Oracle Month-End Close Process in OM, AR, AP, PO, ASSETS, WIP, INVENTORY and GL

Month-End Close

Oracle applications provide an integrated information warehouse and at the same time each application has its own processes and reports. In addition, each Oracle application has its own accounting calendar, so each Oracle applications can be in different accounting periods. There is a ‘correct’ order to close each application into the General Ledger and the order can be broken down into two sequences that can be run concurrently, or either one following the other. The closing of the General Ledger is always the last step in the month-end close cycle. The reason for this order is based on the integration between Oracle applications. The suggested order of closing the applications is as follows:

SEQ Application SEQ Application

1a Order Entry 2a Accounts Payable

1b Receivables 2b Purchasing

2c Fixed Assets

2d Inventory/WIP

3 General Ledger Transfers from all subsystems can be performed in summary or detailed transactions. It is suggested that journal entries come over to the General Ledger in summary and that detailed information stay in the subsystems. Reports containing detailed transactions are located in the subsystems and should be run when additional analysis is needed for the General Ledger.

Closing a Period

The final step is to close the accounting period in each of the above modules and open the new accounting period. Reports can still be run for periods that are ‘closed’ and ‘permanently closed’, however no entries can be entered or posted for these periods. The main difference between ‘closing’ a period and ‘permanently closing’ a period is that a ‘permanently closed’ period can NEVER be reopened.

Order Entry

Two interface programs must be run in the Order Entry module to support the month end close procedure.

The Inventory Interface program generates inventory transactions through the Material Transaction

Manager for costing, relieving demand and reservations, and updating inventory balances as you ship orders. The Receivables Interface program transfers shipped item information to Oracle Receivables, which processes invoices and accounts for revenue.

Pre-close Processes

Order Entry has pre-close processes that should be performed on a daily and monthly basis.

Suggested Schedule for Daily and Monthly Processes

Schedule Processes Comments

Daily 1. Run Inventory Interface program

If profile option ‘OE: Immediate Inventory

Update’ is set to ‘Yes,’ this program does not need to be run.

2. Run Receivables Interface program

3. Run AutoInvoice process This step is performed in the Accounts Receivable section.

Monthly 1. Process all month-end shipments before cutting off inventory transactions

2. Run Inventory Interface program

If profile option ‘OE: Immediate Inventory

Update’ is set to ‘Yes,’ this program does not need to be run.

3. Run Receivables Interface program

4. Run AutoInvoice process This step is performed in the Accounts Receivable section.

Run the Inventory Interface Program

Run the Inventory Interface program to generate inventory transactions for costing, relieve demand and reservations, and update inventory balances.

Navigation: (OE) Shipping -> Interfaces.

Report Inventory Interface

Parameters No parameters required

Validate the Inventory Interface Program

This validation step is performed in the Clearing the Interface Managers section of this document.

Run the Interface to Receivables

Run the interface to Receivables, which transfers shipped item information including quantities, selling prices, payment terms, and transaction dates to Oracle Receivables. Receivables, in turn, processes invoices and accounts for revenue.

Navigation: (OE) Shipping -> Interfaces.

Report Receivables Interface

Parameters Invoice Source Order Entry

Transfer

Validate the Interface to Receivables

Validation of the Receivables interface occurs in the Accounts Receivable section of this document.

Submit AutoInvoice

Upon completion of the Receivables Interface, the AutoInvoice program should be submitted from Oracle Receivables to import invoice and credit data into the Receivables module. This step is discussed in the Accounts Receivables section of this document.

Accounts Receivable

All month-end shipments in Order Entry should be processed before closing the Accounts Receivable

period. General Ledger entries include trade receivables, cash, on-account, unapplied, unidentified, freight,

taxes, trade revenue, unearned revenue, unbilled receivables, and miscellaneous receipts. The Accounts

Receivable period cannot be closed if there are any un-posted items for the period.

Pre-close Processes

Accounts Receivable has pre-close processes that should be performed on a daily, weekly, and monthly

basis.

Suggested Schedule for Daily, Weekly, and Monthly Processes

Schedule Processes Comments

Daily 1. Enter any receipts (onaccount and miscellaneous) received

2. Enter any Manual Transactions, Credit Memos or Adjustments

Make sure to ‘complete’ invoice when done and print invoices that need to be sent to customer.

3. Make Customer Calls

4. Run AutoInvoice process

5. Print new invoices

Weekly 1. Transfer to GL

2. Perform AR/GL reconciliation

Investigate any discrepancies.

Monthly 1. Enter any final receipts (on account and miscellaneous) for current period

Make sure approvals are completed, if required.

2. Enter any NSF checks received for the current month

3. Enter any Manual

Transactions, Credit Memos or Adjustments

Make sure all transactions are ‘completed’ or they will not be transferred to the General Ledger in the current month.

4. Run AutoInvoice process

5. Print new invoices

6. Run an incomplete invoice report

Review all incomplete transactions and make any adjustments for transactions that should be posted to the current period.

7. Approve Adjustments Adjustments over a predefined dollar amount may need approval by management.

8. Transfer to GL This will invoice any shipped orders from OE.

9. Run Monthly Reconciling

Reports

Sales Journal Report

Receipt Journal Report

Adjustment Journal Report

10. Close Period and Open new Period

Enter Receipts

Apply the final batch of cash applications for both on account and miscellaneous receipts.

Navigation: (AR) Receipt-> Batches.

Enter Invoices

Enter any manual invoices, commitments, adjustments, credit memos, and debit memos for the period.

Navigation: (AR) Transactions-> Transactions.

Record NSF Checks

Record any NSF checks received in the current month.

Navigation: (AR) Receipts -> Receipts (Reverse button).

Run AutoInvoice Interface

Run the AutoInvoice Interface to import the final batches of invoices for all batch sources and check the interface tables for importable transactions. These transactions can include invoices, credit memos, on account credits, and debit memos. Receivables will ensure that the data you import is accurate and valid.

Navigation: (AR) Interfaces -> AutoInvoice.

Report AutoInvoice Master Program

Parameters Invoice Source Order Entry

Transfer

Default Date Current Date

Print New Invoices

The Print Invoices window allows you to submit and print invoices, debit memos, credit memos and adjustments.

Navigation: (AR) Print Documents -> Invoices.

Report Invoice Print Batch of Invoices

Parameters Order By Transaction Number

Batch Select the batch from AutoInvoice step above

Open Invoices Only No

Run Incomplete Invoice Report

Run the Incomplete Invoices Report and complete all invoices to be posted in the current period. This report should be used to review all of your incomplete invoices, debit memos, credit memos and onaccount credits. Incomplete invoices do not update your open receivables balance nor do they display on the aging report. Use the transactions window to complete any transactions that should be recorded in the current period.

Navigation: (AR) Reports -> Listings.

Report Incomplete Invoices Report

Parameters Order By Customer or

Invoice

Adjustment Approval Report

Approve all adjustments through the Adjustment Approval Report. Use the Adjustment Approval Report to see transaction adjustments, including information about their status, creator, reasons, GL date and amount.

Adjustments include manual adjustments, AutoAdjustments, invoices applied to commitments, and credit memos applied to invoices that are against commitments.

Navigation: (AR) Reports -> Accounting.

Report Adjustment Approval Report

Parameters Order By Customer

Transfer Accounts Receivable Transactions to the General Ledger

Run the General Ledger interface program to transfer all of your receivables transactions to your General Ledger and create a summarized journal batch. You determine which transactions to transfer by specifying a General Ledger date range. The transfer process submits several processes. The first process is the actual

General Ledger transfer. The second process creates accounting transactions for items that have deferred revenue. The third process updates posting controls. Next, a process for unposted items to the General Ledger is run. This process and report will identify any items that could not be transfer to the General Ledger and the reason why. Last, Oracle will run the journal import process to validate account combinations.

Navigation: (AR) Interfaces -> General Ledger.

Interface General Ledger

Parameters Posting Detail Summary

GL Post Date Month End Date

GL Dates (From) Beginning of the Period

GL Dates (To) End of the Period

Run Journal Import Yes

Import and Post Accounts Receivable Transactions

Accounts Receivable transactions are automatically imported and are available to be posted to the General Ledger. See the General Ledger section of this document.

Run Accounts Receivable Month End Reports

The following General Ledger month-end reports should now be run: Sales Journal, Receipt Journal,

Journal Entries, Aged Trial Balance, Transaction Register, Applied Receipts, Unapplied Receipts,

Adjustment Register, and Invoice Exception Register.

Revenue Journal By General Ledger Account Report

Use the Sales Journal By General Ledger Account Report to make sure the Transaction Register matches your Sales Journal. The Sales Journal can also aid in the reconciliation of Accounts Receivable to your General Ledger.

Navigation: (AR) Reports -> Accounting.

Report Revenue Journal By General Ledger Account Report

Parameters Order By Invoice GL Date Low 1st day of the Month

GL Date High Last day of the Month

GL Account Type Revenue

Note: The Revenue Journal By General Ledger Account Report is not time sensitive and can be run at any time.

Note: It is not mandatory to run the Revenue Journal By General Ledger Report in order to reconcile

Accounts Receivable to the General Ledger. However, this report provides supporting documentation for month end close.

Receipt Journal Report

Use The Receipt Journal Report to review details of receipts that appear in your Journal Entry Report.

Navigation: (AR) Reports -> Accounting.

Report Receipt Journal Report

Parameters Order By Type

GL Date Low 1st day of the Month

GL Date High Last day of the Month

Note: The Receipt Journal Report is not time sensitive and can be run at any time.

Note: It is not mandatory to run the Receipt Journal Report in order to reconcile Accounts Receivable to the General Ledger. However, this report provides supporting documentation for month end close.

Journal Entries Report

The Journal Entries Report provides information needed to reconcile your Accounts Receivable sub-ledger with the General Ledger. Using this report you can review the details that make up your General Ledger journal entries.

Navigation: (AR) Reports -> Accounting.

Report Journal Entries Report

Parameters Beginning GL Date 1st day of the Month Ending GL Date Last day of the Month

Note: The Journal Entries Report is not time sensitive and can be run at any time.

Note: It is not mandatory to run the Journal Entries Report in order to reconcile Accounts Receivable to the General Ledger. However, this report provides supporting documentation for month end close.

Transaction Register

Use the Transaction Register to check posting status of all items reflected on your Sales Journal. The

Transaction Register is also used to balance revenue accounts to Accounts Receivable aging.

Navigation: (AR) Reports -> Accounting.

Report Transaction Register

Parameters Beginning GL Date 1st day of the

Month

Ending GL Date Last day of the Month Order By Type

Note: The Transaction Register Report is not time sensitive and can be run at any time.

Note: It is mandatory to run the Transaction Register in order to reconcile Accounts Receivable to the

General Ledger. Please see the ‘Reconcile Accounts Receivable to the General Ledger’ section of this document.

Adjustment Register

Use the Adjustment Register to see your approved adjustments.

Navigation: (AR) Reports -> Accounting.

Report Adjustment Register

Parameters Order By Invoice GL Date Low 1st day of the

Month GL Date High Last day of the Month

Note: The Adjustment Register is not time sensitive and can be run at any time.

Note: It is mandatory to run the Adjustment Register in order to reconcile Accounts Receivable to the

General Ledger.

