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How to use this Period Close Advisor:

This Period Close Advisor provides guidance on recommended period end procedures for E-Business Release
12.x. The subledger application tabs are listed in the recommended order of closing based on the data flow
dependency as shown in the diagram. Step by step best practices with tips and troubleshooting references are
provided to assist you through each phase. Review the 'Using the Period Close Advisor' section under the 'Intro'
tab for more details on how to use this advisor.

Assets:

This tab describes the procedures for performing period-end processing in Oracle Assets Release 12. Oracle
Assets automates asset management and simplifies accounting tasks. Using a unified source of asset data (with
data from your Oracle applications as well as external feeder systems), Oracle Assets gives you visibility into
your assets worldwide. Standard management tasks-such as asset transfers, disposals, reclassifications, financial
adjustments, and tax legacy data conversion-can be streamlined with automated business flows. Standard
accounting, operational, and registry reports are available to ease reconciliation and analysis.

Evaluate & Prepare

Preparing for Period Close begins with thorough product training to establish proper application setup and
usage. User Guides, Product Information Centers, and other key documents are linked within this advisor and
provide detailed product information that should be reviewed.

Evaluating and maintaining current code levels is also essential to a successful period close. As a Best Practice,
you should always ensure you are on the latest code with recommended patches applied. This will help avoid
known issues, prevent potential data corruption and provide the latest features and functionality. Having a
proactive patching plan and periodic proactive patching process is the best way to stay current. Please review the
following documents for guidance in this area:

Document: 313.1 Patching & Maintenance Advisor: E-Business Suite (EBS) 11i and R12

Document: 976188.1 Patch Wizard Utility

To search for recommended patches within My Oracle Support:

Navigation:
1. Login to 'My Oracle Support' (MOS)
2. Click on the 'Patches & Updates' tab
3. In the Patching Quick Links box on the left, click 'Recommended R12 Patches' under the Oracle E-
Business Suite heading
4. In the Maintenance Release LOV, select your version
5. Under Product or Family, select your product area
6. Select your Platform, then click 'Go'

Attention: Critical Patches will be marked with and exclamation mark '!' and Recommended Patches will
be marked with a 'check'
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For more details, see Document: 1400757.1 12.1.3 How to Find E-Business Suite Recommended Patches

In addition, many E-Business Suite products have diagnostics and health checks that can proactively look for
issues within your data so they can be resolved as soon as they are detected. Those proactive diagnostics are
linked where relevant within the steps in this advisor. The link to the full catalog is below:

Document: 421245.1 E-Business Suite Diagnostics References for R12

1. Review Training Material

Document: Fixed Assets Release 12.0 User Guide

Document: Fixed Assets Release 12.1 User Guide

Document: 1308325.1 Fixed Assets Product Information Center

2. Recommended Patching

Maintaining data integrity is key to ensuring a successful period close. As a best practice, you should always
ensure you are on the latest code level with recommended patches applied. The following documents are
updated frequently with the latest patches recommended by development as they are released.

Document: 466607.1 R12 / 11i FA.M-P Recommended Patch List

Document: 954704.1 EBS: R12.1 Oracle Financials Recommended Patches

3. Validate Setup
Incorrect or incomplete setup within the product can cause data issues. Run the setup diagnostic listed and
review the recommendations in the output to see if there are corrections that need to be made.

Diagnostic: 732186.1 Oracle Assets General Setup Test

Process Transactions
Ensure that all transactions have been entered for the period being closed.

1. Prepare and Post Mass Additions

Mass additions lets you add new assets or cost adjust existing assets. You must review new mass addition lines
in the Prepare Mass Additions form before you can post them to Oracle Assets. You can place a group of mass
additions in the POST, ON HOLD, or DELETE queues. You can perform a split, merge, or cost adjustment on a
mass addition before you post it. You can continue to review a mass addition until you post it. To review mass
additions that have not yet been posted, run the Unposted Mass Additions Report or the Mass Additions Status
Report.

Use the Post Mass Additions program to create assets from mass addition lines in the POST queue using the data
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entered in the Mass Additions window. Post Mass Additions also adds mass additions in the COST
ADJUSTMENT queue to existing assets. Run this program as often as needed during a period.

Document: 1252144.1 Assets FAQ - Mass Additions

Tip: If you post many mass additions, you can set up Oracle Assets to run more than one process in
parallel by setting the FA: Number Mass Addition Parallel Requests profile option.

