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Deidre Figueroa Oracle Corporation Abstract
Improve your AP process by understanding the fundamentals of closing the month in AP and learning what to do when the unexpected occurs. This paper provides an overview of the AP month-end process and discusses proven solutions to frequently encountered problems. Topics include new 10.7 and cash management features. is a simple process. You navigate to the close period form, select close, commit, and if all is well, your period will close and balance. Its that little phrase “if all is well” that introduces the bulk of the work required for the month end closing. If you understand the concepts of what happens during the closing and how your system setup affects the process, you can insure that “all is well” for your period to close and know that it is in balance. The closing process will be divided into 5 main steps. • Pre-post work • Posting • Reporting • Balancing • Closing
I. Fundamentals of Closing II. Solutions to Frequently Encountered Problems III. Overview of the Cash Management Impact on AP Please note that this paper does not discuss data entry, but focuses on insuring that the transactions entered are posted and balanced. The new 10.7 reporting features are integrated with the closing process, while a highlight of the Cash Management will be discussed separately.
Before you can post to the GL, you want to review both your invoice and payment transactions to insure that they are ready to post. Insure invoices are ready to post: An invoice must be approved and/or have no posting holds in order to be selected for posting. To insure that
I. FUNDAMENTALS OF CLOSING
Month-end closing within the Oracle Payables system
Reporting & Balancing
AP Data GL Data AP Transfer to GL Journal Import AP Data
it is deleted from the GL_INTERFACE table. The transfer process selects the invoices and payments that are ready to post to the general ledger.only displays invoices with holds that prevent posting. The posting process selects and updates transactions in the AP subledger and creates accounting transactions for the general ledger. If an invoice appears on any of these reports. 3. If an invoice is approved by will not pay. yet will not prevent the other distributions from posting. This process actually occurs in 2 distinct steps: Step 1 . the distribution containing the exception will not post. Look for unapproved invoices After running autoapproval.Transfer from AP to GL Updates the AP system ap_invoice_ distributions AP Transfer to GL gl_interface ap_invoice_ payments AP Journal Reports . etc.your invoices are ready to post. Character: /Navigate Task GLPost Character (10. This is the GL open interface used to import journals. Matching Hold Report .) When an invoice or payment encounters an exception. 2.only displays invoices with matching holds. a GL_DATE in an un-opened GL period. If exceptions are found. Insure Payments are made: The pre-work for payments is limited to insuring that the transactions you want recorded in this period have been processed. exchange rate missing. Posting Hold Report . you should insure that the invoice is due to be paid and that the payment schedule is not on hold. you want to look for invoices containing holds and Oracle provides 3 reports for this purpose. Transactions successfully selected and inserted into the GL_INTERFACE table are updated to "Posted" in the AP system. Step 2 . the status will show as partially posted. Approve invoices The approval process attempts to approve invoices and remove any existing holds. Once a transaction has been successfully imported into the GL system. some invoices may be placed on hold and not approved. you are ready to post. It is a temporary table that holds all the accounting transactions received from AP until they are imported into the GL system.Journal Import Creates journals in the GL system Step 1 . Transactions that were selected but encountered some exception are not inserted into the GL_INTERFACE table nor are they updated to “Posted”. For example.6 and 10. AP is Posted GL not yet Updated Posting Once the pre-work is complete. depending on the version of the applications you are using. The appropriate accounting transactions are created and inserted into the GL_INTERFACE table. you should run autoapproval and review the hold reports 1. Payables .Autoapproval report 2. All user defined holds must be manually removed as they are not automatically removed by the autoapproval process.7) and GUI: Payables Transfer to General Ledger Report 1. If you query the invoice. A period will not close if there are payment batches in a status other than confirmed or canceled. Invoice Hold Report . If an invoice contains a system hold you need to manually fix the invoice and then re-run the autoapproval process to remove the hold.displays all held invoices. an invoice with 2 distributions can have one distribution that posted and one that encountered an exception. you either need to adjust the invoice or manually remove the hold.Transfer from AP to GL: Posting begins in the AP system and can be started from a form or report. You must insure that all your payment batches have been completed: either confirmed or canceled. (Exceptions can be an inactive accounting flexfield value.
