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Oracle Consulting, India
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Chapter 1 :The Close Schedule
This gives a few hints & tips for period close procedures in GL, AP and AR.
Please, read very carefully this as it contains some very important hints and tips which will help you perform your closing more easily.
Whenever possible, take advantage of overnight processing to avoid running into processing bottlenecks, for all modules.
For your first closing :
Before closing the first go-live period, it is advised to close the period just before go-live period. Example : if go-live month is September, before closing September, close August. This allows : to detect some journals or transactions which have been entered in August, by mistake, and which should really be in September instead. to do your first closing on an ‘easy’ period, since it contains very few entries (only mistakes actually), in addition to data conversion entries.
Establish clear cut deadlines for when data will and will not be accepted for inclusion in the period. After that point, everything goes into the next period. Notify all users when the system is not available during the closing to prevent new transactions from being entered on the period in the process of being closed. Notify users when the system is available again. If you find inappropriate usage of accounts, you may need to modify some of your setups and/or retrain some of your users so this does not happen again.
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For all modules I recommend that you have only one open period at a time. You could have activity going into one period when you meant for it to go into another period. This is due to the General Ledger date defaulting to the current date and if that date is within an open period it will use that date. Also, there are known problems with items being posted with one side of the entry in one period and the other side in the next period. I find it to be just too risky to have more than one period open. If you minimize the time it takes to close, this should not be an issue. Tip for AR : Set up your Unapplied Cash, Unidentified Cash, On-Account Cash and Accounts Receivables accounts once and for all and do not change them. Processes in Oracle Receivable, such as applying receipts and creating adjustments, do not allow you to access these values which means you cannot override them. In these processes, Oracle Receivables derives the accounts based on the accounts that were used when the remittance bank was originally created, no matter how long ago that was. If these accounts are stable, reconciliation is fairly straight forward. If they are not stable, reconciling can be much more cumbersome and you may see these old accounts for what seems like forever. Tip for AR : Your Unapplied, On-Account, and Unidentified accounts should use a specific account, not your cash or Accounts Receivable accounts. Often the Unapplied, On-Account and Unidentified accounts are all the same account, which is fine. Tip for AP : Do not enter prepayment by debiting the prepayment account in the distribution lines of the invoice. Those lines will not be regarding as ‘liability’ and will not be taken into account in the balance of your supplier.
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and which have not been. you should check that there are no unapproved invoices in AP in the period you are closing. Business Requirements The aim of Sub-ledger closing is to enable. Closing Process 1. Attention : The option chosen for the transfer of Sub-ledger journals to General Ledger. have a direct impact on the auditability of accounting data. Check unapplied prepayments Check if there are any unapplied prepayments which should have been applied to invoices. Approve all invoices PURPOSE OF PROCEDURE : All non approved invoices will not be transferred to GL. Run the Prepayment Status Report and set the report parameter ‘Unapproved Invoices only’ to ‘Yes’ to identify all invoices which are not approved. it is highly recommended to transfer in summary. The decision of transferring in detail or in summary belongs to each country. Therefore. either in detail or in summary.Chapter 2 :Oracle Payables Period Check List – Detailed Instructions This describes the actions to be performed and reports to be printed before closing a period in Oracle Payables Version 11i. according to their specific tax and internal reporting requirements. Include Prepayments : ‘Yes’ Include Credit/Debit memos : ‘No’ Include Invoices : ‘No’ 2. Whenever it is possible. reconciliation of the balances and transactions of Sub-ledger accounting with those of general accounting. You can : A – Either submit the program of automatic approval for all invoices and manually release the remaining holds which could not be released automatically. in some cases. may. for a given period. India Private circulation only . STEPS : Oracle Consulting. by mistake.
Attention : once you have released all holds do not forget to check that all invoices are approved. distribution variance. Run the Invoice on Hold Report to identify the remaining holds by supplier and invoice. Transfer all transactions & payments to GL Oracle Consulting.Run the Invoice Register and set the report parameter ‘Unapproved Invoices only’ to ‘Yes’ to identify all invoices which are not approved. for instance by submitting the Invoice Register for unapproved invoices again. release holds and approve all invoices manually and individually. tax. Attention : once you have released all holds do not forget to check that all invoices are approved. (Optional) Run the Payment Distribution Report to review detailed payment distribution accounting information. STEPS FOR INVOICES : Run the Posting Hold Report to identify invoices for which Oracle Payables cannot create journal entries because there is a posting hold. Attention : it is not possible to close a period in AP which contains not confirmed payment batches. Run the Payables Approval process : this process checks the PO matching. The report is sorted by Bank Account. This process automatically produces a report called Auto Approval Report which displays the name and number of holds placed or released. The report is sorted by Bank Account. STEPS FOR PAYMENTS : Check that all payment batches have been created on the correct accounting period. exchange rate and distribution information for invoices and either applies or releases invoice holds. Run the Invoice on Hold Report to identify the remaining holds by supplier and invoice. period status. 3.. Run the Payment Register to review payments made in the period. India Private circulation only .. B – Or submit a report which prints all unapproved invoices. STEPS : Run the Invoice Register and set the report parameter ‘Unapproved Invoices only’ to ‘Yes’ to identify all invoices which need to be approved. Review all transactions & payments to be transferred to GL PURPOSE OF PROCEDURE : review accounting entries before transferring the data to GL. 4. . (Optional) Run the Expense Distribution Detail Report to review detail invoice distribution accounting information. for instance by submitting the Invoice Register for unapproved invoices again. You can also submit the Invoice on Hold Report before every payment batch to help identify invoices you want to release from hold. Navigate to the ‘Payment Batch’ screen in order to confirm or cancel payment batches which are not confirmed.
