Oracle Applications White Paper

ORACLE EBS R12 ASSETS CLOSING

PERIOD PROCEDURES

Jan 2010

Author: Mohamed Nazih

CPA, PMP, Oracle Financials Consultant
m.nazih@gmail.com
Version 1.0
R12 Assets - Closing Period © 2010

Contents

About the Author ................................................................................... 3

Introduction ......................................................................................... 4
Purpose .............................................................................................. 4
Who Should Read This ............................................................................. 4
Oracle EBS R12 Assets - Closing Period Procedures ............................................ 5
Overview of the Period Close ............................................................................ 5
Complete Transactions .................................................................................... 5
Run Depreciation........................................................................................... 5
Create, Transfer, and Post Journals .................................................................... 6
Reconciling Journals Transfer Process .................................................................. 7
Reconciling Journals Import Process (GL) .............................................................. 7
Reconcile FA to GL......................................................................................... 8
Reconcile Asset Cost Account ..................................................................................... 9
Reconcile Asset CIP Cost Account ............................................................................... 10
Reconcile Reserve Account ....................................................................................... 11
Reconcile Depreciation Expense ................................................................................. 11
Information Sources............................................................................... 12
Information Sources............................................................................... 12

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About the Author

Mohamed Nazih is a Proficient functional consultant in Oracle e-Business Suite
with more than six years of experience of solutions design, configuration,
testing and documentation and three full life cycle implementations.

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.

Mohamed Nazih values an atmosphere of ethics, punctuality, and team-

working.

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R12 Assets - 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.

Who Should Read This

This paper is aimed to super users and applications’ auditors, as well as
functional consultants and implementers.

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R12 Assets - Closing Period © 2010

Oracle EBS R12 Assets - Closing Period Procedures

Overview of the Period Close

At the end of each accounting period, companies must complete the closing
process in Assets and reconcile Assets activity for the period.

Complete Transactions
 Completing all transactions for Oracle Assets:
 Prepare and Post Mass Additions
 Complete Manual Additions, Adjustments, Transfers, Retirements, and
Reinstatements
 Ensure that:
 All transactions have been entered for the period being closed
o Once a depreciation period in Oracle Assets has been closed, it cannot
be re-opened
 All assets have been assigned to a distribution line. Otherwise, period
end Depreciation Process will not complete, and will not close the
period. Run:
o Assets Not Assigned To Any Books
o Assets Not Assigned To Any Cost Centers
 No transactions are being entered as Oracle Assets prevents transaction
data entry while the Depreciation Run Process is running

Run Depreciation
 Run Depreciation process is performed independently for each asset book
 When the process is run, Oracle Assets automatically calculates depreciation
for all assets, calculates gains and losses for all retirements, and then runs the
appropriate Reserve Ledger Report
 Ensure to:

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 Run Depreciation without closing the period

 Review Journal Entry Reserve Ledger Report for Cost, calculated
depreciation expense, and accumulated depreciation
 Make necessary activities
 Re-Run Depreciation without closing the period and review the Reserve
Ledger Report again
 Run Depreciation with closing the period

Create, Transfer, and Post Journals

 Run Accounting after processing all postable records.
 The following approach may be applied After an asset addition:
 Run Create Accounting - Assets for the Addition Process Category to send
Cost and Cost Clearing lines to GL
 Run Depreciation without closing the period
 After depreciation runs, you can run the Create Accounting for the
Depreciation Process Category to get the Depreciation Expense and
Reserve lines sent to GL
 If needed you can later update the asset and enter whatever transaction
is needed. (for example : cost adjustment). For this particular asset, the
depreciation data is automatically rolled back
 And then run Create Accounting to send to GL the adjustment journal
and the reversal journal for Rollback Depreciation (in which the prior
depreciation expense is credited and the reserve is debited):
o Rerunning depreciation will then depreciate again this asset And
Create Accounting will send to GL new Depreciation lines

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Reconciling Journals Transfer Process

 Subledger Accounting Program report:
 Is produced by Create Accounting program
 Shows subledger journal entries created for successful accounting events
 Journal Entries report (in Posted status mode):
 includes all transactions that should be posted to General Ledger (i.e.
associated transaction type has Post to GL set to Yes)
 displays:
o details of what is or will be posted to each GL account for a specific
period and
o Journals by receivables categories
 Ensure the following is correct
Subledger Accounting Program report total should equal Journal Entries report
total

Reconciling Journals Import Process (GL)

 Journal Import Execution report:
 Is produced by (GL) journal import process
 Shows total debits and credits for the journals it created
 Posting Execution report: Is produced by (GL) journal posting journals process
 Unposted Journals report
 General Journals report
 Ensure the following is correct: total of these report should equal (what is
transferred by Receivables = what is posted by GL)

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Reconcile FA to GL
After posting, reconcile subledger details with General Ledger.

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Reconcile Asset Cost Account

Ending Balance Ending Balance

of Assets’ Cost of Assets’ Cost
GL Accounts total

in in

Trial Balance Cost Summary

Should equal
Report Report

in

Cost Detail Report

Additions Adjustments Retirements Reclasses Transfers

= Cost in = Net Change in = Cost Retired in = Cost in = Cost in

Asset Cost Asset Asset Asset Transfer

Additions Adjustments Retirements Reclassification Reconciliation
Report Report Report Reconciliation Report
Report

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Reconcile Asset CIP Cost Account

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Reconcile Reserve Account

Ending Balance
Ending Balance
of Reserve GL
of Reserve total
Accounts

in in

Trial Balance Reserve

Should equal
Report Summary Report

in

Reserve Detail Report

Additions Adjustments Retirements Reclasses Depreciation Transfers

= Accumulate
= Reserve = Cost Retired = Accumulated
Depreciation = Depreciation in = Cost in
Adjustment in - NBV Retired in Depreciation in
in

Asset Reserve Asset Asset Account Asset

Additions Adjustments Retirements Reclassification Reconciliation Transfers
Report Report Report Reconciliation Reserve Report
Report Ledger

Reconcile Depreciation Expense

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Information Sources
o Metalink Note: 557948.1

o Metalink Note: 961285.1

o Reconciling Oracle Assets . Whitepaper by Brian R. Bouchard,

September 10, 2007 (Oracle Community)

o Oracle Assets User's Guide Release 12.1 Part No. E13586-02

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