Posting in Detail or Summary This parameter determines the level of detail information recorded in the general ledger. All transactions appearing on this report will require some change in order to be selected for posting the next time you run the AP transfer process. and more. NEVER DELETE the AP information from the GL_INTERFACE table unless you do not want the accounting transactions to be reflected in the GL. Debits and credits made to the same accounting flexfield are grouped separately. Accounts Payable Journal Entry Audit Report This report lists the details of the accounting transactions that have been inserted into the GL_INTERFACE table. there is no turning back from this point. and creates a single GL journal for each grouping. it can not be re-selected for posting again. Each transaction includes an exception code that explains why it was prevented from posting. the AP subledger maintains all the detail information for each AP transaction.#XYZ Debit Credit $50 $100 $50 $100 Posting Options While submitting the AP Transfer to GL process. via the Journal Import process. Note! the date entered in this field will be selected for posting. For AP. Detail Detailed posting implies that every invoice or payment distribution will create a unique GL journal entry. Post Thru Date The GL_DATE attached to an invoice distribution or payment determines in which accounting period the transaction will be posted. For example. It displays the AP transaction. Once the AP Transfer to GL process has finished. even though the GL has not imported the transactions. posting is done and complete. These reports are very important and should be saved. Therefore. All viable non-posted transactions having a GL_DATE less than or equal to Summary Summary posting groups transactions with similar accounting flexfield information together. 1. the AP system will still show the transactions as posted. Each parameter will be discussed.#ABC 1-500 Expense .#ABC 1-200 Liability . its corresponding debits and credits.4. each with a distinct debit and credit. After the process is complete. If the transactions are deleted from the GL_INTERFACE table. Example Invoices Description Invoice #ABC Distribution #1 Invoice #XYZ Distribution #1 (Liability Account 1-200) Amount Expense Account $50 $100 1-500 1-500 GL Journal created Account Description 1-200 Liability . The transactions are now in the GL_INTERFACE table waiting to be imported into the GL. only the AP system will have completed its portion of the posting process. Accounts Payable Journal Entry Exception Report This report displays the transactions that encountered an exception during the posting process. 2 invoices with distributions charged to the same expense account will create 2 journal entries. and there is no system process to un-post a transaction. along with an example of its impact on the posting transactions. there are parameters that require input and each is important to the results received from the posting. As far as AP is concerned. the GL accounts affected. the AP Journal reports are generated to display the results of the posting selection. Regardless of what choice is made.#XYZ 1-500 Expense . They are generated directly from the posting process and can not be rerun at a latter date. they are not summed together and net out. 2. Once an AP transaction has been posted. Example Invoices Description Invoice #ABC Distribution #1 Distribution #2 Invoice #XYZ Distribution #1 Distribution #2 (Liability Account 1-200) Amount Expense Account $60 ($10) $100 $0 1-500 1-500 1-500 1-500 .
This provides enough detail to know which invoice or payment a Example Invoices Description Invoice #ABC Distribution #1 Distribution #2 Invoice #XYZ Distribution #1 Distribution #2 (Liability Account 1-200) Amount Expense Account $50 $40 1-500 $10 1-500 $200 $125 1-500 $75 1-500 Example Payments Description Check #101 Pays Invoice #ABC Supplier Payment Discount Taken Check #102 Pays Invoice #XYZ Supplier Payment Discount Taken (Cash Account 1-100) Amount Other Account $50 $45 $5 $100 $180 $20 1-200 1-700 1-200 1-700 Example #1: Post in detail Audit for Expense.#ABC 1-200 Liability . • Cash and Expense Transactions All transactions that affect a cash or expense account require Audit information.#XYZ Debit Credit $10 $40 $75 $125 $10 $40 $75 $125 . AP does not create accounting entries for zero amount transactions. You can not change the default for these items. the transaction will not appear on the Journal Entry Audit report or the posting reports. By using the detail/summary and audit options together.#ABC 1-500 Expense . Check Number.#ABC 1-500 Expense .#XYZ 1-500 Expense .#XYZ 1-200 Liability . you can determine whether to request audit or not. 3. You have the option to select Audit or No Audit. However. Realized Gain/Loss. Partial audit summarizes the liability transactions per invoice or payment. There are different types of accounting transactions that can be inserted into the GL_INTERFACE table. Cash. instead of for the entire posting batch. but do not have audit selected.#ABC 1-200 Liability . Posting with Audit Audit provides the information necessary to uniquely identify the AP transaction that created a GL accounting entry. you can get detail information for some transactions and summary information for others. No Audit or partial audit. Supplier Name. If you request detail information. (Information such as Invoice Number. Liability. but the individual distribution detail for that item is summarized. You must post in audit in order to utilize the following features: • Posting in detail • Zooming from GL to AP for transaction detail • Running the Posted Payment and Invoice reports Audit is required in order to post in detail. and Discounts GL Journal created for invoices: Account Description 1-200 Liability . but summary information in the GL_INTERFACE table.GL Journal Created Account Description 1-200 Liability Summary 1-200 Liability Summary 1-500 Expense Summary 1-500 Expense Summary Debit $10 $160 Credit $160 $10 transaction came from. If you have an individual payment or distribution line equal to zero. etc. • Discount. the AP system will still flag the transaction as posted. and Cash Clearing (future payment) transactions.#XYZ 1-500 Expense . Review the following examples to see how the options work together.) Audit works with the detail/summary option to provide the information you desire to see in the GL. you will not see detail. • Liability transactions You have the option to select Audit. and for each type.