If you do not perform this step manually it is automatically handled by the industrialisation process overnight.. Review the result of the transfer from AP to GL Oracle Payables automatically prints the Accounts Payable Journal Entry Audit Report after you transfer accounting information to your general ledger. Oracle Payables then changes the GL Date of all unposted invoices and payments in the period you want to move from. 7. The Unposted Invoice Sweep program allows to move all unposted invoices and payments from one accounting period to another accounting period. you need to post the GL batches created by the Transfer to GL program. (Optional)Run the Unposted Invoice Sweep Oracle Payables prevents you from closing a period which contains unposted invoices or payments. and the name of the period you want to move to. Oracle prints the Preliminary Invoice Sweep Report. This is done in General Ledger using the Post Journals functionality. When you submit this report. Select the audit parameters. To do this you must set the report parameter ‘Sweep Now’ to ‘No’. that occurred during the transfer from AP to GL.The transfer from Oracle Receivables to General Ledger creates unposted Journals in General Ledger (see step 11). you enter the name of the period you want to move invoices and payments from. Transfer invoices and payments to GL using the Payables Transfer to General Ledger Program. You must post these journal entries in GL (task 5). Post GL batches To update GL balances with Payables entries. such as an invalid account or a missing exchange rate. India Private circulation only . to the first day of the accounting period you want to move to.either chose not to transfer the unposted invoices and payments but only to review them before actually transferring them. Attention : this program does not update the balances in Oracle General Ledger. This report is also automatically printed after you transfer accounting information to your general ledger. 5. 6. When you submit this report you can : A . Oracle Consulting. Note that the transfer will create a separate journal for the following categories : • Purchase Invoices • Payments • Prepayment Applications • . set the report parameter ‘Submit Journal Import’ to ‘Yes’ and the report parameter ‘Create Summary Journal’ to ‘No’. Use the Accounts Payable Journal Entry Exception Report to identify all exceptions. The report shows the total number and amount of journal entries for each batch so that you can easily verify the results after you post..
You can use this report to verify that the total account payable liabilities in Oracle Payables equal those in your General Ledger. You can close a period in Oracle Payables independently of Oracle Receivables and Oracle General Ledger. (Optional) Run the Accounts Payable Trial Balance to list all unpaid and partially paid invoices by supplier. This prevents you from creating payments in a period which you have already closed. 8. Attention : The Accounts Payable Trial Balance only takes into account data which has been transferred to GL. Oracle prints the Actual Invoice Sweep Report. Attention : it is not possible to close a period in AP which contains not confirmed payment batches.Or chose to transfer all unposted invoices and payments from one accounting period to another. Oracle Payable sorts and subtotals the listing by bank and 0bank account. To do this you must set the report parameter ‘Sweep Now’ to ‘Yes’. India Private circulation only . Oracle Consulting. You must confirm your payment batches to update Oracle Payables payment history before you can close a period. You can also use the Accounts Payable Trial Balance to the Accounts Payable liability in your general ledger. total cash plus discounts taken from the Posted Payment Register This amount should equal the balance for the current period’s Accounts Payable Trial Balance. STEPS FOR PAYMENTS : (Optional) Run the Posted Payment Register to review posted payments in a given period. STEPS FOR INVOICES : (Optional) Run the Posted Invoice Register to verify that the total invoice amount equals the total invoice distribution amount. 9. Close AP accounting period After reconciling the accounts payable activity for the period close the period in Oracle Payables. Reconcile Accounts Payable Activity with GL journals To reconcile your Accounts Payable Trial Balance for a given period : • add the current period’s posted invoices total invoice amount from Posted Invoice Register • subtract the current period’s posted payments from the prior period’s Accounts Payable Trial Balance.B . (Optional) Run the Posted Invoice Register to verify that the total invoice amount equals the total invoice distribution amount.
Note that it is not recommended to have more than one Oracle Payables period open at one time. Oracle Consulting.Attention : When you close a period. Open the next AP accounting period Open the next accounting period in AP. India Private circulation only . Oracle Payables prevents you from opening a period if it is an adjusting period. 11. Oracle Payables checks if you have any unposted invoices or payments in that period. If you have any. Oracle Payables prevents you from closing the period. Enter Accruals for invoices not yet received This is done manually in GL for countries who do not use PO. 10.
Chapter 3 :Oracle Receivables Period Check List – Detailed Instructions This describes the actions to be performed and reports to be printed before closing a period in Oracle Receivables Version 11. Business Requirements • Why don’t my AR and GL numbers match ? The values you find in Oracle Receivables may not match the values you find in Oracle General Ledger. Using more than one Accounts Receivable account. Data entered directly into in General Ledger does not flow back to Oracle Receivables. causing them to appear out of sync. but they are not. the harder it is to remember what you were doing and why. for three reasons : 1. credit memos & corrections for the period 3. Closing Process 1. Run the Monthly Invoice Interface Oracle Consulting. Manual Journal Entries. crediting Accounts Receivable in a negative adjustment or using an Accounts Receivable account as the debit side of a credit memo transaction. Inappropriate use of accounts. the longer it has been since you created these transactions. for example. 3. 2. Complete the manual payments and adjustments for the period It is not necessary to approve all unapproved adjustments or to complete or delete all incomplete invoices and credit memos before you close a period. India Private circulation only . Your Aging includes all receivables accounts but you view the same data account by account in General Ledger. However. Complete the manual invoices. 2. It is a good practice to clean them up at least at the end of each period.
No updates may be made until the close is complete. click on the ‘Incomplete’ box to uncheck it and execute the query. If there is. If some records are retrieved work with the appropriate person to complete or delete the documents. 5. Then the final General Ledger numbers will look okay and your General Ledger and Accounts Receivable values will still match. enter a query. check that it completed successfully. or. There should be no data on this report. Detail by Account : ‘Yes’ Detail by Category : ‘Yes’ Summary be Account : ‘Yes’ Summary be Category : ‘Yes’ GL Posting Status : ‘Unposted’ Beginning GL Date : ‘Period start date Ending GL Date : ‘Period start date Review the Journal Entries Report (Summary by Category) prior to transferring the data to GL.If this process is not automatic you must submit it manually. and then requery to insure that there are no longer any incomplete invoices. India Private circulation only . 4. if somebody does it for you. Set the report parameters as follows : Order by : ‘Customer Name’ Status : ‘Waiting Approval Skip the rest of the parameters. Review transactions to be transferred to GL You can either use the Journal Entries Report (Summary by Category) or the Transaction Register and Sales Journal by GL Account. 7. It is often easier to modify an account prior to posting than it is after posting. Check for incomplete transactions Navigate to the Transaction Summary screen. Even if you find an account that you cannot modify . contact your manager to approve these adjustments. Confirm that there are no unapproved adjustments Run the Adjustment Approval Report to verify that there are no unapproved adjustment.you can immediately create an offset and create a new record with the proper account. You should see a message ‘Query caused no record to be retrieved’. Run the Journal Entries Report (Summary by Category) to verify what the journal entries will look like. Notify all users that the system is not available Notify all users that the system is now available for inquiries only. 6. Oracle Consulting.
