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This document intends to provide a reference for planning period-end procedures for ‘real-life’
implementations. It describes the fundamental period-end steps involved for each, with
particular emphasis on balancing the subledger applications to Oracle General Ledger, and
attempts to provide an overview of the relative timing of these procedures for all installed
Oracle applications.
It is therefore the intention of this document to provide content from which relevant sections
can be extracted, according to the applications installed for a particular organization. Any
organization may choose to customize their period-end and year-end processes, for example
opting to run additional reports, particular to the organization.
Although this document particularly refers to ‘Period-End Procedures’, many of the processes
can be performed more regularly throughout the accounting period as required. Each subledger
application provides control as to when and how often data is transferred from the subledger
application to the General Ledger.
Assumptions
These ‘Period-End Procedures’ were written with the assumption that Oracle
Financials was implemented for a single operating unit. Where an organization has
implemented the ‘Multi-Org’ features of Oracle Financials, these procedures would
need to be performed for each operating unit individually unless Multi-Org Access
Control is enabled.
Note: R12 requires multi-org functionality to be used. For further details refer to
Oracle® Applications Upgrade Guide: Release 11i to Release 12
Oracle Workflow is incorporated in the Release 12 applications. It is assumed that
these Workflow Processes will be monitored and attended to by a System
Administrator on a regular basis. Some Workflow Processes like the Requisition
Approval Workflow or the Purchase Order Approval Workflow will require a direct
response from a message recipient rather than a System Administrator.
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When you close your periods in each of the subledgers, General Ledger will in
Release 11i automatically create the balancing lines for journals posted to General
Ledger. This changes in Release 12 as subledger accounting creates the balancing
lines at the time you account for the subledger transactions.
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The subledger accounting journal represents your REAL accounting and the
balancing lines are created as part of these Subledger Accounting Journals.
When you close a period in Release 12 you’re actually closing subledger accounting.
The journals can then be posted to General Ledger to update the General Ledger
balances.
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The point to note is that when you do account balance reconciliation you should
ignore distributions in Release 12, especially if you have altered your subledger
accounting rules.
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Before you start with the Period-End process you have to know what the
dependencies are between the various Modules as described in the Chapters in this
document.
The diagram above shows the dependencies between some of the main Financials
products and a couple of supply chain products.
You have to close Oracle Payables before you close Oracle Purchasing to account for
Purchasing Accruals at Period end. You also close Oracle Payables before you close
Oracle Inventory and Oracle Assets.
You actually have to close Oracle Cash Management before you close Oracle
Receivables, as bank reconciliation in Cash Management will create miscellaneous
receipts in Oracle Receivables.
Finally you close all of your subledgers before you close General Ledger.
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5. Business Requirements
Period end procedures for Oracle Projects has two main functions:
Changing the status of the current period to closed
To activate all the processes and controls necessary to produce reports that
accurately reflect the period activity, while allowing minimum interruption of
transaction processing.
1. PROJECT PERIODS AND GENERAL LEDGER PERIODS
In Oracle subledgers, such as Projects, transactions are summarized into periodic cycles for reporting and
reconciliation. Most subledgers have a periodic cycle that parallels the General ledger fiscal cycle.
However, projects may be based on a different periodic cycle to that of the General
ledger. Project periods may be based on a different period of time such as a week.
If the two sets of periods overlap, then you may need to put in place special
procedures for the reconciliation of Projects to the General ledger, and other
modules.
Suggestion: If you have different periods in Projects, you may like to consider using one of the
alternate General ledger period conventions, such as a 5-4-4 period split. This will enable you to more
easily align Projects with General ledger for reconciliation purposes.
2. PERIOD STATUSES
Oracle Projects has statuses similar to the standard period statuses as in other modules:
Never Opened The period has never been used.
Future Enterable The period is open to accept transactions from other modules.
Usually used where modules are maintained in different
periods, and transactions are likely to be posted across
modules.
Open Period is available for data entry
Closed Period is closed for processing, but can be re-opened if required.
Permanently Closed No further processing is possible.
Pending Close This status prevents transaction entry, and allows users to correct
unprocessed items prior to completing the period close.
3. GENERAL EXCEPTION HANDLING AT PERIOD END
If you do not want to correct exceptions during the current GL period, then you can run the process “PRC:
Sweep Transaction Accounting Events” to change the date on unaccounted transaction accounting events to
the first day of the next open GL period, without accounting for them.
The Subledger Period Close Exceptions Report lists all accounting events and
journal entries that fail period close validation.
You can generate the Subledger Period Close Exceptions Report through a
concurrent request for the application associated with the responsibility or for all
applications in the General Ledger responsibility.
6. Procedures
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This is an interim status, which allows you to interface and adjust transactions in the period but does not allow
transaction entry.
This process needs to be performed for each Operating Unit defined.
2. 2. OPEN THE NEXT ORACLE PROJECTS PERIOD
It is recommended that you open the next period to minimize interruption to users, who may require the
ability to enter transactions in the new period during the current period close procedure.
This process needs to be performed for each Operating Unit defined.
3. 3. COMPLETE ALL MAINTENANCE ACTIVITIES
As there are a number of maintenance activities that can affect the period close procedure, you should ensure
that all the following maintenance activities have been completed:
Project Maintenance (revenue/billing based options)
Implementation Maintenance
Employee assignments
Labor cost rates
Standard costing burden schedule maintenance
Other Maintenance
Suggestion: You may need to implement workflow procedures, or use function and responsibility
restrictions to prevent access to these areas during the period close procedure.
It is recommend that the following maintenance processes be run in preparation for the period end:
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a) Run Burden Schedule maintenance to assure that all burden schedules have been
compiled
Run PRC: Compile All Burden Schedule Revisions
b) Run organization maintenance to ensure all organizations have been added to all
affected compiled burden schedules
Run PRC: Add New Organization Compiled Burden Multipliers
c) If changes or additions were made to pre-existing resource lists, update the
project summary amounts before, not during, the period close
Run PRC: Update Project Summary Amounts After Resource List Change
5. 5. COMPLETE ALL TRANSACTION FOR THE PERIOD BEING CLOSED
1.
If Oracle Projects is the direct data source for payroll or for reconciling labor costs to
payroll, verify that all timecards are entered or accounted for.
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Run all cost distribution processes to cost all enabled expenditures that have an expenditure item earlier than
or equal to the current reporting PA period end date.
This is a new program in R12. This program has to be run to generate accounting events, which will be later
used by SLA. For more information refer to Oracle Project Costing User guide.
The program to be run is PRC: Generate Cost Accounting Events and PRC: Generate
Cross Charge Accounting Events
8. 7. INTERFACE COST TRANSACTIONS TO OTHER APPLICATIONS
You must successfully interface all relevant costs to Oracle Payables, General Ledger and Oracle Assets or
revenue to Oracle Receivables before you can change the status of the current PA period to Closed.
Transfer from Projects to GL can be achieved by submitting ‘Create Accounting’ –
(PRC: Create Accounting) process from the SRS screen. This program is owned by
SLA. This program creates accounting, transfers& posts to GL with the appropriate
parameters.
