Oracle R12 FINANCIALS PERIOD-END PROCEDURES

Chapter 1                        Period-End Processing in Oracle Payables (Release 12)

Business Requirements

We must reconcile the accounts payable activity for the accounting period that is to be closed. The following steps are taken in performing period-end processing for Oracle Payables.

The posting level for Oracle Payables must be determined, when planning period-end procedures. Where detail level accounting transactions are required to be posted to the general ledger using sub-ledger accounting (hereafter referred to as SLA), there may be technical constraints involved, relating to the physical data storage volume, and posting and report processing speed degradation caused by the sheer volume of posted transactions. Functionally, however, detail posting to the general ledger provides enhanced reporting opportunities in some cases. In Release 12 the detailed level of posting can be controlled by GL summarize options and also at SLA journal line type level.

Procedures

1. Complete All Transactions for the Period Being Closed

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

Completing all transactions for Oracle Payables:

1.    Complete Invoicing and Credits

2.    Complete Prepayments

3.    Complete Expense Reports

4.    Complete Invoice Import

If you import transactions from an external system, or you are using Internet Expenses or Xpense Xpress, ensure you have imported all transactions, and reviewed all audit trails for completeness.

One consideration to Accounts Payables where there are multiple operating units within the same ledger is that all operating units must be ready to close at the same time.  All of the operating units that share a set of books also share the 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.

When you attempt to update the period status to ‘Closed’ in one operating unit, the system checks for un-posted transactions in all operating units within the ledger.  If there are un-posted transactions in any of the operating units, the system asks you to resolve the un-posted transactions for those operating units before it allows you to close 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, though one OU at a time.

 

 

3. Run the Payables Approval Process for All Invoices

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

3. Review and Resolve Amounts to Post to the General Ledger

a.  Review the Invoice on Hold Report

This report enables review of any holds currently applied to invoices that would prevent the payment and/or posting of these invoices. The report details all invoices for which Oracle Payables cannot select for posting and therefore cannot create journal entries.

Where possible resolve any identified holds, which will prevent posting to the General Ledger, and re-run the Payables Approval process to approve these invoices.

b.  Review the Journal Entries Report

This report enables review and analysis of accounting entries in the Payables subledger, as accounted by SLA. Using the report parameters, you can produce a detailed or summary listing of the accounting information you want to review. This report is owned by SLA.

The report also lists in details transactions that have been accounted with error and all entries that could not be transferred to the general ledger. When a transaction is accounted with errors, review the details and make necessary changes.

By altering the parameters the report also lists those transactions, which have been posted in General Ledger and those, which are yet to be posted but have been accounted

SLA groups the report by ledger, ledger currency, source, category, and event class. Data is then sorted by accounting date, event type, supplier name, document number, and voucher number.

c.  Review the Unaccounted Transactions Report

This report enables review of all unaccounted invoice and payment transactions and a view of the reason that Payables cannot account for a transaction. Payables 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 will then show only transactions that had problems that prevented accounting. You can then 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 Request

By running a month end payment process request, you may arrange a payment for as many due invoices as possible.

e.  Confirm all Payment Instructions

Run the Payment Instruction Register for the period that is to be closed, or finalize any outstanding payments. Use Oracle Payments to confirm any payment instructions. Check the status of the Payment Process Request/Payments/Payment instructions to ensure that all payments have been processed.

The Payment Instruction Register lists each payment created for a payment process profile or for a manual payment. Actual payments can be compared against this register to verify that Oracle Payables/Oracle Payments has recorded payments correctly. The report lists each payment in a payment process request, including setup 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 been confirmed.

f.  Optionally Run the Payments Registers

Optionally, run the Payment Register

This report details payment printed in a particular accounting period. The report can be used to review payment activity for each bank account used during the specified time period.

Warning:         The report total only shows the net (less discounts and                                 voids) payment amount, whereas the Posted Payment                                              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 from the report total and then compare                                  this calculated amount to the total displayed on the                                     Payment Register Report.

4. Reconcile Payments to Bank Statement Activity for the Period

(Refer to Chapter 8 Period-End Procedures for Oracle Cash Management)

  Attention:            The Create Accounting process-of SLA must be re-run for any reconciliation accounting entries generated to be

Transferred to the General Ledger. This process can be run from payables SRS screen or by online accounting for individual transactions.

5. Transfer All Approved Invoices and Payments to the General Ledger

Release 12 provides 3 modes of accounting: Final, Final Post and Draft. The transactions that have been accounted in Final post have already been transferred to and posted in General Ledger. The transactions that have been accounted in the final mode can have been transferred to GL or can still be within the subledger based on the parameter “Transfer to General Ledger” in Create Accounting.

In the second case “Payables Transfer To General Ledger “ needs to be run from the SRS window. This program lists all the transactions, which were transferred to GL interface. From GL “Journal Import” program needs to be submitted. This PROGRAM lists all the transactions, which were successfully imported. Review the report to check for discrepancies. The transactions in Draft accounting mode would have been analyzed as a part of step 3 c.

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 invoice distribution line, and credit the liability account nominated on the invoice.

Payment journal entries, debit the liability account and credit the cash account of the bank account used to pay and invoice.

The Create Accounting process transfers data to the General Ledger tables, creating journal entries for these invoice and payment transactions. Posting is determined by the 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 the mode 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 of accounting was “FINAL” and Post in GL was set to “Yes”.

6. Review the Payables to General Ledger Posting process After Completion.

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

a.    Payables Accounting Process Report

Use this report to review accounting entries created by the Create Accounting Process. The report has two sections:

·      Accounting Entries Audit Report. The audit report provides, in detail or summary, a listing of accounting entries created by the accounting process.

·      Accounting Entries Exception Report. The exception report lists in detail all accounting entries that were created with an error status and a description of that error. The Entries Exception Report is generated only when the accounting process encounters accounting entries that fail validation.

b. The Posted Invoices Register

This report is used to review invoices for which information has been posted to Oracle General Ledger to create journal entries, and can be used to verify that the total invoice amount equals the total invoice distribution amount. The report lists each Accounts Payable Liability Accounting Flexfield and the invoices posted to the account.

c. The Posted Payments Register

This report is used to review the payments posted to Oracle General Ledger during a particular accounting period, and can be used to review the payment activity for each bank account used during that period.

7. Submit the Unaccounted Transactions Sweep Program

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

The Unaccounted Transactions Sweep Program will not roll forward accounted transactions, or accounted transactions with error. To create successful accounting entries for accounted transactions with error, correct any accounting errors and resubmit the Create Accounting Process.

The program transfers unaccounted transactions to the period you specify by updating the GL dates to the first day of the new period. You can then close the accounting period from which Payables moved the invoices and payments.

In the Control Payables Periods window if you try to close a period and unaccounted transactions exist, then Payables opens a window. From the window you can submit the Unaccounted Transactions Sweep Program or you can submit a report to review accounting transactions that would be swept by the program. When you submit the Unaccounted Transactions Sweep Program, Payables automatically produces the Unaccounted Transactions Sweep Report to identify transactions that were re-dated and identify any transactions that need updating. If you submit the report in preliminary sweep mode the Unaccounted Transactions Sweep Review report shows which transactions will be re-dated if you submit the Unaccounted Transactions Sweep Program.

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.

Subledger Period Close Exceptions Report

The Subledger Period Close Exceptions Report lists all accounting events and journal

entries that fail period close validation. It is automatically submitted by General Ledger when closing a GL period if there are unprocessed accounting events or un-transferred journal entries.

You can also generate the Subledger Period Close Exceptions Report through a

concurrent request as follows:

• For the application associated with the responsibility

• For all applications in the General Ledger responsibility

9. Accrue Uninvoiced Receipts

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

10. Reconcile Oracle Payables Activity for the Period

a. Run the Accounts Payables Trial Balance Report

This report is used to facilitate reconciliation of the total accounts payable liabilities in Oracle Payables, with the Oracle General Ledger Creditors Control Account, for a specific accounting period. This report lists, and sub-totals, by vendor, all unpaid and partially paid invoices for which Oracle Payables created journal entries (i.e. posted invoices). These invoices represent the outstanding accounts payable liability for the organization.

To obtain the most up-to-date trial balance for a given period, journal entries should be posted for the invoice and payment activity for the period, prior to running the report.

For reconciliation of Oracle Payables and Oracle General Ledger when posting is only performed at period end, the following reconciliation method can be used:

To the previous periods Accounts Payables Trial Balance, add the current period’s posted invoices (total amount from the Posted Invoices Register) , and subtract the current period’s posted payments (total cash plus discounts taken, from the Posted Payments Register) . The calculated amount should equal the balance for the current period’s Accounts Payables Trial Balance.

  Attention:        However, when posting to the general ledger is performed multiple times throughout each            accounting period, the Posted Invoices Register and Posted Payments Register reports must be run after each posting run, for reconciliation of Oracle Payables liabilities with Oracle General Ledger’s Creditor Control.

b. Run Third Party Balances Report

This report is used to display balance and account activity information for

Suppliers 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 Ledger balances for the same control accounts to reconcile.

Note: A comparison between the accounts in payables with the accounts in GL might not match as SLA has the ability to override the accounting. For more information refer to SLA implementation guide.

c.       Submit and review Account Analysis Report

The Account Analysis Report provides drill-down information about the movement on a particular account for a period or range of periods. It only includes journal entries transferred to and posted to General 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 Ledger journal entries imported from Subledger Accounting are not included in the report.

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 to Oracle Assets.

For foreign currency assets, Payables sends the invoice distribution amount in the converted functional currency. The mass addition line appears in Oracle Assets with the functional currency amount. SLA creates journal entries for the functional currency amount, so you must clear the foreign currency amount in your general ledger manually.

After you create mass additions, you can review them in the Prepare Mass Additions window in Oracle Assets.

It is recommended to do a final Mass Additions Create after the period close to ensure that all Payables invoices are 1) included in the correct period; and 2) any additional invoicing will become part of the next periods invoice and asset processing period.

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 Open the Next Oracle Payables Period

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

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 reported to the relevant Tax Authority, including withholding tax.

Withholding tax is handled by Payables whereas other tax requirements are handled by ebTax.

The E-Business Tax data extract draws tax information from each application and stores the data in an interface table. Output from the tax extract is designed to look as close to a simple tax report as possible.