Therefore if other transactions. Reconcile Outstanding Customer Balances Beginning Balance + Transactions .Unapplied Receipts = Ending Balance Aged Trial Balance (Use last day of previous accounting period) Transaction Register Adjustment Register Invoice Exceptions Report Applied Receipts Register Unapplied Receipts Register Aged Trial Balance (Use last day of accounting period) Careful : For the Beginning Balance you should enter the last day of the previous accounting period in the field ‘As of Date’. such as adjustments. Run the Transaction Register to check that all postable items are reflected on you Sales Journal.Invoice Exceptions . they will not appear on this report. The following table shows the components which affect a customer’s balance and the reports which can be used to reconcile these. the transactions of the first day of the period you are closing are doubled because they appear on the Beginning and on the Ending Balances. If found. be sure to use the period start date and period end date as the General Ledger dates for all reports.Adjustments .Check to see if any unusual accounts were used. 8. In the following report submissions. India Private circulation only . You use the Invoice Exceptions Report to adjust the Transaction Register for any transactions which are not open to receivables and therefore do not show up on your agings. In case there is a variance run the Sales Journal by Customer to identify on which customers the variance shows. impact revenue accounts. Do not use any dates other than the General Ledger dates when requesting the reports. Balance to the Aged Trial Balance Reconcile the outstanding customer balance at the beginning of a given period with the ending balance for the same period. Rerun the Journal Entries Report (Summary by Category). specifying: ‘Yes’ to Detail by Category and ‘Yes’ only for the categories where you found problems. Attention : this report only prints invoices and credit memos. Run the Aged Trial Balance – by account Report Summary : ‘Invoice Summary’ Report Format : ‘Brief’ Oracle Consulting. run the Journal Entries Report again. Run the Sales Journal by GL Account to ensure that the Transaction Register matches your Sales Journal. Turn to the responsible person to correct the problem. If you enter the first day of the accounting period you are closing. To match both foreign and functional currency amounts to your general ledger run your Sales Journal by currency.Applied Receipts .
(((On Account + Unapplied) * (-1)) . Run the Adjustment Register Order by : ‘Customer’ GL Date Low : ‘Period start date’ GL Date High : ‘Period end date’ Use the ‘Total for Report’ for the Functional Amount column . However the total by account only shows debit amounts AND NOT CREDIT AMOUNTS which is misleading when the user wishes to control the balance for each account.enter as a negative number. It shows debit and credit amounts and the balance. Chargebacks) .enter as whatever sign appears on this report. On the spreadsheet sum the amounts for each of these transactions (compare to the ‘Grand Total in Functional Currency’ on the final page of the report . Run the Transaction Register Order by : ‘Customer’ GL Date Low : ‘Period start date’ GL Date High : ‘Period end date’ Use the ‘Sum for ______ Class’ total for the ‘Functional Currency’ for each class of transactions (Credit Memos. Invoices. Run the Invoice Exceptions Report GL Date Low : ‘Period start date’ GL Date High : ‘Period end date’ Order by : ‘Customer’ Oracle Consulting. Use the Grand Total Amount for the Outstanding Amount Column.add the ‘On Account Amount’ to the Unapplied Amount and multiply the sum by -1. India Private circulation only .the rest are positive) Run the Unapplied Receipts Register Format Option : ‘Detailed’ Receipt GL Date Low : ‘Period start date’ Receipt GL Date High : ‘Period end date’ Use the ‘Total for Report’ values .they should be identical .if not correct as needed. Debit Memos. Use the signs as they appear on the report (Credit Memos are negative .As of Date : ‘Period end date’ Aging Bucket Name : ‘the standard bucket name’ Show On Account : ‘Age’ Careful : the total by account and by customer is correct. Only the total for all accounts shows the credit total (currently under investigation by Help Desk).WATCH OUT the ‘Sum for Invoice Class’ is before the last total on the report.enter as the sign you get as a result of this calculation Run the Applied Receipts Register Order by : ‘Customer’ Apply Date Low : leave blank Apply Date High : leave blank Receipt GL Date Low : ‘Period start date’ Receipt GL Date High : ‘Period end date’ Use the ‘Grand Total For Functional Currency’ for the ‘Total’ Column .
Used the wrong sign. applied. 6. Run the General Ledger Interface (Menu patch : Interface/General Ledger. unapplied. Did not use the same dates for every report Used dates other than the General Ledger dates (or in addition to the General Ledger dates) for the selection. 5. Run the Transaction Reconciliation Report Transaction Date from : ‘Period start date’ Transaction Date to : ‘Period end date’ Complete the «Balancing AR to the Aging» spreadsheet with the values you obtained from these reports.…) for a given range of GL dates. Summary or Detail : ‘Detail’ GL Posted Date : ‘end of period date’ GL Start Date : ‘period start date’ Oracle Consulting. India Private circulation only . 2..enter as whatever sign appears on the report. Reconcile your receipts Run the Receipt Journal Report in the balance mode to review details of receipts which appear in your Journal Entry Report.Use the ‘Grand Total’ for the Functional Amount column . 10. Order by : ‘Accounting Flexfield’ Report Mode : ‘Balance’ Run the Receipt Register to review receipts by status (unidentified. cancelled. 9. The total of the two reports should match. 3. Credit memos and applied receipts should be negative. Note that the transfer will create a separate journal for the following categories : • Invoices • Receipts • Miscellaneous Receipts • Adjustments • .. you may find that you : 1. unapplied activity and «invoice exceptions» may be negative or positive. Have overlapping dates in the «Aging Bucket» definitions. Adjustments. 4. Entered the wrong amounts from the various reports into the spreadsheet (especially easy to do with the Transaction Register). Transfer transactions to the General Ledger The transfer from Oracle Receivables to General Ledger creates unposted Journals in General Ledger (see step 11). If your derived balance does not equal your new Aging Balance.