If accounting was performed without transferring to GL, them submit PRC: Submit
Interface Streamline Processes with the appropriate streamline parameters to
transfer the costs to GL. Journal Import can be submitted from GL to import the
costs into GL.
Interface CIP Assets to Oracle Assets
- PRC: Interface Assets
This process requires that prior to interfacing, all asset lines have been generated, by
running the PRC: Generate Assets Lines for a range of projects process.
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Attention: You can interface asset lines to Oracle Assets only after you have transferred the underlying
expenditure items to General Ledger
Note: Ensure that all interface transaction reports and exception reports are
completed successfully, and/or resolved prior to continuing with the period end
Suggestion: Some of the above reports and processes may be run using the Submit Streamline
Processes process. This process ensures processes and reports are run and completed in the correct
order. If you use the Streamline process, the order of some of the above steps may be changed, or
completed more succinctly.
1. 1. 1. 1.
10.
After all the cost distributions processes have completed successfully and all supplier invoices have been
imported from Oracle Payables, run the mass project revenue generation process.
Run PRC: Generate Draft Revenue for a Range of Projects for all projects.
Attention: Concurrent Revenue processes can be run only if the ranges of projects specified for the
processes do not overlap
Run the program PRC: Generate Revenue Accounting Events to generate events for revenue. These events will
be used by Create Accounting process subsequently to generate accounting.
13. 11.RUN CREATE ACCOUNTING TO PROCESS REVENUE
ACCOUNTING EVENTS
This program is owned by SLA. This program is used to generate accounting and Transfer to General Ledger
based on appropriate parameters. If accounting is generated in FINAL mode with Transfer to General Ledger
being set as ‘No’ then run PRC: Transfer Journal Entries to GL with parameters to either post in GL or just to
leave it unposted. If it is transferred unposted General Ledger posting program needs to be submitted.
Attention: Interface processes have become obsolete. The same is achieved by PRC: Create Accounting
Run PRC: Generate Invoices to generate Invoices ready for Interfacing to Oracle Receivables.
Run PRC: Generate Inter-company Invoices for a Range of Projects for all projects.
This process:
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1. 1. 1. 1.
17.
Run the period close exception reports to identify transactions that have not been fully processed, and that
would prevent you from closing the PA period.
The tieback process from GL has become obsolete. Review the report generated by
Create Accounting/Transfer to GL processes for any errors.
Review these reports and make all the indicated corrections. After the corrections
are made, run the reports again until there are no exceptions.
Suggestion: Some of the above reports and processes may be run using the Submit Streamline
Processes process. This process ensures processes and reports are run and completed in the correct
order. If you use the Streamline process, the order of some of the above steps may be changed, or
completed more succinctly. All the streamline options are not available in R12. Some of them have
become obsolete. Please refer to the user guide.
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When changing the status to Closed, the system checks to see if any unprocessed items exist in the period. If
unprocessed items exist, the change of status is not allowed.
Re-run the Period close exception reports to identify the items.
This process needs to be performed for each Operating Unit defined.
20. 17. ADVANCE THE PA REPORTING PERIOD (OPTIONAL)
When you are ready to view the updated summary amounts for the next PA period in the Project Summary
Inquiry window, advance the PA Reporting Period.
Only one period can be designated as the current reporting period for Project Status
Inquiry. The current reporting period does not have to be an open period.
21. 18. UPDATE PROJECT SUMMARY AMOUNTS
To enable users to view the latest data in the Project Status Inquiry Window, you must run a final project
summary update for the current reporting (pending close) PA period.
Attention: The update process cannot run concurrently with the interface processes
Warning: Do not run PRC: Update Project Summary Amounts After Resource List Change during the
closing or post-closing processes.
After the project summary amounts have been updated for the closed, current reporting period, restore access
to user maintenance activities.
23. 20.RECONCILE COST DISTRIBUTION LINES WITH GENERAL
LEDGER (OPTIONAL)
The followng Project Subledger Audit Reports print cost distribution lines related to projects. These reports
enable you to drill down from a GL account balance in the trial balance to the individual project–related
transactions.
When you are satisfied with the closing of the PA period and will not need to reopen the period, change the
status of the PA period to Permanently Closed
1.
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1. Business Requirements
Open Sales Orders should be reviewed and where possible appropriate actions
should be undertaken to finalise the Order Workflows and close these Sales Orders.
2. Procedures
The following steps are taken in performing period-end processing for Oracle Order
Management.
1. 1.COMPLETE ALL TRANSACTIONS FOR THE PERIOD BEING
CLOSED
Ensure that all transactions have been entered for the period being closed:
Closing orders that are complete enhances performance, since many programs,
windows and report queries retrieve open orders only. Orders marked as closed are
not selected, increasing system speed and efficiency. Closed orders are excluded
from many of the standard reports available in Order Management, so reporting can
be limited only to the active orders.
Close lines and close orders are implemented using workflow. Order Management
provides seeded close line and close order workflow sub-processes to close the order
header and line, respectively. These processes, when included in the order header or
line workflow, closes the status of the eligible order or lines. Once an order is closed,
no lines can be added or changed.
The order header close order process checks at the end of every month to see all the
lines associated with are closed. It closes the order header if it finds that all the lines
are closed.
Attention: Be sure to include the standard sub-processes of close line and close order at the end of all
your line and order flows to ensure that your orders and returns close once all prerequisites have been
met.
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Ensure that all interfaces for the current period have been processed:
Order Import from External Order Systems.
If you are using external order processing systems for data entry of orders, use the
Order Import to update Oracle Order Management from your external systems.
Alternatively, if you are using the Order management public API to create orders,
ensure that the processes calling the public API is completed.
Use the Order Import Correction window to examine the orders and optionally
correct data if it fails the import process. Use the Error Message window to
determine if your data failed to import.
Order Import from Oracle Purchasing, for Internal Orders.
If you are using Oracle Purchasing to process Internal Purchase Requisitions, the
following processes need to be completed:
Attention: This Process is only applicable for Order Workflow Definitions that include the Invoice
Interface or Invoice Line processes.
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Attention: Order Management does not process Internal Sales Order lines for the Invoice Interface,
even if the Invoice Interface is an action in the order Workflow Definitions for the Internal Sales Order
transaction type.
Use the Sales Orders Workbench window to review open orders using the Advanced Tabbed Region to
specify controls such as whether to find closed orders/lines and cancelled orders/lines.
The Sales Orders window displays the order header status in the Main tab of the
Order Information tabbed region. The order line status is displayed in the Main tab
of the Line Items tabbed region.
The Workflow Status option on the Sales Orders window Tools menu launches the
workflow status page. The window shows in tabular format all the activities an order
header or line has completed and the corresponding results.
From the status page, you can access the Workflow monitor to see the order or line
status in a more graphical format. This is available through the View Diagram
button.
4. 4. REVIEW HELD ORDERS
Run the following reports to assist with reviewing Sales Orders on hold.