The tax extract copies the accounting information from each application and stores it in an interface table. You can use the available reporting tools, including RXi, Oracle Reports, or XML Publisher to specify which fields of the Tax Reporting Ledger to include and to print the report in a format that meets 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

14. Run the Key Indicators Report (Optional)

This report enables review of the Accounts Payables department’s productivity. This statistical information can be useful for cash flow analysis and forecasting purposes, when combined with similar information from Oracle Accounts Receivables. When you submit the Key Indicators Report, Payables generates reports you can use to review Payables transaction activity, and review the current number of suppliers, invoices, payments and matching holds in your Payables system.

The Key Indicators Report generates the following two reports:

a.  The Key Indicators Current Activity Report

Use the Key Indicators Report to review your accounts payable department's productivity. The Key Indicators Report provides current activity indicators that compare current period activity with prior period activity in three major areas: suppliers, invoices, and payments. Payables further breaks down each category into basic items, exception items, and updates. The report provides the number of transactions for each indicator (such as number of automatic payments printed during a period) and amount values where applicable to the Key Indicator (such as total value of automatic payments written during a period).

b. Key Indicators Invoice Activity Report

Report that compares the invoice activity for each of your accounts payable processors during the period you specify and the previous period. Payables produces this report only if you choose Yes for the Include Invoice Detail parameter.

c.  The Key Indicators State of the System Report

The Key Indicators State-of-the-System Report provides a period-end view of Payables, as well as average values. For example, the Key Indicators State-of-the-System Report includes:-.

Suppliers:

• Suppliers. Number of suppliers.

• Sites. Number of supplier sites.

• Average sites per supplier. The number of sites divided by the number of

suppliers.

Invoices:

• Invoices. Number of invoices.

• Distribution lines. 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:

• Checks. 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.

• Average invoices per payment. The number of payment documents divided by the

number of invoice payments.

Matching Holds:

• Matching holds. The number of matching holds in Payables.

• Average matching holds per invoice on matching hold. The number of matching

holds divided by the number of invoices on matching hold.

15. Purge Transactions (Optional)

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

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

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

 

Chapter 2                        Period-End Processing in Oracle Purchasing (Release 12)

Business Requirements

We must reconcile the purchasing activity for the accounting period that is to be closed.

Procedures

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

1. Complete All Transactions for the Period Being Closed

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

Completing all transactions for Oracle Purchasing:

1.    Complete Requisitions

2.    Complete Purchase Orders and Releases

3.    Complete Receipts and Returns

Submit the Confirm Receipts Workflow Select Orders process in Purchasing

To send notifications through the Web, e–mail, or Notification Details Web page (accessible through the Notifications Summary menu in Purchasing) to requestors or buyers who create requisitions in Purchasing or Oracle Self–Service

Purchasing. It lets people know they should have received an item.

The Confirm Receipts workflow sends notifications for items with a

Destination or Deliver–To Type of Expense, a Routing of Direct

Delivery, and a Need–By date that is equal to or later than today’s date.

Requestors can create receipt transactions by responding to the notification.

4.    Print all new Purchase Orders

5.    Respond to all Workflow Notifications

Notifications may either require action e.g. notify approver approval required, or are FYI notifications only e.g. notify requestor requisition has been approved.  Users should close all FYI notifications and respond to those that require a response.

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 monetary value of purchased commitments for a specified period and the next five periods. You can use the report sorted by buyer to monitor buyer performance. You can also use the report when negotiating with a supplier by limiting the commitments to a specific supplier.

 

3. Review the Outstanding and Overdue Purchase Orders (Optional)

Run the following reports:

·      Purchase Order Detail Report

·      Open Purchase Orders (by Buyer) Report

·      Open Purchase Orders (by Cost Center) Report

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

4. Follow Up Receipts - Check With Suppliers

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

If the goods have been received, but the receipt has not entered into Oracle Purchasing, then the receipt transaction needs to be actioned by the appropriate personnel.

Attention:           Where you have selected to accrue receipts at period end,
                                   make sure that all receipts 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 that period. Simply backdate the receipt date when entering receipts for a closed period.

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

5. Identify and Review Un-invoiced Receipts (Period-End Accruals)

By running the Un-invoiced Receipts Report, all or specific un-invoiced receipts that can be accrued, can be reviewed. These are items that have been received that the supplier has not invoiced you for yet. Receipt accruals can be reviewed by account and by item. This report indicates exactly what has to be accrued, and for what amount, and helps in the preparation of accrual entries.

6. Follow Up Outstanding Invoices

For any items identified to have been received but not invoiced, the appropriate department can then follow up the details from the Un-invoiced Receipts Report with the supplier. Entering of invoices, matching of unmatched invoices, and resolution of any invoice holds, where possible, should be carried out at this point in the period-end process.

7. Complete the Oracle Payables Period-End Process

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

8. Run the Receipt Accruals - Period End Process

Run the Receipt Accruals - Period-End process to accrue receipts, as no journal entries are created when receipt transactions are entered. This process is used to create period-end accruals for un-invoiced receipts for Expense distributions for a specific purchasing period. Each time the process is run, Oracle Purchasing 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 and crediting the Receipt Accrual Liability Account.

If encumbrance or budgetary control are being used, another journal entries batch is created, corresponding to the encumbrance reversal entries for the un-invoiced receipts that were accrued. The accrual journal entries are then reversed out at the start of the new accounting period when you open the next Purchasing period. Oracle Purchasing creates accrual entries only up to the quantity the supplier did not invoice for partially invoiced receipts.

Attention:  This step is only required if the Accrue Expense Items flag is set to Period End, on the 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 encumbrance entry when creating the corresponding accrual entry.

·      Identify the purchasing period for the receipt accrual entries. Oracle Purchasing creates receipt accruals for all receipts entered up to the end of the nominated period.

·      This process can be run as many times as needed.

9. Reconcile Accrual Accounts - Perpetual Accruals

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

·      Purchase Price Variance

·      A/P Accrual Account

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

Reconcile the balance of the Purchase Price Variance account using the Purchase Price Variance Report

Manually remove the Invoice Price Variance amount from the A/P Accrual Account using your General Ledger

Identify the Invoice Price Variances amount and Accrued Receipts amount in the A/P Accrual Account.  Run the Invoice Price Variance Report for the current period.  Identify the invoice price variance for all purchase orders charged to the Inventory A/P Accrual Account and compare it with the balance of the Invoice Price Variance account in the General Ledger.

At any given time, the balance of the A/P accrual accounts can account for the following transactions:

·      Uninvoiced Receipts

·      Over-invoiced Receipts

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

You need to analyze the balance of the A/P accrual accounts, distinguish accrued receipts from invoice price variances, and identify errors.

The Accrual Reconciliation Report  is used to analyse un-invoiced receipts and to reconcile the balance of the Accounts Payable accrual accounts.

This report enables you to identify the following problems 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

·      Received 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

The Purchasing Options can be set to accrue both Expense and Inventory purchases as they are received. When this happens, an Accounts Payable liability is temporarily recorded to the Expense or Inventory Accounts Payable accrual accounts. When the invoice is matched and approved by Oracle Payables, the Accounts Payable accrual accounts are cleared, and the liability is recorded from the supplier site.

There are two versions of this report, detailed as follows:

·      The Accrual Reconciliation Rebuild Report

This version of the report selects the accounting entries from the appropriate source (sub-ledgers). This accounting information resides in a temporary table, and remains until this information is rebuilt again. Typically, this report is run at period end.

·      The Accrual Reconciliation Report

This version of the report uses the accrual information residing in the temporary tables that was selected the most recent time the Accrual Reconciliation Rebuild Report was run. This report is typically run throughout the accounting period, providing interim reports, whereas the rebuild report is used to select and report on current accrual information at period end.

These reports can be used to identify any discrepancies between PO receipts and AP invoices. The report will also detail any miscellaneous transactions erroneously posted to the accrual accounts.

After researching the reported accrual balances, the Accrual Write-Offs window can be used to indicate which entries are to be removed and written off from this report. After writing off these entries, the Accrual Write-Off Report can be used as supporting detail for the manual journal entry in General Ledger.

The Accrual Reconciliation Report can help in monitoring potential problems with purchasing and receiving activities that can affect the accuracy of the AP accrual accounts.

Ensure that prior to closing the period, quantity differences (i.e., when the quantity received for a purchase order shipment is smaller than the quantity invoiced) and price 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.

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

Attention:           The Accrual Reconciliation Report requires transactions to                                    appear on the report prior to creating records into the                                                 Oracle General Ledger interface tables.

Attention:           For Oracle Purchasing, all transactions are automatically                          transferred to the General Ledger interface. For Oracle                                 Inventory, and Oracle Work In Progress, a GL transfer or                               period close must first be performed for the transactions to                                     appear on this report. For Oracle Payables, journal entries                             must be created for the invoices.

The Accrual Reconciliation Report requires the transactions to be transferred to the General Ledger interface to ensure the report balances to the General Ledger.

10. Perform Year End Encumbrance Processing (Optional)

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

The default processing for Oracle Financials at year end is to extinguish any outstanding encumbrances/ unused funds when you close the last period of the Financial Year within Oracle General Ledger.

The carry forward process enables managers to perform any of the following:

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

·      Carry forward encumbrances, and the encumbered budget.

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

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.

Attention:  You must complete the Year End Encumbrance processing in Oracle Purchasing before commencing the year end Encumbrance processing in Oracle General Ledger. (Refer to Chapter 9 Period-End Procedures for Oracle General Ledger)

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 option for requisitions or purchase orders has been enabled, and requisitions and purchases have entered and approved. Use this report to review the accounts encumbered.

The Encumbrance Detail Report reflects activity from General Ledger, not Purchasing or Oracle Payables. Therefore, use the Encumbrance Detail Report in a way that matches the accounting method:

·      Receipt accrual: Generate the Encumbrance Detail Report as needed when the Accrue at Receipt option is used. Upon entering receipt information, an automated process transfers the receipt information to General Ledger using the Journal Import Process.

·      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.

·      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.

Based on this report you can identify those transactions that you wish to carry forward into the new financial year.

Refer below for the steps required to cancel transactions that are not to be to carried forward.

b. Perform MassCancel in Oracle Purchasing (Optional)

MassCancel enable the  cancellation of requisitions and purchase orders on the basis of user selected criteria.

