steps for closing period in r12 financials - part 1 - use firefox

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Steps for Closing Period in R12 Financials - Part 1 - USE FIREFOX

Oracle Financials E-Business Suite Release 12 Period End Procedures

This document outlines the period end procedures for Oracle Payables, Oracle Purchasing,Oracle Inventory, Oracle Order Management, Oracle Receivables, Oracle Assets, Oracle Projects,Oracle Cash Management, Oracle Treasury and Oracle General Ledger (Release 12). Thisdocument is intended to be generic, and does not relate to a specific organization. Bothmandatory and optional steps are included in the document. Procedures particular to year-endprocessing are also described.

This document intends to provide a reference for planning period-end procedures for ‘real-life’implementations. It describes the fundamental period-end steps involved for each, withparticular emphasis on balancing the subledger applications to Oracle General Ledger, andattempts to provide an overview of the relative timing of these procedures for all installedOracle applications.It is therefore the intention of this document to provide content from which relevant sectionscan be extracted, according to the applications installed for a particular organization. Anyorganization may choose to customize their period-end and year-end processes, for exampleopting to run additional reports, particular to the organization.Although this document particularly refers to ‘Period-End Procedures’, many of the processescan be performed more regularly throughout the accounting period as required. Each subledgerapplication provides control as to when and how often data is transferred from the subledgerapplication to the General Ledger.

Assumptions

These ‘Period-End Procedures’ were written with the assumption that OracleFinancials was implemented for a single operating unit. Where an organization hasimplemented the ‘Multi-Org’ features of Oracle Financials, these procedures wouldneed to be performed for each operating unit individually unless Multi-Org AccessControl is enabled.Note: R12 requires multi-org functionality to be used. For further details refer toOracle® Applications Upgrade Guide: Release 11i to Release 12

Oracle Workflow is incorporated in the Release 12 applications. It is assumed thatthese Workflow Processes will be monitored and attended to by a SystemAdministrator on a regular basis. Some Workflow Processes like the RequisitionApproval Workflow or the Purchase Order Approval Workflow will require a directresponse from a message recipient rather than a System Administrator.

How this whitepaper is organized

This white paper contains of twelve chapters and one appendix where you can findinteresting links to more information. The first chapter describes the dependenciesbetween the modules and the biggest change between Release 11 and Release 12,which is the introduction of SubLedger Accounting (SLA). Then the next tenchapters outline period-end procedures appropriate to the Oracle Applicationscovered in this document. The last chapter displays a summary of the mainperiod-end procedures for each application and the relative timing of each allperiod-end in relation to activities performed in each of the applications.

Status and Feedback

This white paper is intended to be a living document. As we gather new or changedinformation, we will revise and re-publish this paper. Therefore we welcome allfeedback from you. On the bottom of the Metalink Note where you have downloadedthis document is a link where you can email us your comments.

Steps for Closing Period in R12 Financials - Part 1 - USE FIREFOX http://apps2fusion.com/apps-training/r12-functional-documents/468-how-...

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Chapter 1 SLA and Period End Close dependencies

1. Sub Ledger Accounting (SLA) – Business Process

The new Subledger Accounting architecture in Release 12 provides a commonrepository of all your accounting information. Whenever you want to account foryour subledger transactions, onine or as a background batch process, the accountingis generated by Subledger Accounting.Subledger Accounting helps to maintain a common link between General Ledgerbalances and underlying transactions automatically, for internal and external auditpurposes, and for ease of drilldown.Subledger Accounting provides a comprehensive view of all subledger accountingdata. It behaves like a detailed version of your General Ledger and provides a richstore of information for reporting and analysis.• Oracle’s Subledger Accounting, coupled with Oracle General Ledger, gives you thebest of both worlds.• It allows your general ledger to be free of extraneous data, so that you can maintaina simple chart of accounts and store only what is needed for general ledger reportingand analysis.• The moment you need to access more detailed information, you can go directly toSubledger Accounting to see the detail from all transaction sources that feed the GLaccount balance without having to go back to multiple source systems andapplications.• Just as Oracle General Ledger stores balances and journals, Subledger Accountingstores subledger balances and subledger journals for all of your subledgers thatrequire accounting.


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SubLedger Accounting, a new model between the Subledgers and GL.

2. Sub Ledger Accounting (SLA) – Process Change

Due to the impact of the Subledger Accounting Architecture the close process haschanged between Release 11i and Release 12.

In Release 11i the transactions and distributions represented the accounting. InRelease 12 however distributions on transactions in subledgers are considered to bethe default accounting and should therefore not be used for reconciliation purposes.The reason is that subledger accounting enables you to change the accounting fortransactions to be different from the default accounting, and therefore the subledgeraccounting becomes the single source of truth for accounting reconciliations.

When you close your periods in each of the subledgers, General Ledger will inRelease 11i automatically create the balancing lines for journals posted to GeneralLedger. This changes in Release 12 as subledger accounting creates the balancinglines at the time you account for the subledger transactions.


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The subledger accounting journal represents your REAL accounting and thebalancing lines are created as part of these Subledger Accounting Journals.When you close a period in Release 12 you’re actually closing subledger accounting.The journals can then be posted to General Ledger to update the General Ledgerbalances.

Differences between R11i and R12

3. SubLedger Accounting (SLA) – Reconciliation

From a reconciliation perspective the picture below shows what’s changed betweenR11i and R12. In Release 11i you reconciled your transactions and distributions toGeneral Ledger through transactional reports. In the accounting reports in Release11i you’d see the balances but not the transactional information.


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In Release 12 there is no reason to reconcile distributions on transactions to GeneralLedger. You can still reconcile transaction reports to accounting reports. The newaccounting reports in Release 12 now also contain more comprehensive informationnot just on balances but also on suppliers, customers and transactions.

The point to note is that when you do account balance reconciliation you shouldignore distributions in Release 12, especially if you have altered your subledgeraccounting rules.

Reconciliation between R11i and R12

4. General – Period End Close Dependencies


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Before you start with the Period-End process you have to know what thedependencies are between the various Modules as described in the Chapters in thisdocument.The diagram above shows the dependencies between some of the main Financialsproducts and a couple of supply chain products.

You have to close Oracle Payables before you close Oracle Purchasing to account for Purchasing Accruals at Period end. You also close Oracle Payables before you closeOracle Inventory and Oracle Assets.You actually have to close Oracle Cash Management before you close OracleReceivables, as bank reconciliation in Cash Management will create miscellaneousreceipts in Oracle Receivables.Finally you close all of your subledgers before you close General Ledger.

·

Chapter 2 Oracle Projects


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This chapter describes the procedures for performing period-end processing inOracle Projects Release 12.

5. Business Requirements

Period end procedures for Oracle Projects has two main functions:Changing the status of the current period to closedTo activate all the processes and controls necessary to produce reports thataccurately reflect the period activity, while allowing minimum interruption oftransaction processing.

1. PROJECT PERIODS AND GENERAL LEDGER PERIODS

In Oracle subledgers, such as Projects, transactions are summarized into periodic cycles for reporting andreconciliation. Most subledgers have a periodic cycle that parallels the General ledger fiscal cycle.

However, projects may be based on a different periodic cycle to that of the Generalledger. Project periods may be based on a different period of time such as a week.If the two sets of periods overlap, then you may need to put in place specialprocedures for the reconciliation of Projects to the General ledger, and othermodules.

Suggestion: If you have different periods in Projects, you may like to consider using one of thealternate General ledger period conventions, such as a 5-4-4 period split. This will enable you to moreeasily align Projects with General ledger for reconciliation purposes.

2. PERIOD STATUSES

Oracle Projects has statuses similar to the standard period statuses as in other modules:

Never Opened The period has never been used.Future Enterable The period is open to accept transactions from other modules.

Usually used where modules are maintained in differentperiods, and transactions are likely to be posted acrossmodules.

Open Period is available for data entryClosed Period is closed for processing, but can be re-opened if required.Permanently Closed No further processing is possible.Pending Close This status prevents transaction entry, and allows users to correct

unprocessed items prior to completing the period close.

3. GENERAL EXCEPTION HANDLING AT PERIOD END

If you do not want to correct exceptions during the current GL period, then you can run the process “PRC:Sweep Transaction Accounting Events” to change the date on unaccounted transaction accounting events tothe first day of the next open GL period, without accounting for them.

The Subledger Period Close Exceptions Report lists all accounting events andjournal entries that fail period close validation.You can generate the Subledger Period Close Exceptions Report through aconcurrent request for the application associated with the responsibility or for allapplications in the General Ledger responsibility.

6. Procedures


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1. 1. CHANGE THE CURRENT ORACLE PROJECTS PERIOD STATUSFROM OPEN TO PENDING CLOSE

This is an interim status, which allows you to interface and adjust transactions in the period but does not allowtransaction entry.

This process needs to be performed for each Operating Unit defined.

2. 2. OPEN THE NEXT ORACLE PROJECTS PERIOD

It is recommended that you open the next period to minimize interruption to users, who may require theability to enter transactions in the new period during the current period close procedure.

This process needs to be performed for each Operating Unit defined.

3. 3. COMPLETE ALL MAINTENANCE ACTIVITIES

As there are a number of maintenance activities that can affect the period close procedure, you should ensurethat all the following maintenance activities have been completed:

Project Maintenance (revenue/billing based options)

Billing burden schedules and burden schedule overrides

Bill rate schedules and bill rate overrides

Project labor multiplier changes

Revenue budget changes

Project/Task % complete

Funding changes

Changes in the task Ready to Accrue checkbox

Implementation Maintenance

Employee assignments

Labor cost rates

Standard costing burden schedule maintenance

Other Maintenance

Retroactive changes in employee assignments

Retroactive changes in labor cost rates

Changes in Auto-Accounting Rules or Lookup Sets

Suggestion: You may need to implement workflow procedures, or use function and responsibilityrestrictions to prevent access to these areas during the period close procedure.

4. 4. RUN MAINTENANCE PROCESSES

It is recommend that the following maintenance processes be run in preparation for the period end:


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a) Run Burden Schedule maintenance to assure that all burden schedules have beencompiledRun PRC: Compile All Burden Schedule Revisionsb) Run organization maintenance to ensure all organizations have been added to allaffected compiled burden schedulesRun PRC: Add New Organization Compiled Burden Multipliersc) If changes or additions were made to pre-existing resource lists, update theproject summary amounts before, not during, the period closeRun PRC: Update Project Summary Amounts After Resource List Change

5. 5. COMPLETE ALL TRANSACTION FOR THE PERIOD BEING CLOSED

1.

Enter and Approval all Timesheets for the PA Period

Import all timesheets entered via Self-Service Time.Run PRC: Transaction Import. Transaction Source = Oracle Self-Service Time.Verify that all pre-approved timesheet batches in the current PA period have beenreleased and approved.

Attention: One rejected expenditure item will cause an entire expenditure to be rejected.

If Oracle Projects is the direct data source for payroll or for reconciling labor costs topayroll, verify that all timecards are entered or accounted for.

Run the AUD: Missing Timecards Report

2. Interface Supplier Invoices from Oracle Payables

Before generating project revenue or running final cost event processes, import alleligible supplier invoices from Oracle Payables.

Warning: If your PA period matches a GL/AP month end, ensure that all new supplier invoicesprocessing for the current GL period has stopped.

Run PRC: Interface Supplier Invoices from Payables

3. Interface Expense Reports from Oracle Payables

Before generating project revenue or running final cost distribution processes,import all eligible expense reports from Oracle Payables to create pre-approvedexpense report batches. These expense reports may have been entered viaSelf-Service Expenses or Expense Reports in Oracle Payables.Run PRC: Interface Expense Reports from Payables

4. Project Related Inventory Transactions

Note: the following processes must be completed within Oracle Inventory prior toimporting project related inventory transactions:

Run the Cost Collector

Project Cost Transfer

Run PRC: Transaction Import.The following transaction sources are pre-defined.

Source Description


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Inventory Manufacturing Material CostsInventory Misc Inventory Issues and Receipts entered in the Miscellaneous Transactions window in

Oracle InventoryWork InProcess

Manufacturing Resource Costs

5. Attention: Entering new expenditures or adjusting existingexpenditures during the final cost distribution process may causereconciliation problems. Access to these activities should becontrolled, after verifying that all transactions for the period havebeen accounted for.

· 6. RUN THE COST DISTRIBUTION PROCESSES

Run all cost distribution processes to cost all enabled expenditures that have an expenditure item earlier thanor equal to the current reporting PA period end date.