Orders on Credit Check Hold Report
The Orders On Credit Check Hold Report identifies all of the credit holds currently
outstanding for a customer within a date range, or identify why a particular order is
on hold. Order Management allows you to perform a credit check on customer
orders and automatically places orders on hold that violate your credit checking
rules. This report is automatically sorted by customer, currency code, credit check
rule, and order number.
All balances are calculated as they are using the online credit check rule, including
the factor for shipments and receivables for a certain number of days.
Hold Source Activity Report
The Hold Source Activity Report reviews holds placed and removed under a hold
source during the time period you specify. This report indicates the date and the
type of activity for each hold transaction.
Outstanding Holds Report
The Outstanding Holds Report reviews order holds for the customer or customers
you choose. This report displays the order number, order date, ordered items, and
order amount for each order line on hold for each customer you select. It is
automatically sorted by customer, order number, order line, and then order line
detail.
5. 5. REVIEW CUSTOMER ACCEPTANCES (OPTIONAL)
In Pre-Billing Customer Acceptance, once the goods are accepted, invoicing is carried out. In Post-Billing
Acceptance, the revenue recognition process is deferred and linked to customers accepting the shipped goods.
6. 6. REVIEW DISCOUNTS
It is recommended that you review discounts processed as part of the order process to ensure appropriate
discount policies have been followed, and exceptions are clearly identified and reviewed and/or followed up.
Use the following reports:
Order Discount Detail Report
The Order Discount Detail Report reviews discounts applied to orders by order line
detail. This report provides detailed line pricing information, including price list
price, selling price, and discount information.
Order Discount Summary Report
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The Order Discount Summary Report reviews discounts applied to orders. This
report provides order level pricing information, including agreement, salesperson
and total order discount.
7. 7. REVIEW BACKORDERS
Review backlogs and backorders to ensure that these items are current. If required process cancellations for
items/lines which are no longer required.
Backorder Detail Report
The Backorder Detail Report reviews all customer orders that have been
backordered. This report provides details for each order including customer name,
order number, order type of each order, all backordered items and their appropriate
line numbers, total quantity both ordered and backordered, and monetary amounts
of both ordered and backordered quantities.
Backorder Summary Report
The Backorder Summary Report lists all unshipped orders. This report includes only
open orders in an order cycle that includes Pick Release. It displays order
information such as order number, customer name and number, order type,
purchase order, order date, last shipped date, and the monetary amounts ordered,
shipped and outstanding.
This report also includes total amounts for customers and currencies. These
amounts involve totals for shippable items only.
8. 8 REVIEW AND CORRECT ORDER EXCEPTIONS
The following reports should be reviewed, and exceptions corrected, before completing the Order
Management/Receivables period end:
Unbooked Orders Report
Use this report to review orders entered but not booked. They may indicate
incomplete processing, which needs to be corrected/completed, or deleted as
appropriate.
Retry Activities in Error
There are cases when retrying a workflow activity in error will not resolve the
problem. When Exception Management encounters this situation, the workflow
activity is set to Notified instead of being retried.
Sales Order Workflow Status Report
The Sales Order Workflow Status Report enables Order Management users to locate
orders that are not progressing through associated workflows as expected.
9. 9. RECONCILE TO ORACLE INVENTORY
Run the Service Contracts Order Processing Concurrent request to create service contracts for extended
warranties.
11. 11. RECONCILE TO ORACLE RECEIVABLES (OPTIONAL)
Run the following reports to assist in reconciliation of orders invoiced in the period:
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Commercial Invoice (for all ship dates within the current AR period)
The Commercial Invoice Report lists all confirmed shipped items in a delivery. If
only a delivery name is specified when defining the parameters of this report,
Shipping Execution prints one commercial invoice per delivery within the trip.
Order/Invoice Detail Report
The Order/Invoice Detail Report reviews detailed invoice information for orders that
have invoiced. A variety of parameters can be used to print the invoice information
for a specific order or group of orders. If there are no invoices for a particular order
that meets the parameter criteria, Order Management prints in the report that no
invoices exist for that order.
12. 12. RUN STANDARD PERIOD END REPORTS
2.
1. Business Requirements
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 & 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
Payables, 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.
2. Procedures
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The following steps are taken in performing period-end processing for Oracle Cash
Management.
1. 1. COMPLETE DAILY CASH MANAGEMENT ACTIVITIES
Complete bank account transfers for the day, validate them, if necessary, and send payment instructions to the
bank.
2. 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 to Cash Management. Bank statements can be either manually
entered or loaded electronically from information received directly from your bank.
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
3. 3. GENERATE SWEEP TRANSACTIONS
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. 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
inform. Once the bank statements are imported, run the Bank Statement Creation concurrent program. The
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. 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:
Automatic - Bank statement details are automatically matched and reconciled with
subledger transactions. This method is ideally suited for bank accounts, which have
high volumes of transactions.
(Refer Reconciling Bank Statements Automatically)
Manual - This method requires a manual match of bank statement details with
subledger transactions. The 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 couldn't be
reconciled automatically.
(Refer Reconciling Bank Statements Manually)
6. 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.
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Complete the bank account transfer whether it is manual or automatic and record the validation if required
before completing the transfer.
8. 7. REVIEW AUTO-RECONCILIATION EXECUTION REPORT
Once the reconciliation process has been completed, reviewing the reconciliation results is recommended.
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.
This report includes either statement import errors, which prevented the automatic
loading of your bank statement, or your reconciliation exceptions found during the
automatic reconciliation process.
This report lists the details of any miscellaneous transactions that were created in
Receivables during the automatic reconciliation process.
9. 8. RESOLVE EXCEPTIONS ON THE AUTO-RECONCILIATION
EXECUTION REPORT
Resolve the exceptions on the Auto-Reconciliation Execution report by either re-running the import process or
by manually reconciling the exceptions.
10. 9. 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. This report lists 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 only select un-reconciled statement lines.
11. 10.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.
This report 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 regular transactions.
12. 11. RESOLVE UN-RECONCILED STATEMENT LINES
Resolve the un-reconciled statement lines by manually reconciling the Statement lines to the available
transactions.
13. 12. POST TO GENERAL LEDGER
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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.
Important. 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 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.
14. 13. 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:
· Post journals in General Ledger, if transfer from sub-ledgers was not in FINAL POST mode.
1. 1. 1. 1.
16.
Run the Account Analysis Report from General Ledger for the General Ledger Cash Account Flexfield and sort
by Source.
Ensure that only bank account related transactions have been posted to this 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 ADI is used.
17. 15. 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 ADI is used.
18. 16.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.
3.
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1. Business Requirements
Accounts payable activity must be reconciled for the accounting period that is to be
closed. The following steps are taken in performing period-end processing for Oracle
Payables.
The posting level for Oracle Payables must be determined, when planning
period-end procedures. Where detail level accounting transactions are required to
be posted to the general ledger using sub-ledger accounting (hereafter referred to as
SLA), there may be technical constraints involved, relating to the physical data
storage volume, and posting and report processing speed degradation caused by the
sheer volume of posted transactions. In Release 12 the detailed level of posting can
be controlled by GL summarize options and also at SLA journal line type level.