Receipt Register Report

Use the Receipt Register Report to review a list of receipts for the date range that you specify.

Navigation: (AR) Reports -> Accounting.

Report Receipt Register Report

Parameters Order By Receipt #

Deposit Date Low 1st day of the

Month Deposit Date High Last day of the Month

Note: The Receipt Register is not time sensitive and can be run at any time.

Note: It is mandatory to run the Receipt Register in order to reconcile Accounts Receivable to the General Ledger. Please see the ‘Reconcile Accounts Receivable to the General Ledger’ section of this document.

Aged Trial Balance

The Aged Trial Balance Report is used to review information about open items. These reports can be printed either in detail and summary. The Aged Trial Balance Report shows information about your customer's current and past due invoices, debit memos and chargebacks.

Navigation: (AR) Reports -> Accounting.

Report Aging Trial Balance

Parameters Order By Customer

Report Summary Customer

Summary

Report Detail Brief

As of Date Last Day of

Month

Aging Bucket Name Standard-4

Note: The Aged Trial Balance from the previous month is required for reconciliation.

Note: The Aged Trial Balance is not time sensitive and can be run at any time.

Note: It is mandatory to run the Aged Trial Balance in order to reconcile Accounts Receivable to the

General Ledger. Please see the ‘Reconcile Accounts Receivable to the General Ledger’ section of this document.

Invoice Exceptions Report

The Invoice Exception Report is used to help you match your revenue accounts to your Accounts Receivable. These transactions appear on your transaction register but not on your aging.

Navigation: (AR) Reports -> Accounting.

Report Invoice Exception Report

Parameters GL Date Low 1st day of the Month GL Date High Last day of the Month

Note: The Invoice Exceptions Report is not time sensitive and can be run at any time.

Note: It is mandatory to run the Invoice Exceptions Report in order to reconcile Accounts Receivable to the General Ledger. Please see the ‘Reconcile Accounts Receivable to the General Ledger’ section of this document.

Applied Receipts Register

The Applied Receipts Report is used to review all activity of a receipt.

Navigation: (AR) Reports -> Accounting.

Report Applied Receipts Register

Parameters Order By Invoice #

Apply Date Low 1st day of the

Month

Apply Date High Last day of the Month

Note: The Applied Receipts Register is not time sensitive and can be run at any time.

Note: It is mandatory to run the Applied Receipts Register in order to reconcile Accounts Receivable to the General Ledger. Please see the ‘Reconcile Accounts Receivable to the General Ledger’ section of this document.

Unapplied Receipts Register

The Unapplied Receipts Register is used to review detailed information about your customers on account and unapplied payments for the date range that you specify. In addition, this report can be used to determine how much your customer owes after taking into consideration all on-account and unapplied amounts.

Navigation: (AR) Reports -> Accounting.

Report Unapplied Receipts Report

Parameters Format Option Detailed or Summary

Receipt Date Low 1st day of the month

Receipt Date High Last day of the month.

Note: The Unapplied Receipts Register is not time sensitive and can be run at any time.

Note: It is mandatory to run the Unapplied Receipts Register in order to reconcile Accounts Receivable to the General Ledger. Please see the ‘Reconcile Accounts Receivable to the General Ledger’ section of this document.

Reconcile Accounts Receivable to the General Ledger

The following is the formula for reconciling the Accounts Receivable activity rollforward:

Beginning AR Trial Balance

+ Transaction Register

- Receipt Register

+ (-) Adjustment Register

- *Prepayments Remittance Report

Ending AR Trial Balance

The ending Accounts Receivable trial balance should equal the General Ledger account balance.

*This report is needed only if advances have been applied but invoices have not yet been paid.

If AR does not reconcile to the general ledger:

Check that the reports have been run for the correct date/period

Run GL Interface

Make sure all Journals are posted in the General Ledger

Re-Run both Trial Balance Reports

Check for journal entries in the AR Control accounts in GL, not generated by AR.

Check for Invoices raised against the AR Control account

Reconcile Outstanding Customer Balances

The following is the formula for reconciling outstanding customer balances:

Beginning Balance

+ Transactions

- Adjustments

- Invoice Exceptions

- Applied Receipt

- Unapplied Receipts

Ending Balance

Close and Open Receivables Periods

To update the status of an accounting period, place the cursor in the Status field next to that period, then choose from the list of vaules or enter a new status. Close the accounting period. To open the next accounting period after the Latest Open Period, choose Open Next Period. Receivables changes the status of the next period to 'Open.'

Navigation: (AR) Control -> Accounting -> Open/Close Periods.

Note: The Accounts Receivable period cannot be closed if there are any un-posted items for the period.

Accounts Payable

Accounts Payable should be closed before the purchasing, fixed assets and inventory modules. General

Ledger journal entries include postings to the following accounts: prepayments, expense distribution, taxes paid, payable liabilities, discounts and cash accounts. The Accounts Payable period cannot be closed if there are any unposted items for the period. Make sure the Accounts Payable period is closed before closing the Purchasing period.

Pre-Close Processes

Accounts Payable has pre-close processes that should be performed daily, weekly, and monthly.

Suggested Schedule for Daily, Weekly, and Monthly Processes

Schedule Processes Comments

Daily 1. Enter Invoices

2. Enter Employee Expenses

3. Run Invoices on Hold Clean up any item on distribution hold.

4. Run Payables Approval

Weekly 1. Run Invoice Import Clear up any ‘Exceptions’.

2. Transfer to GL

3. Perform AP/GL reconciliation

Investigate any discrepancies.

4. Transfer to FA Run ‘Create Mass Additions’ Program

5. Check Run

Monthly 1. Enter any last minute expense reports

2. Run Payables Invoice Import

Clear up any ‘Exceptions’, Run Invoice Import

(‘Summarize Report’ set to ‘No’) again if necessary.

3. Enter any last minute invoices

4. Make an final invoice adjustments

5. Void any Checks belonging to current period

6. Run Invoices on Hold Clean up any item on distribution hold.

7. Run Payables Approval

8. Transfer to GL

9. Transfer to FA Run ‘Create Mass Additions’ Program

10. Run Monthly Reconciling Reports

Posted Invoice Register

Posted Payment Register

Accounts Payable Trial Balance

11. Close Period and Open new Period

12. Run Unposted Invoice

Sweep Report

Set parameter ‘Sweep Now’ to ‘Yes’

Enter Employee Expense Reports

Enter any Employee Expense Reports for the current period.

Navigation: (AP) Invoices -> Entry -> Expense Reports.

Create expense reports as invoices by running the Payables Invoice Import program.

Navigation: (AP) Other -> Requests -> Run.

Report Payables Invoice Import

Parameters Summarize Report No

GL Date Current Date

/Month End date

Purge Date Current Date

Note: If there are any exceptions from running invoice import, fix the expense reports and resubmit

Payables Invoice Import program.

Enter Invoices

Enter any invoices, PO and Non-PO that should be processed for the current month.

Navigation: (AP) Invoices -> Entry -> Invoices.

After entering invoices run the Payables Approval program. Invoices need to be system approved before

invoice distributions can be transferred to the General Ledger.

Navigation: (AP) Other -> Requests -> Run.

Report Payables Approval

Parameters Option All

Run Invoices on Hold Report

The Run Invoices On Hold Report should be run to check for any invoices on this distribution hold. Any

Invoices on distribution hold should be corrected before month end close.

Navigation: (AP) Other -> Requests -> Run.

Report Invoice On Hold Report

Parameters No Parameters required

To correct holds or make any adjustments to invoice distributions, query the affected invoice and navigate

to the distribution lines.

Navigation: (AP) Invoices -> Entry -> Invoices

Query the invoice(s) that need adjustments. Click on ‘Distribution’ and make changes.

Run Payables Approval

Run Payables Approval Program.

Navigation: (AP) Other -> Requests -> Run

Report Payables Approval

Parameters Option All

Check for Unapproved Invoices

Run the Invoice Register to check for unapproved invoices.

Navigation: (AP) Other -> Requests -> Run

Report Invoice Register

Parameter Unapproved Invoices Only Yes

From this report, review and approve any invoices that should be included in month end processing.

Transfer Accounts Payables Transactions to the General Ledger

Transfer invoice and payment transactions to the General Ledger, through the Payables Transfer to General

Ledger report.

Navigation: (AP) Other -> Requests -> Run.

Report Payables Transfer to GL

Parameters Post Through Date Current Date/

Month End

Date

When the GL transfer completes, review the Accounts Payable Journal Entry Exception Report, which is

automatically run as a concurrent process. Oracle Payables divides the report into three sections: Invoice

Distribution with Exceptions, Invoice Payments with Exceptions, and Reconciliation Payment Distributions

with Exception. Oracle does not transfer any invoices with exception, so you can use these reports to

resolve any transfer problems.

Import and Post Accounts Payable Transactions

Accounts Payable transactions can be automatically imported and therefore, are available to be posted to

the General Ledger. See the General Ledger section of this document.

Transfer to Fixed Assets

Run program to create assets in fixed assets from approved and posted accounts payable invoices.

Note: Only Invoice distributions transferred to the General Ledger will be transferred to Fixed Assets.

Navigation: (AP) Other-> Requests -> Run

Report Mass Additions Create

Parameters GL Date Current Date/

Month End

Date

Book ‘Corp Book’

Run Accounts Payable Month-End Reports

The Accounts Payable month end reports the Accounts Payable Trial Balance, Posted Invoice Register,

Posted Payment Register, and the Expense Distribution Detail Report.

Accounts Payable Trial Balance

Use the Accounts Payable Trial Balance Report to verify that total Accounts Payable liabilities in Oracle

Payables equal those in the General Ledger.

Navigation: (AP) Other -> Requests -> Run.

Report Accounts Payable Trial Balance

Parameters No Parameter changes are needed

Note: The Accounts Payable Trial Balance is not time sensitive and can be run at any time.

Note: It is mandatory to run the Accounts Payable Trial Balance in order to reconcile Accounts Payable to

the General Ledger. Please see the ‘Reconcile Accounts Payable to the General Ledger’ section of this

document.

Posted Invoice Register

Use the Posted Invoice Register to review invoices posted in a particular period.

Navigation: (AP) Other -> Requests -> Run.

Report Posted Invoice Register

Parameters Period Current Period

Sort Posted Invoices by Currency, Supplier

Note: The Posted Invoice Register is not time sensitive and can be run at any time.

Note: It is mandatory to run the Posted Invoice Register in order to reconcile Accounts Payable to the

General Ledger. Please see the ‘Reconcile Accounts Payable to the General Ledger’ section of this

document.

Posted Payment Register

Use the Posted Payment Register to review payments posted in a particular period.

Navigation: (AP) Other -> Requests -> Run.

Report Posted Payment Register

Parameters Period Current Period

Sort Posted Invoices by Bank Account, Payment

Note: The Posted Payment Register is not time sensitive and can be run at any time.

Note: It is mandatory to run the Posted Payment Register in order to reconcile Accounts Payable to the

General Ledger. Please see the ‘Reconcile Accounts Payable to the General Ledger’ section of this

document.

Expense Distribution Report

Use the Expense Distribution Detail Report to review detail invoice distribution information for expense

distributions that include three segments of your account that you specify.

Navigation: (AP) Other -> Requests -> Run.