If there are unposted items in the report. it means that those items have not been transferred from AR tables to GL interface tables. unposted.…) Resubmit Journal Import If you cannot solve the problem yourself you should call support in France. Therefore. Oracle Consulting. Type : ‘Source Item’ Posting Status : ‘Unposted’ Period : ‘period of posting’ GL Start Date : ‘period start date’ GL End Date : ‘period end date’ Batch Name : leave blank Note this submits multiple processes. If the status is ‘ERROR’ the data has been transferred from AR tables to GL interface tables but not from the GL interface tables to GL tables. Confirm that the Unposted/Unbalanced Items report does not contain any data. this data cannot be viewed in GL. Confirm that the Unposted/Unbalanced Items report does not contain any data.GL End Date : ‘period end date’ Run Journal Import : ‘Yes’ Note this submits multiple processes. 11. You will use this number to query on the batch in the GL Journal entry screen. Check the report for the following processes : General Ledger Transfer Program : verify debit total = credit total Unposted Items Report : review each page to ensure no unposted item exists. Therefore if your request id is 285048. If the status is ‘SUCCESS’ take a note of the Journal Import request id. This is done in General Ledger using the Post Journals functionality. If there are unposted items you should call support in France. India Private circulation only . Journal Import : insure that you have a status of ‘SUCCESS’ and check the number of batches and headers created. This data is still in AR tables. (Optional) Run the Journal General (180 Char) to check that the total amount by source matches the total amount printed the Journal Import report. If the status is ‘ERROR’ check on the same report : • • • • • The number of errors The error codes The meaning of the error codes on the last page of the report Make the corrections. Verify they all finished successfully. Post GL batches To update GL balances with Receivables entries. The request id is a part of the batch name. if necessary (enable code combinations. you should enter %285048% in the field called Batch in the Find Journals window which appears when you open the GL journal entry screen. Verify they all finished successfully. to query on it. you need to post the GL batches created by the Transfer to GL program.
spreadsheet and instructions. Unless you are researching a specific issue. i. unidentified and on-accounts accounts should be on separate lines since they are not used in determining the net effect on the Aging. if they are different accounts). Private circulation only Oracle Consulting. Since the inappropriate accounts are on separate lines. One area where you will not be able to directly cross foot is Receipt Applications. Note that the cash. See Exhibit D: Reconciling AR and GL -. Use only the net amounts and debit amounts should be positive and credit amounts should be negative. Start with the spreadsheet you used to balance to the Aging. Cash and Unapplied Cash accounts and the Journal Entries Report (Summary by Category) in AR. include the amount on the same line as the amount you reported when balancing to the Aging. They fall into the single General Ledger category of Trade Receipts on the Journal Entries report. If it is an inappropriate usage. If you select specific accounts based on what you are expecting you may be missing some activity.12. Reconcile Accounts Receivable Activity to General Ledger Using a list of your key Accounts Receivable. if not. You had unpostable items (they should have appeared on the Unposted Items report). fill in the detail numbers for each of the accounts for the applicable activity. Add a column for each of your Accounts Receivable accounts and your cash and unapplied cash accounts (on-account and unidentified cash too. If it is a standard usage.e. When you cross foot. unapplied. Using the values in the Journal Entries Report (Summary by Category). Cross foot the amounts broken out by account with the «Balancing AR to the Aging» amounts. re-check the numbers. they will not throw off your cross validation. They appear on the standard reports (so you used them in balancing to the Aging) but they were not transferred to the General Ledger due to unbalanced debits and credits. India . If you have more than one company. The amounts should match. add a new line for the amount and a description of what was done. Note the usage of each account both appropriate and inappropriate. document which accounts comprise each of the report totals. determine the totals by source and category. This activity appears in two standard reports : the Applied Receipts Register and the Unapplied Activity Report (thus two separate lines on the «Balance AR to the Aging» spreadsheet). This gives you a detailed breakdown of which accounts comprise each category. split out each company and account combination. You did not run the Journal Entries report for all accounts. Contact Help Desk. 2. and points out where an account was used inappropriately. Attention : do not forget cash discount accounts or you will have discrepancies between GL and AR !! 1. always run for all accounts. Possible sources of problems : 1. You had more than one period open in Oracle Receivables and activity appeared in an unexpected period. you must include the combination of the Applied Receipts and Unapplied Activity reports against the Trade Receipts (AR) totals.
add a new column for the non-AR account. There should only be AR account activity in this category. There should only be AR account activity in this category. There should be no non-AR accounts in this category. Run the Account Analysis Report in General Ledger for every key account you included in your reconciliation spreadsheet. There should only be AR account activity in this category.( if there are non-AR accounts add a special line for each and add a new column to the spreadsheet for each account). For each account add to the Invoice activity line . If there are non-AR accounts in this category. For each account add to the Adjustment activity line .AR account. There should be no non-AR accounts in this category.add to the column for the applicable AR account.split by AR account. If they occur . add a special line for each and add a column for the non. For each account add to the Credit Memo activity line .split by AR account. If they occur. These should net to zero . If each account does not net to zero.add a special line for each . India Private circulation only . add a special line for each and add to the column for the applicable AR account.split by AR account . If they occur. There should be no non-AR accounts in this category. If they occur. Add cash amounts to the appropriate columns. add a special line for each and add a column for the applicable non-AR account. This may include various different cost centres. If they occur. Category Adjustment Where to Add There should be no AR account activity in this category. There should be no AR account activity in this category. For each account add to the Applied Receipts activity line . add a special line for each and add to the column for the applicable AR account. Adjustment (AR) CM Applications and CM Applications (AR) Credit Memos Credit Memos (AR) Misc Receipts and Misc Receipts (Distributions) Sales Invoices Sales Invoices (AR) Trade Receipts (AR) Trade Remittances Note: the ‘Total for Currency’ debit and credit amounts should be equal but the ‘Total for AR’ debit and credit amounts may not be equal. enter the amount for each account in the proper column on the spreadsheet.split by AR account. There should be no AR account activity in this category. There should be no AR account activity in this category. If they occur. Add the cash amount to the appropriate column. Note that the Unapplied Amount plus the unapplied activity (from the journal details) should equal the Applied Payment and Unapplied Activity totals from the reports.and should include only AR Accounts . There should be no AR account activity in these categories. If they occur. Add unapplied amounts to the appropriate columns. add a special line for each and add a new column for the non-AR account. add a special line for each . add a special line for each and add to the column for the applicable AR account. There should only be AR account activity in this category. If they occur. add a special line for each and add to the column for the applicable AR account. divisions … so be sure that your ranges allow for all possible sub-segment values for the accounts you are working with.The following table lists the proper and improper usage of accounts for each category and how to enter the data into the spreadsheet to indicate how the data will accounted for. Your Oracle Consulting. This should represent your Cash Account(s) only.