PRC: Distribute Labour Costs

PRC: Distribute Usage & Miscellaneous Costs

PRC: Distribute Expense Report Adjustments

PRC: Distribute Supplier Invoice Adjustment Costs

PRC: Distribute Borrowed and Lent Amounts

PRC: Total Burdened Cost (If using Project Burdening)

PRC: Create and Distribute Burdened Transactions (If using Project Burdening)

Note: PRC: Distribute Expense Report is now obsolete.

7. 6A. RUN THE GENERATE COST ACCOUNTING EVENTS PROGRAM

This is a new program in R12. This program has to be run to generate accounting events, which will be laterused by SLA. For more information refer to Oracle Project Costing User guide.

The program to be run is PRC: Generate Cost Accounting Events and PRC: GenerateCross Charge Accounting Events

8. 7. INTERFACE COST TRANSACTIONS TO OTHER APPLICATIONS

You must successfully interface all relevant costs to Oracle Payables, General Ledger and Oracle Assets orrevenue to Oracle Receivables before you can change the status of the current PA period to Closed.

Transfer from Projects to GL can be achieved by submitting ‘Create Accounting’ –(PRC: Create Accounting) process from the SRS screen. This program is owned bySLA. This program creates accounting, transfers& posts to GL with the appropriateparameters.If accounting was performed without transferring to GL, them submit PRC: SubmitInterface Streamline Processes with the appropriate streamline parameters totransfer the costs to GL. Journal Import can be submitted from GL to import thecosts into GL.Interface CIP Assets to Oracle Assets- PRC: Interface AssetsThis process requires that prior to interfacing, all asset lines have been generated, byrunning the PRC: Generate Assets Lines for a range of projects process.


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Attention: You can interface asset lines to Oracle Assets only after you have transferred the underlyingexpenditure items to General Ledger

Note: Ensure that all interface transaction reports and exception reports arecompleted successfully, and/or resolved prior to continuing with the period end

Suggestion: Some of the above reports and processes may be run using the Submit StreamlineProcesses process. This process ensures processes and reports are run and completed in the correctorder. If you use the Streamline process, the order of some of the above steps may be changed, orcompleted more succinctly.

1.1.1.1.

10.

8. GENERATE DRAFT REVENUE FOR ALL PROJECTS

After all the cost distributions processes have completed successfully and all supplier invoices have beenimported from Oracle Payables, run the mass project revenue generation process.

Run PRC: Generate Draft Revenue for a Range of Projects for all projects.

Attention: Concurrent Revenue processes can be run only if the ranges of projects specified for theprocesses do not overlap

11. 9. REVIEW AND RELEASE REVENUE FOR ALL PROJECTS

Perform review of the revenue generated and approve the same.

12. 10. RUN GENERATION REVENUE ACCOUNTING EVENTS PROCESS

Run the program PRC: Generate Revenue Accounting Events to generate events for revenue. These events willbe used by Create Accounting process subsequently to generate accounting.

13. 11. RUN CREATE ACCOUNTING TO PROCESS REVENUEACCOUNTING EVENTS

This program is owned by SLA. This program is used to generate accounting and Transfer to General Ledgerbased on appropriate parameters. If accounting is generated in FINAL mode with Transfer to General Ledgerbeing set as ‘No’ then run PRC: Transfer Journal Entries to GL with parameters to either post in GL or just toleave it unposted. If it is transferred unposted General Ledger posting program needs to be submitted.

Attention: Interface processes have become obsolete. The same is achieved by PRC: Create Accounting

14. 12. GENERATE INVOICES

Run PRC: Generate Invoices to generate Invoices ready for Interfacing to Oracle Receivables.

Run PRC: Generate Inter-company Invoices for a Range of Projects for all projects.This process:


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Creates inter-company invoices from cross–charged transactions previously identified by inter-company

billing to be processed for cross charging

Deletes unreleased inter-company invoices

Creates inter-company credit memos and invoice cancellations.

15. 13. TRANSFER INVOICES TO ORACLE RECEIVABLES

Run PRC: Interface Invoices to Receivables

Run PRC: Interface Inter-company Invoices to ReceivablesWarning: Make sure that Oracle Receivables has not closed its period until all Oracle projects invoiceshave been interfaced to Oracle Receivables

1.1.1.1.

17.

14. RUN PERIOD CLOSE EXCEPTION AND TIEBACK REPORTS

Run the period close exception reports to identify transactions that have not been fully processed, and thatwould prevent you from closing the PA period.

AUD: Cross Charge GL Audit

AUD: Missing Timecards

EXC: Transaction Exception Details

EXC: Transaction Exception Summary

PRC: Tieback Invoices from Receivables

The tieback process from GL has become obsolete. Review the report generated byCreate Accounting/Transfer to GL processes for any errors.Review these reports and make all the indicated corrections. After the correctionsare made, run the reports again until there are no exceptions.

Suggestion: Some of the above reports and processes may be run using the Submit StreamlineProcesses process. This process ensures processes and reports are run and completed in the correctorder. If you use the Streamline process, the order of some of the above steps may be changed, orcompleted more succinctly. All the streamline options are not available in R12. Some of them havebecome obsolete. Please refer to the user guide.

18. 15. RUN FINAL PROJECT COSTING AND REVENUE MANAGEMENTREPORTS

Run all of the following project costing management reports:

MGT: Revenue, Cost Budgets by Resources (Project Level)

MGT: Task - Revenue, Cost, Budgets by Resources

MGT: Revenue, Cost, Budgets by Work Breakdown Structure

MGT: Employee Activity Report

MGT: Invoice Review

MGT: Unbilled Receivables Aging

MGT: Agreement Status by Customer


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19. 16. CHANGE THE CURRENT ORACLE PROJECTS PERIOD STATUSFROM PENDING CLOSE TO CLOSED

When changing the status to Closed, the system checks to see if any unprocessed items exist in the period. Ifunprocessed items exist, the change of status is not allowed.

Re-run the Period close exception reports to identify the items.This process needs to be performed for each Operating Unit defined.

20. 17. ADVANCE THE PA REPORTING PERIOD (OPTIONAL)

When you are ready to view the updated summary amounts for the next PA period in the Project SummaryInquiry window, advance the PA Reporting Period.

Only one period can be designated as the current reporting period for Project StatusInquiry. The current reporting period does not have to be an open period.

21. 18. UPDATE PROJECT SUMMARY AMOUNTS

To enable users to view the latest data in the Project Status Inquiry Window, you must run a final projectsummary update for the current reporting (pending close) PA period.

Attention: The update process cannot run concurrently with the interface processes

Warning: Do not run PRC: Update Project Summary Amounts After Resource List Change during theclosing or post-closing processes.

22. 19. RESTORE ACCESS TO USER MAINTENANCE ACTIVITIES

After the project summary amounts have been updated for the closed, current reporting period, restore accessto user maintenance activities.

23. 20. RECONCILE COST DISTRIBUTION LINES WITH GENERALLEDGER (OPTIONAL)

The followng Project Subledger Audit Reports print cost distribution lines related to projects. These reportsenable you to drill down from a GL account balance in the trial balance to the individual project–relatedtransactions.

Run AUD: Project Subledger Summary

Run AUD: Project Subledger: Detail by Project

Run AUD: Project Subledger: Detail by Expenditure Type

24. 21. PERMANENTLY CLOSE THE ORACLE PROJECTS PERIOD(OPTIONAL)

When you are satisfied with the closing of the PA period and will not need to reopen the period, change thestatus of the PA period to Permanently Closed

Warning: Once a period is permanently closed it can never be re-opened

1.

Chapter 3 Oracle Order Management


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This chapter describes the procedures for performing period-end processing inOracle Order Management Release 12


Open Sales Orders should be reviewed and where possible appropriate actionsshould be undertaken to finalise the Order Workflows and close these Sales Orders.

2. Procedures

The following steps are taken in performing period-end processing for Oracle OrderManagement.

1. 1. COMPLETE ALL TRANSACTIONS FOR THE PERIOD BEINGCLOSED

Ensure that all transactions have been entered for the period being closed:

Enter and book all Orders

Schedule Orders

Enter and book Return Material Authorisations

Run the Generate Pre-billing Acceptance Program for Pre-billing, Implicit Acceptance

Confirm Shipments and optionally, the creation of install base entries for shipments

Sales Order Acknowledgments

Cancel Backordered Included Items

Respond to Workflow Approval Notifications

Confirm that invoice interface has been completed

Optionally, confirm that service contracts for warranties and extended waranties have been created

Close Orders

Closing orders that are complete enhances performance, since many programs,windows and report queries retrieve open orders only. Orders marked as closed arenot selected, increasing system speed and efficiency. Closed orders are excludedfrom many of the standard reports available in Order Management, so reporting canbe limited only to the active orders.Close lines and close orders are implemented using workflow. Order Managementprovides seeded close line and close order workflow sub-processes to close the orderheader and line, respectively. These processes, when included in the order header orline workflow, closes the status of the eligible order or lines. Once an order is closed,no lines can be added or changed.The order header close order process checks at the end of every month to see all thelines associated with are closed. It closes the order header if it finds that all the linesare closed.

Attention: Be sure to include the standard sub-processes of close line and close order at the end of allyour line and order flows to ensure that your orders and returns close once all prerequisites have beenmet.

Close Order LinesAn order line is eligible to close when it completes all of the line-level activitieswithin the workflow process. Order lines can close independent of each other. Oncean order line is closed, no changes can be made to any fields except the descriptive


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flexfield, for which you can define processing constraints.Holds Effect on Eligible LinesThe close order and close line workflow activities will close order or lines if onlygeneric holds are present .If orders or lines have activity specific holds present, theywill not be closed by workflow activity

Attention: If MOAC is enabled for the Order Management responsibility, perform the above tasks foreach of the operating units.

2. 2. ENSURE ALL INTERFACES ARE COMPLETED FOR THE PERIOD(OPTIONAL)

Ensure that all interfaces for the current period have been processed:

Order Import from External Order Systems.If you are using external order processing systems for data entry of orders, use theOrder Import to update Oracle Order Management from your external systems.Alternatively, if you are using the Order management public API to create orders,ensure that the processes calling the public API is completed.Use the Order Import Correction window to examine the orders and optionallycorrect data if it fails the import process. Use the Error Message window todetermine if your data failed to import.Order Import from Oracle Purchasing, for Internal Orders.If you are using Oracle Purchasing to process Internal Purchase Requisitions, thefollowing processes need to be completed:

Enter and approve all Internal Purchase Requisitions in Oracle Purchasing.

Run the Create Internal Sales Orders Process in Oracle Purchasing for all requisitions within the current

period. Use the Create Internal Sales Orders process to send requisition information from approved,

inventory-sourced requisition lines to the Order Management interface tables. Then the Order Import

process is run from within Order Management to generate the internal sales orders. The Create Internal

Sales Orders and Order Import processes can be scheduled to run automatically at specified intervals.

Run Order Import to create Internal Sales Orders from Internal Requisitions.

Run the Internal Order and Purchasing Requisition Discrepancy Report. The Internal Order and

Purchasing Requisition Discrepancy Report displays the differences between the purchasing requisition

entered and the actual items ordered during order entry. This report includes all open and closed orders,

order numbers, order date ranges, order types, requisition numbers, items, ship to information,

scheduled dates, and internal requisition and internal sales order hold discrepancies.

Use the Order Import Correction window to examine the orders and optionally correct data if it fails the

import process. Use the Error Message window to determine if your data failed to import.

Invoice Interface / AutoInvoice, for external orders. Internal orders do not go through the Invoice

interface/ Autoinvoice process. This process will ensure all shipped Sales Order information is transferred

to Oracle Receivables when it reaches the appropriate point in the Order Workflow. The AutoInvoice

Process updates Oracle Receivables for invoice and revenue information, as well as credit memos and

credits on account created from returns.

Attention: This Process is only applicable for Order Workflow Definitions that include the InvoiceInterface or Invoice Line processes.


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Attention: Order Management does not process Internal Sales Order lines for the Invoice Interface,even if the Invoice Interface is an action in the order Workflow Definitions for the Internal Sales Ordertransaction type.

3. 3. REVIEW OPEN ORDERS AND CHECK THE WORKFLOW STATUS

Use the Sales Orders Workbench window to review open orders using the Advanced Tabbed Region tospecify controls such as whether to find closed orders/lines and cancelled orders/lines.

The Sales Orders window displays the order header status in the Main tab of theOrder Information tabbed region. The order line status is displayed in the Main tabof the Line Items tabbed region.The Workflow Status option on the Sales Orders window Tools menu launches theworkflow status page. The window shows in tabular format all the activities an orderheader or line has completed and the corresponding results.From the status page, you can access the Workflow monitor to see the order or linestatus in a more graphical format. This is available through the View Diagrambutton.