Report Expense Distribution

Detail Report

Parameters Start Date 1st day of the Month

End Date Last day of the Month

Posted Options Posted, Not Posted, All

Note: The Expense Distribution Report is not time sensitive and can be run at any time.

Note: It is not mandatory to run the Expense Distribution Report in order to reconcile Accounts Payable to

the General Ledger. However, this report provides supporting documentation for month end close.

Invoice Aging Report

Use the Expense Invoice Aging Report to analyze the cash flow of your unpaid invoices.

Navigation: (AP) Other -> Requests -> Run.

Report Invoice Aging Report

Parameters Sort Invoices by Supplier Name

Aging Period Type Standard Aging

Note: The Invoiced Aging Report is time sensitive and should be run on the last day of the month.

Note: It is mandatory to run the Invoice Aging Report in order to reconcile Accounts Payable to the

General Ledger.

Posting Hold Report

Use this report to identify un-posted invoices. The report will list all the invoices that Payables cannot

transfer to the general ledger. Run this report before you transfer to the general ledger to review invoices

that will not be posted.

Navigation: (AP) Other -> Requests -> Run.

Report Posting Hold Report

Parameters Undated By Null

Enter/Updated Date Defaults to current date

Include Undistributed

Invoices

Yes

Note: The Posting Hold Report is not time sensitive and can be run at any time.

Note: It is not mandatory to run the Posting Hold Report in order to reconcile Accounts Payable to the

General Ledger. However, you do need this report to reconcile the the invoice aging.

Invoice Register

Use the invoice register to review detailed information about invoices and to review the offsetting liability

accounts that Payables creates for each invoice distribution when you approve an invoice.

Navigation: (AP) Other -> Requests -> Run.

Report Invoice Register

Parameters Batch Null

Entered By Null

First Entered Date

Last Entered Date

Accounting Period Month Close Period

Cancelled Invoices Only Default – No

Unapproved Invoices Only Yes

Invoice Type Null

Note: The Invoice Register is not time sensitive and can be run at any time.

Note: It is mandatory to run the Posting Hold Report in order to reconcile Accounts Payable to the General

Ledger.

Reconcile Accounts Payable to the General Ledger

The equation for verifying the month end Accounts Payable Trial Balance is as follows:

(Previous Month) Accounts Payable Trial Balance

+ (Current Month) Posted Invoice Register

- (Current Month) Posted Payment Register

(Current Month) Accounts Payable Trial Balance

The current month’s Accounts Payable Trial Balance total should equal the General Ledger account

balance.

The equation for verifying that the Accounts Payable Trial Balance equals Invoice Aging is as follows:

Accounts Payable Ending Trial Balance

+ Posting Hold Report, including undistributed items

+ Invoice Register, for unapproved invoices

Invoice Aging

If AP does not reconcile to GL:

Check that the reports have been run for the correct date/period.

Run GL Post in Accounts Payable.

Post all payables generated batches in the General Ledger

Re-Run both Trial Balance reports

Check for Journal Entries in the AP control account, not generated by Accounts Payable.

Check for Payments/Invoice Distributions made against the AP control account.

Close Current Accounts Payables Accounting Period and Open Next Period

Verify that the Ending Accounts Payable Trial Balance agrees with the General Ledger Trial Balance.

Once the balances have been verified, close the Payable accounting period. Open the next period. If future

period are used, set the next available to future.

Navigation: (AP) Setup -> Accounting -> AP Accounting Periods

Note: If you have swept the invoices into the next period, the next period will already be opened.

Unresolved Hold Problems – Invoice Sweep

If posting hold problems cannot be resolved, move unresolved posting hold invoices to the next period with

the Unposted Invoice Sweep Report. Make sure the “Sweep Now” parameter is set to “Yes.”

Note: The next period needs to be open before this can be done.

Note: Run the Unposted Invoice Sweep Report with caution. There is no “Undo” utility.

Navigation: (AP) Other-> Requests -> Run

Report Unposted Invoice Sweep

Parameters From Period Current Period

To Period Next Period

Detail Yes

Sweep Now Yes

Purchasing

Oracle Purchasing supports the accrual of expense purchases at the time of receipt, or at period-end. In

general, manufacturing and distribution companies most often accrue inventory receipts at the time of

receiving, while non-manufacturing organizations and expense items for manufacturing and distribution

companies are generally accrue receipts at period end. The closing process will be different based on the

accrual processes done; both types of accrual recognition will be discussed.

Note: In order for Oracle to support the accrual process, purchases orders must be set up for 3-way

matching.

Make sure you have already closed the Payables period before moving on to the Purchasing section of this

document. The Oracle Purchasing period should be closed before the Inventory period is closed.

Pre-close Processes

There are pre-close process steps for Purchasing that should be performed on a daily, weekly, and monthly

basis.

Suggested Schedule for Daily, Weekly, and Monthly Processes

Schedule Processes Comments

Daily 1. Enter and approve purchase

orders

2. Enter, inspect, and deliver

all purchase orders

Weekly 1. Reconcile receiving value to

the GL

Monthly 1. Enter and deliver all receipts

2. Accrue on Receipt If you do not Accrue on Receipt, skip this

process.

3. Accrue on Period End

4. Transfer Purchasing

Transactions to the GL

5. Run Monthly Purchasing

Reconciling Reports

Purchase Price Variance

Invoice Price Variance

Receiving Value

6. Close Purchasing Period

and Open new Purchasing

Period

Check Receiving Transactions

The first step in the Purchasing period close process is to determine if there are any unprocessed receiving

transactions.

Navigation: (PUR) Receiving -> Transaction Status Summary.

The ‘Find Transactions Statuses’ window will appear, along with the ‘Transaction Statuses’ window. Click

on the ‘Transaction Statuses’ window to bring it to the front.

There should not be any entries in this form. If entries do exist, please contact the database administrator.

Accrue on Receipt Purchasing Close

If you do not ‘Accrue On Receipt’, skip this segment of the Purchasing close process and proceed to

‘Accrue at Period End Purchasing Close’ section.

Run Accrual Rebuild Reconciliation Report

The Accrual Rebuild Reconciliation Report should be analyzed for potential problems such as differences

in quantities between receipts and invoices, AP matched invoices to incorrect purchase order or purchase

order line, and discrepancies in supplier billings. This report will also display any miscellaneous

transactions recorded in error the accrual accounts.

Navigation: (PUR) Reports -> Run.

Report Accrual Rebuild

Reconciliation Report

Parameters Include All Transactions No

Include Written Off

Transactions

No

Any errors found on this report should be corrected before closing the Purchasing period.

Run Accrual Write-Off Report

Once the Accrual Rebuild Reconciliation report is run, you can write-off transactions using the Accrual

Write-Off form. The written off transactions move from the Accrual Reconciliation Report to the Accrual

Write-Off Report.

Navigation: (PUR) Reports -> Run.

Report Accrual Write-Off Report

Parameters No parameters required

Run Accrual Reconciliation Report

The Accrual Reconciliation Report can be used to analyze the balance of the AP accrual accounts. You can

accrue both expense and inventory purchases as you receive them, however, it is important that any Capital

Item purchases are not accrued. When items are accrued, a temporary Accounts Payable liability is

recorded to the expense or inventory AP accrual accounts. When Payables matches and approves the

invoice, Payables clears the AP accrual accounts and records the liability from the supplier site, therefore, if

capital items are accrued they will not be transferred to Assets via mass transfer. This report helps monitor

potential problems with Purchasing and Receiving activities that can affect the accuracy of the AP accrual

accounts.

Navigation: (PUR) Reports -> Run.

Report Accrual Reconciliation

Report

Parameters Include All Transactions Yes

Include Written Off

Transactions

No

Create and Post Manual Journal Entries

If the transactions are made to write off inventory items, use the write off transaction report to create a

manual journal entry. This step is only necessary if a journal entry for the inventory accrual has not been

previously created.

Accrue at Period End Purchasing Close

If you do not ‘Accrue at Period End’, please proceed to the ‘Run Purchasing Reports’ section.

Oracle Purchasing does not record accounting entries for expenses during actual receiving transactions if

you use Period End accruals. Rather, all unvoiced liabilities are recorded at the end of the month.

Run Uninvoiced Receipts Report

In order to determine the need to make corrections or perform write-off transactions, run the Unvoiced

Receipts Report. The corrections and write-offs should be performed prior to the next step

Navigation: (PUR) Reports -> Run.

Report Uninvoiced Receipts

Report

Parameters Accrued Receipts No

Include On-line No

Run the Receipt Accruals- Period End Process Report

The Receipts Accruals- Period End Process Report creates a Period End Accrual for unvoiced expense

distribution receipts. Using this form, Purchasing creates an accrual journal entry in the General Ledger for

each un-invoiced receipt. At the beginning of the new accounting period, the prior month’s journal entry

needs to be reversed.

Navigation: (PUR) Reports -> Run.

Report Receipt Accruals- Period

End

Parameters Period Select period

Re-Run Uninvoiced Receipts

The Uninvoiced Receipts Report should now be rerun. Reviewing the results, by organization, will help

support the General Ledger balances determined for the Receipt Accruals- Period End process.

Navigation: (PUR) Reports -> Run.

Report Uninvoiced Receipts

Report

Parameters Accrued Receipts No

Include On-line No

Run Purchasing Reports

The remainder of this Purchasing Close section should be followed for both Accrue on Receipt and Accrue

on Period End types of transactions.

Four reports should be run to support the Purchasing month end closing process when inventory is also

installed. These reports are the Purchase Price Variance Report, the Invoice Price Variance Report, the

Receiving Value Report, and the Receiving Value Report by Destination Account report.

Purchase Price Variance Report

The purchase Price Variance Report shows the variance between the purchase price on the purchase order

and the standard cost for all items you received and delivered into inventory and work in process. The

purchase price variance is calculated as the quantity received multiplied by the difference between the

purchase order price and the standard cost

Navigation: (PUR) Reports -> Run.

Report Purchase Price Variance

Report

Parameters Period Name Select the period.

Note: The Purchase Price Variance Report is not time sensitive and can be run for any given period at any

time.

Note: It is mandatory to run the Purchase Price Variance Report in order to reconcile

Purchasing/Receiving to the General Ledger. Please see the ‘Reconcile Purchasing/Receiving to the

General Ledger’ section of this document.

Invoice Price Variance Report

The Invoice Price Variance Report shows the variance between the invoice price and the purchase price for

all inventory and work in process related invoice distribution lines. Payables records invoice price

variances when the invoices are matched, approved and posted. The invoice price variance is the quantity

invoiced multiplied by the difference between the invoice unit price and the purchase order unit price.

Navigation: (PUR) Reports -> Run.

Report Invoice Price Variance

Report

Parameters Transaction Dates From Enter beginning date

Transaction Dates To Enter ending date

Note: The Invoice Price Variance Report is not time sensitive and can be run for any given transaction date

range at any time.

Note: It is mandatory to run the Invoice Price Variance Report in order to reconcile Purchasing/Receiving

to the General Ledger. Please see the ‘Reconcile Purchasing/Receiving to the General Ledger’ section of

this document.

Receiving Value Report

The Receiving Value Report shows item quantity and valuation, as well as detailed receipt information for

the receiving inspection location.

In addition, when this report is run with the ‘Display Zero Costs Only’ parameter set to ‘Yes,’ items

received with no standard frozen cost can be easily identified.