the original accounts are retained in the existing transactions and used if you have any subsequent activity against them.find out why these are happening and get this stopped now. Oracle Consulting. or for Accounts Receivable. Manual Journal Entries . India Private circulation only .be sure to document on the spreadsheet. They should use a special account. which is fine. if we are using the system properly . Add one line for each journal entry that has a Source other than Receivables. Activity from Sources other than AR . Find out why these are being done. On-Account.there should never be manual journal entries. Category. and Unidentified accounts. Type : ‘Source Item’ Currency : functional currency Balance Type : ‘Actual’ Order by : ’Account Segment’ If you are working with different companies. Only Accounts Receivable should be using AR accounts. you should run a separate report for each company and account combination. check for the following causes : 1. On-Account and Unidentified accounts are all the same account. Even if you change the defaults for these accounts. You must run Account Analysis Report for each of the old accounts also and include their activity on the spreadsheet. Unapplied Cash and AP/AR Clearing. and On-Account receipts. not your cash or Accounts Receivable accounts. Unidentified. Foot the totals for the Starting Balance plus or minus all activity for each account (including manual journal entries) and compare this amount to the new Ending Balance. 2. 4. Cash. The Accounts Receivable journal entries have not yet been posted in General Ledger. Note that debits are positive and credits are negative. For each account and company combination add the starting and ending balances from the Account Analysis Report to the «Reconciling AR and GL» spreadsheet (on the gray lines). 5. For example. If they do not match. You have changed the standard accounts used for Unapplied. Verify that you had no unposted items in the General Ledger Interface table or in Oracle Receivables. 7. Remember that until General Ledger closes the period. using your cash account for your Unapplied. Improper set up values. The dates you used for the Account Analysis Report are not consistent with those you used for the Oracle Receivables reports. Batch Name and amount by account. Your General Ledger Interface did not complete successfully. 6. 3. Often the Unapplied. Note the Source. these values may change and you will have to recreate the Account Analysis Report and re-complete the spreadsheet.key accounts should include : Accounts Receivable.
If you post daily this could be quite difficult. Check which of the totals by Source and Category in General Ledger do not match the totals for the same sources and categories in Accounts Receivable. When you have narrowed the differences down to specific accounts. 15. Open the next accounting period in Oracle Receivables Open the next accounting period in AR. Oracle Consulting. and manual journal entries that caused your values to be out of sync and add to your totals.If you still do not balance. If you still have problems. 13. get Help Desk involved to do more research. this will be much easier. Oracle Receivables check for unposted items. there shouldn’t be any. The level of difficulty in doing this is directly proportional to the number of journal entries that were created since this report includes one line for each journal entry. Document each of the inappropriate account uses. SAVE. You should be able to see exactly which transactions made up the values that you see. One of the drawbacks of the Account Analysis report is that it lacks subtotals by Source and Category. You must calculate the totals manually. You should now tie to the ending balances. You can do this in Oracle Receivables independently of Oracle Payables and Oracle General Ledger. If there are none. See which categories or sources have problems. you need to review the data at a lower level. Contact Help Desk. India Private circulation only . Note that you should not have more than one Oracle Receivables period open at one time. sources and categories. run the Journal Entries report again but request the Detail by Category and specify just the accounts and categories you must research. 14. If there are unposted items. If you post once or twice a month. Close accounting period in Oracle Receivables You can now close the period in Oracle Receivables (Menu path : Control/Accounting/Open-Close periods). Notify all users that the system is available Notify all users that they can use the system again. this is due to problems in the General Ledger interface.
India Private circulation only . and on-account amount for each deposit date. Remittance.Applied Details Report). Currency : functional currency Balance Type : ‘Actual’ Order by : ’Account Segment’ Compare totals on the individual reports to the Journal Entries report to see if they tie. The Credit amount for Misc Remittance (on the Journal Entries report) should equal the Total For Miscellaneous Cash Receipts (in the Reversed Receipts Report). Run the Receipt Register Run the Reversed Receipt Report (order by Remittance Bank) Run the Journal Entries Report (Summary by Category) for trade receipts and Miscellaneous only. It is printed by Bank account. including : • The net amount for Misc Remittance (on the Journal Entries report) should equal the Misc Applied total (in the Deposited Cash .Applied Details Report). The information is printed based on the deposit date you enter. The Credit amount for Trade Remittances (on the Journal Entries report) should equal the Total For Invoice Related Cash Receipts (in the Reversed Receipts Report). Possible sources of problems : Oracle Consulting. Trade Remittances) Only Accounts Receivable in the Trade Receipts (AR) category. Run the Deposited Cash – Open Detail to reconcile Oracle Receivables with your bank statement. Run AR Payment Reports Run the Deposited Cash – Applied Detail to reconcile Oracle Receivables with your bank statement. Complete all receipt entry and re-applications for the period 2. The information is printed based on the deposit date you enter.Chapter 4 :Reconciling Accounts Receivable Cash to GL 1. and applied miscellaneous cash. unapplied. • • • Does the Receipt Register Total = Net total on the Journal Entries Report ? Check that the accounts found on the Journal Entries Report are proper : • • • Misc Cash Accounts (Misc Receipts Distributions) Only cash accounts in the cash categories (Misc. unapplied amounts. This report shows applied amounts. This report shows the total applied. It is printed by Bank account. The net amount for Trade Remittances (on the Journal Entries report) should equal the AR Applied total (in the Deposited Cash .