4. 4. REVIEW HELD ORDERS

Run the following reports to assist with reviewing Sales Orders on hold.

Orders on Credit Check Hold ReportThe Orders On Credit Check Hold Report identifies all of the credit holds currentlyoutstanding for a customer within a date range, or identify why a particular order ison hold. Order Management allows you to perform a credit check on customerorders and automatically places orders on hold that violate your credit checkingrules. This report is automatically sorted by customer, currency code, credit checkrule, and order number.All balances are calculated as they are using the online credit check rule, includingthe factor for shipments and receivables for a certain number of days.Hold Source Activity ReportThe Hold Source Activity Report reviews holds placed and removed under a holdsource during the time period you specify. This report indicates the date and thetype of activity for each hold transaction.Outstanding Holds ReportThe Outstanding Holds Report reviews order holds for the customer or customersyou choose. This report displays the order number, order date, ordered items, andorder amount for each order line on hold for each customer you select. It isautomatically sorted by customer, order number, order line, and then order linedetail.

5. 5. REVIEW CUSTOMER ACCEPTANCES (OPTIONAL)

In Pre-Billing Customer Acceptance, once the goods are accepted, invoicing is carried out. In Post-BillingAcceptance, the revenue recognition process is deferred and linked to customers accepting the shipped goods.

6. 6. REVIEW DISCOUNTS

It is recommended that you review discounts processed as part of the order process to ensure appropriatediscount policies have been followed, and exceptions are clearly identified and reviewed and/or followed up. Use the following reports:

Order Discount Detail ReportThe Order Discount Detail Report reviews discounts applied to orders by order linedetail. This report provides detailed line pricing information, including price listprice, selling price, and discount information.Order Discount Summary Report


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The Order Discount Summary Report reviews discounts applied to orders. Thisreport provides order level pricing information, including agreement, salespersonand total order discount.

7. 7. REVIEW BACKORDERS

Review backlogs and backorders to ensure that these items are current. If required process cancellations foritems/lines which are no longer required.

Backorder Detail ReportThe Backorder Detail Report reviews all customer orders that have beenbackordered. This report provides details for each order including customer name,order number, order type of each order, all backordered items and their appropriateline numbers, total quantity both ordered and backordered, and monetary amountsof both ordered and backordered quantities.Backorder Summary ReportThe Backorder Summary Report lists all unshipped orders. This report includes onlyopen orders in an order cycle that includes Pick Release. It displays orderinformation such as order number, customer name and number, order type,purchase order, order date, last shipped date, and the monetary amounts ordered,shipped and outstanding.This report also includes total amounts for customers and currencies. Theseamounts involve totals for shippable items only.

8. 8 REVIEW AND CORRECT ORDER EXCEPTIONS

The following reports should be reviewed, and exceptions corrected, before completing the OrderManagement/Receivables period end:

Unbooked Orders ReportUse this report to review orders entered but not booked. They may indicateincomplete processing, which needs to be corrected/completed, or deleted asappropriate.Retry Activities in ErrorThere are cases when retrying a workflow activity in error will not resolve the problem. When Exception Management encounters this situation, the workflowactivity is set to Notified instead of being retried.Sales Order Workflow Status ReportThe Sales Order Workflow Status Report enables Order Management users to locateorders that are not progressing through associated workflows as expected.

9. 9. RECONCILE TO ORACLE INVENTORY

Run the following reports for reconciliation with Oracle Inventory

Backorder Detail ReportReview Backorders (Already discussed under section 7.)Returns by Reason ReportThe Returns by Reason Report reviews all return material authorizations for variousreturn reasons. Order Management automatically sorts this report by currency,return reason, and then item.

10. 10. CREATE SERVICE CONTRACTS (OPTIONAL)

Run the Service Contracts Order Processing Concurrent request to create service contracts for extendedwarranties.

11. 11. RECONCILE TO ORACLE RECEIVABLES (OPTIONAL)

Run the following reports to assist in reconciliation of orders invoiced in the period:


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Commercial Invoice (for all ship dates within the current AR period)The Commercial Invoice Report lists all confirmed shipped items in a delivery. Ifonly a delivery name is specified when defining the parameters of this report,Shipping Execution prints one commercial invoice per delivery within the trip.Order/Invoice Detail ReportThe Order/Invoice Detail Report reviews detailed invoice information for orders thathave invoiced. A variety of parameters can be used to print the invoice informationfor a specific order or group of orders. If there are no invoices for a particular orderthat meets the parameter criteria, Order Management prints in the report that noinvoices exist for that order.

12. 12. RUN STANDARD PERIOD END REPORTS

The following reports should be run each period:

Cancelled Orders ReportThe Cancelled Orders Report reviews all orders that have been cancelled. Thisreport provides a summary of each cancelled order, including order number,customer name, line number and item, the date and reason the order or order linewas cancelled, the quantity ordered and the quantity cancelled, and who cancelledthe order.This report can be used to report total amounts cancelled in a specified time-frame,and allows evaluation of the most common cancellation reasons, reviewcancellations by salesperson, or review cancellations by customers.Salesperson Order Summary ReportThe Salesperson Order Summary Report reviews orders for one or moresalespeople. This report displays the order and each order line associated with eachsalesperson.Salespeople can use this report to see their current outstanding orders and theirstatus. This report shows open orders, quantity ordered, shipped, cancelled, andinvoiced and their potential commission.The report displays all open and closed orders for a salesperson, customer orcustomer number, agreements, order numbers, order date ranges, order types, linetype, and detailed sales credit information for lines in a selected range.Customer Acceptance ReportGenerate Pre-billing Acceptance Program for Pre-billing, Implicit Acceptance.

2.

Chapter 4 Oracle Cash Management

This chapter describes the procedures for performing period-end processing inOracle Cash Management Release 12.


Oracle Cash Management is an enterprise cash management solution that helps youeffectively manage and control the cash cycle. It provides comprehensive bankreconciliation, bank, bank branches & internal bank accounts setup, intra-bankaccount transfers, cash pooling and flexible cash forecasting.The Bank Reconciliation process enables the verification of entries on the BankStatement by reconciling that information with system transactions in OraclePayables, Oracle Receivables and Oracle General Ledger.During the Bank Reconciliation process miscellaneous transactions can be createdfor bank-originated entries, such as bank charges and interest.Cash forecasting is a planning tool that helps anticipate the flow of cash in and out ofthe enterprise, allowing the projection of cash needs and evaluation of thecompany's liquidity position.

2. Procedures


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The following steps are taken in performing period-end processing for Oracle CashManagement.

1. 1. COMPLETE DAILY CASH MANAGEMENT ACTIVITIES

Complete bank account transfers for the day, validate them, if necessary, and send payment instructions to thebank.

2. 2. LOAD BANK STATEMENTS

Detailed information from each bank statement, including bank account information, deposits received by thebank, and checks cleared needs to be entered to Cash Management. Bank statements can be either manuallyentered or loaded electronically from information received directly from your bank.

For organizations with high transaction volumes Bank Statements should be loadedand reconciled on a daily basis.Refer to: Entering Bank Statements Manually and Loading Bank Statement OpenInterface

3. 3. GENERATE SWEEP TRANSACTIONS

If you have target balance or zero balance accounts (ZBA) with your banks, you can automatically generatesystem transactions to match banking information once the bank posts the sweeps. Once the bank statementsare imported, run the Sweep Transaction Generation concurrent program. The program will scan the bankstatement for sweep lines and, based on the cash pool setup in the system, create sweep transactions betweenyour internal bank accounts, which can be accounted for and subsequently reconciled.

4. 4. CREATE BANK STATEMENT CASHFLOWS

If you have recurring items such as bank fees and interest appear on your bank statement, you can use theBank Statement Cashflow Creation program to create system transactions (cash flows) to match bankinginform. Once the bank statements are imported, run the Bank Statement Creation concurrent program. Theprogram will scan the bank statement for specific codes, as defined in the Bank Statement Cashflow Mapping,and create cashflows, which can be accounted for and subsequently reconciled.

5. 5. RECONCILE BANK STATEMENTS

Once detailed bank statement information has been entered into Cash Management, the information must bereconciled with the subledger transactions.

Cash Management provides two methods to undertake reconciliations:

Automatic - Bank statement details are automatically matched and reconciled withsubledger transactions. This method is ideally suited for bank accounts, which havehigh volumes of transactions.(Refer Reconciling Bank Statements Automatically)

Manual - This method requires a manual match of bank statement details withsubledger transactions. The method is ideally suited to reconciling bank accounts,which have a small volume of monthly transactions. The manual reconciliationmethod can also be used to reconcile any bank statement details, which couldn't bereconciled automatically.(Refer Reconciling Bank Statements Manually)

6. 6. CREATE MISCELLANEOUS TRANSACTIONS

During the reconciliation process miscellaneous transactions for bank-originated entries, such as bank chargesand errors can be created. Oracle Payables payments or Oracle Receivables receipts can also be manuallycreated.


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Note: The automatic reconciliation process can be set up to create miscellaneoustransactions automatically.

Attention: If you create transactions during the reconciliation process you will need to re-run ‘CreateAccounting’ routine from Oracle Receivables to ensure all information is transferred to the GeneralLedger

7. 6A.COMPLETE BANK TRANSFERS

Complete the bank account transfer whether it is manual or automatic and record the validation if requiredbefore completing the transfer.

8. 7. REVIEW AUTO-RECONCILIATION EXECUTION REPORT

Once the reconciliation process has been completed, reviewing the reconciliation results is recommended.

This report shows import and reconciliation errors that occurred when running theAuto-Reconciliation program. Cash Management automatically produces this reportduring the automatic reconciliation process. You may also request it as needed fromthe Submit Request window.This report includes either statement import errors, which prevented the automaticloading of your bank statement, or your reconciliation exceptions found during theautomatic reconciliation process.This report lists the details of any miscellaneous transactions that were created inReceivables during the automatic reconciliation process.

9. 8. RESOLVE EXCEPTIONS ON THE AUTO-RECONCILIATIONEXECUTION REPORT

Resolve the exceptions on the Auto-Reconciliation Execution report by either re-running the import process orby manually reconciling the exceptions.

10. 9. RUN BANK STATEMENT DETAIL REPORT

This report shows statement and transaction information for a specific bank account statement, including bankstatement header information, statement line detail, and reconciled transaction detail. This report lists anyun-reconciled transactions separately with their current status, and the statement totals for each type oftransaction, including the amount entered, reconciled, un-reconciled, over-reconciled and under-reconciled,and gives you the option to only select un-reconciled statement lines.

11. 10. RUN TRANSACTIONS AVAILABLE FOR RECONCILIATIONREPORT

This report shows all transactions available for reconciliation for a specific bank account. It lists detailedtransaction information for your Available Receipts, Available Payment, and Available Journal Entries forreconciliation. Detailed information includes the Customer, Supplier or Batch Name, Transaction Date,Payment Method, Transaction Number, Currency, and Amount.

This report only lists void payments if the Show Void Payments option on theSystems Parameters window is checked. It does not list reversed receipts due touser error nor does it list the associated original receipts that were not reconciled.This report groups transactions by status so that void or reversed transactions areseparate from regular transactions.

12. 11. RESOLVE UN-RECONCILED STATEMENT LINES

Resolve the un-reconciled statement lines by manually reconciling the Statement lines to the availabletransactions.

13. 12. POST TO GENERAL LEDGER


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Create journal entries for eligible accounting events generated by Bank Account Transfers and Bank StatementCash Flows by submitting "Create Accounting" concurrent program. The program creates and, optionally,transfers and posts journal entries to General Ledger. If you do not transfer the journals to General Ledgerimmediately, you can later submit the "Transfer Journal Entries to GL" concurrent program.

Important. Final journal entries cannot be further modified in Cash Management.Please make sure you are satisfied with the draft journal entries before creating finalaccounting. In addition to creating final accounting entries, the program can be runin a draft mode, in which case draft journal entries will be created. Such journalscannot be transferred or posted to General Ledger.

14. 13. RUN THE GL RECONCILIATION REPORT

Use this report to reconcile the General Ledger cash account to a bank statement balance.

This report lists a balance and an adjusted balance for the bank statement. It alsolists a separate adjustment amount for un-reconciled receipts, payments, andjournal entries, as well as bank errors.

Warning: To ensure that this report is accurate, you must first perform these tasks:

Reconcile all statements in Cash Management.

Transfer journal entry transactions from Oracle Payables and Oracle Receivables to your General

Ledger.

· Post journals in General Ledger, if transfer from sub-ledgers was not in FINAL POST mode.

