Period Close

Copyright © 2007, Oracle. All rights reserved.

 Objectives

After completing this module you should be able to do

the following:
• Describe the period closing process in Payables
and Purchasing
• Reconcile accounts payable transactions for the
period
• Identify key programs and reports
• Understand setup options
• Understand additional implementation
considerations

Copyright © 2007, Oracle. All rights reserved.

 Key Processes

Create
Accounting - Transfer to
Final GL

GL
Subledger Interface
Payables
Accounting
Create
Distri- Import
Accounting - Accounting
butions to GL
Draft Details

Post
in GL

General
Review/Correct Oracle Assets, Projects,
Ledger
Accounting Procurement, Inventory

Copyright © 2007, Oracle. All rights reserved.

 Overview of the Period Close

Prepare Run Validation/ Create

for period Review and accounting
close resolve holds Transfer &
review
unaccounted
transactions

Reconcile AP
Close the activity for Post journal Close the
GL period the period entries in GL period

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 Prepare for Period Close

• Complete all receipt processing

• Confirm or cancel all pending pay runs
• Update matured bills payable
• Import invoices
• Export and process expense reports
• Interface adjustments to supplier invoices and
expense reports
• Reconcile bank statements

Copyright © 2007, Oracle. All rights reserved.

Run Validation/Review and Resolve Holds

Run the Invoice

Validation
Process

Resolve Invoice
Holds

Rerun Validation
if Necessary

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 Create Subledger Accounting

Enter an Make a
Invoice Payment

Create
Accounting

View
Accounting

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 Create Accounting Program

The Create Accounting program processes eligible

accounting events to create subledger journal entries. The
program applies the application accounting definitions
that are created in the Accounting Methods Builder (AMB).
The following report is generated by this program:
• Oracle Subledger Accounting Program Report

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Transfer and Review

Run Transfer
Journals to
General Ledger

Review Transfer
Results

Review Account
Analysis Report

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 Transfer Journal Entries to GL Program

The Transfer Journal Entries to GL program enables you

to transfer any eligible journal entries to General Ledger,
including those from previous batch runs that have not yet
been transferred to General Ledger.
The following report is generated by this program:
• Transfer to Journal Entries to GL Report

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Post Journal Entries in GL

Post Journals
in GL

Create Remaining
Mass Additions

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 Reconcile AP to GL

March Accounts Payable Trial Balance

+ April Payables Posted Invoice Register
- April Payables Posted Payment Register
- April Accounts Payable Trial Balance
=0

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Close the AP Period

Period Close
Exceptions

Close the AP
Period

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 Close the PO Period

Close the Write off

purchasing accrued
period transactions as
necessary

Review the Process

Uninvoiced remaining
Receipts inventory
report transactions

Process Run the Accrual

period-end reports
accruals

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 Key Accounts

• Receiving Inventory Account

• Inventory AP Accrual
• AP Liability
• Expense AP Accrual
• Material
• Charge Account
• Purchase Price Variance
• Invoice Price Variance

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 Accrual Accounting –
Perpetual Accrual (On Receipt)
Receiving Inventory Material AP Liability Expense/
Inventory AP Accrual Clearing
Acct
01-000-1412 01-000-2221 01-000-1410 01-000-2210 01-000-1570
1
100 100 2
100 100 3

4
100 100 5

-0- -0- 100 100 -0-

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 Accrual Accounting –
Periodic Accrual (Period End)
Receiving Expense Material AP Liability Expense/
Inventory AP Accrual Clearing
Acct
01-000-1412 01-000-2221 01-000-1410 01-000-2210 01-000-1570
1
2

3
200 200 4

200 200 5
200 200 6
-0- -0- -0- 200 200

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 Accounting for Mass Additions –
Periodic Accrual (Period End)
Expense AP Asset Cost AP Liability Expense/
Accrual Clearing

01-000-2221 01-000-1560 01-000-2210 01-000-1570

1
2
200 200 3
200 200 4

200 200 5
200 200 6
-0- 200 200 -0-

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 Accounting for Payments
with Cash in Transit (Cash Clearing)
Cash Cash in AP Liability Expense/
Transit Clearing/
Accrual
01-000-1110 01-000-1150 01-000-2210 01-000-1570

400 400
1

400 400 2
400 400 3

400 -0- -0- 400

Copyright © 2007, Oracle. All rights reserved.

 Accounting for Payments
without Cash in Transit (Cash Clearing)
Cash Cash in AP Liability Expense/
Transit Clearing/
Accrual
01-000-1110 01-000-1150 01-000-2210 01-000-1570

400 400
1

400 400 2

400 -0- 400

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 Reports

Accounts Payable Trial Balance

Accrual Rebuild Reconciliation Report

Accrual Write-Off Report

Matched and Modified Receipts Report

Account Analysis Report

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 Reports

Payables Posted Invoice Register

Payables Posted Payment Register

Receipt Accruals - Period End

Receiving Account Distribution Report

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 Reports

Unaccounted Transactions Report

Uninvoiced Receipts Report

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 Financials Options

Accounting

Future Periods Miscellaneous

Liability Retainage
Prepayment
Future Dated
Discount Taken
PO Rate Variance
Gain/Loss
Expenses
Clearing

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 Payables Options

Accounting

Account for Automatic Offset Interest

Payment Method
Prepayment
Account for Discount Account
Gain/Loss Method

Future Dated
Payment
Account Source

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 Payables Options: Currency

Currency

Use Multiple GL Accounts:

Currencies –Realized Gain
–Realized Loss
Require –Rounding
Exchange Rate
Entry

Calculate User
Exchange Rate

Exchange Rate
Type

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 Purchasing Options

Receipt
Accounting
Accrue Automatic
Expense Items Offset
Accrue Method
Inventory Items
Expense AP
Accrual
Account

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 Additional Implementation Considerations

• Running the Invoice Validation process

• Running the Create Accounting process
• Level of detail for Create Accounting process
• Running the Transfer Journal Entries to GL
process
• Determine number of clearing accounts to use for
projects, assets, and cash management

Copyright © 2007, Oracle. All rights reserved.

 Summary

You should now be able to do the following:

• Describe the period closing process in Payables
and Purchasing
• Reconcile accounts payable transactions for the
period
• Identify key programs and reports
• Understand setup options
• Understand additional implementation
considerations

Copyright © 2007, Oracle. All rights reserved.