Navigation: (PUR) Reports -> Run.

Report Receiving Value

Parameters Title Enter Title

for this

report

Cost Type Frozen

Report Receiving Value

Parameters Title Enter Title

for this

report.

Cost Type Frozen

Display Zero Costs Only Yes

Review the Receiving Value Report to be certain the item, quantity and valuations are correct for items

received. Any values that are not correct will need to be fixed in the General Ledger through a manual

journal entry. Make a note of any items and quantities that were received at an incorrect value.

Note: The Receiving Value Report is time sensitive and must be run on the last day of month.

Note: It is not mandatory to run the Receiving Value Report in order to reconcile Purchasing/Receiving to

the General Ledger. However, this report provides supporting documentation for month end close.

Receiving Value Report by Destination Account

The Receiving Value Report by Destination Account lists items received by purchase order destination and

distribution account. This report allocates receiving balances by the purchase order line inventory and

expense accounts, and quantities.

In order to review the receiving inspection value(s) by organization, run the Receiving Value by

Destination Account Report.

Navigation: (INV) Reports -> All.

Report Receiving Value Report by

Destination Account

Parameters Destination Type Select

Destination

Type

Accounts From Select

Account

number

Accounts To Select

Account

number

Review the Receiving Value Report by Destination Account to uncover any distribution account

discrepancies. Any values or destination accounts that are not correct will need to be fixed in the General

Ledger through a manual journal entry. Make a note of any items and accounts that need to be addressed.

Note: The Receiving Value Report by Destination Account is time sensitive and must be run on the last

day of month.

Note: It is mandatory to run the Receiving Value Report by Destination Account in order to reconcile

Purchasing/Receiving to the General Ledger. Please see the ‘Reconcile Purchasing/Receiving to the

General Ledger’ section of this document.

Transfer Purchasing Transactions to the General Ledger

This Purchasing close section should be followed for both Accrue on Receipt and Accrue on Period End

types of transactions.

It is not necessary to transfer Purchasing activity for a given period in to the General Ledger interface.

Purchasing information is automatically transferred to the General Ledger when material is received or the

Purchasing period is closed. In addition, when Inventory/Work in Process information is transferred to the

General Ledger (as discussed in the Inventory section of this document), pertinent purchasing information

is transferred as well.

Import and Post Purchasing Transactions

See the General Ledger section of this document to create the journal entry for Purchasing.

Note: Receiving transactions are automatically loaded into the GL Interface table.

Also Note: Remember to reverse all of the prior month’s accrual of expense entries.

Reconcile Purchasing / Receiving to the General Ledger

At this point, the Purchasing/Receiving month end report have been run and issues in Purchasing/Receiving

identified. In addition, Purchasing/Receiving transactions have been transferred, imported, and posted to

the General Ledger. Now, receiving inspection values, purchase price variance, and invoice price variance

can be reconciled to the General Ledger. Additional discrepancies between Purchasing/Receiving and the

General Ledger will require a manual journal entry.

Reconcile Purchase Price Variance

Purchase Price Variance is distributed to the General Ledger when you perform the General Ledger

transfer, or period close. To reconcile Purchase Price Variance to the General Ledger, compare the ending

balance of the Purchase Price Variance report with the corresponding value in the General Ledger. The last

page of the Purchase Price Variance Report gives the PPV balance total.

Note: the Purchase Price Variance for the given period. Then, reconcile this amount to the General Ledger

by Navigating to: (GL) Inquiry -> Account. Enter the corresponding Accounting Period and the Purchase

Price Variance account combination; hit the ‘Show Balances’ button at the bottom of the screen.

When you hit the ‘Show Balances’ button, the window on the right hand side of the screen shot below will

open, indicating the account balance for Purchase Price Variance. Similar to the window below:

The balance in the ‘PTD’ field should equal the ‘Report Total’ line given in the Purchase Price Variance

Report. At this point, the Purchase Price Variance account has been reconciled.

Reconcile Invoice Price Variance

When an invoice is approved, the Invoice Price Variance is automatically recorded to the invoice price

variance (and exchange rate variance) account(s). To reconcile Invoice Price Variance to the General

Ledger, compare the ending balance of the Invoice Price Variance report with the corresponding value in

the General Ledger. The methodology for reconciling the Invoice Price Variance to the General Ledger is

the same as used above for Purchase Price Variance reconciliation.

Reconcile Receiving Value Report by Destination Account

To reconcile receiving inspection value(s), by organization, to the General Ledger, compare the ending

balance on the Receiving Value Report by Destination Accounts with the receiving value account in the

General Ledger. The Receiving Value Report by Destination Account balance illustrates pending

inventory delivery values- items that are pending receipt and have not actually been delivered into

inventory, but are nonetheless considered part of the inventory balance. This total should be compared to

the Receiving Accrual Account in the General Ledger.

Note: This is the same Receiving Accrual Account that was defined in the ‘Receiving Options’ screen

during Purchasing setup.

The methodology for reconciling Receiving Value Report by Destination Account to the General Ledger is

the same as used above for Purchase Price Variance reconciliation.

Close Current Purchasing Period

The Purchasing period can now be closed.

Note: When you close a Purchasing period, Purchasing automatically un-marks all of the expense receipts

previously accrued. The un-marking of the previously accrued receipts allows the receipts to be accrued

again if they are still un-invoiced in the next period.

Purchasing periods have statuses of ‘Future,’ ‘Open,’ ‘Closed,’ and ‘Never Opened’. To allow purchase

orders to be placed with a due date beyond an open period, the ‘Future’ status is used. Therefore, any

period that is eligible to have a PO due in it must have its status changed from ‘Never Opened’ to ‘Future’.

All status changes for purchasing periods are made in the same form.

Navigation: (PUR) Setup -> Financials -> Accounting -> Control Purchase Periods.

Change a period to ‘Future’status by clicking on a ‘Never Opened’ period, pick a ‘Status’ of ‘Future’ and

Save.

Close the period by clicking on a ‘Open’ period, pick a ‘Status’ of ‘Closed’ and Save.

Purchasing periods must be closed for each operating unit.

Open Next Purchasing Period

Open the next Purchasing period.

To open, click on a ‘Future’ or ‘Never Opened’ period, pick a ‘Status’ of ‘Open’ and Save.

Assets

Fixed Assets should be closed after the close of both the Accounts Payable and the Purchasing periods. By

following this period close order, new assets and construction-in-process assets can be transferred before

month end. General Ledger journal entries include additions, CIP additions, adjustments, CIP adjustments,

retirements, CIP retirements, reclassses, CIP reclasses, transfers, CIP transfers, revaluation, and

depreciation.

Pre-Close Processes

Fixed Assets has pre-close processes that should be performed weekly, and critical steps that are for month

end close.

Suggested Schedule for Weekly and Monthly Processes

Schedule Processes Comments

Weekly 1. Prepare Mass Additions for

CIP and Capital Items

2. Post Mass Additions

3. Delete Mass Additions This will clean up your mass additions table.

4. Update any asset records for

adjustments in cost or

location

5. Retire assets

6. Capitalize any CIP assets

placed in service

Monthly 1. Prepare Mass Additions for

CIP and Capital Items

2. Post Mass Additions

3. Delete Mass Additions This will clean up your mass additions table.

4. Add any assets manual that

does not come through the

accounts payable system

5. Retire assets

6. Make any final adjustments

for cost or location

assignments

7. Capitalize any CIP assets

placed in service in the

current month

8. Run Deprecation Oracle automatically calculates gains and losses

for retirements and updates all records for

depreciation. Note: Once deprecation is run,

Oracle closes the period and opens the next.

Once depreciation is run, the period cannot be

reopened.

9. Create GL Journal Entries This will transfer the monthly information to the

General Ledger

10. Run Reconciling Month

End Reports

Cost Detail Report

CIP Detail Report

Asset Addition Report

Cost Adjustment Report

Asset Retirements Report

Assets Reclassification Reconciliation Report

Asset Transfer Reconciliation Report

CIP Capitalization Report

CIP Assets Report

Unposted Mass Additions Report

Prepare Mass Additions

Invoices are transferred from Accounts Payable to the Mass Additions table. The records in the Mass

Additions Form should be reviewed and prepared before they become assets. Records in this form are not

considered assets until you run the Post Mass Additions program. At this time, Oracle will create assets

from all records that have the ‘Key’ fields are completed and the Queue is set to ‘Post’. Key fields include:

Category, Expense Account, Location, and Description. Mass Additions can remain in the Prepare Mass

Additions form at month end, as long as they have a queue name of ‘New’ or ‘On Hold.’ Any items

remaining on this form will also remain in the Asset Clearing account on the General Ledger.

Navigation: (FA) Mass Additions-> Prepare Mass Additions.

Post Mass Additions

Posting of Mass Additions will take the records prepared above and create an asset record. Once the assets

are created, depreciation can be calculated.

Navigate: Mass Additions-> Post Mass Additions

Report Mass Additions Post

Parameters Book Choose

Corporate

Book

Report Mass Additions Posting Report

Parameters Book Choose

Corporate

Book

Copies 1

Delete Mass Additions

Delete Mass Additions program will clean up the Mass Addition table by removing all Posted, Merged,

Spilt, and Deleted records.

Navigation: (FA) Mass Additions-> Delete Mass Additions.

Report Mass Additions Delete Report

Parameters Book Choose

Corporate

Book

Copies 1

Report Mass Additions Delete

Parameters Book Choose

Corporate

Book

Prepare Manual Additions

Manually add any assets not recorded through Oracle Payables.

Navigation: (FA) Assets-> Asset Workbench, then hit the ‘New’ button.

Retire Assets

Retire Assets that have been sold, destroyed, donated, stolen or become obsolete. If Assets should have

been retired in a previous month, change the date to reflect actual retirement date. Asset can be re-instated

if they have been retired incorrectly, as long as, it happens in the same fiscal year. Assets cannot be retired

in the month they are added, however, they can be deleted.

Navigation: (FA) Assets-> Asset Workbench, then query Asset to be retired and click on ‘Retirement.’

Assets can be mass retired by location, employee, category, asset key, expense account, cost range, asset

number range, and date in service range.

Navigation: (FA) Mass Transactions -> Retirements

Adjust Assets

Make Adjustment to Assets for assignment changes, cost changes, or method changes. Oracle will create

an entry to transfer cost and accumulated depreciation for any assignment change, but an entry will not be

created to transfer depreciation expense already recorded for the current year.

Navigation: (FA) Assets-> Asset Workbench, then query Asset to be adjusted and click on ‘Books’ for cost

or method change and ‘Assignments’ for asset transfers.

Mass transfers and changes can also be preformed. Mass transfer by expense account, location or

employee. Perform a mass change of prorate convention, depreciation method, or depreciation life.

Navigation: (FA) Mass Transactions -> Transfer

Navigation: (FA) Mass Transactions -> Changes

Capitalize CIP Assets

Capitalize CIP Assets placed in service.

Navigation: (FA) Assets-> Capitalize CIP Assets, then query CIP Assets and select Asset(s) placed in

service. If needed, ‘Date Placed in Service’ can be changed.

Note: Reversals of CIP capitalization can be performed, as long as, no transaction have been done on the

asset that needs to be reversed.

Run Depreciation

Oracle automatically calculates gains and losses for retirements and updates all records for depreciation.