1.1.1.1.

16.

14. RUN THE ACCOUNT ANALYSIS REPORT FOR THE GENERALLEDGER CASH ACCOUNT

Run the Account Analysis Report from General Ledger for the General Ledger Cash Account Flexfield and sortby Source.

Ensure that only bank account related transactions have been posted to this accountby checking the Source of the transactions. Valid sources will include Payables andReceivables. Transactions entered directly via General Ledger will have a Source ofManual or possibly Spreadsheet if ADI is used.

17. 15. REVIEW THE ACCOUNT ANALYSIS REPORT

Review the Account Analysis Report to ensure that only bank account related transactions have been posted tothe General Ledger Cash Account by checking the Source of the transactions. Valid sources will includePayables and Receivables. Transactions entered directly via General Ledger will have a Source of Manual orpossibly Spreadsheet if ADI is used.

18. 16. CORRECT ANY INVALID ENTRIES TO THE GENERAL LEDGERCASH ACCOUNT (OPTIONAL)

Reverse or amend any journals incorrectly posted to the General Ledger Cash Account, which were highlightedduring the review of the Account Analysis Report.

To prevent invalid journal entries to the General Ledger Cash Account enablesecurity rules appropriately.

3.


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Chapter 5 Oracle Payables

This chapter describes the procedures for performing period-end processing inOracle Payables Release 12.


Accounts payable activity must be reconciled for the accounting period that is to beclosed. The following steps are taken in performing period-end processing for OraclePayables.The posting level for Oracle Payables must be determined, when planningperiod-end procedures. Where detail level accounting transactions are required tobe posted to the general ledger using sub-ledger accounting (hereafter referred to asSLA), there may be technical constraints involved, relating to the physical datastorage volume, and posting and report processing speed degradation caused by thesheer volume of posted transactions. In Release 12 the detailed level of posting canbe controlled by GL summarize options and also at SLA journal line type level.Subledger Accounting can contain all of the detailed subledger accounting levelanalysis, so that the General Ledger can remain “thin” and Subledger Accountingonline inquiry and BI Publisher reports can be utilized to report and analyzebalances and their transactions.

2. Procedures


Ensure that all transactions have been entered for the period being closed.

Completing all transactions for Oracle Payables:

Complete Invoicing and Credits1.

Complete Prepayments2.

Complete Expense Reports3.

Complete Invoice Import4.

Complete Payments5.

If you import transactions from an external system, or you are using InternetExpenses or Xpense Xpress, ensure you have imported all transactions, andreviewed all audit trails for completeness.One consideration for Accounts Payable where there are multiple operating unitswithin the same ledger is that all operating units must be ready to close at the sametime. All of the operating units that share a Ledger also share the same periodstatuses. When you update the period statuses to ‘Open’ in one operating unit, thatperiod is opened for all operating units within the ledger.When you attempt to update the period status to ‘Closed’ in one operating unit, thesystem checks for unposted transactions in all operating units within the ledger. Ifthere are unposted transactions in any of the operating units, the system asks you toresolve the un-posted transactions for those operating units before it allows you toclose the period for the ledger. If Multi-org Access Control is being implemented,period closing can be performed across OU’s from a single responsibility, throughone OU at a time.

2. 2. RUN THE PAYABLES APPROVAL PROCESS FOR ALL INVOICES

The Payables Approval process is run to try to approve all unapproved invoices and invoice lines in the system,so that they can be paid by Oracle Payments and posted to the General Ledger.


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3. 3. REVIEW AND RESOLVE AMOUNTS TO POST TO THE GENERALLEDGER

a. Review the Invoice on Hold Report

This report enables review of any holds currently applied to invoices that wouldprevent the payment and/or posting of these invoices. The report details all invoicesfor which Oracle Payables cannot select for posting and therefore cannot createjournal entries.Where possible resolve any identified holds, which will prevent posting to theGeneral Ledger, and re-run the Payables Approval process to approve theseinvoices.b. Review the Journal Entries ReportThis report enables review and analysis of accounting entries in the Payablessubledger, as accounted by SLA. Using the report parameters, you can produce adetailed or summary listing of the accounting information you want to review. Thisreport is owned by SLA.The report also lists in detail transactions that have been accounted with error andall entries that could not be transferred to the general ledger. When a transaction isaccounted with errors, review the details and make necessary changes.By altering the parameters the report also lists those transactions, which have beenposted in General Ledger and those, which are yet to be posted but have beenaccountedSLA groups the report by ledger, ledger currency, source, category, and event class.Data is then sorted by accounting date, event type, supplier name, documentnumber, and voucher number.c. Review the Unaccounted Transactions ReportThis report enables review of all unaccounted invoice and payment transactions anda view of the reason that Payables cannot account for a transaction. AccountsPayable sorts the report by transaction type (invoice or payment), exception,supplier, transaction currency, and transaction number.Run this report after you have run the Create Accounting Process. The report willthen show only transactions that had problems that prevented accounting. You canthen correct the problems and resubmit the accounting process.Note that this report does not include invoices that have no distributions.d. Optionally Run a Month End Payment Process RequestBy running a month end payment process request, you may arrange a payment foras many due invoices as possible.e. Confirm all Payment InstructionsRun the Payment Instruction Register for the period that is to be closed, or finalizeany outstanding payments. Use Oracle Payments to confirm any paymentinstructions. Check the status of the Payment Process Request/Payments/Paymentinstructions to ensure that all payments have been processed.The Payment Instruction Register lists each payment created for a payment processprofile or for a manual payment. Actual payments can be compared against thisregister to verify that Oracle Payables/Oracle Payments has recorded paymentscorrectly. The report lists each payment in a payment process request, includingsetup and overflow payment documents, in ascending order, by payment number.This report is automatically submitted when payment instructions are being created.This can also be submitted from the SRS screen.

Attention: Oracle Payables prevents the closing of a period in which all payments have not beenconfirmed.

f. Optionally Run the Payments RegisterThe Payment Register details payments printed in a particular accounting period.The report can be used to review payment activity for each bank account usedduring the specified time period.


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Warning: The report total only shows the net ( less discounts) payment amount, whereas the PostedPayment Register total is the total payment amount, including discounts. If only verifying report totals,these two reports would not balance. Therefore it is necessary to subtract the ‘Discounts Taken’ fromthe Posted Payment Register report total and then compare this calculated amount to the totaldisplayed on the Payments Register Report.

4. 4. RECONCILE PAYMENTS TO BANK STATEMENT ACTIVITY FORTHE PERIOD

Refer to Chapter 9 Period-End Procedures for Oracle Cash Management

5. 5. TRANSFER ALL APPROVED INVOICES AND PAYMENTS TO THEGENERAL LEDGER

Release 12 provides 3 modes of accounting: Final, Final Post and Draft. The transactions that have beenaccounted in Final Post have already been transferred to, and posted, in General Ledger. The transactions thathave been accounted in the Final Mode can have been transferred to GL or can still be within the subledgerbased on the parameter ‘Transfer to General Ledger’ (either 'Yes or 'No') in the Create Accounting program.

When accounting mode is Final and transfer to GL set to ‘No’ then ‘PayablesTransfer To General Ledger ’ needs to be run from the Standard report submission(SRS) window.The transactions in Draft accounting mode can be included on accounting reportsbut cannot be transferred to General Ledger. A draft entry does not update balancesand does not reserve funds.SLA creates detail or summary journal entries for all eligible events when you post.The journal entries are posted in Oracle General Ledger to update account balances.Invoice journal entries, debit the expense or other account entered on an invoicedistribution line, and credit the liability account nominated on the invoice, unlessyou have modified the SLA rules to create alternative accounting entries to addressyour specific business needs.Payment journal entries, debit the liability account and credit the cash account of thebank account used to pay and invoice.The Create Accounting process transfers data to the General Ledger tables, creatingjournal entries for these invoice and payment transactions. Posting is determined bythe parameter ‘Post in GL’ which is set during Create Accounting.

Attention: The generated journal batch needs to be posted from within Oracle General Ledger if themode of accounting was ‘Final’, Transfer to General Ledger was ‘Yes’ and Post in GL was set to ‘No’.

The journal batch will be automatically posted in General Ledger if the mode ofaccounting was ‘FINAL’ and Post in GL was set to ‘Yes’.

6. 6. REVIEW THE PAYABLES TO GENERAL LEDGER POSTINGPROCESS AFTER COMPLETION.

The following reports can optionally be run to review the invoices and payments that were posted to OracleGeneral Ledger, from Oracle Payables, for the period that is to be closed, i.e. the current accounting period.

a. Payables Accounting Process ReportUse this report to review accounting entries created by the Create AccountingProcess. The report has two sections:Accounting Entries Audit Report. The audit report provides, in detail or summary, alisting of accounting entries created by the accounting process.Accounting Entries Exception Report. The exception report lists in detail allaccounting entries that were created with an error status and a description of thaterror. The Accounting Entries Exception Report is generated only when theaccounting process encounters accounting entries that fail validation.


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b. The Posted Invoices RegisterThis report is used to review invoices for which information has been posted toOracle General Ledger to create journal entries, and can be used to verify that thetotal invoice amount equals the total invoice distribution amount. The report listseach Accounts Payable Liability Accounting Flexfield and the invoices posted to theaccount.c. The Posted Payments RegisterThis report is used to review the payments posted to Oracle General Ledger during aparticular accounting period, and can be used to review the payment activity foreach bank account used during that period.

7. 7. SUBMIT THE UNACCOUNTED TRANSACTIONS SWEEP PROGRAM

The Unaccounted Transactions Sweep Program transfers unaccounted transactions from one accountingperiod to another. Because you cannot close a Payables period that has unaccounted transactions in it, if youraccounting practices permit it, you might want to use this program to change the accounting date of thetransactions to the next open period. For example, you have invoices for which you cannot resolve holds beforethe close, and your accounting practices allow you to change invoice distribution GL dates. Submit the programto change invoice distribution GL dates to the first day of the next open period so you can close the currentperiod.

The ‘Unaccounted Transactions Sweep Program’ will not roll forward accountedtransactions, or accounted transactions with error. To create successful accountingentries for accounted transactions with error, correct any accounting errors andresubmit the Create Accounting Process.The program transfers unaccounted transactions to the period you specify byupdating the GL dates to the first day of the new period. You can then close thecurrent accounting period in Oracle Payables.In the Control Payables Periods window if you try to close a period andunaccounted transactions exist, then Payables opens a window. From the windowyou can submit the Unaccounted Transactions Sweep Program or you can submit areport to review accounting transactions that would be swept by the program. Whenyou submit the Unaccounted Transactions Sweep Program, Oracle Payablesautomatically produces the Unaccounted Transactions Sweep Report to identifytransactions that were re-dated and identify any transactions that need updating. Ifyou submit the report in preliminary sweep mode the Unaccounted TransactionsSweep Review report shows which transactions will be re-dated if you submit theUnaccounted Transactions Sweep Program.

8. 8. CLOSE THE CURRENT ORACLE PAYABLES PERIOD

Close the accounting period by using the Control Payables Periods window to set the Period Status to Closed.This process automatically submits the ‘Subledger Period Close Exceptions Report’.

The Subledger Period Close Exceptions Report lists all accounting events andjournal entries that fail period close validation. It is automatically submitted byGeneral Ledger when closing a GL period if there are unprocessed accounting eventsor un-transferred journal entries.You can also generate the Subledger Period Close Exceptions Report through aconcurrent request as follows:

· For the application associated with the responsibility· For all applications in the General Ledger responsibility

9. 9. ACCRUE UNINVOICED RECEIPTS

(Refer to Chapter 2 Period-End Procedures for Oracle Purchasing)

10. 10. RECONCILE ORACLE PAYABLES ACTIVITY FOR THE PERIOD

a. Run the Accounts Payable Trial Balance Report


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This report is used to facilitate reconciliation of the total accounts payable liabilitiesin Oracle Payables, with the Oracle General Ledger Creditors Control Account, for aspecific accounting period. The Accounts Payable Trial Balance Report is a BIPublisher report, which is based on a Subledger Accounting extract and enables youto identify the open Accounts Payable transactions that make up each AccountsPayable balance.This report lists, and sub-totals, by vendor, all unpaid and partially paid invoices forwhich Oracle Payables created journal entries (i.e. posted invoices). These invoicesrepresent the outstanding accounts payable liability for the organization.To obtain the most up-to-date trial balance for a given period, journal entries shouldbe posted for the invoice and payment activity for the period, prior to running thereport.For reconciliation of Oracle Payables and Oracle General Ledger when posting is onlyperformed at period end, the following reconciliation method can be used:Use the following reports to reconcile your transferred invoices and payments toyour Accounts Payable Trial Balance to ensure that your Trial Balance accuratelyreflects your accounts payable liability:Accounts Payable Trial Balance (for last day of prior period)Payables Posted Invoice Register - Invoice journals must be posted in general ledgerto appear on this report.Payables Posted Payment Register - Payment journals must be posted in generalledger to appear on this report.Accounts Payables Trial Balance (for last day of current period) - This balancingprocess will help you ensure that all liabilities recorded in Payables are reflected inthe general ledger AP liability accounts. If the balance reported by the accountspayables trial balance does not equal the balance in the AP liability account, you canuse the Account Analysis report and the General Ledger reports to determine whatjournals are being posted to that account. Before running your reports, run theTransfer Journal Entries to GL Program for all transactions in the period that youare reconciling. Also, be sure to post the transactions in the general ledger.