• You have the version of the Reversed Receipt Report which does not include Miscellaneous Cash items and/or does not include subtotals at the end. Warning : if you book your payments to your customers by entering a debit memo which credits the bank account. you should also print the Transaction Register for the Transaction Type ‘PAYMENT’ used to enter the debit memo (cf AR Procedures : Book a payment to a customer). Confirm that the only Source was Receivables. you should : Run the Account Analysis report in General Ledger for each of the cash accounts. note the total by account. Deposit Dates are not in the same range of dates as the General Ledger dates. Compare the net activity amount on the Account Analysis report to the amount indicated on the Journal Entries Report . If not. • • If you still are not in balance : • Verify entry by entry the values in the Account Analysis Report against the Journal Entries Report. Confirm that the net activity less these exceptions equals the Journal Entries Report amount. Possible sources of problems : cash accounts being used improperly (e. Run GL Account Analysis Report Once all postings are completed for AR and GL for the period. If you find differences. They should match. run the Journal Entries report again. If there were. Oracle Consulting. • 3. in adjustments or as the unapplied account). this time as ‘Detail by Account’ for each account where you have differences – compare. note the total by account and source.Summary by Category. If Not : • Confirm that there were no manual journal entries. India Private circulation only .g.
Indeed. They should match. Payment’ Possible sources of problems : 1. this transaction will not appear on the Posted Payment Register since this report is based on the payment tables. Recommendation : Do not try to match your AP Payments with your bank statement using a GL Report. Confirm all payment batches Navigate to the ‘Payment Batch’ screen in order to confirm or cancel payment batches which are not confirmed. and to book manually the payment in GL and net to zero the suspense account. using the invoice transaction. It is recommended to use a suspense account. The report can only be submitted for an open period. because AP bank entries are usually transferred in detail to GL. India Private circulation only . Run GL Account Analysis Report Once all postings are completed for AP and GL for the period. 3. Run AP Posted Payment Register Run the Posted Payment Register Sort Posted Payments by : ‘Bank account. not on the invoice tables. Entering payments. and the amounts on the bank accounts do not correspond with the amount on the bank statement.Chapter 5 :Reconciling Accounts Payables Cash to GL 1. that is by crediting a bank account in the distribution line of a credit memo will distort this report. 2. you should : Run the Account Analysis report in General Ledger for each of the cash accounts. Compare the net activity amount on the Account Analysis report to the amount indicated on the Posted Payment Register. Oracle Consulting.
this task may be performed by the persons responsible for Payables and Receivables posting to GL or by the General Ledger person. Interfaces from AP and AR to Oracle General Ledger Make sure. Depending on your organisation. Closing Process 1. creates journals in GL but does not automatically update GL balances. if necessary (enable code combinations.Chapter 6 : Oracle General Ledger Period Check List – Detailed Instructions This describes the actions to be performed and reports to be printed before closing a period in Oracle General Ledger Version 11. If the status is ‘ERROR’ check on the same report : • • • • • The number of errors The error codes The meaning of the error codes on the last page of the report Do the corrections. The journals created by the Journal Import program must be posted manually by the user. Run Payroll Interface Run the payroll interface (if not automatic). Careful : ‘Posting’ or ‘transfering’ data from Oracle Payables and Receivables into Oracle General Ledger. with the people working in the Accounts Payable and Accounts Receivable departments that they have transfered to GL all data from Oracle Payables and Receivables. Oracle Consulting. 2.…) Resubmit Journal Import 3. India Private circulation only . Check that the Journal Import has a status of ‘SUCCESS’ and check the number of batches and headers created. Enter Journals • Enter manual journals • Generate your recurring journal entries.
4. India Private circulation only . Enter the necessary adjustment journals. and post your adjustment journals. Currency Revaluation (Optional). Analyse Transit accounts Use the Account Analysis Report to analyse your transit accounts by source. Generate & post Mass Allocation Journals • Generate Mass Allocation Journals • Post Mass Allocation Journals 7. To check. Produce Accounting Reports Run the Trial Balance . correct and post You must check if you have any unposted journals. do the necessary corrections and post them. You can only post a journal in an open period. Check unposted journals. 5. 6. you can use the following reports : Run the Account Analysis Run the Journal Batch Summary Pièces – synthèse des lots Run the Journal Entry Report Pièces / Devises Run the Journal Line Report Pièces / Ecritures Run the Journal Entry Report Pièces / Général Run the Journal Entry Report Possible sources of problem : • Unbalanced journal : total debit and credit amounts do not match. If there are any. Post Journal Entries Post your : • manual journals • recurring journal entries • Payroll journal entries • (depending on your organisation) Oracle Payables and Receivables journals.Summary 1 Oracle Consulting. 9. 8. • The period is not opened.
Run the Trial Balance . 11. Close Period Periods in GL have the following statuses : Never Opened : Future Entry : Open : Closed : Permanently closed : The period has never been opened You can enter journals but you cannot post them You can enter and post journals You cannot enter journals.) Run the Journals Summary 10. Open next GL Period Open your next accounting in General Ledger.Expanded Run the Journal Entry Report Run the Journals General (180 char. The period can be reopened Nothing can be done in that period. To reduce processing time. and produced all reports regarding that period. Oracle does not prevent you from closing a period which contains unposted batches. 12. keep as few accounting periods open as possible. It cannot be reopened. This is usually done after yearly closing. and once the accounts have been approved by auditors. Be sure that you are completely satisfied with an accounting period before you permanently close it because you cannot reopen a permanently closed period. Reverse journals from previous accounting period Oracle Consulting. India Private circulation only . using the ‘Closed’ status to be able to reopen them to book adjustment entries. Suggestion : periods are ‘Permanently closed’ once you have completed all accounting entries. Current practise is to close the period.
The following are the reasons for differences bewteen Inventory and GL: • Material account is used in Miscellaneous Receipt and Payment transactions of Inventory module. Please note back dated transactions are primary reason to have reconiliation differences between different reports. This includes taxes which are forming part of receipts. Recommended method is that ensure that all transactions are completed to enter in the system. Wrongly material account used in charge account for Service items and therefore while doing receipts system will account wrongly to materials account. India All inventory value report Period Value Close Summary Transactional Historical Value summary and detail Report Material Distribution summary and detail report Transaction Register for various types of transactions Private circulation only . This is primary occured in Internal Sales order transactions. Reconcile the Receiving Inspection account with GL and ensure that this account has value which is equivalent to receipts which are pending to be delivered to Inventory. Subsequently reconciliation should be carried out. • • • • • • The following standard reports are helpful while carrying out the reconciliation exercise of Purchase and Inventory modules: • • • • • Oracle Consulting. Subsequently Inventory period should be closed. Item attribute is expensed out but the charge account used as Material account while carrying out the material receipt transaction. Subsequently close the Inventory period and run the Period Value Close Summary report and verify this report with GL inventory. Always recommended to close the period immediatley after the end of the month. Also in Move transaction in Inventory Material account used in other modules Material account used in Intransit account wherein the material is not received by receiving organization at the end of the period. Also check the Transaction Historical Value Summary and Detail Report.Chapter 7 : Inventory and Purchase Purchasing module activities to be completed and the Control Purchasing periods of PO should be closed after ensuring that all transactions are completed. Ensure that all pending transactions costed and check that there is no reocrd is pending to be costed. Wrongly setup in Receiving Inspection account as Material account in Receiving organization paramters. ISO localization entries are not properly passed to inventory due to wrong setup or transaction entry.