Note: Once deprecation is run, Oracle closes the period, and opens the next. Once depreciation is run, the

period cannot be reopened.

Navigation: (FA) Depreciation -> Run Depreciation.

Book Choose

Corporate/Tax Book

Period Current Period

Run Journal Entries

Running Journal Entries will transfer the monthly fixed asset information to the General Ledger creating

additions, CIP additions, adjustments, CIP adjustments, retirements, CIP retirements, reclassses, CIP

reclasses, transfers, CIP transfers, revaluation, and depreciation journal entries.

Navigation: (FA) Journal Entries-> Standard.

Book Choose

Corporate/Tax Book

Period Current Period

Run Month End Reports

The Fixed Asset month end reconciling reports include two main reports, the Cost Detailed Report and the

CIP Detailed Report. In addition, several detailed reports can be run to aid in the reconciliation processes.

The optional detailed reports include: Asset Addition Report, Cost Adjustment Report, Asset Retirements

Report, Assets Reclassification Reconciliation Report, Asset Transfer Reconciliation Report, CIP

Capitalization Report, CIP Assets Report, and the Unposted Mass Additions Report.

Cost Detail Report

The Cost Detail Report should be used to reconcile your asset cost accounts to your General Ledger.

Navigation: (FA) Other-> Request-> Run.

Report Cost Detailed Report

Parameters Book Choose

Corporate Book

From Period Period start

To Period Period end

Note: The Cost Detail Report is not time sensitive and can be run at any time.

Note: It is mandatory to run the Cost Detail Report in order to reconcile Fixed Assets to the General

Ledger. Please see the ‘Reconcile Fixed Assets to the General Ledger’ section of this document.

CIP Detail Report

The CIP Detail Report should be used to reconcile your asset cost accounts to your General Ledger.

Navigation: (FA) Other-> Request-> Run.

Report CIP Detailed Report

Parameters Book Choose

Corporate Book

From Period Period start

To Period Period end

Note: The CIP Detail Report is not time sensitive and can be run at any time.

Note: It is mandatory to run the CIP Detail Report in order to reconcile Fixed Assets to the General

Ledger. Please see the ‘Reconcile Fixed Assets to the General Ledger’ section of this document.

Asset Addition Report

The Asset Addition Report can be used to reconcile asset cost to the General Ledger. This report highlights

all of the additional assets added during the specified accounting period, and provides supporting detail for

the Cost Detail Report.

Navigation: (FA) Other-> Request-> Run.

Report Asset Addition Report

Parameters Book Choose

Corporate Book

From Period Period start

To Period Period end

Note: The Asset Addition Report is not time sensitive and can be run at any time.

Note: It is not mandatory to run the Asset Addition Report in order to reconcile Fixed Assets to the

General Ledger. However, this report provides supporting documentation for month end close.

Cost Adjustment Report

The Cost Adjustment Report provides an audit trial of all the Cost Adjustments that have been made to the

assets during the accounting period. This report includes charges made directly to the asset and

adjustments made to the source lines.

Navigation: (FA) Other-> Request-> Run.

Report Cost Adjustment Report

Parameters Book Choose

Corporate Book

From Period Period start

To Period Period end

Note: The Cost Adjustment Report is not time sensitive and can be run at any time.

Note: It is not mandatory to run the Cost Adjustment Report in order to reconcile Fixed Assets to the

General Ledger. However, this report provides supporting documentation for month end close.

Asset Retirements Report

The Asset Retirement Report is used to review the assets retired for the accounting period.

Navigation: (FA) Other-> Request-> Run.

Report Asset Retirements Report

Parameters Book Choose

Corporate Book

From Period Period start

To Period Period end

Note: The Asset Retirement Report is not time sensitive and can be run at any time.

Note: It is not mandatory to run the Asset Retirement Report in order to reconcile Fixed Assets to the

General Ledger. However, this report provides supporting documentation for month end close.

Asset Reclassification Reconciliation Report

The Asset Reclassification Reconciliation Report can be used as part of the reconciliation between assets

and the General Ledger. This report will provide a greater level detail then the cost detail report.

Navigation: (FA) Other-> Request-> Run.

Report Asset Reclassification

Reconciliation Report

Parameters Book Choose

Corporate Book

From Period Period start

To Period Period end

Note: The Asset Reclassification Reconciliation Report is not time sensitive and can be run at any time.

Note: It is not mandatory to run the Asset Reclassification Reconciliation Report in order to reconcile

Fixed Assets to the General Ledger. However, this report provides supporting documentation for month

end close.

Asset Transfer Reconciliation Report

The Asset Transfer Reconciliation Report will show the transfer transactions for the corporate book. This

report can also aid in the processes of reconciling to the General Ledger.

Navigation: (FA) Other-> Request-> Run.

Report Asset Transfer

Reconciliation Report

Parameters Book Choose

Corporate Book

From Period Period start

To Period Period end

Note: The Asset Transfer Reconciliation Report is not time sensitive and can be run at any time.

Note: It is not mandatory to run the Asset Transfer Reconciliation Report in order to reconcile Fixed

Assets to the General Ledger. However, this report provides supporting documentation for month end

close.

CIP Capitalization Report

The CIP Capitalization Report shows the CIP assets that were capitalized during the period specified.

Navigation: (FA) Other-> Request-> Run.

Report CIP Capitalization Report

Parameters Book Choose

Corporate Book

From Period Period start

To Period Period end

Note: The CIP Capitalization Report is not time sensitive and can be run at any time.

Note: It is not mandatory to run the CIP Capitalization Report in order to reconcile Fixed Assets to the

General Ledger. However, this report provides supporting documentation for month end close.

CIP Assets Report

The CIP Assets Report shows all the invoice lines and manually entered source lines for CIP assets.

Navigation: (FA) Other-> Request-> Run.

Report CIP Assets Report

Parameters Book Choose

Corporate Book

From Period Period start

To Period Period end

Note: The CIP Assets Report is not time sensitive and can be run at any time.

Note: It is not mandatory to run the CIP Assets Report in order to reconcile Fixed Assets to the General

Ledger. However, this report provides supporting documentation for month end close.

Unposted Mass Additions Report

The Unposted Mass Additions Report should be used to review items that have not yet been posted and are

still in the Mass Additions Form. Use this report to reconcile to the General Ledger asset clearing account.

Navigation: (FA) Other-> Request-> Run.

Report Unposted Mass Additions

Report

Parameters Book Choose

Corporate Book

Note: The Unposted Mass Additions Report is time sensitive, but can be run at any time.

Note: It is not mandatory to run the Unposted Mass Additions Report in order to reconcile Fixed Assets to

the General Ledger. However, this report provides supporting documentation for month end close.

Reconcile Fixed Assets to the General Ledger

The following is the formula for reconciling the Fixed Assets activity. The two main reports used in the

reconciliation process are the Cost and CIP Detailed Reports. Both reports show beginning balance,

additions, adjustments, retirements, capitalizations, reclassifications, transfers, and ending balances for

each asset. Oracle Assets compares an asset’s actual ending balance with a calculated ending balance and

prints an asterisk (*) in the column if there is a difference. If any differences are found, the asset system is

out of balance.

Each General Ledger account should be balanced independently, as follows:

Previous Month’s Ending Balance

+ Asset Additions

+ (-) Adjustments

- Retirements

+ Capitalizations

+ (-) Reclassifications

+ (-) Transfers

Current Month’s Ending Balance

Clearing the Transaction Managers

The Oracle Transaction Managers process such items as material transactions, demand reservations, move

transactions, resource cost transactions, and material cost transactions.

In the month end close process, Oracle Cost Management checks for unprocessed transactions.

Pre-close Processes

There are pre-close process steps that involve the Transactions Managers, and they should be performed, at

a minimum, on a monthly basis.

Suggested Schedule for Monthly Processes

Schedule Processes Comments

Monthly 1. Clear the Open Transaction

Interface

2. Clear the Pending Material

Transaction Manager

3. Look for Uncosted Material

Transactions

4. Clear the Pending Move

Transaction Manager

5. Clear the Pending Resource

Transaction Manager

Clearing the Interface Managers

Interface managers are used in Oracle to complete the processing of Inventory and WIP transactions.

These concurrent processes are programs that run in the background. Processes run periodically throughout

the day to complete processing of transaction lines in the interface tables. If required information is

missing from a transaction line or if the information is incorrect, the line may process with an error. In

other words, it is hung up in the table and does not process. To remedy the situation, the wrong/missing

information can usually be fixed and the transaction line resubmitted for processing. The method of

identifying errored transaction lines is explained below. The process of analyzing and fixing problems is

usually specific to a business and the methods of operation. As a result, it is not discussed here. The

analysis and remedy of a problem with the Interface Manager requires an extensive understanding of

Oracle functionality and problem solving ability. At a minimum, the interface tables must be checked and

cleared out monthly before closing the inventory period(s).

Open Interface Transactions

The Open Interface provides two services. One, it provides an open interface that can be used to easily

load transactions from external applications. And two, this interface is used as an integration point with

Oracle Order Entry. Order Entry’s Inventory Interface program populates the interface table with

transactions submitted through the Ship Confirm form. The Transaction Open Interface screen allows you

to view, edit, and resubmit transactions received through the Transactions Open Interface.

Navigation: (CST) View Transactions -> Transactions Open Interface.

Enter the ‘Organization.’ The ‘Process Flag’ can be ‘Yes’ for processed transactions, ‘No’ for unprocessed

transactions, or ‘Error’ for errored transactions only. ‘No’ and ‘Error’ are important to check at month-end.

Enter a value in the ‘Process Flag’ field and click on ‘Find’.

The other alternative regions can provide additional information such as location, source, in-transit

information, etc. If there is an problem in the Transaction Open Interface screen, the issue should be

solved, as required, on the necessary form (i.e. the form on which the transaction occurred). When you are

ready to resubmit a transaction line, click on the ‘Submit’ box and Save. This process will clear the Open

Interface Manager of failed transactions.

Pending Material Transactions

Next, look at information in the Pending Material interface.

Navigation: (CST) View Transactions -> Pending Material Transactions.

Enter the ‘Organization’. The ‘Process Flag’ can be ‘Yes’ for processed transactions, ‘No’ for unprocessed

transactions, or ‘Error’ for errored transactions only. ‘No’ and ‘Error’ are important to check at month-end.

Enter a value in the ‘Process Flag’ field and click on ‘Find’.

The other alternative regions can provide additional information such as location, source, in-transit

information, etc. In addition, by looking at the ‘Costed’ column of ‘Reason, Reference’ alternative region,

it is easy to determine if an item is uncosted. If there is a problem in the Pending Material Transactions

screen, the issue should be solved, as required, on the necessary form (i.e. the form on which the

transaction occurred). When you are ready to resubmit a transaction line, click on the ‘Submit’ box and

Save. This process will clear the Inventory Material Transaction Manager of failed transactions.

Uncosted Material Transactions

Uncosted Material Transactions are material transactions that have not yet been processed by the material

cost transaction processor. These items are either stuck in the interface manager or the interface manager is

not running. Please contact your system administrator to make sure the interface manager is running.

Next, look at Uncosted Material Transactions.

Navigation: (CST) View Transactions -> Material Transactions.