Attention: Typical AP/GL Reconciliation Example31st March Accounts Payables Trial Balance Report + April Payables Posted Invoice Register –April Payables Posted Payment Register –- 30th April Accounts Payables Trial Balance Report= 0

Attention: When posting to the General Ledger is performed multiple times throughout eachaccounting period, the Posted Invoices Register and Posted Payments Register reports must berun after each posting run, for reconciliation of Oracle Payables liabilities with Oracle General Ledger’sCreditor Control.

b. Run Third Party Balances Report

This report is used to display balance and account activity information forSuppliers and Customers. It retrieves the following information:

· Third party balances for third party control accounts

· Subledger journal entry lines that add up to the total period activity for each control account, third party, and third party site

· Third party and third party site information

· User transaction identifiers for the associated event


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The balances in this report can be compared with the General Ledger balances forthe same control accounts to reconcile.

Note: A comparison between the accounts in payables with the accounts in GLmight not match as SLA has the ability to override the accounting. For moreinformation refer to ‘SLA Implementation Guide’.

c. Submit and review Account Analysis ReportThe Account Analysis Report provides drill-down information about the movementon a particular account for a period or range of periods. It only includes journalentries transferred to and posted to General Ledger.Review this report and compare it with ‘Third Party Balances’ report. This report isowned by SLA.Note: To avoid duplication with subledger journal entries, General Ledger journalentries imported from Subledger Accounting are not included in the report.

11. 11. RUN MASS ADDITIONS TRANSFER TO ORACLE ASSETS

After you have completed all Payables transaction entry, and confirmed all invoice holds, and carry forwards,submit the Mass Additions Create program to transfer capital invoice line distributions from Oracle Payables toOracle Assets.

For foreign currency assets, Payables sends the invoice distribution amount in theconverted functional currency. The mass addition line appears in Oracle Assets withthe functional currency amount.After you create mass additions, you can review them in the Prepare Mass Additionswindow in Oracle Assets.It is recommended to do a final Mass Additions Create after the period close toensure that all Payables invoices are

included in the correct period and1.

any additional invoicing will become part of the next periods invoice and asset processing period.2.

Suggestion: If the volume of transactions in Accounts Payable requiring Assets update is large,you should consider running the Mass Additions Create process on a more regular basis.

12. 12. OPEN THE NEXT ORACLE PAYABLES PERIOD

Open the next accounting period by using the Control Payables Periods window to set the PeriodStatus to Open.

13. 13. RUN REPORTS FOR TAX REPORTING PURPOSES(OPTIONAL)

A variety of standard reports can be used to provide tax information, which is required to be reportedto the relevant Tax Authority, including withholding tax.

Withholding tax is handled by Payables whereas other tax requirements arehandled by eBTax.The E-Business Tax data extract draws tax information from each applicationand stores the data in an interface table. Output from the tax extract isdesigned to look as close to a simple tax report as possible.The tax extract copies the accounting information from each application andstores it in an interface table. You can use the available reporting tools,including RXi, Oracle Reports, or XML Publisher to specify which fields of


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the Tax Reporting Ledger to include and to print the report in a format thatmeets your needs.The following tax registers are available:

· Deferred Output Tax Register

· Recoverable and Non-Recoverable Tax Registers

· Single Cross Product Tax Register

· Standard Input and Output Tax Registers

The following summary levels are available within each Tax Register:· Transaction Header

· Transaction Line

· Accounting Line

0. 14. RUN THE KEY INDICATORS REPORT (OPTIONAL)

This report enables review of the Accounts Payables department’s productivity. This statisticalinformation can be useful for cash flow analysis and forecasting purposes, when combined with similarinformation from Oracle Accounts Receivables.

When you submit the Key Indicators Report, Payables generates reports youcan use to review Payables transaction activity, and review the currentnumber of suppliers, invoices, payments and matching holds in yourPayables system.The Key Indicators Report generates the following two reports:a. The Key Indicators Current Activity ReportUse the Key Indicators Report to review your accounts payable department'sproductivity. The Key Indicators Report provides current activity indicatorsthat compare current period activity with prior period activity in three majorareas: suppliers, invoices, and payments. Payables further breaks down eachcategory into basic items, exception items, and updates. The report providesthe number of transactions for each indicator (such as number of automaticpayments printed during a period) and amount values where applicable tothe Key Indicator (such as total value of automatic payments written during aperiod).b. Key Indicators Invoice Activity ReportReport that compares the invoice activity for each of your accounts payableprocessors during the period you specify and the previous period. OraclePayables produces this report only if you choose Yes for the Include InvoiceDetail parameter.c. The Key Indicators State of the System ReportThe Key Indicators State-of-the-System Report provides a period-end viewof Oracle Payables, as well as average values. For example, the Key IndicatorsState-of-the-System Report includes:Suppliers:

· Number of suppliers.· Number of supplier sites.· Average sites per supplier. The number of sites divided by the number of suppliers.

Invoices:· Number of invoices.· Number of invoice distributions.· Average lines per invoice. The number of invoices divided by the number of distributions.· Scheduled payments. Number of scheduled payments based on payment terms and manual

adjustments in the Scheduled Payments tab.· Average payments per invoice. The number of invoices divided by the number of scheduled

payments.

Payments:· Number of payments (both manual and computer generated) created and recorded in Payables.· Invoice payments. Number of invoice payments made by Payables. A payment document can pay

multiple invoices.


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· Average invoices per payment. The number of payment documents divided by the number ofinvoice payments.

Matching holds:· Matching holds. The number of matching holds in Payables.

Average matching holds per invoice on matching hold. The number ofmatching holds divided by the number of invoices on matching hold.

15. 15. PURGE TRANSACTIONS (OPTIONAL)

You can delete Oracle Payables or Oracle Purchasing records that you no longer need to access on-lineto free up space in your database. You can purge invoices, purchase orders, suppliers, and relatedrecords such as invoice payments and purchase receipts.

Warning: After a record is purged, it can no longer be queried, and the record will no longerappear on standard reports. However, the system maintains summary information of deletedrecords to prevent you from entering duplicate invoices or purchase orders.

Suggestion: You should create a special responsibility for purging information from OraclePayables and Oracle Purchasing and assign this responsibility only to the person responsible forpurging information from your database.

16.

Chapter 6 Oracle Receivables

This chapter describes the procedures for performing period-end processingin Oracle Receivables Release 12.


Oracle Receivables requires periodic internal reconciliation of thetransactions entered into the Accounts Receivables system.Oracle Receivables provides a comprehensive set of reports to facilitatereconciliation of outstanding customer balances, transactions, receipts, andaccounts balances.The application provides the functionality to enable reconciliation of yoursub-ledger before posting to the general ledger. Posting to the GeneralLedger allows extraction of details from Oracle Receivables, and creation ofjournal entries in the General Ledger. After posting to the General Ledger, itis possible to reconcile Oracle Receivables with the General Ledger byverifying that all the correct journal entries were made.

16. Procedures

The following steps are taken in performing period-end processing for OracleReceivables.



Completing all transactions for Oracle Receivables:

Complete Invoicing, Credits and Adjustments1.1.

Complete Receipts and Reversals1.1.


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Complete Invoice and Customer Import1.1.

Complete LockBox Processing1.1.

Run the revenue recognition program (Optional)1.1.

If you import transactions from an external system or Oracle Projects ensureyou have imported all transactions and master files, and reviewed all audittrails for completeness

0. 2. RECONCILE TRANSACTION ACTIVITY FOR THE PERIOD

Reconcile the transaction activity in Oracle Receivables before posting to the General Ledger using SLA.This reconciliation process checks that Oracle Receivables transactions are balanced, ensuring that allitems eligible for posting are reflected on the Sales Journal. Run the following reports for the sameaccounting period date range:

a. The Transaction RegisterThis report details all the transactions (i.e. invoices, debit memos, creditmemos, deposits, guarantees and chargeback) entered with a GL datebetween the period start and period end dates specified for the period beingreconciled. This report shows transactions entered and completed.b. The Sales Journal By Customer Report and the Sales Journal By GLAccount ReportThis report enables review of all transactions for the specified period. Thesummary totals for the sales journal are by Posting Status, Company, andTransaction Currency. This report details, by account type (i.e. receivables,revenue, freight, tax), the general ledger distributions for posted and/orun-posted invoices for the specified period.The total on the Sales Journal by GL Account should equal the total of itemseligible for posting as listed on the Transaction Register. If any discrepanciesare evident, research the customer balances to find out which balance doesnot tally, using the Sales Journal by Customer report.By using the following formula, ensure that the Transaction Registermatches the Sales Journal:Transaction Register (Items eligible for posting) + 2 * Credit Memo Total =Sales Journal (Debits plus Credits)E.g. $100 + (2 * $20) = Debits $120 + Credits $20($120 Debits - $20 Credits)

Attention: The Transaction Register total for any credits must be adjusted, as they are negativeon the Transaction Register and positive on the Sales Journal.

Attention: Ensure that the monthly transaction total is accurate and that no distribution issuesexist.

c. Review the Journal Entries ReportThis report enables review and analysis of accounting entries in theReceivables subledger, as accounted by SLA. Using the report parameters,you can produce a detailed or summary listing of the accounting informationyou want to review. This report is owned by SLA.The report also lists in details transactions that have been accounted witherror and all entries that could not be transferred to the general ledger.When a transaction is accounted with errors, review the details and makenecessary changes.By altering the parameters the report also lists those transactions, whichhave been posted in General Ledger and those, which are yet to be postedbut have been accounted


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SLA groups the report by ledger, ledger currency, source, category, and eventclass. Data is then sorted by accounting date, event type, supplier name,document number, and voucher number.Note: To avoid duplication with subledger journal entries, General Ledgerjournal entries imported from Subledger Accounting are not included in thereportd. Review the AR to GL Reconciliation Report:The AR to GL Reconciliation report compares the account balances in OracleReceivables to those in Oracle General Ledger, and highlights journal sourceswhere discrepancies might exist. This report simplifies the reconciliationprocess by comparing Receivables and General Ledger account balances in asingle place.Run the AR to GL Reconciliation report:

After the Create Accounting program in Receivables has completed, and1.1.

You have reviewed the Unposted Items report to confirm that all journal entries have posted, and1.1.

You have used the posting execution reports to confirm that the journal entries exported from

Receivables match those posted in General Ledger.

1.1.

This report will show a difference between Receivables and GL accountbalances only if items did not successfully post to GL accounts. TheDifference column indicates that the activity in Receivables compares to thejournal source of Receivables in the G.L. If the actual balance of a specificaccount is different in Receivables than in the general ledger, then thefollowing columns highlights the type of journals that affect the accountbalances:

· GL Source Manual: Manual journal entries made in the General Ledger.· GL Subledgers Not AR: Journal entries posted to the General Ledger from other subledgers,

such as Oracle Payables or a legacy feeder system.· Unposted in GL: Unposted journals in the general ledger.

During the internal reconciliation process, use the AR Reconciliation reportto confirm that your transactional and accounting data match. Even if thedata matches, however, the journals could still post to incorrect GL accounts.The Potential Reconciling Items report addresses this issue by suggestingjournal items that might potentially post to GL accounts with unexpectedaccount types, thus creating reconciliation issues in Oracle General Ledger.

Attention: Where there are multiple operating units within the same ledger all operating unitsmust be ready to close at the same time. All of the operating units that share a ledger also sharethe same period statuses. When you update the period statuses to ‘Open’ in one operating unit,that period is opened for all operating units within the ledger.