Subledger Accounting can contain all of the detailed subledger accounting level
analysis, so that the General Ledger can remain “thin” and Subledger Accounting
online inquiry and BI Publisher reports can be utilized to report and analyze
balances and their transactions.
2. Procedures
1. 1.COMPLETE ALL TRANSACTIONS FOR THE PERIOD BEING
CLOSED
Ensure that all transactions have been entered for the period being closed.
Completing all transactions for Oracle Payables:
If you import transactions from an external system, or you are using Internet
Expenses or Xpense Xpress, ensure you have imported all transactions, and
reviewed all audit trails for completeness.
One consideration for Accounts Payable where there are multiple operating units
within the same ledger is that all operating units must be ready to close at the same
time. All of the operating units that share a Ledger also share the same period
statuses. When you update the period statuses to ‘Open’ in one operating unit, that
period is opened for all operating units within the ledger.
When you attempt to update the period status to ‘Closed’ in one operating unit, the
system checks for unposted transactions in all operating units within the ledger. If
there are unposted transactions in any of the operating units, the system asks you to
resolve the un-posted transactions for those operating units before it allows you to
close the period for the ledger. If Multi-org Access Control is being implemented,
period closing can be performed across OU’s from a single responsibility, through
one OU at a time.
2. 2. RUN THE PAYABLES APPROVAL PROCESS FOR ALL INVOICES
The Payables Approval process is run to try to approve all unapproved invoices and invoice lines in the system,
so that they can be paid by Oracle Payments and posted to the General Ledger.
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Warning: The report total only shows the net ( less discounts) payment amount, whereas the Posted
Payment Register total is the total payment amount, including discounts. If only verifying report totals,
these two reports would not balance. Therefore it is necessary to subtract the ‘Discounts Taken’ from
the Posted Payment Register report total and then compare this calculated amount to the total
displayed on the Payments Register Report.
Release 12 provides 3 modes of accounting: Final, Final Post and Draft. The transactions that have been
accounted in Final Post have already been transferred to, and posted, in General Ledger. The transactions that
have been accounted in the Final Mode can have been transferred to GL or can still be within the subledger
based on the parameter ‘Transfer to General Ledger’ (either 'Yes or 'No') in the Create Accounting program.
When accounting mode is Final and transfer to GL set to ‘No’ then ‘Payables
Transfer To General Ledger ’ needs to be run from the Standard report submission
(SRS) window.
The transactions in Draft accounting mode can be included on accounting reports
but cannot be transferred to General Ledger. A draft entry does not update balances
and does not reserve funds.
SLA creates detail or summary journal entries for all eligible events when you post.
The journal entries are posted in Oracle General Ledger to update account balances.
Invoice journal entries, debit the expense or other account entered on an invoice
distribution line, and credit the liability account nominated on the invoice, unless
you have modified the SLA rules to create alternative accounting entries to address
your specific business needs.
Payment journal entries, debit the liability account and credit the cash account of the
bank account used to pay and invoice.
The Create Accounting process transfers data to the General Ledger tables, creating
journal entries for these invoice and payment transactions. Posting is determined by
the parameter ‘Post in GL’ which is set during Create Accounting.
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’.
6. 6. REVIEW THE PAYABLES TO GENERAL LEDGER POSTING
PROCESS AFTER COMPLETION.
The following reports can optionally be run to review the invoices and payments that were posted to Oracle
General Ledger, from Oracle Payables, for the period that is to be closed, i.e. the current accounting period.
a. Payables Accounting Process Report
Use this report to review accounting entries created by the Create Accounting
Process. The report has two sections:
Accounting Entries Audit Report. The audit report provides, in detail or summary, a
listing of accounting entries created by the accounting process.
Accounting Entries Exception Report. The exception report lists in detail all
accounting entries that were created with an error status and a description of that
error. The Accounting Entries Exception Report is generated only when the
accounting process encounters accounting entries that fail validation.
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The Unaccounted Transactions Sweep Program transfers unaccounted transactions from one accounting
period to another. Because you cannot close a Payables period that has unaccounted transactions in it, if your
accounting practices permit it, you might want to use this program to change the accounting date of the
transactions to the next open period. For example, you have invoices for which you cannot resolve holds before
the close, and your accounting practices allow you to change invoice distribution GL dates. Submit the program
to change invoice distribution GL dates to the first day of the next open period so you can close the current
period.
The ‘Unaccounted Transactions Sweep Program’ will not roll forward accounted
transactions, or accounted transactions with error. To create successful accounting
entries for accounted transactions with error, correct any accounting errors and
resubmit the Create Accounting Process.
The program transfers unaccounted transactions to the period you specify by
updating the GL dates to the first day of the new period. You can then close the
current accounting period in Oracle Payables.
In the Control Payables Periods window if you try to close a period and
unaccounted transactions exist, then Payables opens a window. From the window
you can submit the Unaccounted Transactions Sweep Program or you can submit a
report to review accounting transactions that would be swept by the program. When
you submit the Unaccounted Transactions Sweep Program, Oracle Payables
automatically produces the Unaccounted Transactions Sweep Report to identify
transactions that were re-dated and identify any transactions that need updating. If
you submit the report in preliminary sweep mode the Unaccounted Transactions
Sweep Review report shows which transactions will be re-dated if you submit the
Unaccounted Transactions Sweep Program.
8. 8. CLOSE THE CURRENT ORACLE PAYABLES PERIOD
Close the accounting period by using the Control Payables Periods window to set the Period Status to Closed.
This process automatically submits the ‘Subledger Period Close Exceptions Report’.
The Subledger Period Close Exceptions Report lists all accounting events and
journal entries that fail period close validation. It is automatically submitted by
General Ledger when closing a GL period if there are unprocessed accounting events
or un-transferred journal entries.
You can also generate the Subledger Period Close Exceptions Report through a
concurrent request as follows:
· For the application associated with the responsibility
· For all applications in the General Ledger responsibility
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This report is used to facilitate reconciliation of the total accounts payable liabilities
in Oracle Payables, with the Oracle General Ledger Creditors Control Account, for a
specific accounting period. The Accounts Payable Trial Balance Report is a BI
Publisher report, which is based on a Subledger Accounting extract and enables you
to identify the open Accounts Payable transactions that make up each Accounts
Payable balance.
This report lists, and sub-totals, by vendor, all unpaid and partially paid invoices for
which Oracle Payables created journal entries (i.e. posted invoices). These invoices
represent the outstanding accounts payable liability for the organization.
To obtain the most up-to-date trial balance for a given period, journal entries should
be posted for the invoice and payment activity for the period, prior to running the
report.
For reconciliation of Oracle Payables and Oracle General Ledger when posting is only
performed at period end, the following reconciliation method can be used:
Use the following reports to reconcile your transferred invoices and payments to
your Accounts Payable Trial Balance to ensure that your Trial Balance accurately
reflects your accounts payable liability:
Accounts Payable Trial Balance (for last day of prior period)
Payables Posted Invoice Register - Invoice journals must be posted in general ledger
to appear on this report.
Payables Posted Payment Register - Payment journals must be posted in general
ledger to appear on this report.