·      Define MassCancel

The Define MassCancel window is used to nominate a date range for transactions, as well as any of the following:

·         Document Type

·         Supplier Name

·         Accounting Flexfield Range

This process will automatically generate a MassCancel listing report identifying the following:

·         Unable to Cancel Requisitions (reasons provided)

·         Unable to Cancel Purchase Orders (reasons provided)

·         Partially in range Documents

·         Fully in Range Documents

·         Run MassCancel

When this process is run, Oracle Purchasing creates journal entries to zero out the encumbrances associated with the canceled requisitions and purchase orders.

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

11. Close the Current Oracle Purchasing Period

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

12. Open the Next Oracle Purchasing Period

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

12. Run Standard Period End Reports (Optional)

1.    Suppliers Quality and Performance Analysis Reports

·      Suppliers Report

Use the Suppliers Report to review detailed information entered for a supplier in the Suppliers and Supplier Sites windows. This report also shows if a supplier is on PO Hold.

You have the option to include supplier site address and contact information. Payables lists your suppliers in alphabetical order, and you can additionally order the report by supplier number.

·      Suppliers Audit Report

Use the Supplier Audit Report to help identify potential duplicate suppliers. This report lists active suppliers whose names 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 potential duplicate supplier. Payables inserts a blank line between groups of possible duplicate suppliers. After duplicate suppliers have been identified, they can be combined using Supplier Merge. If purchase order information is merged, then any references to the supplier in blanket purchase orders, quotations, and autosource rules are updated to the new supplier.

·      Supplier Quality Performance Analysis Report

The Supplier Quality Performance Analysis Report can be used to review suppliers' quality performance, for percents accepted, rejected, and returned. This report is useful to identify suppliers with quality performance issues.

·      Supplier Service Performance Analysis Report

The Supplier Service Performance Analysis Report lists late shipments, early shipments, rejected shipments, and shipments to wrong locations. This report can be used to derive a supplier service penalty by multiplying the days variance quantity by a percentage of the price.

The % Open Current is the percentage of the ordered quantity not yet received, but within the receipt tolerance days or not past due.

The % Open Past Due is the percentage of the ordered quantity not received by the promise date and beyond the receipt tolerance days.

The % Received On Time is the percentage of the ordered quantity received on the promise date or within the receipt tolerance days.

The % Received Late is the percentage of the ordered quantity received after the promise date and outside the receipt tolerance days.

The % Received Early is the percentage of the ordered quantity received before the promise date and outside the receipt tolerance days.

The Days Variance is calculated as the summation of the date differential (transaction date subtracted from promise date) multiplied by the corrected received quantity (the received quantity plus or minus corrections) for each shipment, all divided by the total corrected received quantity. The result is the quantity per day the supplier is in variance.

·      Supplier Volume Analysis Report

The Supplier Volume Analysis Report shows the dollar value of items purchased from a supplier. The report prints the items that are assigned sourcing rules. Use the report to compare actual purchase percentages with sourcing percentage.

The Expenditure is the sum of the item line amounts for standard purchase orders for the supplier.

The Actual Percentage is the items expenditure as a percentage of the total expenditure for the date range of the report.

The Intended Commitment is the total expenditure multiplied by the split percentage entered in the sourcing rules.

2.    Analyse Requisitions

·      Requisition Activity Register

The Requisition Activity Register shows requisition activity and monetary values. Purchasing prints the requisitions in order of creation date and prepared name.

3.    Review Quotation, RFQ and Purchase Order Statuses

Purchase Order Statuses may optionally be reviewed early in the period close processing for Oracle Purchasing.

·      Blanket and Planned PO Status Report

The Blanket and Planned PO Status report can be used to review purchase order transactions for items you buy, using blanket purchase agreements and planned purchase orders. For each blanket purchase agreement and planned purchase order created, Purchasing provides the detail of the releases created against these orders. Purchasing prints the blanket agreement or planned purchase order header information, if no release exists.

4.    Savings Analysis Reports

·      Savings Analysis Report (by Category)

The Savings Analysis Report (By Category) shows buyer performance by category. Use the report to compare the market, quote, or list price to the actual price.

The Negotiated Amount is the product of the price on the quotation and the quantity ordered. If a quote is not defined, Purchasing prints the product of the market price of the item ordered and the quantity ordered. If the market price is not defined, Purchasing uses the list price.

The report includes a price type Legend at the bottom of each page for the price type. If the line price type is Q, the line price was from the Quote. If the line price type is M, the line price was from Market Price, and if the line price type is L, the line price was from List Price.

The Actual Amount is the product of the actual price listed on the purchase order line and the quantity ordered.

The Amount Saved is the negotiated amount less the actual amount, with negative figures in parentheses.

·      Savings Analysis Report (by Buyer)

The Savings Analysis Report (By Buyer) shows buyer performance by purchase order.

The Negotiated Amount is the product of the price on the quotation and the quantity ordered. If a quote is not defined, Purchasing prints the product of the market price of the item ordered and the quantity ordered. If the market price is not defined, Purchasing uses the list price.

The report includes a price type Legend at the bottom of each page for the price type. If the line price type is Q, the line price was from the Quote. If the line price type is M, the line price was from Market Price, and if the line price type is L, the line price was from List Price.

The Actual Amount is the product of the actual price listed on the purchase order line and the quantity ordered.

The Amount Saved is the negotiated amount less the actual amount, with negative figures in parentheses.

5.    Encumbrance Accounting Reports

·      Encumbrance Detail Report

The Encumbrance Detail Report can be used to review requisition and purchase order encumbrances for a range of accounts if the encumbrance option for requisitions or purchase orders has been enabled, and there are entered and approved requisitions and purchases. Use this report to review the accounts encumbered.

·      Cancelled Purchase Orders Report

·      Cancelled Requisition Report

Use these reports to review all purchase orders and requisitions cancelled, particularly where you have defined multiple Mass Cancel batches.

Chapter 3                        Period-End Processing in Oracle Inventory (Release 12)

Business Requirements

The period close process for Oracle Inventory enables summarizing of costs related to inventory and manufacturing for a given accounting period. These costs are then transferred to the General Ledger for posting.

Oracle Inventory and Oracle Cost Management provide the required features to affect the necessary period-end procedures 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 organization.

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

·      Maintain the same set of periods and fiscal calendar as for the General Ledger.

  Attention :                                                         For period-end adjustment purposes, it may be       appropriate to hold more than one period open per                     inventory organisation at the same time, although at                                                                                     other times, having only one period open at a time    ensures that transactions are correctly dated and posted               to the correct accounting period.

Procedures

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

1. Complete All Transactions for the Period Being Closed

·      Ensure that all issues, receipts, and adjustments have been entered and verify that no hard copy records exist or are awaiting data entry, e.g. packing slips in receiving.

·      Optional Report - Cycle Count Report

           This report will highlight any unconfirmed ad-hoc Stocktakes.

2. Check Inventory and Work in Process Transaction Interfaces

Check the Interface Managers window to ensure that there are no background or concurrent programs unprocessed.

Check all three selections, Transactions Interface, Internal Transactions, and Demand Interface, and fix any rejected transactions.

The interface managers that need to be run are as follows:

·      Material Transaction Manager

·      Material Cost Transaction

·      Move Transaction Manager

·      Resource Cost Transaction Manager

Check the Reservation Managers window

·      Demand Reservation Manager

3. Check Oracle Order Management Transaction Processes

Ensure all sales order (Pick Release) issues through Oracle Order Management have been completed and transferred successfully to Oracle Inventory.

  Attention :        If orders have not been released, they do not have to be                               completed.

4. Review Inventory Transactions

Before closing a period, review all of the transactions for the period that have a high dollar value and/or a high transaction quantity. Verify that the correct accounts have been charged. Correcting incorrect account charges before closing the period is easier than writing manual journal entries to resolve them later.

5. Balance the Perpetual Inventory

Check that the perpetual inventory value up to the end of the period being closed matches the value reported in the General Ledger. This balancing is usually effected automatically, but one of the following three sources may create a problem:

·      Other inventory journal entries

Journal entries from products other than Oracle Inventory, that update the inventory accounts.

·      Charges to improper accounts

For example, material issued from a sub-inventory to a miscellaneous account, but one of the sub-inventory accounts was used as that miscellaneous account.

·      Transactions after period end reports

This occurs when the period-end inventory valuation reports are submitted before all transactions for the period have been completed.

Use the Historical Inventory Balance Report to obtain period valuation information before the extra transactions.

The following reports can be run to help with these reviews:

·      Inventory Value Report

Use the Inventory Value Report to show quantity, valuation, and detailed item information for the sub-inventories specified.

·      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. You can see more sub-inventory balance detail by running the Inventory Value Report, or the Elemental Inventory Value 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.

·      Material Account Distribution Summary Report

Use the Material Account Distribution Summary report to review inventory accounting activity. If you detect unusual accounts or amounts, use the Material Account Distribution Detail report to print the transaction in detail.

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.

6. Validate the Work in Process Inventory

If Oracle Work in Process is installed, check the work in process inventory balances against transactions with the WIP Account Distribution Report, by summary or detail.

The WIP Account Distribution Report details account information for work in process cost transactions, including resource, overhead and outside processing charges, cost updates, and period close and job close variances. The system groups your transactions by job or schedule, by transaction type, and orders your transactions by earliest transaction date. You can list detailed account information for specific accounts, general ledger batches, or both to help you reconcile your general ledger.

This report does not list material cost transactions such as issues, completions, and scrap. You can list this information using the Material Account Distribution reports in Oracle Inventory.

7. Transfer Summary or Detail Transactions

If time permits, run the Transfer transactions to GL process up to the period end date before closing the period. Closing a period automatically executes the general ledger transfer, but the process can be run without closing the period, using the General Ledger Transfer window. Since a period, once closed, cannot be reopened, running this process prior to closing the period facilitates proofing of the interfaces transactions, and any adjustments to the period can be made via new inventory transactions as required.

  Attention :        The Transfer transactions to GL Process must be run for                           each Inventory Organisation.

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

View the General Ledger Transfer History to ensure that all transactions have been successfully transferred to the General Ledger.  Navigate to the General Ledger Transfer window and search for all transfers with a status of Error.

8. Close the current Oracle Payables and Oracle Purchasing Periods

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

If Oracle Purchasing or Oracle Inventory are closed, a receipt cannot be entered for that period. However, as a manual procedure, Oracle Purchasing should be closed before Oracle Inventory.