When the ‘Find Material Transactions’ screen appears, enter the ‘Transaction Dates’ range as desired, and

hit the ‘Find’ button. To look for uncosted material transactions, ‘Query Enter’ go to the ‘Reference,

Reason’ alternative region and tab to the ‘Costed’ field, enter ‘No’ and ‘Query Run.’

Uncosted transactions will appear on this form. Through the fields on this screen and in the other

alternative regions, errors can be traced and then fixed in the General Ledger through a manual journal

entry.

Pending Move Transactions

The next step in clearing the Interface Managers is checking for Pending Move Transactions.

Navigation: (CST) View Transactions -> Pending Move Transactions.

Enter the ‘Organization’ and click on ‘Find’.

If any move transactions are pending, the ‘Pending Move Transactions’ screen will appear. If items appear

in this screen, the errors can be fixed here and the transaction resubmitted. This process will clear the Open

Move Transaction Interface of failed transactions.

Pending Resource Transactions

Lastly, check for Pending Resource Transactions.

Navigation: (CST) View Transactions -> Pending Resource Transactions.

Enter the ‘Organization’. The ‘Process Status’ can be ‘Complete’ for processed transactions, ‘Pending’ or

‘Running’ for unprocessed transactions, or ‘Error’ for errored transactions only. ‘Pending’, ‘Running’ and

‘Error’ are important to check at month-end. Enter a value in the ‘Process Flag’ field and click on ‘Find’.

Some of the other alterative regions provide additional information such as job, assembly, resource,

operation, transaction type, etc.:

If there is a problem in the Pending Resource Transactions screen, the issue should be solved, as required,

on the necessary form (i.e. the form on which the transaction occurred). When you are ready to resubmit a

transaction line, click on the ‘Resubmit’ box and Save. This process will clear the Open Resource

Transaction Interface of failed transactions.

Work in Process

Oracle Work in Process provides a standard cost system to track and report production costs through the

various stages of production as transactions occur. WIP calculates all costs as well as reports moves,

issues, resource and overhead allocations, completion, scrap, period close, and job close transactions.

The Work in Process period close process works in conjunction with the Inventory period close process.

When an accounting period in Oracle Inventory is closed, all Work in Process costs will transfer, by

account, to the General Ledger. In addition, the period close process recognizes variances for non-standard

expense jobs and repetitive schedules.

Pre-close Processes

There are pre-close process steps for Work in Process that should be performed on a weekly and monthly

basis

Suggested Schedule for Weekly and Monthly Processes

Schedule Processes Comments

Weekly 1. Review and close jobs that

have the status of

‘Complete-Charges

Allowed’

2. Review and close jobs that

have a status of ‘Released’

but should be closed

Work orders with items that have been scrapped

or are missing in action, or expense work orders

that are complete will need to be closed.

3. Transfer WIP transactions

to the GL

Monthly 1. Review and close jobs that

have the status of

‘Complete-Charges

Allowed’

2. Review and close jobs that

have a status of ‘Released’

but should be closed

Work orders with items that have been scrapped

or are missing in action, or expense work orders

that are complete will need to be closed.

3. Review Repetitively

Scheduled jobs

4. Transfer WIP transactions

to the GL

5. Run Monthly Reconciling

Reports

Review Jobs before Closing

Before closing a job, which is usually an accounting function, is best to review variances and make any

necessary corrections to the job or complete any necessary transactions that need to be made, i.e. missed

issue transactions or transactions stuck in the interface table.

Discrete Job Value Report

To review planned variances before discrete jobs are closed, run the ‘Discrete Job Value Report- Standard

Costing’.

Navigation: (WIP) Report.

Report Discrete Job Value Report-

Standard Costing

Parameters Status Complete-

Charges

Allowed

Report Type Summary

A ‘Report Type’ of ‘Summary’ is usually sufficient for the first pass. The report can be re-run later for a

particular job with ‘Detail’ selected.

Generally, jobs with a ‘Status’ of ‘Complete – charges allowed’ are reviewed before closing. In addition,

some jobs that are ‘Released – charged allowed’ may also be reviewed. For example, any job with some

items moved to the ‘Scrap’ step of an operation (instead of being completed with the rest of the items) may

be ready to close. In addition, this report can also be used for Asset non-standard jobs by selecting a ‘Class

Type’ of ‘Asset non-standard.’

A sample of this report, which provides information needed to reconcile jobs before closing them, follows:

Discrete Job Data Report

The Discrete Job Data Report is a comprehensive WIP report that facilitates the review of all job details

such as scheduled and completed quantity, material requirements quantity required, and quantity issued. In

particular, the Discrete Job Data Report can be used to make sure items with a WIP Supply Type of ‘Push’

were issued correctly the the job.

To review variances before discrete jobs are closed, run the ‘Discrete Job Data Report’.

Navigation: (WIP) Report.

Report Discrete Job Data Report

Parameters Status Complete-

Charges

Allowed

Report Type Summary

A ‘Report Type’ of ‘Summary’ is usually sufficient for the first pass. The report can be re-run later for a

particular job with ‘Detail’ selected. In addition, this report can also be used for Asset non-standard jobs

by selecting a ‘Class Type’ of ‘Asset non-standard.’

Expense Job Value Report

Before closing a job, which is usually an accounting function, it is best to review variances and make any

necessary corrections to the job or complete any necessary transactions that need to be made.

To review variances before Non-Standard expense jobs are closed, run the ‘Expense Job Value Report’.

Navigation: (WIP) Report.

Report Expense Job Value Report

Parameters Status Release-

Charges

Allowed

Report Type Summary

A ‘Report Type’ of ‘Summary’ is usually sufficient for the first pass. The report can be re-run later for a

particular job with ‘Detail’ selected.

Closing Discrete Jobs

After reviewing the jobs and making any necessary corrections, the jobs are ready to be closed. The

process of closing a job both calculates variances and prevents further transactions on the job.

Navigation: (WIP) Discrete Jobs -> Close Discrete Jobs -> Close Discrete Jobs (Form).

To close all ‘Complete – charges allowed’ jobs, click on ‘Status’ and ‘Complete’ and the ‘Find’ button.

To select all jobs for closing, click on ‘Edit’ ‘Select All’. To select or deselect jobs individually, hold

down the ‘Ctrl’ key and click on the appropriate job with the right mouse button.

Note: Exercise extreme caution when selecting jobs to close as it is difficult to reopen jobs. In addition,

jobs that have been reopened will not have costing information updated. Please contact your system

administrator if you need to reopen a job.

To close the jobs, click on ‘Special,’ ‘Close nn’ where “nn” is the number of jobs selected to be closed.

Click on the desired report, if any, and click on OK. A concurrent request will be submitted.

Closing Non-Standard Expense Jobs

Non-Standard Expense jobs can be closed at any time, and the process of closing a job both calculates

variances and prevents further transactions on the job. In addition, the period close process in Inventory

automatically recognizes variances on all non-standard expense job charges incurred during the period. At

period close, Work in Process automatically performs an accounting close for non-standard job with

expense type accounting classes. Therefore, open non-standard expense jobs have a zero WIP accounting

balance at the beginning of a new period.

After reviewing the jobs and making any necessary corrections, the jobs are ready to be closed.

Navigation: (WIP) Discrete Jobs -> Close Discrete Jobs -> Close Discrete Jobs (Form).

Repetitive Schedule Period Close Transactions

If you are not using repetitive schedules, please skip this section.

Repetitive Schedules are not closed. However, variances are recognized on a period basis, and this

variance recognition results in a zero WIP accounting balance at the beginning of the new period.

When you close an accounting period, you can specify (per WIP parameter setup) which repetitive

schedule variances will be recognized when you close an accounting period. You can either recognize

variances for all repetitive schedules when you close an accounting period, or recognize variances for those

repetitive schedules with status of either Complete – No Charges Allowed, or Cancelled – No Charges

Allowed.

You should check your transactions and balances using the ‘Repetitive Value Report’ before you close the

Inventory period.

Navigation: (WIP) Report.

Report Repetitive Value Report

Parameters Status Release-

Charges

Allowed

Report Type Summary

Period Start Date Select start

date

Period Close Date Select close

date

Lines From Select

beginning

production

line

(Lines) To Select

ending

production

line

A ‘Report Type’ of ‘Summary’ is usually sufficient for the first pass. The report can be re-run later for a

particular job with ‘Detail’ selected.

Run WIP Month End Reports

The following WIP reports should be run at month end in order to review Work in Process transactions, job

values and inventory.

Discrete Job Value Report

Rerun the Discrete Job Value Report, in detail. This report includes all cost transactions such as material,

resources, move and reource-base overheads, scraps, completions, and job close variance.

Navigation: (CST) Reports -> Value.

Report Discrete Job Value Report-

Standard Cost

Parameters Report Type Detail with

Requirements

based on

Actual

Quantity

Completed.

Jobs From Job number

(Jobs) To Job number

Review the Discrete Job Value Report- Standard Cost looking for any incorrect account distribution, and

any other obvious errors or strange entries. Make a note of any problems, which will need to be fixed in

the General Ledger.

Note: The Discrete Job Value Report- Standard Costing is not time sensitive and can be run at any time.

Note: It is not mandatory to run the Discrete Job Value Report- Standard Cost in order to reconcile WIP to

the General Ledger. However, this report provides supporting documentation for month end close.

Discrete Job Data Report

Rerun the Discrete Job Data Report, in detail. This report includes material and resource cost transactions.

Navigation: (CST) Reports -> Value.

Report Discrete Job Data Report

Parameters Report Type Detail with

Requirements

based on

Actual

Quantity

Completed.

Jobs From Job number

(Jobs) To Job number

Review the Discrete Job Data Report looking for any incorrect account distribution, and any other obvious

errors or strange entries. Make a note of any problems, which will need to be fixed in the General Ledger.

Note: The Discrete Job Data Report is not time sensitive and can be run at any time.

Note: It is not mandatory to run the Discrete Job Data Report in order to reconcile WIP to the General

Ledger. However, this report provides supporting documentation for month end close.

WIP Value Report

The WIP Value Report allows you to check WIP inventory balances against WIP transactions. This report

displays information for WIP inventory as of a particular accounting period, by printing the value of jobs

for a given class for the period you specify. The WIP Value Report then lists the ending balances for each

of the jobs in the WIP accounting class by cost element and prints a subtotal.

Navigation: (CST) Reports -> Value.

Report WIP Value Report

Parameters Report Type Period to

Date

Period Select

period

Include Closed Jobs Yes

Parameters Report Type Period to

Date

Period Select

period

Include Closed Jobs No

Review the WIP Value Report to an actual spot check of WIP inventory. Any incorrect WIP inventory

valuations will need to be fixed in the General Ledger through a manual journal entry. Make a note of any

items, quantities, or valuations that are incorrect.

The WIP Value Report can be run by ‘Class Type’ be entering the appropriate value in the parameters. In

particular, this report can be used to review total variances and charges for your repetitive schedule.

Note: The WIP Value Report is not time sensitive and can be run for a given period at any time.

Note: It is mandatory to run the WIP Value Report (with the ‘Include Closed Jobs’ parameter set to ‘No’)

in order to reconcile WIP to the General Ledger. Please see the ‘Reconcile Work in Process to the General

Ledger’ section of this document.

WIP Account Distribution Report

The WIP Account Distribution Report provides detailed account information for WIP cost transactions,

including resources, overhead and outside processing charges, cost updated, and period close and job close

variances. This report does not list material cost transactions such as issues, completions, and scraps.