Accounts Payables Trial Balance (for last day of current period) - This balancing
process will help you ensure that all liabilities recorded in Payables are reflected in
the general ledger AP liability accounts. If the balance reported by the accounts
payables trial balance does not equal the balance in the AP liability account, you can
use the Account Analysis report and the General Ledger reports to determine what
journals are being posted to that account. Before running your reports, run the
Transfer Journal Entries to GL Program for all transactions in the period that you
are reconciling. Also, be sure to post the transactions in the general ledger.
Attention: Typical AP/GL Reconciliation Example
31st March Accounts Payables Trial Balance Report
+ April Payables Posted Invoice Register
–April Payables Posted Payment Register
–- 30th April Accounts Payables Trial Balance Report
=0
Attention: When posting to the General Ledger is performed multiple times throughout each
accounting period, the Posted Invoices Register and Posted Payments Register reports must be
run after each posting run, for reconciliation of Oracle Payables liabilities with Oracle General Ledger’s
Creditor Control.
This report is used to display balance and account activity information for
Suppliers and Customers. It retrieves the following information:
· Third party balances for third party control accounts
· Subledger journal entry lines that add up to the total period activity for each control account, third party, and third party site
· Third party and third party site information
· User transaction identifiers for the associated event
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The balances in this report can be compared with the General Ledger balances for
the same control accounts to reconcile.
After you have completed all Payables transaction entry, and confirmed all invoice holds, and carry forwards,
submit the Mass Additions Create program to transfer capital invoice line distributions from Oracle Payables to
Oracle Assets.
For foreign currency assets, Payables sends the invoice distribution amount in the
converted functional currency. The mass addition line appears in Oracle Assets with
the functional currency amount.
After you create mass additions, you can review them in the Prepare Mass Additions
window in Oracle Assets.
It is recommended to do a final Mass Additions Create after the period close to
ensure that all Payables invoices are
Suggestion: If the volume of transactions in Accounts Payable requiring Assets update is large,
you should consider running the Mass Additions Create process on a more regular basis.
Open the next accounting period by using the Control Payables Periods window to set the Period
Status to Open.
13. 13.
RUN REPORTS FOR TAX REPORTING PURPOSES
(OPTIONAL)
A variety of standard reports can be used to provide tax information, which is required to be reported
to the relevant Tax Authority, including withholding tax.
Withholding tax is handled by Payables whereas other tax requirements are
handled by eBTax.
The E-Business Tax data extract draws tax information from each application
and stores the data in an interface table. Output from the tax extract is
designed to look as close to a simple tax report as possible.
The tax extract copies the accounting information from each application and
stores it in an interface table. You can use the available reporting tools,
including RXi, Oracle Reports, or XML Publisher to specify which fields of
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the Tax Reporting Ledger to include and to print the report in a format that
meets your needs.
The following tax registers are available:
· Deferred Output Tax Register
· Recoverable and Non-Recoverable Tax Registers
· Single Cross Product Tax Register
· Standard Input and Output Tax Registers
The following summary levels are available within each Tax Register:
· Transaction Header
· Transaction Line
· Accounting Line
This report enables review of the Accounts Payables department’s productivity. This statistical
information can be useful for cash flow analysis and forecasting purposes, when combined with similar
information from Oracle Accounts Receivables.
When you submit the Key Indicators Report, Payables generates reports you
can use to review Payables transaction activity, and review the current
number of suppliers, invoices, payments and matching holds in your
Payables system.
The Key Indicators Report generates the following two reports:
a. The Key Indicators Current Activity Report
Use the Key Indicators Report to review your accounts payable department's
productivity. The Key Indicators Report provides current activity indicators
that compare current period activity with prior period activity in three major
areas: suppliers, invoices, and payments. Payables further breaks down each
category into basic items, exception items, and updates. The report provides
the number of transactions for each indicator (such as number of automatic
payments printed during a period) and amount values where applicable to
the Key Indicator (such as total value of automatic payments written during a
period).
b. Key Indicators Invoice Activity Report
Report that compares the invoice activity for each of your accounts payable
processors during the period you specify and the previous period. Oracle
Payables produces this report only if you choose Yes for the Include Invoice
Detail parameter.
c. The Key Indicators State of the System Report
The Key Indicators State-of-the-System Report provides a period-end view
of Oracle Payables, as well as average values. For example, the Key Indicators
State-of-the-System Report includes:
Suppliers:
· Number of suppliers.
· Number of supplier sites.
· Average sites per supplier. The number of sites divided by the number of suppliers.
Invoices:
· Number of invoices.
· Number of invoice distributions.
· Average lines per invoice. The number of invoices divided by the number of distributions.
· Scheduled payments. Number of scheduled payments based on payment terms and manual
adjustments in the Scheduled Payments tab.
· Average payments per invoice. The number of invoices divided by the number of scheduled
payments.
Payments:
· Number of payments (both manual and computer generated) created and recorded in Payables.
· Invoice payments. Number of invoice payments made by Payables. A payment document can pay
multiple invoices.
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· Average invoices per payment. The number of payment documents divided by the number of
invoice payments.
Matching holds:
· Matching holds. The number of matching holds in Payables.
Average matching holds per invoice on matching hold. The number of
matching holds divided by the number of invoices on matching hold.
15. 15. PURGE TRANSACTIONS (OPTIONAL)
You can delete Oracle Payables or Oracle Purchasing records that you no longer need to access on-line
to free up space in your database. You can purge invoices, purchase orders, suppliers, and related
records such as invoice payments and purchase receipts.
Warning: After a record is purged, it can no longer be queried, and the record will no longer
appear on standard reports. However, the system maintains summary information of deleted
records to prevent you from entering duplicate invoices or purchase orders.
Suggestion: You should create a special responsibility for purging information from Oracle
Payables and Oracle Purchasing and assign this responsibility only to the person responsible for
purging information from your database.
16.
16. Procedures
The following steps are taken in performing period-end processing for Oracle
Receivables.
0. 1.
COMPLETE ALL TRANSACTIONS FOR THE PERIOD BEING
CLOSED
Ensure that all transactions have been entered for the period being closed.
Completing all transactions for Oracle Receivables:
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Reconcile the transaction activity in Oracle Receivables before posting to the General Ledger using SLA.
This reconciliation process checks that Oracle Receivables transactions are balanced, ensuring that all
items eligible for posting are reflected on the Sales Journal. Run the following reports for the same
accounting period date range:
a. The Transaction Register
This report details all the transactions (i.e. invoices, debit memos, credit
memos, deposits, guarantees and chargeback) entered with a GL date
between the period start and period end dates specified for the period being
reconciled. This report shows transactions entered and completed.
b. The Sales Journal By Customer Report and the Sales Journal By GL
Account Report
This report enables review of all transactions for the specified period. The
summary totals for the sales journal are by Posting Status, Company, and
Transaction Currency. This report details, by account type (i.e. receivables,
revenue, freight, tax), the general ledger distributions for posted and/or
un-posted invoices for the specified period.
The total on the Sales Journal by GL Account should equal the total of items
eligible for posting as listed on the Transaction Register. If any discrepancies
are evident, research the customer balances to find out which balance does
not tally, using the Sales Journal by Customer report.
