controls & Accounting (ICA)	Follow article KB0032196 How to Request New /Update Chart of Account (COA) Segments. Submit a Ticket to ICA: About: Financial Accounting, Related To: Chart of Accounts, More Specifically: Chart of Accounts Inquiries. Include the unique FinU name and applicable start date. This should be before you want the first transactions to post so the downstream systems can be updated. Create the new FinU and related projects early (1–2 months before cutover recommended).
Step 2: Set Up Approvers & Routing Purpose: Ensure approval hierarchies and routing are correctly aligned with the new FinU
	a) Add new FinU approvers	Add Department Head, Financial Unit Approvers, and other required roles using the Oracle and Concur Roles Request Form
	b) Remove approvers from the old FinU	Use the Role Request Approver Lookup Tool to identify approvers on the old FinU. Remove approvers to prevent incorrect routing.
	c) Confirm approval hierarchies	Validate routing using the Role Request Approver Lookup Tool.
	d) Set up Travel & Entertainment, CAMS, and Cost Transfer approvers	Use the Oracle and Concur Roles Request Form to assign approvers.
Step 3: Create New Projects Purpose: Ensure project setup aligns with the new FinU
	a) Create projects in PADUA	Follow KB0033940 How to Update Project & Award Data Using PADUA. Use the Clone feature to reduce setup effort. Align project start date with the first expenditure item date that will be allowable to post to new project FinU.
	b) Define old project cutoff dates	Determine cutoff logic for projects tied to the old FinU. Choose creation date vs. expenditure item date as needed.
	c) Coordinate sponsored project updates	Work with Sponsored Projects Finance (SPF) to ensure awards, billing, and invoicing reflect the new FinU.
	d) Coordinate recharge activity if needed	Recharge Operations: Notify Costing Policy & Analysis (CP&A) and share new FinU information.
	e) Communicate changes to staff	Notify PIs, labs, fund managers, and staff of the new chart strings and projects effective date.
Step 4: UCPath Setup & Funding Updates Purpose: Ensure UCPath is aligned with the new FinU structure
	a) Confirm UCPath approval routing	Verify approvers exist for the new FinU. Routing differs for Academic Affairs vs. Health Sciences.
	b) Update employee and student funding	Submit UCPath funding updates. Update Home Codes and Default Projects.
	c) Perform cleanup as needed	Complete Salary Cost Transfers (SCTs).
Step 5: Redirect Non-Payroll Expenses Purpose: Transition budget, PO, and expense activity to the new FinU
	a) Redirect recurring charges and recharges	Work with CBO to transfer budgets in UCSDPLAN. Identify recurring services (mail, telephone, etc.) and contact them the new project number for open orders. The TDR from the prior quarter may help identify recurring activity.
	b) Review and update open commitments	Correct chart strings as needed Follow KB0032091 How to Update Financial Elements on General Projects.
	d) Review POs, reimbursements, and entertainment approvals	Submit change orders for open POs as needed.
Step 6: Budget Coordination (CBO) Purpose: Reflect new FinU structure in budget systems
	a) Transfer core recurring budgets	Transfer budgets in UCSDPLAN (core recurring budgets, funding allocations). Complete before 7/1 (new fiscal year).
	b) Update recharge budgets	Coordinate with Recharge Operations.
Step 7: Update External Billing & Revenue Purpose: Align external billing with the new FinU
	a) Update billing and Revenue	Adjust PPM Billing Contracts. Separate revenue and expense as appropriate. Complete AR under the original FinU. ASSA/DI follow revenue and should be updated after any updates
	b) Perform current-year PPM Cost Transfers	Do not move prior fiscal year expenses.
Step 8: Close Out General Projects (Old FinU) Purpose: Properly close and reconcile general projects associated with the old FinU
	a) Clear commitments	Follow KB0033424 How to Lift PO Commitments in OFC.
	b) Reconcile balances in OFC	Run Manage Committed Costs (Projects → Costs → Tasklist). Run GL/PPM Reconciliation Reports by project and clear variances. Run Panorama reports (bah.ucsd.edu) to confirm no pending transfers: Project Cost Transfer Panorama and Workflow Details Reports. If project involved billing, check Contract Management Report (bah.ucsd.edu). Verify GL balances by project and clear variances before closure.
	c) Close projects in PADUA	Follow KB0034079 Best Practices for Closing General Projects once all variances are cleared.
Step 9: Closeout Sponsored Projects Purpose: Reconcile SPF and GL transactions and ensure sponsored projects are fully closed
	a) Perform SPF and GL reconciliations	IDC Reconciliation: Run SPF Accountant Panorama Verify posted IDC matches calculated IDC. GL–PPM Reconciliation: Run GL–PPM Reconciliation Report Select High-Risk Ledger Review for any charges posted to High-Risk Expenditure Types. Run Transaction Details Report for any additional items to review.
	b) Reconcile payroll	Perform UCPath–OFC salary reconciliation. Match labor costs and resolve posting differences between UCPath Labor Ledger and Oracle.
Step 10: Process Resource Journal Purpose: Move remaining balances from the old FinU to the new FinU
	a) Move remaining balances on non sponsored funds	Transfer balances using guidance from KB0034341 on creating journals.
Step 11: Close the Old Financial Unit Purpose: Officially retire the old FinU and complete closure process
	a) Submit closure request	Submit a ticket to ICA: About: Financial Accounting, Related To: Chart of Accounts, More Specifically: Chart of Accounts Inquiries. ICA will review and close the old FinU and its default project.

Supplemental Guides & Information

KB0032196 How to Request New /Update Chart of Account (COA) Segments
KB0033940 How to Update Project & Award Data Using PADUA
KB0032091 How to Update Financial Elements on General Projects
KB0034079 Best Practices for Closing General Projects
KB0033424 How to Lift PO Commitments in OFC
Project Cost Transfer Panorama Reports (bah.ucsd.edu)
KB0032792 FAQ: UCPath Funding
Recharge Operations Resources & Support

Questions?

If you need any additional assistance, please Submit a Ticket