2. Complete Manual Additions

Use the Asset Workbench form to add a detailed asset (Additions) or add an asset accepting the defaults (Quick
Additions).

3. Assign All Assets to Distribution Lines

If an asset has not been assigned to a distribution line, the period end depreciation process will not complete and
will not close the period. Assign assets to employees (optional), general ledger depreciation expense accounts,
and locations. You can share your assets among several assignment lines. You can automatically assign
distributions to an asset by choosing a pre-defined distribution set. Determine which assets have not been
assigned to a distribution line by running the report: Assets Not Assigned to Any Cost Centers Listing. You
cannot assign distribution sets to assets in tax or budget books.

4. Complete Adjustments
Make any necessary adjustments to your assets. You can change descriptive information for an asset at any
time. Changing asset descriptive information other than category and units has no financial impact on the asset.

Reclassify assets to update information, correct data entry errors, or when consolidating categories. You can also
adjust financial, depreciation, distribution, and invoice information for an asset.

5. Complete Transfers

You can transfer assets between employees, depreciation expense accounts, and locations. When transferring
assets, keep in mind that:

You can change the transfer date to a date in a prior period, but the transfer must occur within the current
fiscal year.
You can change the transfer date of an asset to a prior period only once per asset.
You cannot transfer an asset using a future period.
If you transfer an asset during the period in which it was added, the Transfer Date automatically defaults
to the asset's date placed in service and you cannot change it.

Note: You cannot transfer assets from one corporate book to another corporate book.

6. Complete Retirements

You can retire an entire asset or you can partially retire an asset. When you partially retire an asset by units,
Oracle Assets automatically calculates the fraction of the cost retired. When you retire an asset by cost, the units
remain unchanged and the cost retired is spread evenly among all assignment lines.

If you perform multiple partial retirements on an asset within a period, you must run the Calculate Gains and
Losses program between transactions.

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7. Complete Reinstatements

You cannot reinstate assets retired in the previous fiscal year. You can reinstate only the most recent partial
retirement. You can reinstate both individual and mass retirement transactions.

8. Run Calculate Gains and Losses (Optional)

The Calculate Gains and Losses program (CGL) for retirements can be submitted prior to running depreciation.
CGL is performed independently for each depreciation book. The book and depreciation period are selected in
the Submit Request window.

Note: The Calculate Gains and Losses program will be submitted as part of the Run Depreciation
Process.

Tip: For books with a large volume of assets, the Calculate Gains and Losses process can be run
several times during the period to reduce the time for the depreciation process.

Tip: If you wish to simultaneously run this program using more than one process to reduce
processing time, set up the FA: Number of Parallel Requests profile option.

9. Run Depreciation

When you run the depreciation process, you have the option of closing the current period if you check the Close
Period check box on the Run Depreciation window. If all of your assets depreciate successfully, Oracle Assets
automatically closes the period and opens the next period for the book. If you do not check the Close Period
check box when you run depreciation, Oracle Assets does not close the period.

Attention: Ensure that you have entered all transactions for the period before you run depreciation.
Once you run depreciation with the Close Period check box selected, the program closes the period
and you cannot reopen it.

Note: Depreciation will be rolled back automatically if any activity is performed on a depreciated
transaction. This is valid only if depreciation was run for the period but the period is not closed.

The Run Depreciation process is performed independently for each asset book. The asset book and depreciation
period are selected in the Run Depreciation window. When the process is run, Oracle Assets automatically
calculates gains and losses for all retirements, calculates depreciation for all assets, and runs the appropriate
Reserve Ledger Report.

If an asset has not been assigned to a distribution line, the Run Depreciation process will end with an error. By
reviewing the depreciation log file, you can determine which assets were unassigned, or you can review the
Depreciation Program Report via the Requests window. The unassigned assets can then be assigned to
distribution lines and the depreciation process resubmitted. The depreciation process only processes assets that
have not already been processed.

The Run Depreciation process will close the current depreciation period and open the next only if the Close
Period check box is selected.

When the depreciation program is run for a corporate book, the Journal Entry Reserve Ledger Report will be
generated. If the depreciation program is run for a tax book, then the Tax Reserve Ledger Report is generated.
Both Reserve Ledger Reports can be run at any time, using the Submit Requests window.