By using the following formula, ensure that the Transaction Register
matches the Sales Journal:
Transaction Register (Items eligible for posting) + 2 * Credit Memo Total =
Sales Journal (Debits plus Credits)
E.g. $100 + (2 * $20) = Debits $120 + Credits $20
($120 Debits - $20 Credits)
Attention: The Transaction Register total for any credits must be adjusted, as they are negative
on the Transaction Register and positive on the Sales Journal.
Attention: Ensure that the monthly transaction total is accurate and that no distribution issues
exist.
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SLA groups the report by ledger, ledger currency, source, category, and event
class. Data is then sorted by accounting date, event type, supplier name,
document number, and voucher number.
Note: To avoid duplication with subledger journal entries, General Ledger
journal entries imported from Subledger Accounting are not included in the
report
d. Review the AR to GL Reconciliation Report:
The AR to GL Reconciliation report compares the account balances in Oracle
Receivables to those in Oracle General Ledger, and highlights journal sources
where discrepancies might exist. This report simplifies the reconciliation
process by comparing Receivables and General Ledger account balances in a
single place.
Run the AR to GL Reconciliation report:
1. 1. You have reviewed the Unposted Items report to confirm that all journal entries have posted, and
1. 1. You have used the posting execution reports to confirm that the journal entries exported from
Receivables match those posted in General Ledger.
Reconcile the outstanding customer balances at the beginning of a specified period with the ending
balance for the same period, using the following formula, known as the Roll Forward Formula:
Period-End Balance = Outstanding Balance at Start of Period +
Transactions + Adjustments - Invoice Exceptions - Applied Receipts
- Unapplied Receipts
The following list represents the various components that affect a customer’s
balance and the reports, which can be run and reviewed to reconcile these
components:
Component Report
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Applied Receipts Applied Receipts Register (Identify payments received from customers)
Ending Balance Aging report (As of the last day of the accounting period)
Attention: You can 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
in the aging reports.
Use the Unapplied Receipts Register to review detailed information about your customers’ on-account
and unapplied payments for the date range that you specify. You can use this report to determine how
much your customer owes after taking into account all on-account and unapplied amounts. Receivables
displays information about your on-account or unapplied payment such as GL date, batch source, batch
name, payment method, payment number, payment date, on-account amount, and unapplied amount.
This report includes both cash and miscellaneous receipts.
If any of the Receipts listed can now be applied to outstanding transactions,
then perform this action by re-querying the receipts and following the normal
application procedure.
2. 5. RECONCILE RECEIPTS
Ensure that Oracle Receivables receipts balance by running the following reports:
Receipts Journal Report
This report displays details of receipts that appear in the Journal Entry
Report. The Journal Entry Report shows the receipt numbers that
contribute to a particular GL account. Using the receipt number, you can
review the detailed information on the Receipts Journal Report.
Receipt Register
Use this report to review a list of receipts for a specified date range.
Attention: Normally the total of the Receipts Journal report should equal the total of all the
receipts in the Receipt Register for the same GL date range. Unfortunately currently (January
2009) this is not always the case. See the following Metalink bugs and enhancement requests for
more details:
Note 393682.1: Unable to Reconcile Receipt Register to Receipt Journal – Enhancement 5567693
is still pending.
Bug 7423482: Receipt Register and Receipt Journal do not show on-account activity – deemed
functionality.
Bug 7589198: Receipt Register does not match Receipt journal – still in progress.
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Attention: The Create Accounting process must be re-run for any miscellaneous accounting
entries generated from the bank reconciliation, for transfer to the General Ledger. This program
is owned by SLA and can be run both from the transactions screen and also from the SRS screen.
Prior to posting to the general ledger, the Receipts Journal Report and Sales Journal display the
transactions that would be posted to the General Ledger (providing the posting process was run for the
same GL date range). After internally reconciling the transactions and receipts using these two reports,
it is possible to perform external reconciliation during and after the posting process.
The posting process for Oracle Receivables involves a single step:
Create Accounting: This request-owned by SLA can be submitted from
the tr1ansactions screen or even from the SRS screen. The accounting is done
at the ledger level and the program has the ability to transfer and import into
General Ledger based on the parameters specified.
If create accounting is submitted in the ‘Final’ mode without transferring it to
GL, the entries will have to be transferred separately.
5. 8. RECONCILE THE GENERAL LEDGER TRANSFER PROCESS
The Create Accounting program produces the Subledger Accounting Program report that shows you
the subledger journal entries created for successful accounting events. Compare this report to the
Journal Entries report (run in Posted status mode) and verify that they match. Use the same General
Ledger date ranges for the Journal Entries report and the Create Accounting program.
Create Accounting will generate a report which details the transferred
transactions, transactions in error etc.
Once transactions and receipts have been transferred to the GL tables,
Oracle Receivables regards these items as having been ‘posted’ within the
sub-ledger. Account balances for transactions and receipts can be reconciled
by generating the Sales Journal by GL Account Report, the Receipts
Journal Report (in ‘transaction’ mode) and the Journal Entries Report
for posted items. The account totals in the Sales and Receipt journals
should match the corresponding account balances in the Journal Entries
Report.
Attention: The ‘Detail by Account’ version of the Journal Entries Report may be the most
useful for reconciliation in this case.
Create Accounting program submits journal import automatically. Journal Import produces an
execution report detailing the total debits and credits for the journals created by the import process
These totals must match the totals on Subledger Accounting Program report.
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When the Create Accounting Program is submitted with the posting mode as
‘Final Post’, then the Journal Import produces an execution report that
shows you the total debits and credits for the journals it created. These totals
should match the totals on the Journals - (180 Char) report totals (Select
posting status as ‘Posted’)
When the Create Accounting Program is submitted with the posting mode as
‘Final’ then journal import process produces an execution report that shows
you the total debits and credits for the journals it created. These totals
should match with the totals on the journals- (180 Char)- report (Select
posting status ‘Unposted’while executing the program)
‘Draft’ method is used to create accounting to determine the accounting
impact of their entries Draft entries can be included on accounting reports
but cannot be transferred to General Ledger. A draft entry does not update
balances and does not reserve funds.
7. 10. PRINT INVOICES
Once you are satisfied that customer balances are reconciled, ensure all the invoices generated during
the month have been printed and issued.
If Balance Forward Billing functionality is used, then ensure that the
consolidated (BFB) invoices have been generated for the current period.
Note: Balance Forward Billing replaces consolidated billing invoices (CBI)
feature of 11i. For more information on the setup of balance forward billing
refer to Oracle Receivables Implementation Guide Or Oracle Receivables
User Guide 12.
8. 11. CLOSE THE CURRENT ORACLE RECEIVABLES PERIOD
Close the current period in Oracle Receivables using the Open/Close Accounting Periods window.
9. 12.
REVIEW THE SUBLEDGER PERIOD CLOSE EXCEPTIONS
REPORT:
The Subledger Period Close Exceptions Report lists all accounting events and journal entries that fail
period close validation. It is automatically submitted by General Ledger when closing a GL period if
there are unprocessed accounting events or un-transferred journal entries.