#ABC 1-500 Expense .50 $112. the Journal Import process can be initiated from either the GL system or the AP system.#101 1-100 Cash .#XYZ 1-500 Expense .#101 1-700 Discount . there are 2 additional options that must be selected: Source and GROUP_ID. then you manually submit the Journal Import process through the GL.GL Journal created for Payments: Account Description Debit 1-100 Cash . When running the AP Transfer to GL process. For AP.50 automatically executed.#102 $75 1-200 Liability . The purpose of the journal import is to extract the accounting transactions and audit information from the GL_INTERFACE table and populate the appropriate GL tables. If you do not post in audit.#ABC 1-500 Expense . The Audit information is the ONLY stored data link between the GL and AP transactions. and it identifies every transaction that belongs to the posting batch.50 $12.#102 1-700 Discount .#101 $40 1-200 Liability .Submit Journal Import At this point.#102 1-100 Cash . GL_HEADERS and GL_LINES).#102 Credit $9 $36 $67.#101 1-100 Cash .#101 1-700 Discount .#102 1-200 Liability Summary $250 1-700 Discount Summary Credit $9 $36 $67. AP has completed its portion of the posting process and the GL needs to complete the second portion: importing the accounting transactions into the GL system.#101 $10 1-200 Liability .#102 1-100 Cash . once the AP transfer is complete the Journal Import program is gl_interface gl_headers Journal Import gl_lines gl_import_ references Journal Import Reports AP Posted Even though you instruct AP to post in Audit. Character: /Navigate Journal Import run GUI: Journal Import Run When submitting the process manually.50 Example #2: Post in detail Audit for Expense and Cash No Audit for Liabilities and Discounts GL Journal created for invoices: Account Description 1-200 Cr Liability Summary 1-500 Expense . This table must be populated in order to produce the Posted Payment and Posted Invoice reports. you can not perform these functions.#XYZ Debit $10 $40 $75 $125 Credit $250 GL Journal created for Payments: Account Description Debit 1-100 Cash . If the option "Submit Journal Import" is equal to YES. This data is also used to zoom from a GL journal line to the originating AP transaction.50 $112. The GROUP_ID will be unique for each posting batch that is created.#101 1-100 Cash .#101 1-100 Cash .#102 1-200 Liability . the source will always be equal to ‘ Payables’ . The source and GROUP_ID are used to uniquely identify which transactions in the GL_INTERFACE table you are requesting to import. During import.#102 $125 1-700 Discount . A unique GROUP_ID is generated during the AP transfer process. your GL system must also be configured correctly in order to . If "Submit Journal Import" is equal to NO. The transaction information in the GL_INTERFACE table will generate the actual accounting transactions in the GL journal tables (GL_BATCHES.50 $25 gl_batches Step 2 . the audit information is removed from the GL_INTERFACE table and inserted into the GL_IMPORT_REFERENCES table. AP is Posted GL is Posted $1 $4 7.