Naviagation: (CST) Reports -> Transactions.

Report WIP Account Distribution

Report

Parameters Class Select class

Review the WIP Account Distribution Report for any account distributions that are not part of the WIP

transaction accounts. Any accounts that are not provided for WIP distribution will need to be fixed in the

General Ledger through a manual journal entry. Make a note of any accounts that were incorrectly

charged.

Note: The WIP Account Distribution Report is not time sensitive and can be run at any time.

Note: It is not mandatory to run the WIP Account Distribution Report in order to reconcile WIP to the

General Ledger. However, this report provides supporting documentation for month end close.

Expense Job Value Report

A ‘Summary’ of this report was run to support the non-standard expense job close process. This report can

now be submitted with ‘Detail.’ The Expense Job Value Report includes information on all cost

transactions such as material, resource, resource based overheads, and period close variances.

Navigation: (CST) Report -> Value.

Report Expense Job Value Report

Parameters Status Release-

Charges

Allowed

Report Type Detail

The Expense Value Report prints no standard or variance information, as non-standard expense jobs

typically have no standards and are used only to collect and charge costs.

Note: This Expense Job Value Report is not time sensitive and can be run at any time.

Note: It is not mandatory to run the Expense Job Value Report in order to reconcile WIP to the General

Ledger. However, this report provides supporting documentation for month end close.

Repetitive Value Report

If you are not using repetitive schedules, please skip this section.

A ‘Summary’ of this report was run to support the non-standard expense job close process. This report can

now be submitted with ‘Detail.’ The Repetitive Value Report includes information on all cost transactions

such as material, resource, outside processing, move and resource-based overhead charges and variances.

Relief charges, such as completion, assembly scrap, and period close transactions are summarized across all

schedules building an assembly on a line.

Navigation: (WIP) Report.

Report Repetitive Value Report

Parameters Status Release-

Charges

Allowed

Report Type Detail

Period Start Date Select start

date

Period Close Date Select close

date

Lines From Select

beginning

production

line

(Lines) To Select

ending

production

line

The Repetitive Value Report, in conjunction with the WIP Value Report, will aid in analysis of the

transactions supporting the charges and variances for each repetitive schedule.

Note: The Repetitive Schedule Report is not time sensitive and can be run at any time.

Note: Its not mandatory to run the Retetitive Schedule Report in order to reconcile WIP to the General

Ledger. However, this report provides supporting documentation for month end close.

Transfer WIP Transactions to the General Ledger

After the WIP jobs are closed, the transfer to the General Ledger should be executed. The transfer of

information from WIP to the GL occurs in the Inventory module.

Navigation: (INV) Accounting Close Cycle -> General Ledger Transfers.

Report Transfer Transactions to GL

Parameters Organization Code Name of

organization

Date Last day of

the Period

Current Period (Defaults)

Import and Post WIP Transactions

See the General Ledger section of this document to create the journal entry for WIP.

Reconcile Work in Process to the General Ledger

At this point, the WIP month end report(s) have been run and concerns in Work in Process module

identified. In addition, WIP transactions have been transferred, imported, and posted to the General

Ledger. Now, the values from the month end report(s) should be reconciled to the General Ledger account

balances. Additional discrepancies between WIP and the General Ledger will require a manual journal

entry.

The main WIP report balances that should be compared to the General Ledger balances come from the WIP

Value Report (with ‘Include Closed Jobs’ parameter set to ‘No’). The last page of the WIP Value Report is

the ‘Work in Process Account Summary’ page, which lists the ‘Net Activity’ for the following accounts:

Material, Material Overhead, Resource, Outside Processing, Overhead, Material Variance, Resource

Variance, Outside Processing Variance, and Overhead Variance.

A sample of the WIP Value Report (WIP Account Summary page) is shown below.

Note the ‘Net Activity’ line for the WIP ‘Material’ account (here: 01.510.1235.0000.0000.0000) is

$15,098.69. These accounts listed on the summary sheet, and their corresponding ‘Net Activity’ balances,

have account balances in the General Ledger. These WIP accounts must be reconciled to the account

balance in the General Ledger.

Navigation: (GL) Inquiry -> Account. Enter the corresponding Accounting Period and the WIP account

number, and hit the ‘Show Balances’ button at the bottom of the screen.

When you hit the ‘Show Balances’ button, the window on the right hand side of the screen shot below will

open.

The balance in the ‘PTD’ field should equal the ‘Net Activity’ line given in the WIP Value Report (WIP

Account Summary sheet) for the given account. Notice this balance reconciles to the WIP Material

Account (01.510.1235.0000.0000.0000), at $15,098.69. This WIP material account has been reconciled.

This reconciliation of WIP accounts to the corresponding General Ledger account balance should be

performed for each of the WIP accounts.

Inventory

The next step in the month end close process occurs in the Inventory module. Inventory levels and values

should be reviewed before the current Inventory period is closed, and the next Inventory period opened.

Important Note: Once a period has been closed in Oracle inventory, it cannot be reopened. The periods in

Accounts Payable and Purchasing must be closed prior to closing the Inventory period to ensure that all

transactions have been processed before closing the Inventory period.

Pre-close Processes

There are pre-close process steps for Inventory that should be performed on a daily, weekly and monthly

basis.

Suggested Schedule for Daily, Weekly and Monthly Processes

Schedule Processes Comments

Daily 1. Run the Inventory Value

Report, with ‘Negative

Quantities Only’ parameter

set to ‘Yes’

In a situation in which WIP is set to backflush

components from Inventory, it is crucial to search

for Inventory items that currently have negative

on-hand balance.

Weekly 1. Review interface tables for

‘stuck’ transactions

2. Check inventory for

negative balances

3. Interface to the GL

4. Reconcile inventory values

to the GL

5. Check for zero dollar

transactions

6. Run the Inventory Value

Report, with ‘Negative

Quantities Only’ parameter

set to ‘Yes’

In a situation in which WIP is set to backflush

components from Inventory, it is crucial to search

for Inventory items that currently have negative

on-hand balance.

Monthly 1. Review interface tables for

‘stuck’ transactions.

2. Check inventory for

negative balances

3. Interface to the GL

4. Reconcile inventory values

to the GL

5. Check for zero dollar

transactions

6. Run the Inventory Value

Report, with ‘Negative

Quantities Only’ parameter

set to ‘Yes’

In a situation in which WIP is set to backflush

components from Inventory, it is crucial to search

for Inventory items that currently have negative

on-hand balance.

Items at Zero Cost

It is important to find items and assemblies in the system with a zero cost, and correct the cost of these

items as appropriate.

Navigation: (CST) Item Costs -> Item Costs.

To find assembly items that have not been rolled up to a frozen standard cost in the system, enter the

parameters as follows:

If there are assemblies without a frozen standard cost in the system, the lead times for the assemblies

should be calculated (BOM: Routings -> Lead Times). Then, the assembly cost should be rolled up (CST:

Item Costs -> Assembly Cost Rollup). Finally, the assembly cost should be updated to a standard frozen

cost (CST: Standard Cost Update -> Update Costs).

To find purchased items that do not have a frozen standard cost in the system, enter the parameters as

follows:

If there are purchased components without a frozen standard cost in the system, the price for the purchased item should be entered as a ‘Pending’ costs (CST: Item Costs -> Item Costs), and then the cost should be updated to a standard frozen cost (CST: Standard Cost Update -> Update Costs).

Pending Transactions

Before closing the Inventory period, it is best to view pending activities

Navigation: (INV) Accounting Close Cycle -> Inventory Accounting Periods. Place the cursor on the line you wish to close, and hit the ‘Pending’ button.

The Pending Transactions window will appear:

The Pending Transactions window is broken into two sections: Resolution Required and Resolution Recommended. If any transactions appear in this window, the interface managers, as described in the

‘Clearing the Transaction Managers’ section, must be cleared. The following is an explanation of errors that could appear as pending transactions, and the Navigation to resolve the issues.

The Resolution Required section displays the number or unprocessed material transactions, uncosted material transactions, and pending WIP costing transactions existing in the period. These discrepancies must be resolved before the period is closed. A short discussion of the ‘Resolution Required’ errors follows:

Unprocessed Material Transactions Exist for this Period

This message indicates you have unprocessed material transactions. You are unable to close the period with this condition, and you should contact your system administrator. Oracle Inventory considers entries in this table as part of the quantity movement. If you could close the period, the transactions will not be processed, and the resultant accounting entries would never be picked up by the period close or General Ledger transfer process. To address this issue, please revisit the ‘Clearing the Transaction Managers section of this document.

Navigation: (CST)View Transactions -> Pending Material Transactions.

Uncosted Material Transactions Exist for this Period

The above message indicates Material Transactions with unprocessed accounting entries. You are unable to close the period with this condition. Oracle Inventory considers entries in this table as part of your inventory value. If you could close the period, the transactions would not be processed, and the resultant accounting entries would never be picked up by the period close or General Ledger transfer process. To address this issue, please revisit the ‘Clearing the Transaction Managers’ section of this document.

Navigation: (CST)View Transactions -> Material Transactions. When the ‘Find Material Transactions’ screen appears, enter the ‘Transaction Dates’ range as desired, and hit the ‘Find’ button. To look for uncosted material transactions, Query-> Enter, go to the ‘Reference, Reason’ alternative region and tab to the ‘Costed’ field, enter ‘No’, Query-> Run.

Pending WIP Costing Transactions Exist in this period

The above message indicates Unprocessed Resource and Overhead accounting. You are unable to close the period with this condition. These transactions are in your work in process value, and await further processing. If you could close the period, the transactions will not be processed, and the resultant accounting entries would never be picked up by the period close or General Ledger transfer process. To address this issue, please revisit the ‘Clearing the Transaction Managers’ section of this document.

Navigation: (CST) View Transactions -> Pending Resource Transactions.

The Resolution Recommended section displays the number of pending receiving transactions, pending material transactions, and pending shop floor moves transactions existing in the period. Although the

Inventory period could be closed without solving these discrepancies, these transactions cannot be processed once the accounting period is closed. It is strongly recommended that the Resolution

Recommended section be reconciled before closing the period. A short discussion of the ‘Resolution

Recommended’ error follows:

Pending Receiving Transactions Exist for this Period

The above message indicates Unprocessed Purchasing items, such as purchase order receipts and returns for Inventory. The Close Accounting Period form gives you a warning, but you are able to close the period with this condition. These transactions are not in your receiving value. And, if you close the Inventory period before fixing the problems, these transactions will not be processed at all as they will have a transaction date for a closed period. To address this issue, please revisit the ‘Clearing the Interface Managers’ section of this document.

Navigation: (PUR) Receiving -> Transactions Status Summary.

Pending Material Transactions Exist for this Period

This message indicates you have unprocessed material transactions. The Close Accounting Period form

gives you a warning, but you are able to close the period with this condition. These transactions are not in your inventory value. And, if you close the Inventory period before fixing the problems, these transactions will not be processed at all as they will have a transaction date for a closed period. To address this issue, please revisit the ‘Clearing the Interface Managers’ section of this document.

Navigation: (CST) View Transactions -> Open Interface Transactions.