You can also generate the Subledger Period Close Exceptions Report through
a concurrent request as follows:
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After running the GL posting process in Oracle General Ledger, for the transactions, which were
transferred in FINAL mode and with Post in GL being set to NO, run the Journals –(180 Char) with a
Posting Status of Posted from the Oracle General Ledger, and verify that the grand totals from this
report match the Journal Import Execution Report.
1. 15. REVIEW THE UNPOSTED ITEMS REPORT
Oracle Receivables prints the Unposted Items Report for all items that are not posted for the specified
GL date range. Run the request from the Submit Requests window. The output will consist of all items
not posted in GL for the specified GL date range.
Using the Submit Requests window to generate this report, submit with a GL
date range for at least the current financial year. This report should not
generate any output if all Receivables transactions have been successfully
posted to General Ledger.
If there are any items not posted for the current or prior periods, then
re-open both appropriate Receivables and General Ledger Periods and
initiate another posting.
2. 16. REVIEW ACCOUNT ANALYSIS REPORT
The Account Analysis Report provides drill-down information about the movement on a particular
account for a period or range of periods. It only includes journal entries transferred to and posted to
General Ledger.
Review this report and compare it with Third Party balances report.
This report is owned by SLA.
Note: To avoid duplication with subledger journal entries, General Ledger
journal entries imported from Subledger Accounting are not included in the
report.
3. 17. OPEN THE NEXT ORACLE RECEIVABLES PERIOD
Open the next period in the Oracle Receivables using the Open/Close Accounting Periods window.
4. 18.RUN REPORTS FOR TAX REPORTING PURPOSES-EBTAX
(OPTIONAL)
A variety of standard reports can be used to provide tax information, which is required to be reported
to the relevant Tax Authority, including withholding tax.
The E-Business Tax data extract draws tax information from each application
and stores the data in an interface table. Output from the tax extract is
designed to look as close to a simple tax report as possible.
The tax extract copies the accounting information from each application and
stores it in an interface table. You can use the available reporting tools,
including RXi, Oracle Reports, or XML Publisher to specify which fields of
the Tax Reporting Ledger to include and to print the report in a format that
meets your needs.
The following tax registers are available:
§ Deferred Output Tax Register
§ Recoverable and Non-Recoverable Tax Registers
§ Single Cross Product Tax Register
§ Standard Input and Output Tax Registers
The following summary levels are available within each Tax Register:
§ Transaction Header
§ Transaction Line
§ Accounting Line
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The Archive and Purge cycle is divided into four separate processes, Selection and Validation, Archive,
Purge, and optionally Copying to a file. The Selection and Validation and Archive processes form the
Archive-Preview program. This program selects eligible transaction using criteria you specified,
validates the data to identify the transaction chains, then stores this information in the archive tables.
The Purge program uses the information in the archive tables to delete eligible transactions from the
database tables. Alternatively, you can run selection and validation, archive, and purge processes
together using the Archive and Purge program. The final process is to transfer the archive data to a
separate storage medium.
Warning: You should not use the Receivables Archive and Purge program if you are using cash
basis accounting.
20.
20. Procedures
The following steps are performed while closing the period in Oracle
Purchasing.
0. 1.
COMPLETE ALL TRANSACTIONS FOR THE PERIOD BEING
CLOSED
Ensure that all transactions have been entered for the period being closed.
Complete all transactions for Oracle Purchasing:
1. 1. Complete Requisitions
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been approved. Users should close all FYI notifications and respond to those
that require a response. Closing FYI notifications is Optional.
0. 2.REVIEW THE CURRENT AND FUTURE COMMITMENTS
(OPTIONAL)
From the details obtained from the Purchase Order Detail Report regarding purchase orders not
received, the appropriate department can then follow up with the suppliers as to the status of the
ordered items.
If the goods have been received, but the receipt has not entered into Oracle
Purchasing, then the receipt transaction needs to be entered by the
appropriate personnel.
Attention: Where you have selected to accrue receipts at period end, make sure that all
receipts have been entered for a specific period before creating receipt accruals for that period.
It is not necessary to enter all the receipts for a period prior to closing that
period. Simply backdate the receipt date when entering receipts for a closed
period.
Warning: Where you have Oracle Inventory installed, it is not possible to process a receipt to a
closed Purchasing period.
1. 5.IDENTIFY AND REVIEW UN-INVOICED RECEIPTS
(PERIOD-END ACCRUALS)
Run the Un-invoiced Receipts Report to review receipts for which the supplier invoice has not been
entered in payables. Receipt accruals can be reviewed by account and by item. This report indicates
exactly what has to be accrued, and for what amount, and helps in the preparation of accrual entries.
2. 6. FOLLOW UP OUTSTANDING INVOICES
For any items identified to have been received but not invoiced, the appropriate department can then
follow up the details from the Un-invoiced Receipts Report with the supplier. Entering of invoices,
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matching of unmatched invoices, and resolution of any invoice holds, where possible, should be carried
out at this point in the period-end process.
3. 7. COMPLETE THE ORACLE PAYABLES PERIOD-END PROCESS
Complete the steps to close the Oracle Payables period, which corresponds to the Oracle Purchasing
period being closed, to enable creation of receipts accrual entries. Performing the Oracle Payables
Period-End process effectively prevents any further invoices or payments being entered into Oracle
Payables for the closed period.
4. 8. RUN THE RECEIPT ACCRUALS - PERIOD END PROCESS
Run the Receipt Accruals - Period-End Report to create period-end accruals for un-invoiced receipts
for Expense distributions for a specific purchasing period. Each time the process is run, Oracle
Purchasing creates an un-posted journal entry batch in the General Ledger for the receipt accruals.
Journal entries are created for the amount of the receipt liabilities, debiting the charge account and
crediting the Expense AP Accrual Account.
If encumbrance or budgetary control is being used, another journal entries
batch is created, corresponding to the encumbrance reversal entries for the
un-invoiced receipts that were accrued. Reversal of accrual entries for the
next period will happen automatically if:
the Profile option ‘GL: Launch Auto Reverse After Open Period' is set to 'Y'
and for the accrual journal category the reverse option is selected.
If the profile option set to ‘N’ then accrual entries needs to be reversed
manually.
Oracle Purchasing creates accrual entries only up to the quantity the supplier
did not invoice for partially invoiced receipts.
Attention: This step is only required if the Accrue Expense Items flag is set to Period End, on
the Accrual tabbed region of the Purchasing Options window for the current Organisation.
When the Accrue Expense Items flag is set to At Receipt, a reversal is not required.
If encumbrance or budgetary control is being used, Oracle Purchasing reverses the encumbrance
entry when creating the corresponding accrual entry.
Identify the purchasing period for the receipt accrual entries. Oracle Purchasing creates receipt
accruals for all receipts entered up to the end of the nominated period.
This process can be run as many times as needed.
Attention: The Receipt Accruals Period End Program creates accounting in the receiving sub
ledger only. The Create Accounting Program has to be run to create SLA journals, which in turn
will trigger the journal import.