9. Close the Current Inventory Period

Closing the inventory period using the Inventory Accounting Periods window automatically transfers summary transactions to the general ledger interface table.

  Attention :        This process needs to be actioned for each Inventory

Organisation defined.

Prior to closing the inventory period, click on the Pending button to display pending transactions. This will display transactions under the following statuses:

Resolution Required: displays the number of unprocessed material transactions, uncosted material transactions, and pending WIP costing transactions existing in this period.  These must be resolved before the period is closed.

Resolution Recommended: Displays the number of pending receiving transactions, pending material transactions, and pending shop floor move transactions existing in this period.  You can close the accounting period, however, after it is closed these transactions cannot be processed.

The period close performs the following:

·      Closes the open period for Oracle Inventory and Oracle Work in Process.

·      Creates summary or detail inventory accounting entries in the GL interface.

·      Creates summary or detail work in process accounting entries in the GL interface.

·      Calculates period-end sub-inventory balances.

                                                     For each sub-inventory, the period close period adds the net transaction value for the current period to the previous period’s ending value. This creates the period-end value for the current period. The period-end values by sub-inventory can be viewed via the Period Close Enquiry form, or reported with the Period Close Summary Report.

The period close process automatically transfers all job costs and variances by general ledger account. Discrete jobs and certain non-standard jobs are closed separately. Job close performs the necessary accounting for each job, including variance calculations. For expense non-standard jobs, the period close process writes off any remaining balances and transfers any period costs to the general ledger.

                                            Warning:               Closing an inventory period permanently closes the period and no further transactions can be charged to that period.

10. Open the Next Inventory Period

Open the next inventory period using the Inventory Accounting Periods window.

  Attention :        This process needs to be actioned for each Inventory

Organisation defined.

11. Run Standard Period-End Reports (Optional)

·      Inventory Value Report

Reconcile Oracle Inventory with the General Ledger.

Chapter 4                        Period-End Processing in Oracle Order Management (Release 12)

This section is devoted to period closure of Oracle Order Management with respect to R12

Business Requirements

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

 

Procedures

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

1. Complete All Transactions for the Period Being Closed

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

·      Enter all Orders

·      Schedule Orders

·      Enter Return Material Authorisations

·      Confirm Shipments

·      Sales Order Acknowledgments

·      Cancel Backordered Included Items

·      Respond to Workflow Approval Notifications

·      Close Orders

Closing orders that are complete enhances performance, since many programs, windows and report queries retrieve open orders only. Orders marked as closed are not selected, increasing system speed and efficiency. Closed orders are excluded from many of the standard reports available in Order Management, so you can limit your reporting to the active orders you want.

Close lines and close orders are implemented using workflow. Order Management provides seeded close line and close order workflow sub-processes to close the order header and line, respectively. These processes, when included in the order header or line workflow, close the status of the eligible order or lines. Once an order is closed, no lines can be added.

The order header close order process checks at the end of every month to see all the lines associated with are closed. It closes the order header if it finds that all the lines are closed.

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

Close Order Lines

An order line is eligible to close when it completes all of the line-level activities within the workflow process. Order lines can close independent of each other. Once an order line is closed, no changes can be made to any fields except the descriptive flexfield, for which you can define processing constraints.

Holds Effect on Eligible Lines

The Close Line or Close Order workflow activities does not close orders or lines that have unreleased generic holds or activity specific holds based on the Close Line or Close Order activity respectively. You must remove any such holds on orders or order lines that you want to close.

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 the Order Import to update Oracle Order Management from your external systems

·      Order Import from Oracle Purchasing

If you are using Oracle Purchasing to process Internal Purchase Requisitions, the following processes need to be actioned:

·      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 OrderImport process is run from within Order Management to generate the internal sales orders. The Create Internal Sales Orders and OrderImport 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

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 Invoice Interface or Invoice Line processes.
	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 Order transaction type.

3. Review Open Orders and Check the Workflow Status

Use the Sales Orders Workbench window to review open orders using the Advanced Tabbed Region to specify 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 the Order Information tabbed region. The order line status is displayed in the Main tab of the Line Items tabbed region.

The Workflow Status option on the Sales Orders window Tools menu launches the workflow status page. The window shows in tabular format all the activities an order header or line has completed and the corresponding results.

From the status page, you can access the Workflow monitor to see the order or line status in a more graphical format. This is available through the View Diagram button.

4. Review Held Orders

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

·      Orders on Credit Check Hold Report

The Orders On Credit Check Hold Report identifies all of the credit holds currently outstanding for a customer within a date range, or identify why a particular order is on hold. Order Management allows you to perform a credit check on customer orders and automatically places orders on hold that violate your credit checking rules. This report is automatically sorted by customer, currency code, credit check rule, and order number.

All balances are calculated as they are using the online credit check rule, including the factor for shipments and receivables for a certain number of days.

·      Hold Source Activity Report

The Hold Source Activity Report reviews holds placed and removed under a hold source during the time period you specify. This report indicates the date and the type of activity for each hold transaction.

·      Outstanding Holds Report

The Outstanding Holds Report reviews order holds for the customer or customers you choose. This report displays the order number, order date, ordered items, and order amount for each order line on hold for each customer you select. It is automatically sorted by customer, order number, order line, and then order line detail.

5. Review Discounts

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

·      Order Discount Detail Report

The Order Discount Detail Report reviews discounts applied to orders by order line detail. This report provides detailed line pricing information, including price list price, selling price, and discount information.

·      Order Discount Summary Report

The Order Discount Summary Report reviews discounts applied to orders. This report provides order level pricing information, including agreement, salesperson and total order discount.

6. Review Backorders

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

·      Backorder Detail Report

The Backorder Detail Report reviews all customer orders that have been backordered. This report provides details for each order including customer name, order number, order type of each order, all backordered items and their appropriate line numbers, total quantity both ordered and backordered, and monetary amounts of both ordered and backordered quantities.

·      Backorder Summary Report

The Backorder Summary Report lists all unshipped orders. This report includes only open orders in an order cycle that includes Pick Release. It displays order information 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. These amounts involve totals for shippable items only because the Backorder Summary Report does not account for non-shippable items.

7. Review and Correct Order Exceptions

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

·      Unbooked Orders Report

Use this report to review orders entered but not booked. They may indicated incomplete processing, which needs to be corrected/completed, or deleted as appropriate.

8. Reconcile to Oracle Inventory

Run the following reports for reconciliation with Oracle Inventory

·      Backorder Detail Report

The Backorder Detail Report reviews all customer orders that have been backordered. This report provides details for each order including customer name, order number, order type of each order, all backordered items and their appropriate line numbers, total quantity both ordered and backordered, and monetary amounts of both ordered and backordered quantities.

·      Returns by Reason Report

The Returns by Reason Report reviews all return material authorizations for various return reasons. Order Management automatically sorts this report by currency, return reason, and then item.

9. Reconcile to Oracle Receivables (Optional)

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

·      Commercial Invoice ( for all ship dates within the current Receivables period)

The Commercial Invoice Report lists all confirmed shipped items in a delivery. If you specify only a delivery name when defining the parameters of this report, Shipping Execution prints one commercial invoice per delivery within the trip.

·      Order/Invoice Detail Report

The Order/Invoice Detail Report reviews detailed invoice information for orders that have invoiced. A variety of parameters can be used to print the invoice information for a specific order or group of orders. If there are no invoices for a particular order that meets the parameter criteria, Order Management prints in the report that no invoices exist for that order.

10. Run Standard Period End Reports

The following reports should be run each period:

·      Cancelled Orders Report

The Cancelled Orders Report reviews all orders that have been cancelled. This report provides a summary of each cancelled order, including order number, customer name, line number and item, the date and reason the order or order line was cancelled, the quantity ordered and the quantity cancelled, and who cancelled the order.

This report can be used to report total dollars cancelled in a specified time-frame, and allows evaluation of the  most common cancellation reasons, review cancellations by salesperson, or review cancellations by customers.

·      Salesperson Order Summary Report

The Salesperson Order Summary Report reviews orders for one or more salespeople. This report displays the order and each order line associated with each salesperson.

Salespeople can use this report to see their current outstanding orders and their status. This report shows open orders, quantity ordered, shipped, cancelled, and invoiced and their potential commission.

The report displays all open and closed orders for a salesperson, customer or customer number, agreements, order numbers, order date ranges, order types, line type, and detailed sales credit information for lines in a selected range.

 

Chapter 5                        Period-End Processing in Oracle Receivables (Release 12)

Business Requirements

Oracle Receivables requires periodic internal reconciliation of the transactions entered into the Accounts Receivables system.

Oracle Receivables provides a comprehensive set of reports to facilitate reconciliation of outstanding customer balances, transactions, receipts, and accounts balances.

Oracle Receivables provides the functionality to enable reconciliation of your sub-ledger before posting to the general ledger. Posting to the General Ledger allows extraction of details from Oracle Receivables, and creation of journal entries in the General Ledger. After posting to the General Ledger, it is possible to reconcile Oracle Receivables with the general ledger by verifying that all the correct journal entries were made.

Procedures

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

1. Complete All Transactions for the Period Being Closed

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

Completing all transactions for Oracle Receivables:

1.    Complete Invoicing, Credits and Adjustments

2.    Complete Receipts and Reversals

3.    Complete Invoice and Customer Import

4.    Complete LockBox Processing

If you import transactions from an external system or Oracle Projects ensure you have imported all transactions and master files, and reviewed all audit trails for completeness.

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 all items eligible for posting are reflected on the Sales Journal. Run the following reports for the same accounting period date range:

a. The Transaction Register

This report details all the transactions (i.e. invoices, debit memos, credit memos, deposits, guarantees and chargeback) entered with a GL date between the period start and period end dates specified for the period being reconciled. This report shows transactions entered and completed.

b. The Sales Journal By Customer Report and the Sales Journal By GL Account Report

This report enables review of all transactions for the specified period. The summary totals for the sales journal are by Posting Status, Company, and Transaction Currency. This report details, by account type (i.e. receivables, revenue, freight, tax), the general ledger distributions for posted and/or un-posted invoices for the specified period.

The total on the Sales Journal by GL Account should equal the total of items eligible for posting as listed on the Transaction Register. If any discrepancies are evident, research the customer balances to find out which balance does not tally, using the Sales Journal by Customer report.

