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Oracle Applications White Paper O EBS R12 R C P P: Racle Eceivables Losing Eriod Rocedures
Oracle Applications White Paper O EBS R12 R C P P: Racle Eceivables Losing Eriod Rocedures
Jan 2010
Contents
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R12 Receivables - Closing Period © 2010
Prior to Oracle, he worked as a certified accountant and auditor for six years.
This experience gave him an advantage to team up with financial staff in many
companies in delivering high quality professional services, such as consulting,
support, and training.
While not working, Mohamed Nazih takes care of his family. Furthermore, he is
a self-learner and avid reader in project management, change management,
business intelligence, science, and environment issues.
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R12 Receivables - Closing Period © 2010
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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Run: AutoInvoice Master Program to process Sales Order exported from Oracle
Order Management or Transactions exported from Project Billing.
Reconcile any outstanding bank statements if you are using Cash Management.
Complete Transactions
Use the Transactions window to complete your invoice or debit memo once you
have updated them. For credit memos and on-account credits, use the Credit
Transactions window.
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Ensure all recorded receipts have been applied (i.e., there is no Unidentified
Receipts)
Ensure all cash application adjustments, write-offs, and transfers have been
made
To generate revenue distribution records for your invoices and credit memos that
use invoicing and accounting rules.
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Internal Reconciliation
Reconcile the period's operational activity with Receivables accounting data,
before posting to the general ledger.
1- Reconcile Transactions
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2- Reconcile Receipts
Receipt Journal: includes the journal entries for both standard and
miscellaneous receipts
Invoice Exception Report: includes detail for any transactions where Open
Receivables is set to No. These transactions:
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When reconciling, the Applied Receipts Register's total should match the
Applied Receipts Journal
Unapplied and Unresolved Receipts Register: includes all receipts that are not
fully applied to customer transactions
Miscellaneous receipts
Component Report
Beginning Balance Aging reports
+ Transactions Transaction Register
+ Adjustments Adjustment Register
+ Exceptions Invoice Exception Report
+ Applied Receipts Applied Receipts Register
+ Unapplied Receipts Unapplied and Unresolved Receipts Register
= Ending Balance Aging report (at end of accounting period)
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4- AR Reconciliation Report
An unexpected account type refers to GL account types that are not normally
associated with an item's GL category. General Ledger account types used by
Oracle Receivables include assets, liabilities, income, and expense
For example, a receivable item might be expected to post to an asset account;
if the item posts to a non-asset account, then it will display on the Potential
Reconciling Items report
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Setup created for activities that is inconsistent with the intended use of
Oracle Receivables
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Revenue Recognition
Create Accounting
Accounting Program
Transfer Journal Entries to GL (if run with Transfer Journal Entries = Yes)
Journal Import
If Submit Accounting IS NOT submitted, you will need to run the Revenue
Recognition Master Program before running Create Accounting.
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Create Accounting
Submit Accounting
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displays:
Subledger Accounting Program report total should equal Journal Entries report
total.
Ensure the following is correct: total of these report should equal (what is
transferred by Receivables = what is posted by GL)
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External Reconciliation
After posting, reconcile subledger details with General Ledger.
Reconciling
Yes
Items?
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Where there are multiple operating units within the same ledger all
operating units must be ready to close at the same time. All of the
operating units that share a ledger also share the same period statuses.
When you update the period statuses to ‘Open’ in one operating unit,
that period is opened for all operating units within the ledger.
Lists all the accounting events and journal entries that fail period close
validation.
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Information Sources
o Metalink Note: 740297.1
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