which is populated when you post in Audit. it does NOT work for AP journals. The report is based on data in the GL_IMPORT_REFERENCES table. Character: /Navigate Setup Journal Sources GUI: Setup Journal Sources Import Journal References = YES As with the AP process. you are ready to run some key reports to insure that both your Payables sub-ledger and the General Ledger are in balance. 5. as they analyze each AP transaction and display what accounting transactions will be created during the posting process. at this time you will need to customize your AP system to insert the required descriptive flexfield information into the GL_INTERFACE table. Posted Payment Report These reports display the invoices or payments that have been posted to the general ledger in a given date range. it must have been posted in audit in AP. Posted Invoice Report. When a . Payment Distribution Report These reports display the accounting transactions that will be created when you post your transactions. 4. Oracle provides numerous reports to assist you in balancing. you can run the report as often as you like. this information will not be available. In report only mode. and should balance to the respective AP Liability account in the general ledger. it is possible that an exception can occur while attempting to import a transaction. (They need not be posted in the GL). (Remember that the GL_DATE determines in which period a transaction is posted). Only invoices and payments that have been POSTED in AP will display on this report. This is handled via the Journal Import Source form in GL. They can be run before or after you post. and moves them to the next open period. where the standard install defaults to allow the import of Payables audit data. its GL_DATE is changed to the first day of the next open period. Accounts Payable Trial Balance Report This report displays the individual liability for every supplier that has an open balance. you must decided if you want to post them in the current period or sweep them (move them) to the next open period. Note! transaction is swept. because the sweep report selects all transactions that have NOT yet posted. Journal with GL Details Report Transaction Reconciliation Report These are new reports introduced in release 10. This is very important. When submitting the Journal Import process from the GL. Although this option can be used for importing from other applications. Note! Reporting Once the posting process is complete. determines if the unposted transactions are simply displayed or displayed AND SWEPT to the next open period. They show accounting detail that you can not see by viewing a transaction online. 1. the entire batch is left in the GL_INTERFACE table and is not imported. 2. If a batch encounters an exception. The transactions are noted as successful or containing exceptions. there is an option to import descriptive flexfields. a code is associated with the transaction and an explanation for each code is displayed at the bottom of the report. and are used to review details of transactions posted from AP and imported into the GL. The parameter. Unposted Invoice Sweep Report This report informs you about un-posted invoices and payments in the current or previous open periods. If un-posted transactions exist. Expense Distribution Report. 3. If you require this feature. There is NO process to "unsweep" transactions once they have been moved to the next open period. "Report Only". If you have not posted in Audit. The AP system does not currently send the information required to populate the descriptive flexfields. The report is divided and summed by liability account.7. If an exception occurred. THE REPORT SHOULD ONLY BE RUN AFTER ALL DESIRED TRANSACTIONS HAVE BEEN POSTED IN THE CURRENT PERIOD. IN SWEEP MODE. unless the exception can be posted to a suspense account. In order for a transaction to appear on these reports.import Audit information. and imported into the general ledger. The Journal Import Exception report displays information about all the transactions that GL attempted to import.
you need to insure that the amount reported in AP matches the amount reported in the GL.These reports are basically the same. and this months posting reports. unlike the trail balance report that only includes posted transactions. Balance GL batch to the AP posting batch When you post and import transactions from AP into the GL system. Balancing AP to the GL To balance the AP and GL systems together. they are based on data stored in the GL system (GL_IMPORT_REFERENCES table). Pilot testing. while the Transaction Reconciliation report selects data based upon the AP transactions. use the reconciliation report. In addition. there are times when you want to see that the AP system is in balance with itself. If a supplier does not appear on the trial balance report. or your AP and GL systems don’ balance together). You can balance a GL batch against the AP Journal Entry Audit report that was generated during the AP transfer process. checking the validity of converted data. The Journal with GL details report selects data based upon GL entries created from AP transactions. To balance. a unique GL batch is created. Although the posting reports are run from the AP menu. If you did not post in audit or are using Cash based accounting. t Balancing AP Every transaction that is posted from AP to the GL is reflected in the Accounts Payable Trial Balance report. + = . AP GL gl_import_ references ap_trial_balance Balancing The reports described above will be used in the balancing process. The on-line balance inquiry includes all transactions. if you have an AP transaction for which you would like to see the accompanying GL transactions. that indicates there is no outstanding posted liability for that supplier. (i. If you want to test the data on this report against the transactions entered for a supplier. If you have a GL journal for which you would like to see the originating AP transaction. +/. Character: /Navigate Invoice Inquiry Search Option: Balance by Supplier GUI: Invoices Inquiry Invoices Calculate Balance Owed Trial Balance Total Non-Posted Invoices Non-Posted Payments Invoice Supplier Total (Posted Items) (Posted Invoice Register Report) (Posted Payment Register Report) (On-line Inquiry) AP Trial Balance AP Posted 1. To determine if your system is in balance.any non-posted transactions. Balance GL liability account to the trial balance Verify that the GL liability accounts agree with the data reported on the AP trial balance report. but utilize different parameters to select the information that is displayed. Therefore. Last Months Trial Balance This Months Posted Invoices This Months Posted Invoice Payments Current Trial Balance + - (Posted Invoice Register Report) (Posted Payment Register Report (On-line Inquiry) = 2. you will need this months and last months AP Trial Balance Report. the on-line supplier balance should match the data reported on the trial balance report. the AP Trial Balance report should agree with the GL liability accounts and the posting reports. 3. you can insure that the transactions imported into the GL system agree with those entered and posted in the AP system. you will not be able to perform this balancing process. View the outstanding balance for the individual supplier via the invoice inquiry form and compare it to the data on the trial balance report. run the GL details report.e. you can spot check individual suppliers. plus this months transactions should equal this months trial balance. GL posted transactions and AP trial balance Utilizing the trial balance report and the posting reports. Last months trial balance. Therefore.
