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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.

Cash Management:

This tab describes the procedures for performing period-end processing in Oracle Cash Management Release 12.
Oracle Cash Management is an enterprise cash management solution that helps you effectively manage and
control the cash cycle. It provides comprehensive bank reconciliation, bank, bank branches and internal bank
accounts setup, intra-bank account transfers, cash pooling and flexible cash forecasting.

The Bank Reconciliation process enables the verification of entries on the Bank Statement by reconciling that
information with system transactions in Oracle Cash Management, Oracle Receivables and Oracle General
Ledger. During the Bank Reconciliation process miscellaneous transactions can be created for bank-originated
entries, such as bank charges and interest. Cash forecasting is a planning tool that helps anticipate the flow of
cash in and out of the enterprise, allowing the projection of cash needs and evaluation of the company's liquidity
position.

Treasury:
This tab describes the procedures for performing period-end processing in Oracle Treasury Release 12. Oracle
Treasury is a comprehensive treasury solution that helps you effectively manage your investments, debt, foreign
exchange transactions and derivatives. Once your financial transactions are captured in the system, manually or
automatically, Oracle Treasury facilitates settlement, valuation, accrual and accounting for these transactions.

Cash Management

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

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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'

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: Oracle Cash Management User Guide Release 12.0 / Release 12.1

Document: 414705.1 R12: How to Create Bank Account Transfers in Cash Managements

Document: 580516.1 R12 Cash Management 'How To' documents

Document: 602031.1 R12 Cash Management FAQs

Document: 1276861.1 R12 White Paper on Bank Account Transfer for Oracle Cash Management

Document: 788327.1 Oracle Treasury, Cash Management and Payments Integration: SLA, GL, AP,
Payments, AR, CE, Treasury Open Interface users.

Document: 758253.1 R12 Setup Steps To Reconcile Payroll Transactions In Cash Management

Document: 1274995.1 Decide How to start using Reconciliation In Cash Management?

Document: 298275.1 Cash Management Set Up Steps (AR Perspective)

Document: 1369058.1 Void Unused Documents in R12 (Enhancement incorporated)

Document: 1359075.1 R12: Cash Management Payroll EFT Payments NACHA And Batch
Reconciliation

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Document: 1322420.1 Uniqueness Check for Bank Number, Branch Number and Country
Combination in US

2. Recommended Patching
Please review the following links to find the latest R12 Oracle Cash Management patches:

Document: 1367845.1 R12: Cash Management Consolidated Patch Collection September 2011

Document: 1313007.1 Latest R12.0.6, R12.1.1 Reconciliation, AutoReconciliation Of Payments,

Duplicate Payment Clearing And Available

Document: 1335039.1 New Archive, Purge and Restore Bank Statement Concurrent Programs
(This patch is available through the cash management CPC)

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

3. Validate Setup

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

Diagnostic: 732417.1 Oracle Cash Management General Setup Test

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

Ensure that all statements for the period being closed are reconciled and that all Bank Account Transfer and
other Cash Management activities are completed for the period being closed. The following steps are taken in
performing period-end processing for Oracle Cash Management.

1. Complete Daily Cash Management Activities

Complete bank account transfers for the period, validate them, if necessary, and send payment instructions to the
bank.

2. Load Bank Statements

Detailed information from each bank statement, including bank account information, deposits received by the
bank, and checks cleared needs to be entered into Cash Management. Bank statements can be either manually
entered or loaded electronically from information received directly from your bank.

Tip: For organizations with high transaction volumes bank statements should be loaded and
reconciled on a daily basis. Refer to Entering Bank Statements Manually and Loading Bank
Statement Open Interface in the Oracle Cash Management User Guide.

3. Generate Sweep Transactions

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If you have target balance or zero balance accounts (ZBA) with your banks, you can automatically generate
system transactions to match banking information once the bank posts the sweeps.

Once the bank statements are imported, run the Sweep Transaction Generation concurrent program. The
program will scan the bank statement for sweep lines and, based on the cash pool setup in the system, create
sweep transactions between your internal bank accounts, which can be accounted for and subsequently
reconciled.

4. Create Bank Statement Cashflows

If you have recurring items such as bank fees and interest appear on your bank statement, you can use the Bank
Statement Cashflow Creation program to create system transactions (cash flows) to match banking information.

Once the bank statements are imported, run the Bank Statement Creation concurrent program. This program will
scan the bank statement for specific codes, as defined in the Bank Statement Cashflow Mapping, and create
cashflows, which can be accounted for and subsequently reconciled.

5. Reconcile Bank Statements

Once detailed bank statement information has been entered into Cash Management, the information must be
reconciled with the subledger transactions.