Identify the period-end balances of the following accounts in the General Ledger:
Reconcile the balance of the Purchase Price Variance account using the
Purchase Price Variance Report
Manually remove the Invoice Price Variance amount from the A/P Accrual
Account using your General Ledger
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Identify the Invoice Price Variances amount and Accrued Receipts amount in
the A/P Accrual Account. Run the Invoice Price Variance Report for the
current period. Identify the invoice price variance for all purchase orders
charged to the Inventory A/P Accrual Account and compare it with the
balance of the Invoice Price Variance account in the General Ledger.
At any given time, the following transactions can account for the balance in
the A/P accrual account:
1. Uninvoiced Receipts
Over-invoiced Receipts
Errors (Invoices or inventory transactions charged to this Account by mistake)
You need to analyze the balance of the A/P accrual accounts, distinguish
accrued receipts from invoice price variances, and identify errors.
The Accrual Reconciliation Reports are used to analyse un-invoiced
receipts and to reconcile the balance of the AP accrual accounts. These
reports enable you to identify the following issues in receiving, purchasing,
inventory, work in process, or accounts payable transactions:
The Accrual Reconciliation Report Group consists of one program and three
reports as mentioned previously. These are discussed below:
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for the matched and approved invoice, Oracle Payables clears the AP accrual
accounts and records the liability from the supplier site and helps you
monitor potential problems with purchasing and receiving activities that can
affect the accuracy of your A/P AccrualAccounts. It displays the balance of
each accrual account as well as partial representation of source of the balance
After researching the reported accrual balances, the Accrual Write-Offs
window can be used to indicate which entries are to be removed and written
off from this report. Accounting entries have to be created in SLA and GL for
these write-off transactions by submitting the Create Accounting program
and hence manual adjustment of accrual entries is not required.
The Reconciliation Reports can help in monitoring potential problems
with purchasing and receiving activities that can affect the accuracy of the AP
accrual accounts.
The Reconciliation reports also provide information on the quantity
differences (the quantity received for a purchase order shipment is less than
the quantity invoiced) and price differences. Ensure that prior to closing the
period, these differences are resolved.
Prerequisites:
Attention: Most commercial installations accrue expense receipts at period end, as the
information is not required as the receipt occurs. If expense purchases are accrued on
receipt, more entries must be reconciled in the Accounts Payable accrual accounts. If you
also receive inventory, the Receiving Value Report by Destination Account must be run to
break out the receiving/inspection value by asset and expense.
Attention: For Oracle Purchasing, all transactions are created in purchasing and need
the GL Transfer Program to be run to transfer to GL.
For Oracle Inventory, and Oracle Work In Progress, a GL transfer or period close must
first be performed for the transactions to appear on these reports.
For Oracle Payables, journal entries must be created for the invoices.
The Accrual Reconciliation Reports requires the transactions to be transferred to
the General Ledger interface to ensure the report balances to the General Ledger.
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Attention: You must complete the Year End Encumbrance processing in Oracle
Purchasing before commencing the year end Encumbrance processing in Oracle
General Ledger.
(Refer to Chapter 11 Period-End Procedures for Oracle General Ledger)
1.
· The steps required to complete Year end Encumbrance
processing in Oracle Purchasing are:
· a. Identify Outstanding Encumbrances
· Print the Encumbrance Detail Report to review the requisition
and purchase order encumbrances, if the encumbrance option
for requisitions or purchase orders has been enabled, and
requisitions and purchases have entered and approved. Use
this report to review the accounts encumbered.
· The Encumbrance Detail Report reflects activity from General
Ledger, not Purchasing or Oracle Payables. Therefore, use the
Encumbrance Detail Report in a way that matches the
accounting method:
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1. Document Type
Supplier Name
Accounting Flexfield Range
Run MassCancel
When this process is run, Oracle Purchasing creates journal
entries to zero out the encumbrances associated with the
canceled requisitions and purchase orders.
Attention: If you wish to cancel both purchase orders and requisitions, you
must initiate MassCancel twice. Note that when canceling a purchase order, you
have the option of canceling the original requisition at the same time
11. 11.
CLOSE THE CURRENT ORACLE PURCHASING
PERIOD
Close the current Purchasing Period in the Control Purchasing Periods window. Oracle
Purchasing automatically un-marks all the receipts previously accrued to ensure that
these receipts can be accrued again if they are still not invoiced in the next accounting
period (where you have selected to accrue receipts at period end).
12. 12.
OPEN THE NEXT ORACLE PURCHASING
PERIOD
Open the next purchasing period in the Control Purchasing Periods window.
13. 13.
RUN STANDARD PERIOD END REPORTS
(OPTIONAL)
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12.
0. Business Requirements
The period close process for Oracle Inventory enables
summarising of costs related to inventory and manufacturing
for a given accounting period. These costs are then
transferred to the General Ledger for posting.
Oracle Inventory and Oracle Cost Management provide the
required features to affect the necessary period-end
procedures to:
1.
1.
0. Procedures
The following steps are taken in performing
period-end processing for Oracle Inventory.
1. 1.
COMPLETE ALL TRANSACTIONS FOR THE
PERIOD BEING CLOSED
1.
Ensure that all issues, shipping, receipts, and adjustments have been
entered and verify that no hard copy records exist or are awaiting data
entry, e.g. packing slips in receiving.
Check the Interface Managers window to ensure that there are no background
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Check and fix any rejected transactions : from the “Inventory Accounting Period
Window” click on the pending button to display pending transactions. This will
display transactions under the following statuses:
Resolution Required: displays the number of
unprocessed material transactions, uncosted material
transactions, and pending WIP costing transactions
existing in this period. These must be resolved before
the period is closed.
Resolution Recommended: Displays the number
of pending receiving transactions, pending material
transactions, and pending shop floor move
transactions existing in this period. Though the
accounting period can be closed, once it is closed
these transactions cannot be processed in that period.
Attention: This process needs to be completed for each Inventory
Organisation defined.
1. OM / Shipping / Interfaces
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Attention: If this step was by-passed, and the period was closed, a GL
Transfer would automatically be initiated, but no adjustments to that
period could then be entered, since transactions cannot be posted to a
closed period, and a closed period cannot be re-opened.
Prior the first day of data entry, open the next inventory period using the
Inventory Accounting Periods window.
Complete all steps required to close Oracle Payables and Oracle Purchasing.
Oracle Payables is closed prior to Oracle Purchasing to enable running of
purchase accruals to accrue expenses on un-invoiced receipts.
If Oracle Purchasing or Oracle Inventory are closed, a
receipt cannot be entered for that period. However, as
a manual procedure, Oracle Purchasing should be
closed before Oracle Inventory. This still allows
miscellaneous transactions corrections in inventory.
7. 7.CLOSE THE CURRENT INVENTORY
PERIOD
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1. Closes the open period for Oracle Inventory and Oracle Work in
Process.
Check that the perpetual inventory value up to the end of the period being closed
matches the value reported in the General Ledger. The balance normally matches
with the General Ledger balance. But Journal entries from products other than
Oracle Inventory, may create discrepancies.
The following reports can be run to help with these
reviews:
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