It is recommended that you final close a period only if it is from a prior year. they are controlled independently. At that point. or sweep the un-posted transactions.Dist. Both the AP and GL systems are required to open and close their own periods.Dist.Dist. but not all holds prevent invoices from posting. but it still posted.If your set of books allows intercompany accounting.Dist.Dist.Dist.Dist.Accounting AP Accounting Periods Although the AP periods mirror those defined in your GL Set of Books. My invoice was on hold. AP is not concerned with segment balances. #1 $40 1-200 Liability . 1. #2 $60 1-500 Expense . but will not be reflected in the AP system. #1 $40 2-500 Expense . You can re-open a closed period in AP as long as it is not finally closed. #1 $40 1-200 Liability . To change the posting options of a hold. These transactions will be displayed in the posted GL batch. #2 $60 GL Batch: Transactions from GL Journal Import Account Description Debit Credit 1-200 Liability . the GL system will automatically create the entries necessary to balance the amounts in each segment. if un-posted transactions exist.Control . #1 $40 2-500 Expense . As you can see. When posting a GL batch. but with the overall balancing of debits and credits per transaction.Dist. the period can never be reopened.Dist. To open or close a period in the Payables system. #2 $60 1-500 Expense . #2 $60 1-199 Intercompany $60 Receivable Segment 1 2-299 Intercompany $60 Payable Segment 2 . use the Define Invoice Approval form. Since the transactions are NOT created during the Journal Import process. Closing the Period When you are comfortable that your system is in balance. Once a final close has been done. and the corresponding GL period is not closed. you will not see the intercompany transactions until you post the GL batch. #1 $40 1-200 Liability . use the period control form. All holds prevent invoices from being paid. a message will be displayed and the period will not be closed. the difference between the posted GL batch and the AP Journal Entry report is equal to the amount of the intercompany transactions created during the GL posting process.Periods GUI: Setup: Calendar . GL Batch: Transactions after running GL Post Account Description Debit Credit 1-200 Liability .Dist.Dist. Character: /Navigate . SOLUTIONS TO FREQUENTLY ENCOUNTERED PROBLEMS Even after you understand the fundamentals it is possible to encounter a problem during your closing process. the GL batch totals may be higher than the totals listed on the AP Journal Entry Audit report. The following entries describe some frequently encountered issues.Dist. #2 $60 II. When attempting to close an AP period. #1 $40 2-500 Expense . you need to repeat the pre-post steps mentioned above in order to identify and adjust. #2 $60 1-500 Expense . you are ready to close the period. Example AP Invoice Description Invoice #ABC Distribution #1 Distribution #2 (Liability Account 1-200) Balancing Segments: 1 and 2 Amount Expense Account $40 $60 1-500 2-500 AP Transactions on AP Journal Entry Report Account Description Debit Credit 1-200 Liability . The posting option can be changed on most holds (with the exception of the system holds). if transactions do not balance across balancing segments. and provide proven solutions for dealing with them.