By using the following formula, ensure that the Transaction Register matches 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 negative on the Transaction    Register and positive on the Sales Journal.

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

c. Review the Journal Entries Report

This report enables review and analysis of accounting entries in the Payables subledger, as accounted by SLA. Using the report parameters, you can produce a detailed or summary listing of the accounting information you want to review. This report is owned by SLA.

The report also lists in details transactions that have been accounted with error and all entries that could not be transferred to the general ledger. When a transaction is accounted with errors, review the details and make necessary changes.

By altering the parameters the report also lists those transactions, which have been posted in General Ledger and those, which are yet to be posted but have been accounted

SLA groups the report by ledger, ledger currency, source, category, and event class. 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

Ledger journal entries imported from Subledger Accounting are not

included in the report.

3. Reconcile Outstanding Customer Balances

Reconcile the outstanding customer balances at the beginning of a specified period with the ending balance for the same period, using the following formula, known as the RollForward Formula:

Period-End Balance =           Outstanding Balance at Start of Period                                                          + Transactions + Adjustments - Invoice                                                           Exceptions - Applied Receipts - Unapplied                                                      Receipts

The following table represents the various components that affect a customer’s balance and the reports, which can be run and reviewed to reconcile these components:

Reconcile Outstanding Customer Balances
Beginning Balance	1. Aging reports
Transactions	2. Transaction Register
Adjustments	3. Adjustment Register
Invoice Exceptions	4. Invoice Exceptions Report
Applied Receipts	5. Applied Receipts Register (Identify payments received from customers)
Unapplied Receipts	6. Unapplied Receipts Register (Identify payments received from customers)
Ending Balance	7. Aging report (As of the last day of the accounting period)

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

4. Review the Unapplied Receipts Register

Use the Unapplied Receipts Register to review detailed information about your customers’ on-account and unapplied payments for the date range that you specify. You can use this report to determine how much your customer owes after taking into account all on-account and unapplied amounts. Receivables displays information about your on-account or unapplied payment such as GL date, batch source, batch name, 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 normal application procedure.

5. Reconcile Receipts

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

1. Receipts Journal Report

This report displays details of receipts that appear in the Journal Entry Report. The Journal Entry Report shows the receipt numbers that contribute to a particular GL account. Using the receipt number, you can review the detailed information on the Receipts Journal Report.

2. Receipt Register

Use this report to review a list of receipts for a specified date range.

The total of the Receipts Journal Report should equal the total of all the receipts in the Receipt Register for the same GL date range. Both reports display invoice related receipts and miscellaneous receipts.

6. Reconcile Receipts to Bank Statement Activity for the Period

(Refer to Chapter 8 Period-End Procedures for Oracle Cash Management)

  Attention:        The Create Accounting process must be re-run for any

miscellaneous accounting entries generated from the bank reconciliation, for transfer to the General Ledger. This program is owned by SLA and can be run both from the transactions screen and also from the SRS screen.

7. Post to the General Ledger

Prior to posting to the general ledger, the Receipts Journal Report and Sales Journal display the transactions that would be posted to the General Ledger (providing the posting process was run for the same 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 from the transactions screen or even from the SRS screen. The accounting is done at the ledger level and the program ahs the ability to transfer and import into GL based on the parameters specified.

If create accounting is submitted in the “Final” mode without transferring it to GL, the entries will have to be transferred separately.

8. Reconcile the General Ledger Transfer Process

The Create Accounting program produces the Subledger Accounting Program

report that shows you the subledger journal entries created for successful

accounting events. Compare this report to the Journal Entries report (run in Posted

status mode) and verify that they match. Use the same General Ledger date ranges

for the Journal Entries report and the Create Accounting program.

Create Accounting will generate a report which details the transferred transactions, 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 the sub-ledger. Account balances for transactions and receipts can be reconciled by generating the Sales Journal by GL Account Report, the Receipts Journal Report (in ‘transaction’ mode) and the Journal Entries Report for posted items. The account totals in the Sales and Receipt journals should match the corresponding account balances in the Journal Entries Report.

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

When running any Oracle Receivables reports that display accounting involving transactions that have been posted to GL, the following statements apply:

• If SLA final accounting lines exist, then SLA accounting is displayed.

• If SLA accounting lines do not exist, then AR distribution accounting is displayed.

9. Reconcile the Journal Import Process

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

Run the Publish Journals-General Report with a Posting Status of Unposted from Oracle General Ledger to view the journals created. The grand totals on this report match the Journal Import Execution Report.

If Create Accounting was run in FINAL mode and with Transfer to General Ledger as “No”

<to be checked>

10. Print Invoices

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

If Balance Forward Billing functionality is used, then ensure that the consolidated (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 billing refer to Oracle Receivables Implementation Guide

Or Oracle Receivables User Guide

11. Print Statements (Optional)

Once you are satisfied that the customer balances are reconciled and the business procedure is to generate and issue Statements. Initiate the printing of all monthly (periodic) cycle statements.

12. Print Dunning (Reminder) Letters (Optional)

Once you are satisfied that the customer balances are reconciled, and the business procedure is to generate and issue Dunning or Reminder Letters. Initiate the printing of all dunning letters/sets.

13. Close the Current Oracle Receivables Period

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

Review the Subledger Period Close Exceptions Report

The Subledger Period Close Exceptions Report lists all accounting events and journal

entries that fail period close validation. It is automatically submitted by General Ledger when closing a GL period if there are unprocessed accounting events or un-transferred journal entries.

You can also generate the Subledger Period Close Exceptions Report through a

concurrent request as follows:

• For the application associated with the responsibility

• For all applications in the General Ledger responsibility

14. Third Party Balances Report

Run Third Party Balances Report from the SRS screen

This report is used to display balance and account activity information for

Suppliers 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 Ledger balances for the same control accounts to reconcile.

 

15.Reconcile Posted Journal Entries

After running the GL posting process in Oracle General Ledger, for the transactions which were transferred in FINAL mode and with Post in GL being set to NO, run the Publish Journals-General Report with a Posting Status of Posted from the Oracle General Ledger, and verify that the grand totals from this report match the Journal Import Execution Report.

16. Review the Unposted Items Report

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

Using the Submit Requests window to generate this report, submit with a GL date range for at least the current financial year. This report should not generate any output if all Receivables transactions have been successfully posted to General Ledger.

If there are any items not posted for the current or prior periods, then re-open both appropriate Receivables and General Ledger Periods and initiate another posting.

17. Review Account Analysis Report

The Account Analysis Report provides drill-down information about the movement on a particular account for a period or range of periods. It only includes journal entries transferred to and posted to General 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 Ledger journal entries imported from Subledger Accounting are not included in the report.

18. Open the Next Oracle Receivables Period

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

19. 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 reported to the relevant Tax Authority, including withholding tax.

Withholding tax is handled by Payables whereas other tax requirements are handled by ebTax.

The E-Business Tax data extract draws tax information from each application and stores the data in an interface table. Output from the tax extract is designed to look as close to a simple tax report as possible.

The tax extract copies the accounting information from each application and stores it in an interface table. You can use the available reporting tools, including RXi, Oracle Reports, or XML Publisher to specify which fields of the Tax Reporting Ledger to include and to print the report in a format that meets 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

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 the Archive-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 the database tables.  Alternatively, you can run selection and validation, archive, and purge processes together using the Archive and Purge program.  The final process is to transfer the archive data to a separate storage medium.

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

 

Chapter 6                        Period-End Processing in Oracle Assets (Release 12)

Business Requirements

In Oracle Assets, at period end, we require to run depreciation for each set of depreciation books set up for the organization, and to Create Accounting for generating accounting entries and transferring the entries to Oracle General Ledger. Oracle Assets has only a single open depreciation period in each depreciation book.

 

Procedures

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

1. Complete All Transactions for the Period Being Closed

Ensure that all transactions have been entered for the period being closed. Once a depreciation period in Oracle Assets has been closed, it cannot be re-opened. Check that transactions are not being entered as Oracle Assets prevents transaction data entry while the Depreciation Run Process is running.

Completing all transactions for Oracle Assets:

1.    Prepare and Post Mass Additions

2.    Complete Manual Additions

3.    Complete Adjustments

4.    Complete Retirements

5.    Complete Transfers

6.    Complete Reinstatements

2. Assign All Assets to Distribution Lines

If an asset has not been assigned to a distribution line, the period end Depreciation Process will not complete, and will not close the period. Determine which assets have not been assigned to a distribution line by running the following report:

           Assets Not Assigned to Any Cost Centers Listing

3. Run Calculate Gains and Losses (Optional)

The Calculate Gains and Losses program for retirements can be submitted prior to running depreciation. The Calculate Gains and Losses process is performed independently for each depreciation book. The book and depreciation period are nominated on the Submit Request window.

For books with a large volume of assets, the retirements process can be run several times during the period to reduce the time for the depreciation process.

Alternatively, the Calculate Gains and Losses program will be submitted as part of the Run Depreciation process.

4. Run Depreciation

When you Run Depreciation, Oracle Assets gives you the option of closing the current period if you check the Close Period check box on the “Run Depreciation” window. If all of your assets depreciate successfully, Oracle Assets automatically closes the period and opens the next period for the book. If you do not check the Close Period check box when you run depreciation, Oracle Assets does not close the

period.

Note: Depreciation will be rolled back automatically if any activity is performed on a depreciated transaction. This is valid only if the period is not closed

  Attention:        Ensure that you have entered all transactions for the

period before you run depreciation. Once the program closes the period, you cannot reopen it.

The Run Depreciation  process is performed independently for each depreciation book. The book and depreciation period are nominated on the Run Depreciation window.

When the process is run, Oracle Assets automatically calculates depreciation for all assets, calculates gains and losses for all retirements, and then runs the appropriate Reserve Ledger Report.

If an asset has not been assigned to a distribution line, the Run Depreciation process will end with an error status. By using the depreciation log file, you can determine which assets were unassigned, or you can review the Depreciation Program Report  via the Requests window. The unassigned assets can then be assigned to distribution lines and the Depreciation process resubmitted. The Depreciation process only processes assets that have not already been processed.

The Run Depreciation  process will close the current depreciation period and open the next only if the Close Period checkbox is selected.

This process submits concurrent requests to run the calculate gains and losses, depreciation, and reporting programs off-line.

