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AP Closing
AP Closing
Author:
Mohamed Nazih
CPA, PMP, Oracle Financials Consultant
m.nazih@gmail.com
Version
1.0
Contents
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Reconcile AP to GL......................................................................................... 8
1- Run the following reports:...................................................................................... 8
2- Ensure the following is correct ................................................................................ 8
Information Sources............................................................................... 12
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Introduction
Closing the books is a necessary step in the accounting cycle. In order to issue
the financial statement, accounting staff must ensure that subledgers balances
are cross checked with relevant General Ledger accounts balances.
Doing so in Oracle EBS R12, requires performing actions in order and running
many reports to ascertain that ledgers and accounts are in harmony and no
surprises will be discovered at year end.
Purpose
This paper will help you understand the steps, order, and reports required to
close Oracle Receivables period. Proper closing each month helps minimizing
year end time needed to issue financial statements.
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3- Import invoices
Run: Payables Open Interface Import to process any invoices that are loaded
through the Payables Open.
Review the exceptions report and resolve any invoice related issues. Typical
types of invoices that are imported through this open interface include:
o EDI inbound invoices (810)
o Invoices from external systems
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Complete Transactions
1- Run the Invoice Validation Process
Invoice Validation process attempts to validate invoices and remove any
existing holds. Some invoices may be placed on hold and not validated.
If an invoice contains a system hold manually correct the problem that caused
the hold and then rerun the Invoice Validation process to remove the hold.
If an invoice contains user defined holds, it must be manually removed.
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4- Approve Invoices
Run: Invoice Approval Status request: to determine which invoices and invoice
lines require approval (regardless of payment status) and review all pending
approvers for a particular supplier.
Run: Invoice Approval Workflow request: to automates invoice approval
process. Based on rules define, the workflow determines if an entire invoice or
invoices lines need approval, who the approvers are, and in what order
approvers should approve payment of the invoice. The workflow then
sequentially asks each approver in the approval list to approve invoices online.
If both invoice lines and the invoice need to be approved, all the lines of the
invoice requiring approval must be approved before the invoice can be
approved.
6- Create Accounting
Run: Create Accounting request: to create accounting entries for multiple
transactions.
o To account for invoices, they must be validated.
o To account for payments, the invoices must already be accounted.
Run: Unaccounted Transactions Report: to identify and review all unaccounted
invoice and payment transactions and see the reason that Payables cannot
account for a transaction. This report:
o Shows only transactions that had problems that prevented accounting.
You can then correct the problems and resubmit the accounting
process.
o Does not include invoices that have no distributions.
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Reconcile AP to GL
1- Run the following reports:
Open Account AP Balance Listing Report or Accounts Payable Trial Balance: to
verify that total accounts payable liabilities in Payables equal those in GL.
Posted Invoice Register: review accounting lines for invoices that have been
transferred to GL.
Posted Payment Register: review accounting lines for payments that have been
transferred to GL.
These reports ensure that your Trial Balance accurately reflects your accounts
payable liability by matching the Posted invoices and payments with the AP
liability account. You can also compare your AP liability accounts to GL by
doing a query of the accounts in GL to identify the account or accounts out of
balance. The trial balance total should be the same as your GL liability
account.
If not:
Run the GL "Account Analysis" report for the liability account and for the date
range in question. Look for transactions with a source other than Payables. This
can quickly pinpoint any transactions incorrectly charged to the account. Make
sure that you have not made manual journal entries to your liability account in
General Ledger. When you identify the accounts you go back to AP and do a
query on the account to find the invoices out of balance.
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(B) Review
(B) Sweep
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Information Sources
o Metalink Note: 437422.1
o Metalink Note: 759002.1
o Metalink Note: 106740.1
o Metalink Note: 560378.1
o Oracle Payables User's Guide Release 12.1 Part No. E12797-02
o Oracle Payables Implementation Guide Release 12.1 Part No. E1279502
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