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Fusion Receivables Reconciliation - Detailed Information and Troubleshooting (Doc ID 2096932.1) To Bottom

In this Document   Was this document helpful?  

Purpose Yes
No
  Overview    

  A. How are accounts reconciled to general ledger?

  Document Details  
  B. Steps to be Completed before running the AR Reconciliation Report
  C. Reconciliation:
Type:
Troubleshooting Steps Status: TROUBLESHOOTING
  Helpful SQL Statements: Last PUBLISHED
Major
Mar 19, 2018
  Problems & Solutions: Update:
Sep 30, 2019
Last
  1. Should Receivable to Ledger Reconciliation report show Miscellaneous Receipt? Update:
2. The values in the "Receivables Amount" column remain the same irrespective of the balancing segment prompt value,
 
   

while the "Accounting Amount" does respond (change).

  Related Products  
  3. Account is not being picked up for reconciliation.
Oracle Fusion Receivables
References
Cloud Service
Oracle Fusion Receivables
   

APPLIES TO:
  Information Centers  

Oracle Fusion Receivables Cloud Service - Version 11.1.5.0.0 and later Information Center: Fusion

Receivables (AR) [1362542.2]
Oracle Fusion Receivables - Version 11.1.5.0.0 and later
Information in this document applies to any platform.
Information Center: Patching

Issues with Fusion Financials
Management (FM)
PURPOSE [1625192.2]
   

Overview   Document References  

Reconciliation is the process by which the transactional data recorded in subledgers is compared with the accounting data How To Setup The Financial
Category On Account Segment
generated by subledger accounting to create the journal entries that post to the general ledger. The reconciliation report allows
Values for Receivables
a coherent view of the data from each of these modules: Receivables (AR), Subledger Accounting (SLA) and General Ledger [1552383.1]
(GL), to confirm their data agrees and is represented as intended, without corruption.    

Use the Receivables to General Ledger Reconciliation report to facilitate the reconciliation of receivables data to the general
  Recently Viewed  
ledger.
AR Receivables To GL
Receivables provides the tools to reconcile the subledger (AR) with General Ledger. Reconciliation Report Shows
Differences With Natural
Internal reconciliation involves reconciling the customer accounts, transactions, and receipts. Once the transactions are posted to Account Filter [2598562.1]
the general ledger, then one can reconcile subledger (AR) with the general ledger by verifying that all the correct journal entries Fusion Payables : The AP to GL
were made. Reconciliation Report in
Summary Show Variance
[1501418.1]
A. How are accounts reconciled to general ledger? Payables to Ledger
Reconcilation Report in Fusion
The Receivables to General Ledger Reconciliation report only reconciles accounts receivable for accrual basis accounting, Financials "A numeric
and only reconciles accounting in the primary ledgers. value was expected (received

"*)nqgtu(*").&quot
[2138155.1]
The Receivables to General Ledger Reconciliation report reconciles the transaction types that impact the accounts
receivable in general ledger. These include: FNDFFIIF: What is the

Reconciliation Account Segmen
Qualifier? [1041211.6]
Invoice
General Ledger FAQ for
Debit memo Flexfields [399798.1]
Credit memo
Show More
On-account credit memo    

Chargeback
Adjustment
Applied receipt
On-account receipt
Unapplied receipt
Unidentified receipt
Bills Receivable
Bills Receivable Application

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10/06/2021 Document 2096932.1
On-account credit memo refund amounts and on-account credit memo gain or loss amounts are included in the Invoices
section of the Reconciliation report, because they affect the open balance of the receivable amount of the credit memo.
In all cases the intent is to close the credit memo, so both the original credit memo and the activity against it are
displayed.

The report also reconciles manual journal entries created in the Receivables subledger.

B. Steps to be Completed before running the AR Reconciliation Report

Before running the AR Reconciliation report, the following steps have to be completed.

1. Complete month-end activities such as importing billing information, applying receipts and approving adjustments.
2. Run Create Receivables Accounting for the period to final account activity and post to the general ledger.

3. Set the Receivables period status to Close Pending.

When you drill down in the Receivables to General Ledger Reconciliation report, you see real-time details that make up balances
from the summary report. In order to guarantee that the summary balance for each type of activity agrees with the drilldown
detail, you must ensure that you limit access to an accounting period when you run the Extract Reconciliation Data from
Receivables to General Ledger program. Otherwise additional activity might be added to that period after the extract has run.

That is the reason why it is suggested to set the accounting period status to Close Pending.
Reopen the period if adjusting entries need to be added. You must ensure that the subsequent
accounting period is open, in
order that business operations continue during the reconciliation process.

C. Reconciliation:

It is a 2 step process.

Step 1: Create Extract - This prepares the data and creates the data into the Interim Tables.

For this, Run the Prepare Receivables to General Ledger Reconciliation program to select data for the Summary section of the
Receivables to General Ledger Reconciliation Report.