Cash Management provides two methods to undertake reconciliations:

a) Automatic: Bank statement details are automatically matched and reconciled with subledger
transactions. This method is ideally suited for bank accounts which have a high volume of
transactions.

b) Manual: This method requires a manual match of bank statement details with subledger
transactions. This method is ideally suited to reconciling bank accounts which have a small volume
of monthly transactions. The manual reconciliation method can also be used to reconcile any bank
statement details, which could not be reconciled automatically.

6. Create Miscellaneous Transactions

During the reconciliation process, miscellaneous transactions for bank-originated entries, such as bank charges
and errors can be created. Oracle Payables payments or Oracle Receivables receipts can also be manually
created.

Tip: The automatic reconciliation process can be set up to create miscellaneous transactions
automatically.

Attention: If you create transactions during the reconciliation process, you will need to re-run the
Create Accounting routine from Oracle Receivables to ensure all information is transferred to the
General Ledger.

7. Complete Bank Transfers

Complete the bank account transfer whether it is manual or automatic and record the validation if required
before completing the transfer.

8. Review Auto-Reconciliation Execution Report

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This report shows import and reconciliation errors that occurred when running the Auto-Reconciliation program.
Cash Management automatically produces this report during the automatic reconciliation process. You may also
request it as needed from the Submit Request window.

It includes either statement import errors, which prevented the automatic loading of your bank statement, or your
reconciliation exceptions found during the automatic reconciliation process.

9. Resolve Exceptions on the Auto-Reconciliation Execution Report

Resolve the exceptions on the Auto-Reconciliation Execution report by either rerunning the import process or by
manually reconciling the exceptions.

10. Run Bank Statement Detail Report

This report shows statement and transaction information for a specific bank account statement, including bank
statement header information, statement line detail, and reconciled transaction detail.

It will also list any un-reconciled transactions separately with their current status, and the statement totals for
each type of transaction, including the amount entered, reconciled, un-reconciled, over-reconciled and under-
reconciled, and gives you the option to select only un-reconciled statement lines.

11. Run Transactions Available for Reconciliation Report

This report shows all transactions available for reconciliation for a specific bank account. It lists detailed
transaction information for your Available Receipts, Available Payment, and Available Journal Entries for
reconciliation. Detailed information includes the Customer, Supplier or Batch Name, Transaction Date, Payment
Method, Transaction Number, Currency, and Amount.

It only lists void payments if the Show Void Payments option on the Systems Parameters window is checked. It
does not list reversed receipts due to user error nor does it list the associated original receipts that were not
reconciled. This report groups transactions by status so that void or reversed transactions are separate from other
transactions.

12. Resolve Un-reconciled Statement Lines

Resolve the un-reconciled statement lines by manually reconciling the statement lines to the available
transactions.

13. Post to General Ledger

Create journal entries for eligible accounting events generated by Bank Account Transfers and Bank Statement
Cash Flows by submitting Create Accounting concurrent program. The program creates and optionally transfers
and posts journal entries to General Ledger. If you do not transfer the journals to General Ledger immediately,
you can later submit the Transfer Journal Entries to GL concurrent program. See the Create Accounting section
below for more details.

Attention: Final journal entries cannot be further modified in Cash Management. Please make sure
you are satisfied with the draft journal entries before creating final accounting. In addition to
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creating final accounting entries, the program can be run in a draft mode, in which case draft journal
entries will be created. Such journals cannot be transferred or posted to General Ledger.

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. Run Create Accounting

Run the Create Accounting process from a Cash Management responsibility to create accounting for all Bank
Account Transfer or Bank Statement Cash Flow events. The Create Accounting process creates the accounting
in the subledger accounting tables. It can also transfer and post that data to the General Ledger tables based on
the parameters submitted. The Transfer to General Ledger and Post in GL parameters which are set during
Create Accounting determine whether that accounting is transferred and posted to the General Ledger.

Attention: If Create Accounting is run without selecting Transfer to GL, you will have to manually
submit the Transfer to GL program.

Attention: Payment Cleared events created when a check is reconciled in Cash Management, are
NOT accounted in Cash Management. You must run the Create Accounting process from Payables
to include Process Category Code = Payments to account those events.

Document: 1330739.1 Payables Create Accounting Info Center: Create Accounting

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Tip: For large companies, this process should be run and errors addressed daily.

2. Run the Transfer Journal Entries to GL process

There are two ways to transfer journal entries to GL:

a) Choose to transfer the accounting created during Create Accounting by selecting Yes for Transfer to GL
parameter.

b) Submit Transfer Journal Entries to GL concurrent request.

The Create Accounting process ran with the Transfer to GL parameter = Yes will only transfer the accounting
created by that run. The Transfer Journal Entries to GL program needs to be ran separately to transfer any
accounting that was created, but not transferred during previous runs of the Create Accounting process or from
Online Accounting that was not Final Post.