there are times when it is necessary to do so. reference26 order by GROUP_ID. you can run the following select statement from sqlplus to identify the GROUP_ID associated with your AP Posting Batch. and select a GROUP_ID. If it is actually determined that the data listed in the report is incorrect. These scripts will go into the database and manually "un-post" your transactions. The GL_DATE associated with an invoice distribution determines the posting period. This is the number one culprit for trial balance issues.reference1. 3. not the GL-DATE associated with the invoice. You can then re-run the AP transfer to GL process. This process can be greatly simplified if you retain the AP Journal Entry Audit report generated from the AP Transfer to GL process. Someone deleted the AP data from the GL_INTERFACE table before we imported to the GL! Although there is no standard process to re-post your AP transactions. delete the existing data. please contact Oracle support. and will be ready to import into the GL system. inserted into the GL_INTERFACE table. The GL_DATE at the invoice level is used for display purposes only. Example #1: Query invoice on 26-FEB-97 The invoice GL_DATE will display 25-FEB-97 Example #2: Query invoice in April. They need to work with you to analyze your situation and determine what changes your system requires and which scripts will be needed. 5. Should you run into a situation requiring re-posting. purely intended to help make your input of distributions easier. when FEBRUARY is already closed. If you have more than one GROUP_ID to choose from. once an invoice has been posted. My invoice displays a different date from the period in which it posted. there is no report that you can run to get this ID. reference26. col trans_type format a15. If needed. col batchname format a15. select distinct reference1 batchname. Oracle Support does have some pre-defined scripts to help you with this situation. The invoice GL_DATE will display 01-APR-97 4. Although Oracle can provide help in fixing the transactions. re-flagged as posted. you may not know which one to select. it is up to you to determine WHICH transactions need to be adjusted. but no transactions will be imported. The script will backup your current trial balance table. I am trying to run the Journal import process from the GL system. Unfortunately. a script can be used to rebuild the trial balance report. but no transactions are being imported. If you do not select a GROUP_ID. or the first day in the next open period. Remember that non-posted transactions do not show up on the trial balance report. The invoice GL_DATE is display only. First. My trial balance is wrong. You will have to create manual GL journal entries if you want to back out the posting. you must select source = Payables. If you query a posted invoice. the process will run. and then use the data stored for your invoices . Example: Description Invoice #ABC Distribution #1 Distribution #2 Amount $40 $60 GL_DATE 15-FEB-97 25-FEB-97 2. and the transactions will be re-selected for posting. When running the Journal Import process from GL. it will be difficult to identify the problem transactions. GROUP_ID. the GL_DATE at the invoice level will default to the latest GL_DATE from your distributions. insure that you have posted all your invoices and payments. reference26 trans_type from GL_INTERFACE where reference26 like 'AP%' group by group_iD.Character: /Navigate Setup Invoices Approvals GUI: Navigate Setup Invoices Approvals Unfortunately. there is no un-post option. If you do not maintain the report. Do not worry that the distributions posted in one period and now the invoice shows a different date.
it groups all the entries for a supplier. and thus remove them from the trial balance report. indicating that they have an outstanding liability. you have the ability to use the Cash Management application and integrate it with your Accounts Payable system. because the next time you post. it does not net these items together and omit them from the trial balance report. but would not yet display in the GL accounts. you only see suppliers where the sum of their payments do not equal the sum of their invoices. Run the GL Account Analysis report for the liability account and for the date range in question. Should you need to rebuild your trial balance. III. If your report is too large and you need the zero amount transactions removed. 8. you would need to account for the converted GL amounts when balancing. and sums them by INVOICE_ID. Cash Management will help you reconcile your bank statements. Hence. summing the invoice and payment together should net to zero.(AP_INVOICE_DISTRIBUTIONS) and payments (AP_INVOICE_PAYMENTS) to rebuild the data. My GL liability account doesn’ agree with the t AP trial balance report. This option is called . 2. However. Under most circumstances. Where can I look for help? 1. all transactions associated with the invoice are removed from the report. credit. create miscellaneous transactions. A reversal entry is created for each distribution being reversed. 4. there currently is no patch for this issue. Although Oracle development is working on an enhancement for a future release. When the trial balance report is generated. This can quickly pinpoint any transactions incorrectly charged to the account. 