0. 3. RECONCILE OUTSTANDING CUSTOMER BALANCES

Reconcile the outstanding customer balances at the beginning of a specified period with the endingbalance for the same period, using the following formula, known as the Roll Forward Formula:

Period-End Balance = Outstanding Balance at Start of Period +Transactions + Adjustments - Invoice Exceptions - Applied Receipts- Unapplied ReceiptsThe following list represents the various components that affect a customer’sbalance and the reports, which can be run and reviewed to reconcile thesecomponents:

Component Report


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Beginning Balance Aging reports

Transactions Transaction Register

Adjustments Adjustment Register

Exceptions Invoice Exceptions Report

Applied Receipts Applied Receipts Register (Identify payments received from customers)

UnappliedReceipts

Unapplied and Unresolved Receipts Register (Identify payments receivedfrom customers)

Ending Balance Aging report (As of the last day of the accounting period)

Attention: You can use the Invoice Exceptions Report to adjust the TransactionRegister for any transactions, which are, not open to Receivables and therefore do not show upin the aging reports.

1. 4. REVIEW THE UNAPPLIED RECEIPTS REGISTER

Use the Unapplied Receipts Register to review detailed information about your customers’ on-accountand unapplied payments for the date range that you specify. You can use this report to determine howmuch your customer owes after taking into account all on-account and unapplied amounts. Receivablesdisplays information about your on-account or unapplied payment such as GL date, batch source, batchname, payment method, payment number, payment date, on-account amount, and unapplied amount.This report includes both cash and miscellaneous receipts.

If any of the Receipts listed can now be applied to outstanding transactions,then perform this action by re-querying the receipts and following the normalapplication procedure.

2. 5. RECONCILE RECEIPTS

Ensure that Oracle Receivables receipts balance by running the following reports:

Receipts Journal ReportThis report displays details of receipts that appear in the Journal EntryReport. The Journal Entry Report shows the receipt numbers thatcontribute to a particular GL account. Using the receipt number, you canreview the detailed information on the Receipts Journal Report.Receipt RegisterUse this report to review a list of receipts for a specified date range.

Attention: Normally the total of the Receipts Journal report should equal the total of all thereceipts in the Receipt Register for the same GL date range. Unfortunately currently (January2009) this is not always the case. See the following Metalink bugs and enhancement requests formore details:Note 393682.1: Unable to Reconcile Receipt Register to Receipt Journal – Enhancement 5567693is still pending.Bug 7423482: Receipt Register and Receipt Journal do not show on-account activity – deemedfunctionality.Bug 7589198: Receipt Register does not match Receipt journal – still in progress.


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Both reports display invoice related receipts and miscellaneous receipts.

3. 6. RECONCILE RECEIPTS TO BANK STATEMENT ACTIVITYFOR THE PERIOD

(Refer to Chapter 9 Period-End Procedures for Oracle Cash Management)

Attention: The Create Accounting process must be re-run for any miscellaneous accountingentries generated from the bank reconciliation, for transfer to the General Ledger. This programis owned by SLA and can be run both from the transactions screen and also from the SRS screen.

4. 7. POST TO THE GENERAL LEDGER

Prior to posting to the general ledger, the Receipts Journal Report and Sales Journal display thetransactions that would be posted to the General Ledger (providing the posting process was run for thesame GL date range). After internally reconciling the transactions and receipts using these two reports,it is possible to perform external reconciliation during and after the posting process.

The posting process for Oracle Receivables involves a single step:Create Accounting: This request-owned by SLA can be submitted fromthe tr1ansactions screen or even from the SRS screen. The accounting is doneat the ledger level and the program has the ability to transfer and import intoGeneral Ledger based on the parameters specified.If create accounting is submitted in the ‘Final’ mode without transferring it toGL, the entries will have to be transferred separately.

5. 8. RECONCILE THE GENERAL LEDGER TRANSFER PROCESS

The Create Accounting program produces the Subledger Accounting Program report that shows youthe subledger journal entries created for successful accounting events. Compare this report to theJournal Entries report (run in Posted status mode) and verify that they match. Use the same GeneralLedger date ranges for the Journal Entries report and the Create Accounting program.

Create Accounting will generate a report which details the transferredtransactions, transactions in error etc.Once transactions and receipts have been transferred to the GL tables,Oracle Receivables regards these items as having been ‘posted’ within thesub-ledger. Account balances for transactions and receipts can be reconciledby generating the Sales Journal by GL Account Report, the ReceiptsJournal Report (in ‘transaction’ mode) and the Journal Entries Reportfor posted items. The account totals in the Sales and Receipt journalsshould match the corresponding account balances in the Journal EntriesReport.

Attention: The ‘Detail by Account’ version of the Journal Entries Report may be the mostuseful for reconciliation in this case.

When running any Oracle Receivables reports that display accountinginvolving transactions that have been posted to GL, the following statementsapply:If SLA final accounting lines exist, then SLA accounting is displayed. If SLAaccounting lines do not exist, then AR distribution accounting is displayed.

6. 9. RECONCILE THE JOURNAL IMPORT PROCESS

Create Accounting program submits journal import automatically. Journal Import produces anexecution report detailing the total debits and credits for the journals created by the import processThese totals must match the totals on Subledger Accounting Program report.


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When the Create Accounting Program is submitted with the posting mode as‘Final Post’, then the Journal Import produces an execution report thatshows you the total debits and credits for the journals it created. These totalsshould match the totals on the Journals - (180 Char) report totals (Selectposting status as ‘Posted’)When the Create Accounting Program is submitted with the posting mode as‘Final’ then journal import process produces an execution report that showsyou the total debits and credits for the journals it created. These totalsshould match with the totals on the journals- (180 Char)- report (Selectposting status ‘Unposted’while executing the program)‘Draft’ method is used to create accounting to determine the accountingimpact of their entries Draft entries can be included on accounting reportsbut cannot be transferred to General Ledger. A draft entry does not updatebalances and does not reserve funds.

7. 10. PRINT INVOICES

Once you are satisfied that customer balances are reconciled, ensure all the invoices generated duringthe month have been printed and issued.

If Balance Forward Billing functionality is used, then ensure that theconsolidated (BFB) invoices have been generated for the current period.Note: Balance Forward Billing replaces consolidated billing invoices (CBI)feature of 11i. For more information on the setup of balance forward billingrefer to Oracle Receivables Implementation Guide Or Oracle ReceivablesUser Guide 12.

8. 11. CLOSE THE CURRENT ORACLE RECEIVABLES PERIOD

Close the current period in Oracle Receivables using the Open/Close Accounting Periods window.

9. 12. REVIEW THE SUBLEDGER PERIOD CLOSE EXCEPTIONSREPORT:

The Subledger Period Close Exceptions Report lists all accounting events and journal entries that failperiod close validation. It is automatically submitted by General Ledger when closing a GL period ifthere are unprocessed accounting events or un-transferred journal entries.

You can also generate the Subledger Period Close Exceptions Report througha concurrent request as follows:

For the application associated with the responsibility1.

For all applications in the General Ledger responsibility1.

13. 13. THIRD PARTY BALANCES REPORT

Run Third Party Balances Report from the SRS screen

This report is used to display balance and account activity information forSuppliers and Customers. It retrieves the following information:

§ Third party balances for third party control accounts§ Subledger journal entry lines that add up to the total period activity for each control account, third

party, and third party site§ Third party and third party site information§ User transaction identifiers for the associated event

The balances in this report can be compared with the General Ledgerbalances for the same control accounts to reconcile.

0. 14. RECONCILE POSTED JOURNAL ENTRIES


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After running the GL posting process in Oracle General Ledger, for the transactions, which weretransferred in FINAL mode and with Post in GL being set to NO, run the Journals –(180 Char) with aPosting Status of Posted from the Oracle General Ledger, and verify that the grand totals from thisreport match the Journal Import Execution Report.

1. 15. REVIEW THE UNPOSTED ITEMS REPORT

Oracle Receivables prints the Unposted Items Report for all items that are not posted for the specifiedGL date range. Run the request from the Submit Requests window. The output will consist of all itemsnot posted in GL for the specified GL date range.

Using the Submit Requests window to generate this report, submit with a GLdate range for at least the current financial year. This report should notgenerate any output if all Receivables transactions have been successfullyposted to General Ledger.If there are any items not posted for the current or prior periods, thenre-open both appropriate Receivables and General Ledger Periods andinitiate another posting.

2. 16. REVIEW ACCOUNT ANALYSIS REPORT

The Account Analysis Report provides drill-down information about the movement on a particularaccount for a period or range of periods. It only includes journal entries transferred to and posted toGeneral Ledger.

Review this report and compare it with Third Party balances report.This report is owned by SLA.Note: To avoid duplication with subledger journal entries, General Ledgerjournal entries imported from Subledger Accounting are not included in thereport.

3. 17. OPEN THE NEXT ORACLE RECEIVABLES PERIOD

Open the next period in the Oracle Receivables using the Open/Close Accounting Periods window.

4. 18. RUN REPORTS FOR TAX REPORTING PURPOSES-EBTAX(OPTIONAL)

A variety of standard reports can be used to provide tax information, which is required to be reportedto the relevant Tax Authority, including withholding tax.

The E-Business Tax data extract draws tax information from each applicationand stores the data in an interface table. Output from the tax extract isdesigned to look as close to a simple tax report as possible.The tax extract copies the accounting information from each application andstores it in an interface table. You can use the available reporting tools,including RXi, Oracle Reports, or XML Publisher to specify which fields ofthe Tax Reporting Ledger to include and to print the report in a format thatmeets your needs.The following tax registers are available:

§ Deferred Output Tax Register§ Recoverable and Non-Recoverable Tax Registers§ Single Cross Product Tax Register§ Standard Input and Output Tax Registers

The following summary levels are available within each Tax Register:§ Transaction Header§ Transaction Line§ Accounting Line


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19. 19. RUN ARCHIVE AND PURGE PROGRAMS (OPTIONAL)

The Archive and Purge cycle is divided into four separate processes, Selection and Validation, Archive,Purge, and optionally Copying to a file. The Selection and Validation and Archive processes form theArchive-Preview program. This program selects eligible transaction using criteria you specified,validates the data to identify the transaction chains, then stores this information in the archive tables. The Purge program uses the information in the archive tables to delete eligible transactions from thedatabase tables. Alternatively, you can run selection and validation, archive, and purge processestogether using the Archive and Purge program. The final process is to transfer the archive data to aseparate storage medium.

Warning: You should not use the Receivables Archive and Purge program if you are using cashbasis accounting.

20.

Chapter 7 Oracle Purchasing

This chapter describes the procedures for performing period-end processingin Oracle Purchasing Release 12.


The purchasing activity must be reconciled for the accounting period that isto be closed.

20. Procedures

The following steps are performed while closing the period in OraclePurchasing.



Complete all transactions for Oracle Purchasing:

Complete Requisitions1.1.

Complete Purchase Orders and Releases1.1.

Complete Receipts and Returns1.1.

Submit the Confirm Receipts Workflow Select Orders process in Purchasingto send notifications through the Web, e–mail, or Notification Details Webpage (accessible through the Notifications Summary menu in Purchasing) torequestors or buyers who create requisitions in Purchasing or iProcurement. The Confirm Receipts workflow sends notifications for items with aDestination or Deliver–To Type of Expense, a Routing of Direct Delivery, anda Need–By date that is equal to or later than today’s date.Requestors can create receipt transactions by responding to the notification.

Print or Archive all new Purchase Orders1.1.

Respond to all Workflow Notifications1.1.

Notifications may either require action e.g. notify approver approvalrequired, or are FYI notifications only e.g. notify requestor requisition has


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been approved. Users should close all FYI notifications and respond to thosethat require a response. Closing FYI notifications is Optional.

0. 2. REVIEW THE CURRENT AND FUTURE COMMITMENTS(OPTIONAL)

Run the Purchase Order Commitment by Period Report

The Purchase Order Commitment By Period Report shows the monetaryvalue of purchased commitments for a specified period and the next fiveperiods. You can use the report sorted by buyer to monitor buyerperformance. You can also use the report when negotiating with a supplier bylimiting the commitments to a specific supplier.

1. 3. REVIEW THE OUTSTANDING AND OVERDUE PURCHASEORDERS (OPTIONAL)

Run the following reports:

Purchase Order Detail Report1.

Open Purchase Orders (by Buyer) Report1.

Open Purchase Orders (by Cost Center) Report1.

These reports can be used to review all, specific standard, or plannedpurchase orders. The quantity ordered and quantity received is displayed sothe status of the purchase orders can be monitored.

0. 4. FOLLOW UP RECEIPTS - CHECK WITH SUPPLIERS

From the details obtained from the Purchase Order Detail Report regarding purchase orders notreceived, the appropriate department can then follow up with the suppliers as to the status of theordered items.