When the depreciation program is run for a Corporate Book, the Journal Entry Reserve Ledger Report will be generated. However, if the depreciation program is run for a Tax book, then the Tax Reserve Ledger Report is generated. Both Reserve Ledger Reports can also be run at any time, using the Submit Requests window.

5. Create Accounting

Submit the Create Accounting process from SRS screen. This process generates accounting and also enables transfer to and posting in GL. This program is owned by SLA. This program can be run in 3 modes viz Draft, Final and Final Post. This program replaces “Create Journal Entries” in Oracle Assets. If the program is run in FINAL mode with POST as yes, then the entries will be automatically posted in GL. If the program is run in FINAL mode with “Transfer to General Ledger” as NO, then run Transfer Journal Entries to GL – Assets.

For more details refer to Oracle Assets User Guide.

The depreciation expense journal entries can be created from a Corporate or Tax book and transferred to the General Ledger.

Before submitting Create Accounting, ensure that the Run Depreciation program for the specified depreciation book and depreciation period has completed successfully. For every transaction entered, Oracle Assets automatically creates adjusting journal entries for the General Ledger, if the journal entry category has been set up for that transaction type for that book.

  Warning:  Journal entries cannot be created from budgeting books.

Journal entries can be created for any period in the current fiscal year for which journal entries have not already been created. The General Ledger period for which journal entries are to be created must be open.

Oracle Assets uses the FA: Use Workflow Account Generation to make a decision on whether to use the workflow or not. By default, on upgrade this profile option is set to “Yes”. If set to NO, create accounting will create accounting based on its rules and the workflow will not be used.

  Attention:  If in 11i the FA Account Generator Workflow was customized, the customizations will have to be re-implemented using SLA or FA: Use Workflow Account Generation should be set as YES. In the second case workflow will be used to generate accounts.

                                       Create Journal Entries program has now been replaced by create accounting

                                                                                       

6. Rollback Depreciation

If depreciation has been run and the “Close Period” option has not been selected: the depreciation entries can be rolled back. There is no separate program-as in 11i to perform the rollback. Any alteration on a depreciated asset will result in an automatic rollback.

Oracle Assets will automatically rollback depreciation on the selected assets and allow the transactions to be processed normally. The assets for which depreciation was rolled back are automatically included in the next depreciation run.

Note: Rollback happens at asset level-unlike book level as in 11i

7. Create Deferred Depreciation Journal Entries (Optional)

Deferred depreciation is the difference in depreciation expense taken for an asset between a tax book and its associated corporate book. This difference results from the use of accelerated depreciation methods in the tax book.

Create deferred journal entries using Create Accounting Process. SLA, based on rules and inbuilt event class/entity model processes deferred depreciation. For more information refer to Oracle Assets User Guide

8. Depreciation Projections (Optional)

You can project depreciation expense for any number of future periods, on as many as five depreciation books at once. Results can be summarized by year, quarter, month, or any specified interval. The results can be summarized also by cost centre or depreciation expense account.

9. Review and Post Journal Entries

If accounting was performed without the journal entries being posted, review the unposted journal entries in the Enter Journals window, in Oracle General Ledger.  Post each journal entry batch using the Post Journals window in Oracle General Ledger to update the account balances.

Optionally, use the More Actions button to Post each Journal individually or in the source of Assets has been included in the Auto Post options, the Assets Journals will be posted automatically in the next scheduled posting run.

10. Reconcile Oracle Assets to the General Ledger Using Reports

a. Reserve Ledger Reports

·      Journal Entry Reserve Ledger - reconcile with the Account Analysis with Payables Details Report.

·      Tax Reserve Ledger Report

·      Additionally, the Account Reconciliation Reserve Ledger Report can be run.

b. Balances Reports

·      Cost Detail and Cost Summary Reports

·      CIP Detail and CIP Summary Reports

·      Reserve Detail and Reserve Summary Reports

·      Revaluation Reserve Detail and Revaluation Reserve Summary Reports

c. Transaction Reports

·      Asset Additions Report

·      Cost Adjustments Report

·      Asset Reclassification Report

·      Asset Transfers Report

·      Asset Retirements Report

·      Reinstated Assets Report

·      Cost Clearing Reconciliation Report

d. Drill Down Reports

·      Drill Down Report - Reconcile the batch totals from this report with those of the General Journals Report in Oracle General Ledger run for posting status = ‘Unposted’.

·      Account Drill Down Report - Reconcile journal entries to the General Ledger. The report enables detailed review of the account activity on a specific general ledger account. The report gives detailed information of the asset transactions represents by a journal entry line.

Note: Drilldown is a two-stage process. In the first stage drilldown happens from GL to SLA. From SLA drilldown can be performed to transaction level.

e. General Ledger Reports

·      Unposted Journals Report - run the General Journals Report for Posting Status = Unposted to reconcile with the Drill Down reports.

·      Posted Journals Report - run the General Journals Report for Posting Status = Posted.

·      Account Analysis Report with Payables Detail - The ending balance of this report reconciles with the Reserve Summary Report ending balance.

·      Financial Statements Generator - It is recommended that you create a detailed FSG for all asset accounts.  This can be done at cost centre level for direct comparison with the Asset Cost Summary and Reserve Summary reports.

11. Run Responsibility Reports (Optional)

It is also important to ensure that your asset inventory is accurate. If the asset inventory is inaccurate, then your financial statements will also be inaccurate. The following reports can be reviewed when assessing the accuracy of the asset inventory:

·      Asset Additions By Cost Centre Report

·      Asset Additions Responsibility Report

·      Asset Disposals Responsibility Report

·      Asset Inventory Report

·      Asset Retirements by Cost Centre Report

·      Responsibility Reserve Ledger Report

12. Archive and Purge Transactions (Optional)

If you no longer need to run reports for previous fiscal years, you can archive and purge historical data to free hardware resources.  You can only restore the most recently purged fiscal year, so you must restore fiscal years in reverse chronological order.

Prerequisites

A)      If necessary, update the FA: Archive Table Sizing Factor profile option.  See: FA: Archive Table Sizing Factor.

B)       Allow Purge for the book in the Book Controls window before you perform the purge.  See: Defining Depreciation Books.

To archive and purge transaction and depreciation data:

1.        Change Responsibilities to Fixed Assets Administrator.

2.        Open the Archive and Purge window.

3.        Enter the Book and Fiscal Year you want to archive.  You must archive and purge in chronological order.

4.        Choose Archive to submit a concurrent request that changes the status from New to Archived and creates temporary archive tables with the data to be purged. 

Oracle Assets automatically assigns an Archive Number when you save your work.

Note: The temporary table name includes a five-digit archive number.

5.        Export the archive tables to a storage device. 

6.        Return to the Archive and Purge window and use the Archive Number to find the archive you want to purge. 

7.        Choose Purge to submit a concurrent request that changes the status from Archived to Purged and removes the archived data from Oracle Assets tables.  Now your database administrator can drop the temporary archive tables.

You can only purge definitions with a status of Archived or Restored.

Chapter 7                        Period-End Processing in Oracle Projects (Release 12)

Business Requirements

Period end procedures for Oracle Projects has two main functions:

1.    Changing the status of the current period to closed

2.    To activate all the processes and controls necessary to produce reports those accurately reflect the period activity, while allowing minimum interruption of transaction processing.

Project Periods and General Ledger Periods

In Oracle subledgers, such as Projects, transactions are summarized into periodic cycles for reporting and reconciliation.  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 General ledger.  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 special procedures for the reconciliation of Projects to the General ledger, and other modules.

Suggestion:  If you have different periods in Projects, you may like to consider using one of the alternate General ledger period conventions, such as a 5-4-4 period split.  This will enable you to more easily align Projects with General ledger for reconciliation purposes. Another option is to split PA periods that would otherwise overlap your General ledger periods.  If this is done you will need processes in place to ensure that transactions split over such periods are processed into the correct PA partial period

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 different periods, and transactions are likely to be posted across modules.

Open                      - Period is available for data entry

Closed                    - 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.  

 

Procedures

1. Change the Current Oracle Projects Period Status from Open to Pending Close

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

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

2. Open the Next Oracle Projects Period

It is recommended that you open the next period to minimize interruption to users, who may require the ability 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. Complete all Maintenance Activities

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

·      Project Maintenance

- Burden Schedules and burden schedule overrides
- Organization overrides
- Project Classifications (if used for auto-accounting)

·      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 responsibility restrictions to prevent access to these areas during the period close procedure.

4. Run Maintenance Processes

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

a)    Run Burden Schedule maintenance to assure that all burden schedules have been compiled

Run PRC: Compile All Burden Schedule Revisions

b)   Run organization maintenance to ensure all organizations have been added to all affected compiled burden schedules

Run PRC: Add New Organization Compiled Burden Multipliers

c)    If changes or additions were made to pre-existing resource lists, update the project summary amounts before, not during, the period close

Run PRC: Update Project Summary Amounts After Resource List Change

5. Complete All Transaction for the Period Being Closed

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 been released 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 to payroll, verify that all timecards are entered or accounted for.

Run the AUD: Missing Timecards Report

Interface Supplier Invoices from Oracle Payables

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

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

Run PRC: Interface Supplier Invoices from Payables

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-approved expense report batches.  These expense reports may have been entered via Self-Service Expenses or Expense Reports in Oracle Payables.

Run PRC: Interface Expense Reports from Payables

Project Related Inventory Transactions

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

·      Run the Cost Collector

·      Project Cost Transfer

Run PRC: Transaction Import. 

The following transaction sources are pre-defined.

Source	Description
Inventory	Manufacturing Material Costs
Inventory Misc	Inventory Issues and Receipts entered in the Miscellaneous Transactions window in Oracle Inventory
Work In Process	Manufacturing Resource Costs

Attention:  Entering new expenditures or adjusting existing expenditures during the final cost distribution process may cause reconciliation problems.  Access to these activities should be controlled, after verifying that all transactions for the period have been accounted for.

6. Run the Cost Distribution Processes

Run all cost distribution processes to cost all enabled expenditures that have an expenditure item earlier than or 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

Note: PRC: Distribute Expense Report is now obsolete.

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 later used by SLA. For more information refer to Oracle Project Costing User guide.

The program to be run is PRC: Generate Cost Accounting Events.

7. Interface Transactions to Other Applications

You must successfully interface all relevant costs to Oracle Payables, Oracle Assets or revenue 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 by SLA. This program creates accounting, transfers& posts to GL with the appropriate parameters.