• Perform Inventory Period Close • • • • • • • • • • • • Make Sure The Inventory Manager Is Active And Has Run Make Sure That The Cost Manager Is Active & Has Run Work In Process (WIP) Period Close Make Sure The WIP Move Transaction Manager Is Active And Has Run View Status Of WIP Discrete Jobs And Their Associated Transactions Close All WIP Jobs For The Period Review Pending Activity Evaluate Transaction Interfaces Process All Sales Order Shipments Verify That All Sales Order Issues Have Been Completed Transfer Inventory Transactions To The General Ledger Review Report Generated From Running The Transfer Transactions To GL Process Balance Perpetual Inventory To The General Ledger Inventory Value Report Period Close Value Summary Report Material Account Distribution Detail Report Material Account Distribution Summary Report Oracle General Ledger Account Analysis Report For Inventory Valuation Accounts General Ledger Report For Inventory Valuation Accounts Close The Inventory Period For Each Defined Inventory Organization Open The Next Inventory Period For Each Inventory Organization Defined Perform Final Inventory To GL Reconciliation • • • • • • • • • • • Oracle Consulting. India Private circulation only .
It simply does not exist. in GL. At the moment when you open the first period of the next year. AR or CE. But the carry forward is there. which can be : • • • • • Asset Liability Expense Revenue Ownership/Stockholder's Equity is used to calculate the result and to decide whether the balance should be carried forward at the beginning of the next fiscal year or put to zero. They cannot be made by you. The attribute 'Account Type'. If some are incorrect. AP. the carry forward and the result will not be correct. You should be aware of something very important. This is why you should be very careful when you set up a new account and tabulate until you see the window which shows the ‘Account type’ to select the correct value. Oracle automatically calculates the result and carry forward again.Chapter 8 : Year End Closing There is absolutely no particular step to perform in Oracle for the year end closing. every time you enter a transaction on the previous fiscal year. Careful : the default value attributed by Oracle if you do not populate this field yourself is 'Expense'. This means that if your account type is not set up correctly. India Private circulation only . Do not look for the journal entry which generates the result. Oracle automatically : • • • calculates the result and books it to the account 'Retained Earnings' set up in your Set of Books calculates the carry forward for all balance sheet and Ownership/Stockholders' Equity accounts puts to zero the opening balance of the next fiscal year for profit and loss accounts After you have opened the first period of the next year. Oracle Consulting. We have already noticed that some account types have been set up incorrectly. You have nothing to do. This is why I suggest that before opening the next fiscal year you send a mail to EFAST Support to ask them to check all account types to make sure they are all correct. the corrections must be made by support.
Their balances is calculated dynamically. based on the account types of the child accounts attached to them. Only the account type of child accounts matter.Do not worry about the account type of parent accounts such as accounts starting with ‘C’ and ‘GB’ because parent accounts do not have balances stored in the database. India Private circulation only . Oracle Consulting.
Oracle Consulting. You will see that the transfer to GL creates the 2 lines : a negative and a positive one. Answers Submit the report again using another printing style in the printing options. If the user makes a mistake when he enters the adjustment in GL. The transfer from AP/AR to GL automatically creates one GL batch per period.Click on the button 'Accounting' 4.Transfer to GL. the transaction date and the GL date are on two different periods.Change the revenue account directly on the accounting combination 5. Printing Issues The concurrent request ends correctly and the report can be viewed on the screen but cannot be printed. directly in GL. 2 GL batches are created by the transfer 4. with transaction date 2-AUG-99 and GL date 31-JUL-99.Chapter 9 : Frequently Asked Questions This gives hints and tips about the sources of discrepancies between Sub-ledgers and GL and how to avoid or correct them. reports. If a week belongs to 2 different months. The been transferred to GL. this maybe due to the printing style. Questions 1. 5. will be wrong. he on an AR invoice which has already can also create a difference between AR and GL on the total revenue.If you close and reopen the screen. whereas the GL report is based on the GL date. such as the report designed to help you fill in the P/L1 report. you will see that the system created 2 lines : ü one which cancels the original revenue line which you updated (negative ü sign) one which contains the new revenue account (positive sign) 7. 3. AR : Update revenue account on posted You should not enter manual GL adjustments. which have an impact on AR accounting data. 2.go to 'Invoice entry' screen 2. Modification of revenue account on invoices already transferred to GL should b e made as follows : 1. The only thing to do is open the period and submit the journal import again.Save your work 6. The invoice appears in the GL report for July but not on the AP Trial balance for July This is because the AP report is based on the transaction date. In your case. India Private circulation only .Query on the invoice you want to modify 3. and may create discrepancies between invoice AR and GL accounting data even though this should not impact the total How can I update the revenue account revenue. which are based on AR data. Sub-ledger Transfers to GL What happens if I try to transfer data on a period that is not open in GL ? Sub-ledger Transfers to GL In the transfer from AP/AR to GL what happens when a week belongs to 2 different months ? The report generated by Easylink (Journal import) displays the errors and gives an explicit error message. GL date versus Transaction date I reversed an invoice.