You can review the depreciation amounts calculated for any asset. For insight into the various methods and their
expected depreciation calculations, review the examples in:
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Document: 1179655.1 Fixed Assets Depreciation Methods and Calculations With Examples

Create Accounting

Subledger Accounting (SLA) & Create Accounting Process

In Release 12, Subledger Accounting (SLA) architecture was implemented, creating a common repository of all
your accounting information to maintain a common link between General Ledger (GL) balances and underlying
transactions automatically, for internal and external audit purposes, and for ease of drilldown.

Create Accounting is the new process in Release 12 that creates the accounting in the subledger accounting
tables and offers flexibility in how you generate your accounting. Accounting can be created immediately
online or run as a process and can be generated 3 different ways:

1. Draft: The transactions accounted in draft mode can be included on accounting reports but
cannot be transferred to the General Ledger. This mode is for informational purposes only allowing
you to review the accounting entries via the output report or using the Subledger Accounting
Inquiry screen prior to creating final entries.

2. Final: The transactions that have been accounted in Final Mode are accounted but not yet
transferred to General Ledger.When using Final mode, you have the option to transfer and post to
General Ledger based on the settings of the "Transfer to General Ledger" and "Post in GL"
parameters.

3. Final Post: Transactions that have been accounted in Final Post are transferred to and posted in
the General Ledger.

For more details on SLA and Create Accounting, see the following Document:

Document: 876190.1 R12: FAQ on Transfer to GL in R12

1. Submit Create Accounting

Submit the Create Accounting - Assets process from the Submit Requests window. This process generates
accounting and enables transfer to and posting in GL. This program can be run in three modes: Draft, Final and
Final Post. If the program is run in FINAL mode with POST as Yes, then the entries will be automatically posted
to the General Ledger. If the program is run in FINAL mode with Transfer to General Ledger as No, then run
the process Transfer Journal Entries to GL later.

Document: 876190.1 R12: FAQ on Transfer to GL in R12

The depreciation expense journal entries can be created from an Asset Corporate or an Asset Tax book and
transferred to the General Ledger.

There is no need to run depreciation before creating accounting transactions, but you must run depreciation prior
to running Create Accounting if you want to review depreciation journals. You can run the Create Accounting
process as many times as necessary within a period.

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This program creates adjusting journal entries to depreciation expense, bonus expense, accumulated depreciation
accounts, and bonus reserve accounts when you enter prior period additions, transfers, or retirements.

Attention: Journal entries cannot be created from asset budgeting books.

Journal entries can be created for any period in the current fiscal year for which journal entries have not already
been created. The GL period for which journal entries are to be created must be open.

Oracle Assets uses the setting of the profile option FA: Use Workflow Account Generation to make a decision
about whether to use workflow or not. At upgrade, this profile option is set to Yes by default. If the profile is
set to No, Create Accounting will create accounting based on its rules and the workflow will not be used.

Attention: If the FA Account Generator Workflow was customized in 11i, the customizations will
have to be re-implemented using SLA or FA: Use Workflow Account Generation should be set as
Yes.

Document: 578313.1R12 Subledger Accounting in Oracle Assets

Note: The Create Journal Entries program of earlier releases has been replaced by the Create
Accounting program.

Tip: If Workflow Account Generation is used, you can run the Generate Accounts process as a
standalone program prior to running depreciation and Create Accounting to improve performance of
these processes as the necessary account combinations will have been pre-generated.

2. Rollback Depreciation
There is no separate program to rollback depreciation as there was in Release 11i. Any alteration on a
depreciated asset will result in an automatic rollback.

Note: Rollback happens at the asset level in Release 12, unlike at the book level in Release 11i.

3. Create Deferred Depreciation Journal Entries (Optional)

Deferred depreciation is the difference in depreciation expense taken for an asset between a tax book and its
associated corporate book. This difference results from the use of accelerated depreciation methods in the tax
book.

Create deferred journal entries using the SLA Create Accounting Process, based on rules and in-built event
class/entity model processes for deferred depreciation.

Note: You cannot roll back deferred journal entries, nor can you run the Deferred Create Journal
Entries program multiple times.

4. Depreciation Projections (Optional)

You can project depreciation expense for any number of future periods, on as many as five depreciation books at
once. Results can be summarized by year, quarter, month, or any specified interval. The results can be
summarized also by cost center or depreciation expense account. You cannot run depreciation projections for
prior periods.