3. please call Oracle Support and request the rebuild script. you can decide whether or not you want the cash management application to create accounting transactions when it processes the bank transactions. whether you are using automatic offsets or not. you can contact Oracle Support and they will help you resolve this issue. you must issue zero dollar payments for these invoices in order to mark them as paid. and manage your cash flow. When the trial balance report attempts to group and sum the transactions by INVOICE_ID and DISTRIBUTION_LINE_NUMBER. Look for transactions with a source other than Payables. but has its own unique DISTRIBUTION_LINE_NUMBER. reversed distribution lines work differently. If an invoice is paid. Therefore. Are there still transactions in the GL_INTERFACE table that need to be imported? Those transactions would be displayed in the trial balance report. When defining the Payables system. This information is documented in Bug #375496. My canceled invoices continue to show up on the trial balance report! This occurs if you are using Automatic Offsets. The reversal line shares the same INVOICE_ID as the original distribution. or un-posted transaction. In this case. They will help you update the AP_TRIAL_BALANCE table through sqlplus and enable the invoices and payments to net together and thus be removed from the report. Because automatic offsets records a unique liability account for each distribution line. this is only a temporary solution. the trial balance sums transactions by INVOICE_ID and DISTRIBUTION_LINE_NUMBER. 7. the trial balance looks the same. Are you still in pilot testing? Perhaps you haven’ t converted your outstanding invoices yet but the GL shows an up-to-date liability total. If the amounts sum to zero. I have paid invoices that continue to show up on the trial balance report! In order for an invoice to be removed from the trial balance report. However. each distribution that currently exists on the invoice must be reversed. the same situation will occur. CASH MANAGEMENT INTEGRATION If you are running the 10SC product. 6. it must have a corresponding payment… even if the invoice was for a total of zero dollars. Have the transactions been posted within the GL? The GL account balance is not updated until the GL journals are posted. When canceling an invoice.
your closing reports will still look the same. She has implemented the Oracle Payables system several times. and is currently a member of the Accounts Payable support team. Then. including 1 1/2 years with Oracle Consulting. They may have seen the issue before and may already have a solution for the issue! Credit $100 Credit $100 About the Author Deidre Figueroa is a Technical Specialist with the Oracle Support financials group. If the option is not enabled. additional transactions will be created and charged against the cash clearing account. When the payment document is reconciled or cleared within the Cash Management application. if you encounter a problem that requires assistance. Accounting Impact When using the standard Payables system. Example: Pay a $100 Invoice utilizing accrual accounting GL Journal created for payment: Account Description Debit 1-200 Invoice Liability $100 1-100 Cash Account Credit $100 The Un-posted Invoice Sweep report will also display a separate section for the reconciliation transactions. During this time. Breaking the process into the 5 main categories should help you understand the "state" of your system. . GL Journal created for payment: Account Description Debit 1-200 Invoice Liability $100 1-150 Cash Clearing GL Journal created for payment clearing: Account Description Debit 1-150 Cash Clearing $100 1-100 Cash Account Conclusions It is my desire that this paper has helped you understand the fundamental process of closing a period in AP. Example: Pay a $100 Invoice utilizing accrual accounting. and it can be defined in the payables setup option. both nationally and internationally. If you enable this option.Payables Options errors and miscellaneous payments. other miscellaneous transactions can be created. She has 8 years of experience implementing financial applications. In addition.System .Options . When the payments are cleared or reconciled. If something appears incorrect in the posting or balancing process."Allow Reconciliation Accounting". but will change the some accounting transactions. If you are using autoreconciliation accounting. This allows the un-posted transactions to be reported or swept to the next period. the cash account is credited when issuing a payment.Setup .Options GUI: Setup . and the data will be displayed in a separate section on the AP Journal Entry Audit reports. but it will not create accounting transactions. When utilizing reconciliation accounting. the invoice and payment transactions were discussed. but will contain an additional section that contains the reconciliation transactions. a cash clearing account will be charged instead of the cash account. The payables system will then integrate all these transactions into the standard posting and closing process. Cash Management will create accounting transactions. clear the check in the Cash Management application. such as bank charges. the transactions will be created and inserted into the Payables system. This holds true for both accrual and cash based accounting. please remember to call Oracle Support. I hope that you are now better equipped to troubleshoot the problem and determine what needs to be done to resolve the issue. (AP_RECON_DISTRIBUTIONS table). you can still use the Cash Management application. Closing Impact Utilizing the Cash Management application will not alter the standard AP closing process. In the standard closing process. Char: /Navigate . For Example: The AP transfer to GL process will include the reconciliation transactions.
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