you should not book the credit memo directly on the bank account in the distribution line of the credit memo. The second payment should first be booked in AP in order to update the supplier balance. if a correction is made 2 months after the original booking. You should reverse the distribution line in AP and enter a new line with the correct account. This change will automatically be transferred to GL 1. you could enter this transaction in AR. That way. This entry will balance to 0 the suspense account used in AP to enter the credit memo (Credit the bank account. Create a payment batch. India Private circulation only . You can do this by entering a credit memo. using the miscellaneous receipt functionality. The GL date is automatically defaulted to : the GL date of the original booking. Then you can print the 'Preliminary Payment Register' which gives you the total amount of the batch. How should I book the second payment ? Answers The reversal is made accounting line by accounting line. and a new line with the new account. and indicate in the field 'Pay through date' until which due date you want to go. The payment should then be booked manually in GL. and a special customer dedicated to that kind of transactions. you will see in the accounting screen. You should book it to a suspense account 4. you can : • either cancel the payment batch and recreate it when you want to perform the payment • leave the payment batch with status 'Build' and only format it when you want to send the payment file to the bank. you can update the payment batch until you send it to the bank. if you have an invoice with two revenue lines and only one line is incorrect. which is used for bank reconciliation . 2. 9. It really depends on what transactions you are referring to. If for instance. In other words. You should not enter a manual adjustment directly in GL. because this will distort the AP 3. AP : update distribution line of a posted invoice The invoice distribution is incorrect and the invoice is posted in GL. you only need to reverse the incorrect line. if you enter 30-NOV-99 in this field. debit the suspense account). The balance of those accounts in AR and GL cannot be the same. report ‘AP Posted Payment Register’. 7. It is not recommended to book it to period of the original booking if this period has already been closed because you will have to reconcile your accounts again for that period. an invoice was paid twice. The other line is unchanged. It is strongly recommended to do this because then the balance of your accounts is the same in AR and in GL. may those do not have a big impact on your treasury forecast. will the correction be booked on the period of the original booking or on the period when the correction is made ? AR : Reconcile AR with GL Some revenue accounts are booked in AR and also directly GL. What can we do ? AR : Update revenue account on posted invoice – GL Date On which GL Date will the correction be booked? For instance. 2 additional lines : one which is the reversal of the original line.Questions 6. AR : Update revenue account on posted invoice If only a part of the invoice is booked on the wrong account. After saving the change. if the period of the original booking is ü closed. but if you have only occasional manual payments for small amounts. If you do not want to pay those invoices yet. AP : duplicate invoice payment By mistake. However. For instance. if the period is still open ü the GL date of the next open period. one employee refunds some money to you. This does not take into account potential manual payments. 8. 10 11 AP : Forecast Outgoing Cash Oracle Consulting. all invoices with a due date smaller or equal to 30-NOV-99 will be included in the payment batch.
2. 6. Check unapplied prepayments Approve all invoices Review all transactions & payments to be transferred to GL Transfer all transactions & payments to GL Review the result of the transfer from AP to GL Post GL batches (Optional) Run the Unposted Invoice Sweep Reconcile Accounts Payable Activity with GL journals Close AP accounting period Enter Accruals for invoices not yet received Open the next AP accounting period Oracle Consulting. 7. 8. 10. India Private circulation only . 9. 11. 3. 4.Exhibit A : Oracle Payables .Period Close Checklist Period Name: _________________ Period Close Date: ______________ Task Description Processed By 1. 5.
12. 5. Complete the manual payments and adjustments for the period Complete the manual invoices. 11.Exhibit B : Oracle Receivables .Period Close Checklist Period Name : _________________ Period Close Date : ______________ Task Description Processed By 1. 10. 9. 3. 7. 6. credit memos and corrections Run the Invoice Interface Confirm that their are no unapproved adjustments Check for incomplete transactions Notify all users that the system is not available Review transactions to be transferred to GL Balance to the Aged Trial Balance Reconcile your receipts Transfer Transactions to the General Ledger Post GL batches Reconcile Accounts Receivable to your General Ledger (for the key accounts) Close AR accounting period Open the next AR accounting period Notify users that the system is available Oracle Consulting. 15. 8. 4. India Private circulation only . 14. 2. 13.
Exhibit C : Oracle Receivables – Balancing AR to the Aging Exhibit C: Balancing AR to the Aging (Spreadsheet) MONTH: ________________ PREPARED BY: ______________________ ACTIVITY Starting Balance Invoices Debit Memos Credit Memos ( ) SOURCE Aged Trial Balance . India Private circulation only .Old Transaction Register Transaction Register Transaction Register Transaction Register Subtotal Applied Payments ( Discounts Taken ( ) ) ) Applied Receipts Register Applied Receipts Register (Applied Amount Total) (Earned Discount + Unearned Discount) Unapplied Activity ( Adjustments Items Not Aged TOTAL Ending Balance Difference ( Unapplied Receipts Register (On-Account Amount + Unapplied Amount) * -1 Adjustments Register (may be + or -) Invoice Exceptions Report ) Aged Trial Balance .Ending Balance) Oracle Consulting.New Should be 0 (Total .
Application Applied Payments Discounts Taken Unapplied Activity Adjustments Items Not Aged Manual .Unapplied activity impacts Aged Trial Balance but is included in the applied receipts total when posted to GL New Report Totals = The New Aging and The Account Analysis Reports (gray areas are from the Account Analysis Report) Add NEW BALANCE to JE's (current and to date) . Unapplied Cash NEW BALANCE NEW REPORT TOTALS Difference Current JE's JE's To Date TOTAL ATB.Journal Entries Cash-AR Cash-Misc.Exhibit D : Oracle Receivables – Reconciling AR and GL Exhibit D: Reconciling AR and GL (Spreadsheet) MONTH: ________________ PREPARED BY: ______________________ ACTIVITY Balance Journal to Entries Aging Report Totals AR1 AR2 Cash1 Cash2 Unapplied Starting Balance Invoices Debit Memos Credit Memos CM . India Private circulation only .should = ATB by Account totals Oracle Consulting.By Account Difference Note .
correct and post Generate & post Mass Allocation Journals Analyse Transit accounts Currency Revaluation Produce Accounting Reports Close Period Open next GL Period Reverse journals from previous accounting period Oracle Consulting. 2. 5.Exhibit E : Oracle General Ledger – Period Close Checklist Period Name : _________________ Period Close Date : ______________ Task Description Processed By 1. 6. 8. 4. 3. 9. Enter Journals Run Payroll Interface Check Interfaces from AP and AR to Oracle General Ledger Post Journal Entries Check unposted journals. 12. 7. 11. India Private circulation only . 10.