If accounting was performed without transferring to GL, them submit PRC: Submit Interface Streamline Processes with the appropriate streamline parameters to transfer the costs to GL. Journal Import can be submitted from GL to import the costs into GL.

Interface costs to Payables

- PRC: Interface Invoice Adjustment Costs to Payables

- PRC: Interface Expense Reports to Payables

Warning:  Make sure that Oracle Payables has not closed its period until all Oracle projects expenditures have been interfaced to Oracle Payables

·      Interface CIP Assets to Oracle Assets

- PRC: Interface Assets

This process requires that prior to interfacing, all asset lines have been generated, by running the PRC: Generate Assets Lines for a range of projects process.

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

Note: Ensure that all interface transaction reports and exception reports are completed 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 Streamline Processes process.  This process ensures processes and reports are run and completed in the correct order.  If you use the Streamline process, the order of some of the above steps may be changed, or completed more succinctly.

 

8. Generate Draft Revenue for All Projects

After all the cost distributions processes have completed successfully and all supplier invoices have been imported 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 the processes do not overlap

9. Review and Release Revenue for All Projects

Perform review of the revenue generated and approve the same.

10. Run Generation Revenue Accounting Events Process

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

11. Run Create Accounting

This program is owned by SLA. This program is used to generate accounting and Transfer to General Ledger based on appropriate parameters. If accounting is generated in FINAL mode with Transfer to General Ledger being set as “No” then run PRC: Transfer Journal Entries to GL with parameters to either post in GL or just to leave 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

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:

·      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.

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

 

13. Run Final Project Costing and Revenue Management Reports

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

 

14. Transfer Invoices to Oracle Receivables

Run PRC: Interface Invoices to Receivables

Run PRC: Interface Inter-company Invoices to Receivables

Warning:  Make sure that Oracle Receivables has not closed its period until all Oracle projects invoices have been interfaced to Oracle Receivables

 

15. Run Period Close Exception and Tieback Reports

Run the period close exception reports to identify transactions that have not been fully processed, and that would 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 Expense Reports from Payables

·      PRC: Tieback Invoices from Receivables

The tieback process from GL has become obsolete. Review the report generated by Create Accounting/Transfer to GL processes for any errors.

Review these reports and make all the indicated corrections.  After the corrections are made, run the reports again until there are no exceptions.

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

17. Change the Current Oracle Projects Period Status from Pending Close to Closed

When changing the status to Closed, the system checks to see if any unprocessed items exist in the period.  If unprocessed 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.

18. Advance the PA Reporting Period (Optional)

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

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

19. Update Project Summary Amounts

To enable users to view the latest data in the Project Status Inquiry Window, you must run a final project summary 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 the closing or post-closing processes.

20. Restore Access to User Maintenance Activities

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

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 the status of the PA period to Permanently Closed

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

22. Reconcile Cost Distribution Lines with General Ledger (Optional)

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

Run AUD: Project Subledger Summary

Run AUD: Project Subledger:  Detail by Project

Run AUD: Project Subledger: Detail by Expenditure Type

Chapter 8                        Period-End Processing in Oracle Cash Management (Release 12)

Business Requirements

Oracle Cash Management is an enterprise cash management solution that helps you effectively manage and control the cash cycle. It provides comprehensive bank reconciliation, bank, bank branches & internal bank accounts setup, intra-bank account transfers, cash pooling and flexible cash forecasting.

The Bank Reconciliation process enables the verification of entries on the Bank Statement by reconciling that information with system transactions in Oracle Payables, Oracle Receivables and Oracle General Ledger.

During the Bank Reconciliation process miscellaneous transactions can be created for 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 of the enterprise, allowing the projection of cash needs and evaluation of the company's liquidity position.

Procedures

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

1. Load Bank Statements

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

For organizations with high transaction volumes Bank Statements should be loaded and reconciled on a daily basis.

Refer to: Entering Bank Statements Manually and Loading Bank Statement Open Interface

2. Reconcile Bank Statements

Once detailed bank statement information has been entered into Cash Management, the information must be reconciled with the accounting transactions.

Cash Management provides two methods to undertake reconciliations:

·          Automatic - Bank statement details are automatically matched and reconciled with accounting transactions. This method is ideally suited for bank accounts, which have high volumes of transactions.

Refer to: Reconciling Bank Statements Automatically

·          Manual - This method requires a manual match of bank statement details with accounting transactions.  The method is ideally suited to reconciling bank accounts, which have a small volume of monthly transactions.  The manual reconciliation method can also be used to reconcile any bank statement details, which couldn't be reconciled automatically.

(Refer to: Reconciling Bank Statements Manually

3. Create Miscellaneous Transactions

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

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

Attention:  If you create transactions during the reconciliation process you will need to re-run “Create Accounting” routine from Oracle Receivables to ensure all information is transferred to the General Ledger

4. 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 the Auto-Reconciliation program. Cash Management automatically produces this report during the automatic reconciliation process. You may also request it as needed from the Submit Request window.

This report includes either statement import errors, which prevented the automatic loading of your bank statement, or your reconciliation exceptions found during the automatic reconciliation process.

5. Resolve Exceptions on the Auto-Reconciliation Execution Report

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

6. Run Bank Statement Detail Report

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

7. Run Transactions Available for Reconciliation Report

This report shows all transactions available for reconciliation for a specific bank account. It lists detailed transaction information for your Available Receipts, Available Payment, and Available Journal Entries for reconciliation. 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 the Systems Parameters window is checked. It does not list reversed receipts due to user 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 are separate from regular transactions.

8. Resolve Un-reconciled Statement Lines

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

9. 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 also lists a separate adjustment amount for un-reconciled receipts, payments, and journal 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.

10. Run the Account Analysis Report for the General Ledger Cash Account

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

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

11. Review the Account Analysis Report

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

12. Correct any Invalid Entries to the General Ledger Cash Account (Optional)

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

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

13. Perform the Bank Reconciliation

Use these reports to reconcile the General Ledger cash account period-end balance to the Bank Statement period-end balance.

 

Chapter 9                          Period-End Processing in Oracle General Ledger (Release 12)

Business Requirements

Period End Close

In Oracle General Ledger, an accounting period is closed after all the accounting transactions have been completed for the period. A closed period can be re-opened, providing it has not been permanently closed, if it is necessary to enter or modify accounting transactions for that period.

For most modules you can view and select one of the following:

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 different periods, and transactions are likely to be posted across modules.

Open                      - Period is available for data entry

Closed                    - Period is closed for processing, but can re re-opened if required.

Permanently Closed - No further processing is possible.

Managers have the discretion to immediately close a period to prevent unauthorized processing, but be able to re-open periods for post processing adjustments.  The periods can then be permanently closed as required, independent of the period/year end process.

Suggestion: Periods are usually only ‘finally closed’ when all adjustments and reporting requirements for the prior financial year are finalized.

Combined Basis Accounting

If you have installed combined basis accounting, then the steps detailed below will need to be completed for both your accrual and cash sets of books. This will mean that you will need to select the responsibility relevant to both sets of books when completing these tasks.

Procedures

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

1. Ensure the Next Accounting Period Status is set to Future Entry

Set the status of the next accounting period to ‘Future Entry’ if it is not already, except at year-end.

At year-end, it is recommended that you complete all period end processing, prior to opening the first period of the new financial year.

2. Complete Oracle Sub-ledger Interfaces to Oracle General Ledger

Journals are created to enter accounting information into Oracle General Ledger. Journals are comprised of batch level, journal entry level, and journal entry line level, information.

Ensure that the accounting information from the sub-ledgers (Oracle Payables, Purchasing, Inventory, Receivables, Assets and Projects) have been transferred to Oracle General Ledger. Run Create Accounting program or the appropriate program (based on previous runs of Create Accounting) to transfer data from subledger into Oracle General Ledger. The Create Accounting process of SLA submits Journal Import Process (based on appropriate parameters as discussed in previous sections). This process populates the GL_JE_BATCHES, GL_JE_HEADERS, and GL_JE_LINES tables, and is run automatically.

  Attention:                                                         The journal posting process, run in Oracle General Ledger, updates the GL_BALANCES table.

Journal Import

·      If not automatically completed, review the Journal Import Execution Report to identify which journal entry batches were not successfully imported.

·      Delete any error journal entry batches. Determine the source(s) for these error batches, and retrieve the run ID from the Journal Import Execution Report.

·      Make necessary corrections - in the GL_INTERFACE table, via the Correct Journal Import Data window.

·      Re-import these corrected journal entry batches from the GL_INTERFACE table. Simply re-enter the source from which journal entry batches are to be imported.

  Attention: Leave sufficient time to re-import any journal entries  not successfully imported from the feeder systems. Then update and post them.

3. Upload Journals from ADI (Applications Desktop Integrator) to Oracle General Ledger (Optional)

Journals information can also be imported from spreadsheet into Oracle General Ledger using Web-ADI (web based Application Desktop Integrator).

4. Complete Non-Oracle Sub-ledger Interfaces to Oracle General Ledger (Optional)

Following the same procedures as for Step 2.

Ensure that the accounting information from any site specific, non-Oracle sub-ledgers has been transferred to Oracle General Ledger. Run the Journal Import process for these sources and ensure the resulting Journal Entries are posted either automatically by AutoPost or manually.

Note: Its is advisable to use XLA (SLA) interface tables to load transactions from 3^rd party systems rather than using GL_INTERFACE.

5. Generate Reversal Journals (Optional)

Select all the Journals to be reversed. Submit the process to generate the Reversal Journals. This process can be run across ledgers.

6. Generate Recurring Journals (Optional)

Select all the Recurring Journals that require generation for the current period. Submit the process to generate the Recurring Journals. This process can be submitted for foreign currency.

7. Generate Mass Allocation Journals (Optional)

Select the Mass Allocation Journals that require generation for the current period.

Ensure that all entries to the source accounting flexfields used in the MassAllocation Journal definitions are finalized for the current period, prior to generating the journal.

Post step-down allocations in the correct order (i.e. perform the calculation and post, for each successive level of allocation entry. This process can be run across ledgers and across currencies.