If the goods have been received, but the receipt has not entered into OraclePurchasing, then the receipt transaction needs to be entered by theappropriate personnel.

Attention: Where you have selected to accrue receipts at period end, make sure that allreceipts have been entered for a specific period before creating receipt accruals for that period.

It is not necessary to enter all the receipts for a period prior to closing thatperiod. Simply backdate the receipt date when entering receipts for a closedperiod.

Warning: Where you have Oracle Inventory installed, it is not possible to process a receipt to aclosed Purchasing period.

1. 5. IDENTIFY AND REVIEW UN-INVOICED RECEIPTS(PERIOD-END ACCRUALS)

Run the Un-invoiced Receipts Report to review receipts for which the supplier invoice has not beenentered in payables. Receipt accruals can be reviewed by account and by item. This report indicatesexactly what has to be accrued, and for what amount, and helps in the preparation of accrual entries.

2. 6. FOLLOW UP OUTSTANDING INVOICES

For any items identified to have been received but not invoiced, the appropriate department can thenfollow up the details from the Un-invoiced Receipts Report with the supplier. Entering of invoices,


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matching of unmatched invoices, and resolution of any invoice holds, where possible, should be carriedout at this point in the period-end process.

3. 7. COMPLETE THE ORACLE PAYABLES PERIOD-END PROCESS

Complete the steps to close the Oracle Payables period, which corresponds to the Oracle Purchasingperiod being closed, to enable creation of receipts accrual entries. Performing the Oracle PayablesPeriod-End process effectively prevents any further invoices or payments being entered into OraclePayables for the closed period.

4. 8. RUN THE RECEIPT ACCRUALS - PERIOD END PROCESS

Run the Receipt Accruals - Period-End Report to create period-end accruals for un-invoiced receiptsfor Expense distributions for a specific purchasing period. Each time the process is run, OraclePurchasing creates an un-posted journal entry batch in the General Ledger for the receipt accruals.Journal entries are created for the amount of the receipt liabilities, debiting the charge account andcrediting the Expense AP Accrual Account.

If encumbrance or budgetary control is being used, another journal entriesbatch is created, corresponding to the encumbrance reversal entries for theun-invoiced receipts that were accrued. Reversal of accrual entries for thenext period will happen automatically if:the Profile option ‘GL: Launch Auto Reverse After Open Period' is set to 'Y'and for the accrual journal category the reverse option is selected.If the profile option set to ‘N’ then accrual entries needs to be reversedmanually.Oracle Purchasing creates accrual entries only up to the quantity the supplierdid not invoice for partially invoiced receipts.

Attention: This step is only required if the Accrue Expense Items flag is set to Period End, onthe Accrual tabbed region of the Purchasing Options window for the current Organisation.When the Accrue Expense Items flag is set to At Receipt, a reversal is not required.If encumbrance or budgetary control is being used, Oracle Purchasing reverses the encumbranceentry when creating the corresponding accrual entry.Identify the purchasing period for the receipt accrual entries. Oracle Purchasing creates receiptaccruals for all receipts entered up to the end of the nominated period.This process can be run as many times as needed.

Attention: The Receipt Accruals Period End Program creates accounting in the receiving subledger only. The Create Accounting Program has to be run to create SLA journals, which in turnwill trigger the journal import.

5. 9. RECONCILE ACCRUAL ACCOUNTS - PERPETUAL ACCRUALS

Identify the period-end balances of the following accounts in the General Ledger:

Purchase Price Variance1.

Invoice Price Variance Account1.

A/P Accrual Account1.

Inventory Account - (Refer to Chapter 3 Period-End Procedures for Oracle Inventory)1.

Reconcile the balance of the Purchase Price Variance account using thePurchase Price Variance ReportManually remove the Invoice Price Variance amount from the A/P AccrualAccount using your General Ledger


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Identify the Invoice Price Variances amount and Accrued Receipts amount inthe A/P Accrual Account. Run the Invoice Price Variance Report for thecurrent period. Identify the invoice price variance for all purchase orderscharged to the Inventory A/P Accrual Account and compare it with thebalance of the Invoice Price Variance account in the General Ledger.At any given time, the following transactions can account for the balance inthe A/P accrual account:

Uninvoiced Receipts

Over-invoiced Receipts

Errors (Invoices or inventory transactions charged to this Account by mistake)

1.

You need to analyze the balance of the A/P accrual accounts, distinguishaccrued receipts from invoice price variances, and identify errors.The Accrual Reconciliation Reports are used to analyse un-invoicedreceipts and to reconcile the balance of the AP accrual accounts. These reports enable you to identify the following issues in receiving, purchasing,inventory, work in process, or accounts payable transactions:

Quantities differ between receipts and invoices

Incorrect purchase order or invoice unit prices

Discrepancies in supplier billing

Invoice matched to the wrong purchase order distribution

Receipts against the wrong purchase order or order line

Miscellaneous inventory or work in process transactions that do not belong to the accrual

accounts

Payables entries for tax and freight that do not belong to the accrual accounts

1.

The Accrual Reconciliation Report Group consists of one program and threereports as mentioned previously. These are discussed below:

Program: Accrual Reconciliation load run1.

This program is used in the accrual reconciliation process to populate theaccrual reconciliation table with all the necessary transaction data to performthe reconciliation process. All the affected PO distributions (in the case ofAP/PO transactions and individual transactions in the case of miscellaneoustransactions) will be deleted first and the transaction information for thesedistributions will be fetched and loaded into the accrual reconciliation tables.

AP and PO Accrual Reconciliation Report1.

The AP and PO Accrual Reconciliation Report provide a transactional breakdown of each accrual account with a net balance not equal to zero.

Miscellaneous Accrual Reconciliation Report1.

The Miscellaneous Accrual Reconciliation Report shows all inventory and AP(not matched to PO) transactions that have hit the accrual account.

Summary Accrual Reconciliation Report1.

The Summary Accrual Reconciliation Report can be used to analyze thebalance of the Accounts Payable (AP) accrual accounts. You can accrue bothexpense and inventory purchases as you receive them. When this happens,you temporarily record an accounts payable liability to your Expense orInventory AP accrual accounts. When Oracle Payables creates the accounting


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for the matched and approved invoice, Oracle Payables clears the AP accrualaccounts and records the liability from the supplier site and helps youmonitor potential problems with purchasing and receiving activities that canaffect the accuracy of your A/P AccrualAccounts. It displays the balance ofeach accrual account as well as partial representation of source of the balanceAfter researching the reported accrual balances, the Accrual Write-Offswindow can be used to indicate which entries are to be removed and writtenoff from this report. Accounting entries have to be created in SLA and GL forthese write-off transactions by submitting the Create Accounting programand hence manual adjustment of accrual entries is not required.The Reconciliation Reports can help in monitoring potential problemswith purchasing and receiving activities that can affect the accuracy of the APaccrual accounts.The Reconciliation reports also provide information on the quantitydifferences (the quantity received for a purchase order shipment is less thanthe quantity invoiced) and price differences. Ensure that prior to closing theperiod, these differences are resolved.Prerequisites:

Oracle Payables and Oracle Purchasing installed.

If expense purchases are accrued on receipt, this report enables reconciliation with the

accounts payable accrual account.

If expense purchases are accrued at period end, and inventory receipts are not performed, no

information will be available to report.

If you have installed Oracle Inventory or Work in Process, the Accrual Reconciliation Report

also displays any inventory or work in process transactions for the accrual accounts.

1.

Attention: Most commercial installations accrue expense receipts at period end, as theinformation is not required as the receipt occurs. If expense purchases are accrued onreceipt, more entries must be reconciled in the Accounts Payable accrual accounts. If youalso receive inventory, the Receiving Value Report by Destination Account must be run tobreak out the receiving/inspection value by asset and expense.

Attention: For Oracle Purchasing, all transactions are created in purchasing and needthe GL Transfer Program to be run to transfer to GL.For Oracle Inventory, and Oracle Work In Progress, a GL transfer or period close mustfirst be performed for the transactions to appear on these reports.For Oracle Payables, journal entries must be created for the invoices.The Accrual Reconciliation Reports requires the transactions to be transferred tothe General Ledger interface to ensure the report balances to the General Ledger.

10. 10. PERFORM YEAR END ENCUMBRANCE PROCESSING(OPTIONAL)

Oracle Financials provides a number of facilities for the processing of outstandingencumbrances as part of year end processing.

The default processing for Oracle Financials at year end is toextinguish any outstanding encumbrances or unused funds when youclose the last period of the Financial Year within Oracle GeneralLedger.The carry forward process enables managers to perform any of thefollowing:

Carry forward encumbrances for existing transactions (purchases / requisitions).1.


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Carry forward encumbrances, and the encumbered budget.1.

Carry forward the funds available as at the end of the year.1.

Other facilities available:

Use mass allocations to bring forward part of the funds available.

Carry forward budgets into the current appropriation budget, or to a separate budget

to identify between current year and carry forward amounts if required. Mass budget

processing also allows you to combine these budgets.

1.

Attention: You must complete the Year End Encumbrance processing in OraclePurchasing before commencing the year end Encumbrance processing in OracleGeneral Ledger.(Refer to Chapter 11 Period-End Procedures for Oracle General Ledger)

1.· The steps required to complete Year end Encumbrance

processing in Oracle Purchasing are:· a. Identify Outstanding Encumbrances· Print the Encumbrance Detail Report to review the requisition

and purchase order encumbrances, if the encumbrance optionfor requisitions or purchase orders has been enabled, andrequisitions and purchases have entered and approved. Usethis report to review the accounts encumbered.

· The Encumbrance Detail Report reflects activity from GeneralLedger, not Purchasing or Oracle Payables. Therefore, use theEncumbrance Detail Report in a way that matches theaccounting method:

Receipt accrual: Generate the Encumbrance Detail Report as needed when

the Accrue at Receipt option is used. Upon entering receipt delivery

information, an automated process transfers the receipt information to

General Ledger using the Journal Import Process.

1.

Period-end accrual: Generate the Encumbrance Detail Report at

period-end. During the period, the encumbrance detail on the report is

based on invoice matching information from Payables, not on receiving

information. After the Receipt Accruals - Period-End process is run; the

Encumbrance Detail Report reflects the true period-end receipt

information.

1.

Cash basis: If cash-basis accounting is used, the encumbrances on the

Encumbrance Detail Report remain until payment information from

Payables is transferred to General Ledger. When cash-basis accounting is

used and the Payables Transfer to General Ledger process is submitted,

Payables transfers only accounting information for paid invoices to the

General Ledger.

1.

Based on this report you can identify those transactions thatyou wish to carry forward into the new financial year.Refer below for the steps required to cancel transactions thatare not to be carried forward.


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b. Perform MassCancel in Oracle Purchasing(Optional)MassCancel enable the cancellation of requisitions andpurchase orders on the basis of user selected criteria.Define MassCancelThe Define MassCancel window is used to nominate a daterange for transactions, as well as any of the following:

Document Type

Supplier Name

Accounting Flexfield Range

1.

This process will automatically generate a MassCancel listingreport identifying the following:

Unable to Cancel Requisitions (reasons provided)

Unable to Cancel Purchase Orders (reasons provided)

Partially in Range Documents

Fully in Range Documents

1.

Run MassCancelWhen this process is run, Oracle Purchasing creates journalentries to zero out the encumbrances associated with thecanceled requisitions and purchase orders.

Attention: If you wish to cancel both purchase orders and requisitions, youmust initiate MassCancel twice. Note that when canceling a purchase order, youhave the option of canceling the original requisition at the same time

11. 11. CLOSE THE CURRENT ORACLE PURCHASINGPERIOD

Close the current Purchasing Period in the Control Purchasing Periods window. OraclePurchasing automatically un-marks all the receipts previously accrued to ensure thatthese receipts can be accrued again if they are still not invoiced in the next accountingperiod (where you have selected to accrue receipts at period end).

12. 12. OPEN THE NEXT ORACLE PURCHASINGPERIOD

Open the next purchasing period in the Control Purchasing Periods window.