Attention: The generated journal batch needs to be posted from within Oracle General Ledger if the
mode of accounting was Final, Transfer to General Ledger was Yes and Post in GL was set to No. The
journal batch will be automatically posted in General Ledger if the mode of accounting was FINAL and
Post in GL was set to Yes.

Diagnostic: 878891.1 Oracle GL Transfer Diagnostics Test

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.

1. Run the GL Reconciliation report

Use this report to reconcile the General Ledger cash account to a bank statement balance.

This report lists a balance and an adjusted balance for the bank statement. It also lists a separate adjustment
amount for un-reconciled receipts, payments, and journal entries, as well as bank errors.

Warning: To ensure that this report is accurate, you must first perform these tasks:

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a) Reconcile all statements in Cash Management

b) Transfer journal entry transactions from Oracle Payables and Oracle Receivables to
your General Ledger.

c) Post journals in General Ledger, if transfer from sub-ledgers was not in FINAL
POST mode.

Document: 733149.1 Latest: CEXRECRE - GL Reconciliation Report, Difference between Cash

In Transit, Transaction Available report

Tip: Review the Receivables and Payables tabs in this advisor for further details.

2. Run the Account Analysis Report for the General Ledger Cash Account
Run the Account Analysis Report from General Ledger for the General Ledger Cash Account Flexfield and sort
by Source.

3. Review the Account Analysis Report

Review the Account Analysis Report to ensure that only bank account related transactions have been posted to
the General Ledger Cash Account by checking the Source of the transactions. Valid sources will include
Payables and Receivables. Transactions entered directly via General Ledger will have a Source of Manual or
possibly Spreadsheet if Web Applications Desktop Integrator (Web ADI) is used.

4. Correct any Invalid Entries to the General Ledger Cash Account (Optional)
Reverse or amend any journals incorrectly posted to the General Ledger Cash Account, which were highlighted
during the review of the Account Analysis Report.

To prevent invalid journal entries to the General Ledger Cash Account enable security rules appropriately.

Close Period

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
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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.

The Cash Management application does not have its own period like other applications, so there is no period to
open or close for this application. However, Cash Management can generate accounting events for Bank
Account Transfers, Bank Statement Cash Flows and reconciling activities.

Treasury

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'

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:

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Document: 421245.1 E-Business Suite Diagnostics References for R12

1. Review Training Material

Document: Oracle Treasury User Guide Release 12.0 / Release 12.1
Document: A White Paper On Accounting In Oracle Treasury
Document: Oracle Treasury Integration with other Products

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: Release 12 Patches for Oracle Treasury

Document: EBS: R12.1 Oracle Financials Recommended Patches

Treasury Procedures

1. Complete Daily Trading Activities

Complete trading activities for the day, validate them, if necessary, and send payment instructions to the bank.

2. Perform Revaluation

Revaluation is the process of adjusting the rates and prices of your financial instruments to reflect the current
market value and calculate the realized or unrealized profit and loss. Revaluation is an optional step in the
accounting process. If you set the Accounting - Perform Deal Revaluations company parameter to Yes, you must
perform revaluations as part of the accounting process.

Tip: You can automate steps 2-5 by running the Accounting Streamline Process concurrent program.

3. Generate Accruals and Amortization

You can generate amortizations and accruals adjustments, split by revenue and expense, for all money market
products. These adjustments include amounts for settling derivatives, such as Forward Rate Agreements (FRAs)
and options. Amortization and accruals adjustments are calculated incrementally for each batch period, rather
than as an accumulating amount for multiple periods. Reversal entries are not required.

Navigation:
1. Go to the Accruals window
2. Choose a Company
3. Choose a period or an existing Batch ID
4. Choose the Calculate button
5. The accrual and amortization details for the financial transactions in the specified period appear.
6. Authorize the results
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Tip: You can view and delete these period adjustments, but you cannot change them. If you find
the results to be incorrect, delete them and review the corresponding financial instrument. Once the
financial instrument is correct, re-create the accruals.

4. Generate Journals
Use the Daily Journals window to generate the daily journals for an accounting batch, view the generated journal
entries, change the dates or GL accounts for your journal entries, and reallocate suspense journal entries to a GL
account.

5. Transfer Journals to General Ledger

After you enter and verify all accounting changes for the journal, use the Transfer Journals to GL window to
transfer your journals from Treasury to General Ledger. Once you transfer your daily journals to General Ledger,
you cannot change any of the accounting for the batch in Treasury.

Attention: There is no integration yet with SubLedger Accounting (SLA). Treasury sends the journals
directly to GL and not via SLA.

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