Intelligence.
This must be run prior to viewing the report in Business

Schedule (ESS) Name: Prepare Receivables to General Ledger Reconciliation

Description: Prepares transaction and accounting information for reconciling Oracle Fusion Receivables to Oracle Fusion General
Ledger

Below is a screen shot of the Prepare Receivables to General Ledger Reconciliation ESS

Parameters:

a. Request Name:
                 Enter
a name that is descriptive of this extract. This request name has to be selected when the actual reconciliation
report is run.
Consider using
name that indicates the accounting period, date, and time, especially if one is planning to create multiple
extracts.

b. Ledger:
               
The ledgers available for selection are based on your security assignment.

c. Business Unit:

parameter if you need to reconcile by a specific organization.
               Use this

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10/06/2021 Document 2096932.1
Note - If your business unit is implicitly mapped to the primary balancing segment value in the chart of accounts, you can run
the report to reconcile by either business unit or ledger. If there is no implicit mapping, then you must reconcile by ledger.
This mapping is not defined anywhere in Oracle Fusion Receivables or Oracle Fusion General Ledger.

d. Accounting Period:
               Either Open or Closed accounting periods can be selected based on the requirement.

e. Include Intercompany Transactions:

               You can include or exclude Intercompany transactions, or you can reconcile by Intercompany activity only.

f. Include On-Account Items:

               You can include or exclude on-account activities, unapplied receipts, and unidentified receipts.

Note - You may want to exclude these activities if they typically post to non-receivable accounts. If you include activities that
post to non-receivable accounts, this can cause an accounting difference.

g. Include Unapplied and Unidentified Receipts Indicator:

h. Account:
              You can select values from any of the segments of the accounting flexfield.

The Natural Account segment values must have the Financial Category of Accounts Receivable assigned in your general ledger
setup in order for the extract and report to work properly.

If you are reconciling by business unit, select the range of balancing segment values implicitly mapped to your business unit.

If you are reconciling Intercompany activity, select the range of Intercompany accounts. These accounts must have the Financial
Category of Accounts Receivable assigned.

If you are reconciling everything, you do not need to select any values. The report automatically selects data for Receivables
accounts that have the Financial Category of Accounts Receivable assigned.

Step 2: Receivable to General Ledger Reconciliation Report:

This is the actual report that shows the reconciliation details based on the data that was prepared in the step 1.

It presents the beginning and ending receivables balances and all activity for the period, matching the receivables aging.

It increases visibility to information by drilling down to supporting journal and transaction details, rather than navigating to
multiple screens or generating multiple printed reports.

Use this report to facilitate the reconciliation of receivables data to the general ledger.

Navigation: Navigator > Receivables > Accounts Receivable > Tasks > Receivables to Ledger Reconciliation
Name - Receivables to Leger Reconciliation

# Drill down on any amount in the summary report's Difference column to display the details of the Differences report for that
item.

# The Differences Detail reports display the real-time details that make up balances from the Summary report, and indicate
potential causes for differences between actual and reconciling amounts.

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Differences between Transactional and Accounted Amounts

Ideally the Summary report should display no differences between receivables transactional amounts and accounted amounts.

Common reasons for differences between transactional amounts and accounted amounts include:

Transactions that are not accounted.

Transactions with subledger accounts that fall outside the account range of the report.
Transaction amounts do not agree with the subledger journal line amounts.
Journals are posted to the subledger or general ledger that did not come from Receivables.
Subledger journals were not transferred or posted to general ledger.

TROUBLESHOOTING STEPS

Problems & Solutions:

1. Should Receivable to Ledger Reconciliation report show Miscellaneous Receipt?

Ans - Receivable to Ledger Reconciliation report does not show Miscellaneous Receipt. The Receivables to General Ledger
Reconciliation report reconciles the transaction types that impact the accounts receivable in general ledger. For the full list
refer to the section 'A. How are accounts reconciled to general ledger?'

2. The values in the "Receivables Amount" column remain the same irrespective of the balancing segment prompt
value, while the "Accounting Amount" does respond (change).

Ans - This is the expected functionality of the report.

The Receivable Amount depends on Business Unit (BU) and Accounting Amount depends on Balancing segment.

by
You can have the same BU mapped to multiple primary balancing segments but in that case it is better to reconcile
ledger rather than BU. The implicit mapping only ensure that specific BU will have specific Balancing Segment Value (BSV)
to make the reconciling easier.

The balancing segment and business unit filter has to be used in conjunction with each other and not individually.
The balancing segment filter has to be used only while reconciliation by business unit.

Please refer the user guide for details (Topic - Receivables to General Ledger Reconciliation Report: Points to Consider)

https://fusionhelp.oracle.com/helpPortal/?
_afrLoop=1476052209049706&_afrWindowMode=0&_afrWindowId=null&_adf.ctrl-state=132rm9il13_1

Copying excerpt from user guide for quick reference:

-Recommendations for Reconciling by Business Unit
To reconcile by Business Unit, you need to have an
implicit mapping of the business unit to one or more primary balancing

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10/06/2021 Document 2096932.1
segment values.
When you run the Prepare Receivables to General Ledger Reconciliation program, you must specify both the business unit
to reconcile and the balancing segment value or range of values assigned to that business unit.
The business unit parameter selects the receivables activity and the balancing segment value selects the accounting data.

3. Account is not being picked up for reconciliation.

Ans - Verify the financial category setup.

Follow the Note 1552383.1 - How To Setup The Financial Category On Account Segment Values for Receivables (Doc ID
1552383.1) for detailed instructions on Financial Category Setup

REFERENCES

NOTE:1552383.1 - How To Setup The Financial Category On Account Segment Values for Receivables
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Related
Products
Oracle Cloud > Oracle Software Cloud > Oracle Enterprise Resource Planning Cloud > Oracle Fusion Receivables Cloud Service
Oracle Fusion Applications > Financials Management > Receivables > Oracle Fusion Receivables

Keywords
ACCOUNTING; AR RECONCILIATION; AR RECONCILIATION REPORT; LEDGER; RECEIVABLE; RECONCILE; RECONCILIATION; RECONCILIATION REPORT; REPORT; SUBLEDGER;
TROUBLESHOOT

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