5. Review and Post Journal Entries

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If accounting was performed without the journal entries being posted, review the unposted journal entries in the
Enter Journals window in Oracle General Ledger. Post each journal entry batch using the Post Journals window
in Oracle General Ledger to update the account balances.

Optionally, use the More Actions button to Post each Journal individually or if the source of Assets has been
included in the Auto Post options, the Assets Journals will be posted automatically in the next scheduled posting
run.

Diagnostic: 1357499.1 How To Collect Diagnostic Data to Troubleshoot Create Accounting in

Oracle Assets?

Reconcile

Subledger Accounting (SLA) - Reconciliation

SLA introduced changes in the way reconciliation is performed:

In Release 11i, you reconciled transactions and distributions to GL through transactional reports. In the
accounting reports in Release 11i, the balances are displayed but not the transactional information.

In Release 12, there is no reason to reconcile distributions on transactions to GL, but you can still reconcile
transaction reports to accounting reports. The new accounting reports in Release 12 now also contain more
comprehensive information - not just on balances but also on suppliers, customers and transactions.

Note: When you do account balance reconciliation, you should ignore distributions in Release 12,
especially if you have altered your subledger accounting rules.

Many Oracle Assets reports show the correct information for a period only if that period is closed.

1. Run Reserve Ledger Reports to reconcile to General Ledger

a) Journal Entry Reserve Ledger Report. Reconcile with the Account Analysis with Payables
Details Report.

b) Tax Reserve Ledger Report. Additionally, the Account Reconciliation Reserve Ledger Report
can be run.

2. Run Balance Reports to reconcile to General Ledger

a) Cost Detail and Cost Summary Reports

Note: Before running the Cost Detail or Cost Summary reports, or the CIP Detail or CIP
Summary reports, you must first run the Create Accounting process.

b) CIP Detail and CIP Summary Reports

c) Reserve Detail and Reserve Summary Reports

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d) Revaluation Reserve Detail and Revaluation Reserve Summary Reports

e) Account Analysis Report

3. Run Transaction Reports to reconcile to General Ledger

a) Asset Additions Report

b) Cost Adjustments Report

c) Asset Reclassification Report

d) Asset Transfers Report

e) Asset Retirements Report

f) Reinstated Assets Report

g) Cost Clearing Reconciliation Report

4. Run General Ledger Reports

a) Unposted Journals Report - Run the General Journals Report for Posting Status = Unposted to
reconcile with the drilldown reports.

b) Posted Journals Report - Run the General Journals Report for Posting Status = Posted.

c) Financial Statements Generator - It is recommended that you create a detailed Financial

Statement Generator (FSG) for all asset accounts. This can be done at cost center level for direct
comparison with the Asset Cost Summary and Reserve Summary reports.

5. Run Responsibility Reports (Optional)

It is also important to ensure that your asset inventory is accurate. If the asset inventory is inaccurate, then your
financial statements will also be inaccurate. The following reports can be reviewed when assessing the accuracy
of the asset inventory:

a) Asset Additions By Cost Center Report

b) Asset Additions Responsibility Report

c) Asset Disposals Responsibility Report

d) Asset Inventory Report

e) Asset Retirements by Cost Center Report

Close Period
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Closing the Period

When you attempt to update the period status to Closed for one ledger, the system checks for unposted
transactions in all operating units within the ledger. If there are unposted transactions in any of the operating
units, you will need to resolve the unposted transactions for those operating units before you can close the period
for that ledger. See the referenced documents and diagnostics within this advisor to troubleshoot these types of
issues.

Attention: Closing is always executed at a ledger level and not at operating unit. You can only execute
close from the responsibility which has access to all operating units within a ledger.

Note: In Release 11i, GL automatically created the balancing lines for journals posted to GL when you
closed your periods in each of the subledgers. In Release 12, subledger accounting creates the balancing
lines at the time you account for the subledger transactions. The subledger accounting journal represents
the actual accounting and the balancing lines are created as part of these subledger accounting journals.

If the period was not already closed, Run Depreciation for the book and period again with the Close
Period checkbox selected to close the period.

Attention: Ensure that you have entered all transactions for the period before you run depreciation.
Once you run depreciation with the Close Period check box selected, the program closes the period
and you cannot reopen it.

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