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Reconciliation Month End Process Payables
Reconciliation Month End Process Payables
Jan 2010
Contents
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R12 Payables - Closing Period © 2010
Prior to Oracle, he worked as a certified accountant and auditor for six years.
This experience gave him an advantage to team up with financial staff in many
companies in delivering high quality professional services, such as consulting,
support, and training.
While not working, Mohamed Nazih takes care of his family. Furthermore, he is
a self-learner and avid reader in project management, change management,
business intelligence, science, and environment issues.
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R12 Payables - Closing Period © 2010
Introduction
Closing the books is a necessary step in the accounting cycle. In order to issue
the financial statement, accounting staff must ensure that subledgers’ balances
are cross checked with relevant General Ledger accounts’ balances.
Doing so in Oracle EBS R12, requires performing actions in order and running
many reports to ascertain that ledgers and accounts are in harmony and no
surprises will be discovered at year end.
Purpose
This paper will help you understand the steps, order, and reports required to
close Oracle Receivables period. Proper closing each month helps minimizing
year end time needed to issue financial statements.
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R12 Payables - Closing Period © 2010
Manually update the payment status or run Update Matured Bills Payable Status
request to update the status of any future dated payments that have reached
their maturity date, but still have a status of Issued.
3- Import invoices
Run: Payables Open Interface Import to process any invoices that are loaded
through the Payables Open.
Review the exceptions report and resolve any invoice related issues. Typical
types of invoices that are imported through this open interface include:
o EDI inbound invoices (810)
o Invoices from external systems
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R12 Payables - Closing Period © 2010
Run: Expense Report Export to process any expense reports that are entered
using the Payables Expense Reports window as well as invoices coming from
external sources.
Reconcile any outstanding bank statements if you are using Cash Management.
Depending on how your Payables Options are set up, you may generate clearing
events when you reconcile payments. When you run the Payables Accounting
process, the accounting will be generated and subsequently sent to the General
Ledger during the Payables Transfer to General Ledger process.
Complete Transactions
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R12 Payables - Closing Period © 2010
For many system holds it will be necessary to fix the problem that caused the
hold. Rerun the Invoice Validation process after resolving any invoice hold
issues to update the status of the invoice to Validated.
4- Approve Invoices
Run: Invoice Approval Status request: to determine which invoices and invoice
lines require approval (regardless of payment status) and review all pending
approvers for a particular supplier.
Run: Invoice Approval Workflow request: to automates invoice approval
process. Based on rules define, the workflow determines if an entire invoice or
invoices lines need approval, who the approvers are, and in what order
approvers should approve payment of the invoice. The workflow then
sequentially asks each approver in the approval list to approve invoices online.
If both invoice lines and the invoice need to be approved, all the lines of the
invoice requiring approval must be approved before the invoice can be
approved.
Pay Runs must be either confirmed or canceled or you will not be able to close
the period. After all activities relating to Pay Runs are completed, process any
manual payments and Quick Payments. Also, process any stop or void.
6- Create Accounting
Run: Create Accounting request: to create accounting entries for multiple
transactions.
o To account for invoices, they must be validated.
o To account for payments, the invoices must already be accounted.
Run: Unaccounted Transactions Report: to identify and review all unaccounted
invoice and payment transactions and see the reason that Payables cannot
account for a transaction. This report:
o Shows only transactions that had problems that prevented accounting.
You can then correct the problems and resubmit the accounting
process.
o Does not include invoices that have no distributions.
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R12 Payables - Closing Period © 2010
Run: Mass Additions Create request to transfer capital invoice line distributions
from Oracle Payables to Oracle Assets.
Reconcile AP to GL
These reports ensure that your Trial Balance accurately reflects your accounts
payable liability by matching the Posted invoices and payments with the AP
liability account. You can also compare your AP liability accounts to GL by
doing a query of the accounts in GL to identify the account or accounts out of
balance. The trial balance total should be the same as your GL liability
account.
If not:
Run the GL "Account Analysis" report for the liability account and for the date
range in question. Look for transactions with a source other than Payables. This
can quickly pinpoint any transactions incorrectly charged to the account. Make
sure that you have not made manual journal entries to your liability account in
General Ledger. When you identify the accounts you go back to AP and do a
query on the account to find the invoices out of balance.
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R12 Payables - Closing Period © 2010
Close the period in Payables. If you tried to close and the period has
exceptions, Oracle Payables automatically run Period Close Exceptions Report
(XML).
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R12 Payables - Closing Period © 2010
(B) Review
(B) Sweep
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R12 Payables - Closing Period © 2010
This program:
o Redates all accounting dates of all unaccounted transactions to the
first day of the open period specified.
o Cannot be run unless the user has the access to all the operating units
for the Ledger
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R12 Payables - Closing Period © 2010
Information Sources
o Metalink Note: 437422.1
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