8. Review and Verify Journal Details of Unposted Journal Entries

·      Review any remaining unposted journal entries for the current period

·      Update journal entries as appropriate

  Attention:                                                         Journal entries can be reviewed on-line, or via reports.                                                                                     Reviewing journal entries prior to posting minimizes            the number of corrections and changes after posting.      Following review of journal entry batches, perform any                                                                                     journal entry updates, including any adjusting entries,                                                                                     before posting.

Standard Journal reports available included:

·      Journal Batch Summary Report

·       Journals - General Report

·      Journals - Entry Report

·      Journals - Line Report

·       Tax Journals Report

·      General Ledger - Entered Currency

·      Journals by Document Number Report (when document sequencing is used)

9. Post All Journal Batches

·      Post all journal entries for the current period, including reversal, recurring and allocation journals.

·      Review the results of the post.

The Posting Execution Report facilitates review of the results of journal entry posting. Oracle General Ledger generates this report every time posting of journal entry batches occurs. This report indicates any errors in journal entries or journal entry lines were discovered during the posting process.

Run the Journals- General Report with a Posting Status of Error Journals to review error journal entry batches and their journal entries.

·      Update unpostable journal entries.

Locate the problems with unpostable journal entry batches using the following information:

1. Control Total

When using a control total, ensure that the debits and credits equal the control total.

2. Period Status

Post Actual batches to open periods.

Post Budget batches to any period in an open budget year.

Post Encumbrance batches to any period up to the last period in the latest open encumbrance year.

3. Batch Status

Oracle General Ledger describes the problems with unpostable batches.

           Common reasons for unpostable batches are:

                       1. Control total violations

                       2. Posting to unopened periods

                       3. Unbalanced journal entries

  Attention:        All errors in the journal entry batches must be fixed, and the corrected journal entries re-submitted for posting.

·      Post updated journal entries.

10. Run General Ledger Trial Balances and Preliminary Financial Statement Generator Reports (FSGs)

·      To maintain a consistent audit trail, it is advisable to create a standard period-end accounting report set that can be run at each period end.

·      Custom accounting reports can be created by using the ‘Financial Statement Generator (FSG)’.

Suggestion :                                                        To prevent confusing different versions of accounting                                                                                     reports for a specific accounting period, discard any                                                                                     obsolete versions of your report for that accounting                                                                                     period.

Request financial reports such as:

·      Balance Sheets e.g. Detail Trial Balance Report

·      Income Statements

·      Gross Margin Analyses

11. Revalue Balances (Optional)

Revalue account balances to update functional currency equivalents.

12. Translate Balances (Optional)

·      Define any new currencies to which accounting balances are to be translated.

·      Maintain period-end exchange rates for all foreign currencies to which you want to translate.

·      Maintain average exchange rates for all foreign currencies to which you want to translate.

·      Maintain historical rates or amounts for any owner’s equity accounts to be translated.

·      Translate account balances to any defined currency.

13. Consolidate Ledgers (Optional)

1.    Consolidate Within Ledgers

·      Enter consolidating journal entries

The following two methods can be used to create eliminating entries for multiple companies using a single Ledger:

·      Automatic Eliminating Entries - define mapping rules to eliminated intercompany receivables, payables, investments in subsidiaries, intercompany sales etc.

·      Recurring Journals- use formulas

·      Post consolidating journal entries

·      Define a reporting hierarchy that consolidates all the companies

·      Define financial statements with the reporting hierarchy

                                              Suggestions: 

·      To automatically generate the amounts and accounts for consolidating and eliminating journal entries, use recurring journal entry formulas.

·      To produce financial reports that reconcile your consolidating companies with the consolidated totals, enter the consolidating entries to a separate company, and build reports with a separate column for ‘consolidating entries’.

2.    Consolidate Across Ledgers using the Global Consolidation System (GCS)

·      Define consolidations.

·      Perform revaluation and translation of foreign subsidiaries as required.

·      Run consolidations.

·      Enter consolidated and eliminating entries.

·      Report on this consolidated ledger using FSG’s

·      Analyze results using drill-down capability from Parent ledger to Subsidiary ledger/s.

14. Review and Correct Balances (Perform Reconciliation’s)

Oracle General Ledger should be reconciled with all other modules. Adjust journals to correct any errors in the journals. Create and post adjusting journals to correct errors in account balances.

(a) Review Detail Account Balances On-line

(b) Review Account Balances via Reports

           Request accounting reports such as general ledgers, general journals, trial    balances, and accounts analysis reports to facilitate reconciliation of Oracle General Ledger with the other Financials and manufacturing modules.

           1. General Ledger Reports

           General Ledger Reports facilitate tracing back each transaction to the original        source. These reports list beginning and ending account balances and all journal        entry lines affecting each account balance. The report provides detailed       information on each journal entry line including source, category and date.

           2. Accounts Analysis Reports

           These reports list the accumulated balances of a range of Accounting Flexfields     and all journal entries that affect that range. Detailed information is provided for each journal entry line, which includes the source, batch name, and      description.

           3. Trial Balance Reports

Use trial balance reports to review account balances and activity in summary or detail.

           4. Journal Reports

These reports print journal entry batches and include journal entry subtotals, and descriptions and reference information for each journal entry line.  You can report on foreign currency, posted, unposted or error journal entries and report on a specific batch or on journal entries from a specific source.

(c) Clear Suspense Accounts

·      Examine the general ledger and account analysis reports to identify the source of entries to the suspense accounts.

·      Determine the adjusting entries required to net these accounts to zero.

        Attention:                                                   If suspense accounting is not allowed, Oracle General                                                                                     Ledger will not post out-of-balance batches.

(d) Reconcile Subsidiary Ledgers

·      Identify differences between subsidiary ledgers and the general ledger.

·      Determine which differences are errors requiring adjustment to the general ledger.

(e)  Check other key system accounts have not been transacted by ad-hoc journals, for example, Creditors Control, Debtors Control, Intercompany accounts, etc.

15. Enter Adjustments and / or Accruals and Post

To correct errors in account balances made by posting incorrect journals, create and post adjusting and reversing journals.

  Attention:                                                         The details of posted journals cannot be changed,    except to mark or unmark for reversal. An incorrectly              entered posted journal must be reversed to back-out the                                                                                     accounting of the original posted journal.

Other journal entry adjustments, for example, write-offs (refer Accrual Write-Off Report), and manual accruals can be entered into Oracle General Ledger at this point also.

16. Perform Final Adjustments

Enter and Post any final adjustments as required by the organization.

17. Close the Current Oracle General Ledger Period

Close the current General Ledger accounting period in the Open and Close Periods window. The period can be ‘soft closed’, if later adjustments to the balances for that period may be applicable, or ‘permanently closed’, which means that the period cannot be re-opened in the future.

This step will need to be repeated for each ledger unless a data access set is setup to give access to multiple ledgers. This is controlled by GL: Data Access Set profile option. With a data access set across ledgers programs can be run for multiple ledgers from a single responsibility. For more information please refer to Oracle General Ledger User guide.

18. Open the Next Oracle General Ledger Period

Open the next General Ledger accounting period in the Open and Close Periods window. This operation can be performed across ledgers provided “Data Access Set” grants access.

Choose status ‘Open’ to open a new accounting period, or to re-open a previously soft closed period to enable adjustments to be made.

Generate and post reversal journals that were entered in the prior period, For example any Oracle Purchasing receipted accruals and manual accruals.

Any Journals entered into this period while it had a status of Future Enterable, can now be posted as the period now has a status of Open.

This step will need to be repeated for each ledger unless a data access set is setup to give access to multiple ledgers. This is controlled by GL: Data Access Set profile option. With a data access set across ledgers programs can be run for multiple ledgers from a single responsibility.

19. Run Financial Reports for the Closed Period

·      Run a final Trial Balance Report.

·      Run final Financial Statement Generator Reports (FSG) or Report Sets as required by the organization.  Including Income Statements and Balance Sheets. FSGs can also be published via the Application Desktop Integrator (ADI).

·      Run any Financial Analyzer Reports

20. Run Reports for Tax Reporting Purposes (Optional)

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

The Financial Tax Register can be used to view the output from the Tax Reporting Ledger using Reports Exchange and Application Desktop Integrator (ADI). Using these products you can change the layout of the report, publish the report in different formats, and export the data to a tab delimited or HTML file.

The Tax Reporting Ledger consists of accounting information created in Oracle Receivables, Oracle Payables, and Oracle General Ledger. The Financial Tax Register uses this data to generate Tax Register reports using the Rxi reporting tool.

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

21. Perform Encumbrance Year End Procedures (Optional)

Oracle Financials provides a number of facilities for the processing of outstanding encumbrances as part of year-end processing.

The default processing for Oracle Financials at year end is to extinguish any outstanding encumbrances/ unused funds when you close the last period of the Financial Year within the General Ledger application.

The carry forward process enables managers to perform any of the following:

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

·      Carry forward encumbrances, and the encumbered budget.

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

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.

To perform Encumbrance year-end procedures, including Carry Forward, you must complete each of the following steps:

(a) Open the next encumbrance year

Use the Open and Close Periods window to open the next encumbrance year.

(b) Open the next budget year

Use the Define Budget window to define a budget for the next budget period.

	Attention:  Ensure that the budget that you use is inclusive of the periods for the next budget year that you require
	Attention:  Ensure that the calendar periods for the next budget year have been created prior to running this step.

Verify that the next year budget figures have been entered. If you define a new budget for the purposes of the next year budgetary control, you may also need to update the following:

·         Define Budget Organizations, where you have attached the funding budget to defined account ranges within this form.

·         Define Summary Accounts, where summary templates are used as the basis for the budgetary control procedures.

(c) Run Year End Carry Forward

This process enables you to determine the criteria that you want to use for carrying forward your encumbrances

The year-end carry forward is normally completed in two steps:

1.      Perform the Year End Carry Forward in Preview mode

2.      Perform the Year End Carry Forward without selecting the Preview option

Within the Year End Carry Forward form, you can select a wide range of criteria for carrying forward balances:

·         Carry Forward Rule - This rule enables you to select Encumbrances Only, Encumbrances and the Encumbered Budget, or Funds Available as the basis for the Carry forward

·         Encumbrance Type - Select “All” for all encumbrances, or select the encumbrance type that you require i.e. Commitment, Obligation etc.

·         From/To Budget and Budget Organization- Select the budgets where they are different

·         Accounting Flexfield Ranges - Select the range of relevant accounting flexfields to be carried forward.