Oracle R12 AR Month End Close and Reconciliation

1. Complete All Transactions for the Period Being Closed

2. Complete and review your unapplied receipts

3. Reconcile Receipts to Bank Statement Activity for the Period

4. Change period status to Close Pending

Navigate ..Control>Accounting>Open/Close Periods

Do not get confused with various status of periods:

ñ Closed: Journal entry, posting, and transaction entry are not allowed unless the accounting period is reopened. Receivables verifies that there are no unposted items in this period. Receivables does not let you close a period that contains unposted items.

ñ Close Pending: Similar to Closed, but does not validate for Unposted items. Journal entry, posting, and transaction entry are not allowed unless the accounting period is reopened.

ñ Future: This period is not yet open, but you can enter transactions in this period. However, you cannot post in this period until you open it.

ñ Not Opened: This period has never been opened and journal entry and posting are not allowed.

ñ Open: Journal entry and posting are allowed.

5.Create accounting

Due to the introduction of the Subledger Accounting Architecture in Release 12 this step is new, as it enables you to create accounting for your completed transactions, which will be feed into General Ledger.

6.Review Unposted Items Report

You can review the Unposted Items Report to determine if any exceptions have been encountered, that will need to be resolved, to ensure all accounting has been successful for all transactions.

7.Reconcile Transaction Activity for the Period (Transaction & Receipt)

ñ Run Journal Entries Report

Transaction Register Total for Postable Items = Sales Journal by GL Account for the Receivable Account Type (Total DR–Total CR)

ñ Receipt Register

ñ Receipt Journals Report

In theory this step is unchanged between Release 11i and Release 12. It’s just important to note that you should not be trying to reconcile distributions on transactions to account balances, as these are not necessarily the final accounting for these transactions.

1.Check that Receivables Receipts Balance by running the Receipt Journal report and the Receipt Register for the same GL Date range.

2. Use the Receipt Journal to View information about Receipts that appear in your Journal Entries report. Use the Receipt Register to Review a list of receipts for the date range that you specify. The total of the Receipt Journal should equal the total of all receipts in the Receipt Register. These reports display information about both Invoice–Related and Miscellaneous Receipts.

8.Reconcile outstanding customer balances

ñ Aging Report (last period)

ñ Transaction Register

ñ Adjustments Register

ñ Invoice Exceptions

ñ Applied Receipts Register

ñ Unapplied Receipts Register

ñ Aging Report (this period)

Most of these reports haven’t changed between Release 11i and Release 12, except that they look at the SLA tables instead of the AR tables.

If you are coming from 11i to R12, you should note that there is change in Aging Repots(Aging - 7 Buckets ) Behaviour .

Few High Points of Changes are:[Adpoted User Guide]

ñ In Release11i, the Aging Reports pull the data directly from the ar_payment_schedules_all table while in Release 12 the data is pulled from the SLA tables after when Create Accounting is run.

ñ In release 11i, all the transactions used to appear on all the Aging Reports.

ñ The transactions are classified into three sections, namely:
1. Those transactions, which were accounted for in GL through the GL interface program.
2. Those transactions, for which accounting could not be generated because they were created with the flag “Post to GL” as un-checked.
3. Those transactions, which were created with transaction type having the flag “Post to GL” as checked but were however, not interfaced to GL.

9.Post Receivables transactions in General Ledger

10.Reconciling AR and GL Balances

The following is a list of the Critical Reports required for Reconciliation between AR and GL

ñ Journal Entries Report (AR)

ñ Sales Journal by GL Account Report (AR)

ñ Receipt Journal Report (AR)

ñ Account Analysis Subledger Detail-180 Char (GL)

ñ Third Party Balance Report (New to R12)

ñ AR Reconciliation Report (AR)

The Total Activity in a period is calculated as follows:

Transaction Register for the Period
(-) Applied Receipts Register for the Period
(-) Un-Applied Receipts Register for the Period
(+) Adjustments Register for the Period
(-) Invoice Exceptions for the Period
(+) Rounding Differences for the Period
(+) Credit Memo gain/loss for the Period

11.Close AR Period

ñ Subledger Close Exception Period

From Receivables Responsibilities.
Navigate to Control --> Requests --> Run
Subledger Period Close Exceptions Report

ñ Change Period status to Closed

ñ Open next Period