13. 13. RUN STANDARD PERIOD END REPORTS(OPTIONAL)

Suppliers Quality and Performance Analysis Reports

Suppliers ReportUse the Suppliers Report to review detailed informationentered for a supplier in the Suppliers and Supplier Siteswindows. This report also shows if a supplier is on PO Hold.You have the option to include supplier site address andcontact information. Payables lists your suppliers inalphabetical order, and you can additionally order the reportby supplier number.Suppliers Audit ReportUse the Supplier Audit Report to help identify potential


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duplicate suppliers. This report lists active suppliers whosenames are the same up to a specified number of characters.The report ignores case, spaces, special characters, etc.The report lists all site names and addresses of each potentialduplicate supplier. Payable inserts a blank line betweengroups of possible duplicate suppliers. After duplicatesuppliers have been identified, they can be combined usingSupplier Merge. If purchase order information is merged, thenany references to the supplier in blanket purchase orders,quotations, and auto source rules are updated to the newsupplier.Vendor Quality Performance Analysis ReportThe Supplier Quality Performance Analysis Report can beused to review suppliers' quality performance, for percentsaccepted, rejected, and returned. This report is useful toidentify suppliers with quality performance issues.Vendor Service Performance Analysis ReportThe Supplier Service Performance Analysis Report lists lateshipments, early shipments, rejected shipments, andshipments to wrong locations. This report can be used toderive a supplier service penalty by multiplying the daysvariance quantity by a percentage of the price.The % Open Current is the percentage of the ordered quantitynot yet received, but within the receipt tolerance days or notpast due.The % Open Past Due is the percentage of the orderedquantity not received by the promise date and beyond thereceipt tolerance days.The % Received On Time is the percentage of the orderedquantity received on the promise date or within the receipttolerance days.The % Received Late is the percentage of the ordered quantityreceived after the promise date and outside the receipttolerance days.The % Received Early is the percentage of the orderedquantity received before the promise date and outside thereceipt tolerance days.The Days Variance is calculated as the summation of the datedifferential (transaction date subtracted from promise date)multiplied by the corrected received quantity (the receivedquantity plus or minus corrections) for each shipment, alldivided by the total corrected received quantity. The result isthe quantity per day the supplier is in variance.Vendor Volume Analysis ReportThe Supplier Volume Analysis Report shows the dollar valueof items purchased from a supplier. The report prints theitems that are assigned sourcing rules. Use the report tocompare actual purchase percentages with sourcingpercentage.The Expenditure is the sum of the item line amounts forstandard purchase orders for the supplier.The Actual Percentage is the items expenditure as apercentage of the total expenditure for the date range of thereport.The Intended Commitment is the total expenditure multipliedby the split percentage entered in the sourcing rules.Analyse RequisitionsRequisition Activity RegisterThe Requisition Activity Register shows requisition activityand monetary values. Purchasing prints the requisitions inorder of creation date and prepared name.


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Review Quotation, RFQ and Purchase Order StatusesPurchase Order Statuses may optionally be reviewed early inthe period close processing for Oracle Purchasing.Blanket and Planned PO Status ReportThe Blanket and Planned PO Status Report can be used toreview purchase order transactions for items you buy, usingblanket purchase agreements and planned purchase orders.For each blanket purchase agreement and planned purchaseorder created, Purchasing provides the detail of the releasescreated against these orders. Purchasing prints the blanketagreement or planned purchase order header information, ifno release exists.Savings Analysis ReportsSavings Analysis Report (by Category)The Savings Analysis Report (By Category) shows buyerperformance by category. Use the report to compare themarket, quote, or list price to the actual price.The Negotiated Amount is the product of the price on thequotation and the quantity ordered. If a quote is not defined,Purchasing prints the product of the market price of the itemordered and the quantity ordered. If the market price is notdefined, Purchasing uses the list price.The report includes a price type Legend at the bottom of eachpage for the price type. If the line price type is Q, the line pricewas from the Quote. If the line price type is M, the line pricewas from Market Price, and if the line price type is L, the lineprice was from List Price.The Actual Amount is the product of the actual price listed onthe purchase order line and the quantity ordered.The Amount Saved is the negotiated amount less the actualamount, with negative figures in parentheses.Savings Analysis Report (by Buyer)The Savings Analysis Report (By Buyer) shows buyerperformance by purchase order.The Negotiated Amount is the product of the price on thequotation and the quantity ordered. If a quote is not defined,Purchasing prints the product of the market price of the itemordered and the quantity ordered. If the market price is notdefined, Purchasing uses the list price.The report includes a price type Legend at the bottom of eachpage for the price type. If the line price type is Q, the line pricewas from the Quote. If the line price type is M, the line pricewas from Market Price, and if the line price type is L, the lineprice was from List Price.The Actual Amount is the product of the actual price listed onthe purchase order line and the quantity ordered.The Amount Saved is the negotiated amount less the actualamount, with negative figures in parentheses.Encumbrance Accounting ReportsEncumbrance Detail ReportThe Encumbrance Detail Report can be used to reviewrequisition and purchase order encumbrances for a range ofaccounts if the encumbrance option for requisitions orpurchase orders has been enabled, and there are entered andapproved requisitions and purchases. Use this report toreview the accounts encumbered.Cancelled Purchase Orders ReportCancelled Requisition ReportUse these reports to review all purchase orders andrequisitions cancelled, particularly where you have definedmultiple Mass Cancel batches.


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12.

Chapter 8 Oracle Inventory

This chapter describes the procedures for performingperiod-end processing in Oracle Inventory Release 12.


The period close process for Oracle Inventory enablessummarising of costs related to inventory and manufacturingfor a given accounting period. These costs are then transferred to the General Ledger for posting.Oracle Inventory and Oracle Cost Management provide therequired features to affect the necessary period-endprocedures to:

Reconcile the inventory and work in process costs and values.

Transfer inventory and manufacturing costs to the General Ledger.

Transfer summary or detail accounting information to the general ledger.

Independently open and close periods for each inventory organisation.

Perform interim transfers to the General Ledger without closing the period.

1.

Attention: Usually, logistic and manufacturing system need to be alwaysopen for worker transactions ; means at month end, the next period isopened to allow key-in from the first day, then the closure process isprocessed for the past month. To avoid date entry error (when bothperiods are open) there is a profile option (INV: Transaction datevalidation).

1.

Attention: For large number organization environments, there isfunctionality to open / close many logistic organizations by batch program: “open period status report”, “close period status report”.

1.

0. Procedures

The following steps are taken in performingperiod-end processing for Oracle Inventory.

1. 1. COMPLETE ALL TRANSACTIONS FOR THEPERIOD BEING CLOSED

1.

Ensure that all issues, shipping, receipts, and adjustments have beenentered and verify that no hard copy records exist or are awaiting dataentry, e.g. packing slips in receiving.

Optional Report - Cycle Count Pending approval Report1.

2. 2. CHECK INVENTORY AND WORK INPROCESS TRANSACTION INTERFACES

Check the Interface Managers window to ensure that there are no background


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or concurrent programs unprocessed.

The interface managers that need to be run are asfollows:

Cost Manager (mandatory)1.

Material Transaction Manager (Optional, depending on INV

profile option “TP-INV: Transaction Processing Mode” )

1.

Move Transaction Manager (for WIP)1.

0. 3. CHECK AND FIX PENDINGTRANSACTIONS

Check and fix any rejected transactions : from the “Inventory Accounting PeriodWindow” click on the pending button to display pending transactions. This willdisplay transactions under the following statuses:

Resolution Required: displays the number ofunprocessed material transactions, uncosted materialtransactions, and pending WIP costing transactionsexisting in this period. These must be resolved beforethe period is closed.Resolution Recommended: Displays the numberof pending receiving transactions, pending materialtransactions, and pending shop floor movetransactions existing in this period. Though theaccounting period can be closed, once it is closedthese transactions cannot be processed in that period.

Attention: This process needs to be completed for each Inventory Organisation defined.

In case of error : correct source error, then relaunchtransactions using :

INV / Transactions / Pending transactions1.

INV/ Transactions / Transaction Open interface1.

OM / Shipping / Interfaces1.

This check should be done during the month to avoidaccumulated problems. Then at month end beforeclosing.

4. 4. TRANSFER SUMMARY OR DETAILTRANSACTIONS

Run the ‘Create Accounting-Cost Management’ program up to the period enddate before closing the period. Since a period, once closed, cannot be reopened,running this process prior to closing the period facilitates validating theinterfaces transactions, and any adjustments to the period can be made via newinventory transactions as required.

If the Create Accounting Program is run in Final Modewithout transferring to GL then run the ‘TransferJournal Entries to GL-Cost Management’ which


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transfers the accounting to GL.

Attention: The Transfer Journal Entries to GL Cost ManagementProgram transfer the accounting details for all the inventoryorganinzations within a Ledger.

Attention: If this step was by-passed, and the period was closed, a GLTransfer would automatically be initiated, but no adjustments to thatperiod could then be entered, since transactions cannot be posted to aclosed period, and a closed period cannot be re-opened.

View accounting, journal entries associated withtransactions, and accounting events by accessing theSub ledger Accounting user interface from the ViewTransactions window and various statuses for Ex:Final Accounted, Draft Accounted, Errored can beselected.

5. 5. OPEN THE NEXT INVENTORY PERIOD

Prior the first day of data entry, open the next inventory period using theInventory Accounting Periods window.


6. 6. CLOSE THE CURRENT ORACLEPAYABLES AND ORACLE PURCHASINGPERIODS

Complete all steps required to close Oracle Payables and Oracle Purchasing.Oracle Payables is closed prior to Oracle Purchasing to enable running ofpurchase accruals to accrue expenses on un-invoiced receipts.

If Oracle Purchasing or Oracle Inventory are closed, areceipt cannot be entered for that period. However, asa manual procedure, Oracle Purchasing should beclosed before Oracle Inventory. This still allowsmiscellaneous transactions corrections in inventory.

7. 7. CLOSE THE CURRENT INVENTORYPERIOD

Closing the inventory period using the Inventory Accounting Periodswindow automatically transfers summary transactions to the general ledgerinterface table.


As explained in step 3/, prior to closing the inventoryperiod, click on the pending button to display anyremaining pending transactions and make theappropriate resolutions.The period close performs the following:


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Closes the open period for Oracle Inventory and Oracle Work in

Process.

1.

Creates summary or detail inventory accounting entries in the GL

interface.

1.

Creates summary or detail work in process accounting entries in

the GL interface.

1.

Calculates period-end sub-inventory balances.1.

For each sub-inventory, the period close period addsthe net transaction value for the current period to theprevious period’s ending value.

This, along with values in transit creates the period-end valuefor the current period. The period-end values bysub-inventory reported with the Period Close SummaryReport.

The period close process automatically transfers all job costsand variances by general ledger account. Discrete jobsand certain non-standard jobs are closed separately.Job close performs the necessary accounting for eachjob, including variance calculations. For expensenon-standard jobs, the period close process writes offany remaining balances and transfers any period coststo the general ledger.

Warning: Closing an inventory period permanently closes the period andno further transactions can be charged to that period.

0. 8. RUN STANDARD PERIOD-END REPORTSAND RECONCILE THE PERPETUALINVENTORY WITH GL

Check that the perpetual inventory value up to the end of the period being closedmatches the value reported in the General Ledger. The balance normally matcheswith the General Ledger balance. But Journal entries from products other thanOracle Inventory, may create discrepancies.

The following reports can be run to help with thesereviews:

Period Close Value Summary Report. Use the Period Close

Value Summary to see summary balances for sub-inventories. If

you run this report for a closed accounting period, the report

displays the sub-inventory values at the end of that period. If you

run the report for an open period, the report displays the

sub-inventory value at the point in time you run the report.

1.

Material Account Distribution Summary Report. Use the

Material Account Distribution Summary Report to verify

inventory account activity against inventory valuation increases

or decreases for the accounting period. Finally, use this report to

reconcile an account across several periods. If you detect unusual

accounts or amounts, use the Material Account Distribution

1.


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Detail report to print the transaction in detail.

Additional useful reports :

Inventory Value Report : You can see more sub-inventory

balance detail by running the Inventory Value Report, or the

Elemental Inventory Value Report. These show quantity,

valuation, and detailed item information for the sub-inventories

specified. (Warning : these reports show value at the point in

time you run the report).

Material Account Distribution Detail Report : use the Material

Account Distribution Detail Report to view the accounts charged

for inventory transactions. Review inventory transaction values

transferred to the general ledger by GL batch.

1.

9. 10. VALIDATE THE WORK IN PROCESSINVENTORY

If Oracle Work in Process is installed, check the work in process inventorybalances against transactions with the WIP Account Distribution Report, bysummary or detail.

The WIP Account Distribution Report details accountinformation for work in process cost transactions,including resource, overhead and outside processingcharges, cost updates, and period close and job closevariances. The system groups the transactions by jobor schedule, by transaction type, and orders thetransactions by earliest transaction date. Detailedaccount information is available for specific accounts,general ledger batches, or both to help reconcile general ledger.This report does not list material cost transactionssuch as issues, completions, and scrap. These information can be found using the Material AccountDistribution reports in Oracle Inventory.

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