Pending Move Transactions Exist for this Period

The above message indicates Unprocessed Shop Floor Move Transactions. The Close Accounting Period form gives you a warning, but you are able to close the period with this condition. These transactions are not in your work in process value. And, if you close the Inventory period before fixing the problems, these transactions will not be processed at all as they will have a transaction date for a closed period. To address this issue, please revisit the ‘Clearing the Interface Managers’ section of this document.

Navigation: (CST) View Transactions -> Open Interface Transactions.

Run Inventory Month End Reports

The following reports assist in the inventory value and transactions review: All Inventories Value Report,

Inventory Value Report, Period Close Value Summary, Material Account Distribution Reports, and the

Subinventory Account Value Report. Choose the Organization, as appropriate, when running these reports.

All Inventories Value Report

The All Inventories Value Report lists the quantity and value of all inventory items for a specified cost type. If this report is run using Frozen cost, the subinventory items are valued at current Frozen standard cost. In addition, when this report is run with the ‘Display Zero Costs Only’ parameter set to ‘Yes,’ items currently in any inventory with no standard frozen cost can be easily identified.

Navigation: (CST) Reports -> Value.

Report All Inventories Value

Parameters Accept defaults

Report All Inventories Value

Parameters Display Zero Costs Only’ Yes

Review the All Inventories Value Report to an actual spot check of inventory. Any incorrect inventory valuations will need to be fixed in the General Ledger through a manual journal entry. Make a note of any items, quantities, or valuations that are incorrect.

Note: The All Inventories Value report is time sensitive and must be run on the last day of the month.

Note: It is not mandatory to run the All Inventories Value Report in order to reconcile Inventory to the

General Ledger. However, this report provides supporting documentation for month end close.

Inventory Value Report

The Inventory Value Report shows quantity, valuation, and detailed item information for all subinventories you specify.

Note: Run this report with the ‘Negative Quantities Only’ parameter set to ‘Yes.’ Running the report in this manner will identify all inventory items that currently have negative on-hand balances. In a situation in which WIP is set to backflush components from Inventory, this step is crucial and should be performed daily.

In addition, when this report is run with the ‘Display Zero Costs Only’ parameter set to ‘Yes,’ items currently in a specific inventory with no standard frozen cost can be easily identified.

Navigation: (CST) Reports -> Value.

Report Inventory Value

Parameters Subinventory From Choose

subinventory

Subinventory To Choose

subinventory

Negative Quantities Only Yes

Report Inventory Value

Parameters Subinventory From Choose

subinventory

Subinventory To Choose

subinventory

Display Zero Costs Only Yes

Review the Inventory Value Report to an actual spot check of inventory. Make a note of any items, quantities, or valuations that are incorrect. These items will need to be addressed in the General Ledger.

Note: The Inventory Value report is time sensitive and must be run on the last day of the month.

Note: It is not mandatory to run the Inventory Value Report in order to reconcile Inventory to the General Ledger. However, this report provides supporting documentation for month end close.

Period Close Value Summary

The Period Close Value Summary Report indicates the summary balances of subinventories.

Navigation: (CST) Reports -> Value.

Report Period Close Value

Parameters Sort By Subinventory

Period Close Date Select the Month end date.

Review the Period Close Value Summary to an actual spot check of subinventories. Any incorrect WIP valuations will need to be fixed in the General Ledger through a manual journal entry. Make a note of any items, quantities, or valuations that are incorrect.

Note: The Period Close Value Summary report is not time sensitive and can be run at any time.

Note: It is not mandatory to run the Period Close Value Report in order to reconcile Inventory to the

General Ledger. However, this report provides supporting documentation for month end close.

Material Account Distribution Reports

Use the Material Account Distribution Report to review all of the high dollar value transactions and/or high quantity transactions for the period. This report display the inventory transaction values transferred to the General Ledger by GL batch. The Material Account Distribution report is actually two reports, for detail and summary distribution information.

Navigation: (CST) Reports -> Transactions.

Report Material Account

Distribution Detail

Parameters Transaction Dates From Enter startdate

(Transaction Dates) To Enter end date

Accounts From Choose Account number

(Accounts) To Choose account number

Report Material Account

Distribution Summary

Parameters Transaction Dates From Enter start date

(Transaction Dates) To Enter end date

Accounts From Choose account number

(Accounts) To Choose Account number

Subinventories From

(Subinventories) To

Review the Material Account Distribution Report looking for any account distributions that are not part of the inventory transaction accounts. Any accounts that are not provided for inventory distribution will need to be fixed in the General Ledger through a manual journal entry.

Note: The Material Account Distribution reports are not time sensitive and can be run at any time.

Note: It is mandatory to run the Material Account Distribution Reports (with and without Subinventories) in order to reconcile WIP to the General Ledger. Please see the ‘Reconcile Inventory to the General

Ledger’ section of this document.

Subinventory Account Value Report

The Subinventory Account Value Report shows quantity, valuation, and detailed item information when the same valuation accounts are used for more than one subinventory.

Navigation: (CST) Reports -> Value.

Report Subinventory Account Value

Parameters Cost Type Frozen

Subinventory From

Subinventory To

Review the Subinventory Account Value Report to make sure the item quantities and valuation accounts have been charged correctly. Any changes will need to be fixed in the General Ledger through a manual journal entry.

Note: The Subinventory Value report is time sensitive and must be run on the last day of the month.

Note: It is not mandatory to run the Subinventory Account Value Report in order to reconcile Inventory to the General Ledger. However, this report provides supporting documentation for month end close.

Transfer Inventory Transactions to the General Ledger

The transfer of Inventory transactions to the General Ledger was already performed in the Purchasing

Close section of this document, in order to reconcile the Receiving Value Report by Destination Accounts to the receiving value account in the General Ledger. However, the Inventory transactions should now be transferred again the General Ledger in order to transfer any last minute transactions or adjustments.

Closing a period executes the General Ledger transfer automatically. However, you can also run this process without closing a period using the Transfer Transactions to General Ledger interface table. Since you cannot reopen a closed Inventory period, running this process before period close allows you to proof the interfaced transactions and make adjustments to the period via new inventory transactions as necessary.

The General Ledger Transfer process can be run once a week, which would allow information from inventory and WIP to be transferred to the General Ledger throughout the month, rather than only during the month end close process.

Navigation: (INV) Accounting Close Cycle -> General Ledger Transfers.

Report Transfer Transactions to GL

Parameters Organization Code Name of organization

Date Last day of the Period

Current Period (defaults)

Import and Post Inventory Transactions

See the General Ledger section of this document to create the journal entry for Inventory.

Reconcile Inventory to the General Ledger

At this point, the Inventory month end reports have been run and issues in Inventory identified. In addition,

Inventory transactions have been transferred, imported, and posted to the General Ledger. Now, the values from the month end reports should be reconciled to the General Ledger account balances. Additional discrepancies between Inventory and the General Ledger will require a manual journal entry.

The Account Total on the Material Account Distribution Report (Summary and Detail), for each account, should reconcile to the corresponding General Ledger account balance.

A sample of the Material Account Distribution Report is shown below:

Note: The Account Total (01.510.125.0000.0000.0000) is $7,891.53. These accounts listed on the

Material Account Distribution report, and their corresponding ‘Account Totals’, have account balances in the General Ledger. These Inventory accounts must be reconciled to the account balances in the General Ledger.

Navigation: (GL) Inquiry -> Account. Enter the corresponding Accounting Period and the Inventory account number, and hit the ‘Show Balances’ button at the bottom of the screen.

When you hit the ‘Show Balances’ button, the window on the right hand side of the screen shot below will open.

The balance in the ‘PTD’ field should equal the ‘Account Balance’ in the Material Account Distribution

Report for the given account. Notice this balance reconciles to the Material Account Distribution Report ‘Account Total’ value for the account (01.510.1220.0000.0000.0000), at $7,891.33. This inventory account has been reconciled.

This reconciliation of Inventory accounts to the corresponding General Ledger account balance should be performed for each of the Inventory accounts.

The perpetual Inventory value should match the value of Inventory reported in the General Ledger. Each subinventory must be balanced to the General Ledger. Although the perpetual inventory will generally balance automatically with the General Ledger, there are occasions when this is not so. If the two balances do not match, look for other Inventory journal entries, charges to improper accounts, issues to miscellaneous accounts, and transactions after then period end reports have been run.

Close Current Inventory Period

The Inventory period can now be closed. This must be done in all Inventory organizations each month.

Navigation: (INV) Accounting Close Cycle -> Inventory Accounting Periods.

The curent period will be highlighted. Click on the period to close and click on the ‘Change Status’ button.

Click on ‘Closed’ and OK. A concurrent process will be submitted that will close the period and transfer all inventory transactions to the GL interface.

Open Next Inventory Period

To open an Inventory period, simply click on the period to open (in the first window of this form), click on

‘Change Status’, and acknowledge the message that appears.

Note: It is recommended to keep the current and next period open at all times to ensure that transactions will be permitted on the first day of the next period. Transactions cannot be future dated.

Once the period close process or the interim transfer process transfers summary or detail to the General Ledger interface. The General Ledger, through the Journal Import function, incorporates these transactions and creates a batch that you can post into the General Ledger. After running Journal Import, you can post your journal using the General Ledger posting process, as discussed in the ‘General Ledger’ section of this document.

Margin Analysis Report

The Margin Analysis report is used to report sales revenue, cost of goods sold, and gross margin information for each item shipped/invoiced within a specified date range. Before running the Margin

Analysis report, the Margin Analysis Load Run program must be executed. The Margin Analysis Report can be printed with or without detailed information, such as customer, order, and line number.

Navigation: (CST) Report -> Operational Analysis.

Report Margin Analysis Load Run

Parameters Build Option Date Range

Build Name Enter a report name

Build Description Enter a

Report description

From Date Enter a date

To Date Enter a date

Cost Type Frozen

Report Margin Analysis Report

Parameters Build Name Use the

‘Build

Name’ from

above

Report Option Detail

Sort Option Category,

Item

Currency USD

Exchange Rate 1

Customer Type Bill to

Customer

Note: Revenue recognition must be completed before this report will show current information. Therefore, it is important to transfer Accounts Receivable to the General Ledger before the Margin Analysis Report is run.

Note: This report is not time sensitive and can be run at any time.

Note: It is not mandatory to run the Margin Analysis Report. However, this report shows sales revenue, cost of goods sold, and gross margin information for a given date range.

General Ledger

The General Ledger should be the last module to be closed. General Ledger journal entries include accruals, allocations, adjustments, manual, and all subsystem imports.

Pre-Close Processes

The General Ledger has several steps that should be performed weekly and monthly.

Suggested Schedule for Weekly and Monthly Processes

Schedule Processes Comments

Weekly 1. Reconcile any interfaces that come over from feeder systems

Follow reconciliation procedures provided in the various sections above.

Monthly 1. Enter any manual journal entries required for the month

2. Reverse any accrual-type journal entries

This can be done at the time the journal entry is recorded. Check to make sure all journals that should have been reversed, actually were.

3. Run journal import This should be done for Purchasing, Inventory and Manufacturing sources.

4. Generate Recurring entries

Review and make changes

Enter in current month amounts for skeleton standard journal entries.

5. Generate Mass Allocations

6. Post entries for the month

7. Reconcile any interfaces that come over from feeder systems Follow the reconciliation procedures provided in the various sections above

8. Run monthly analysis and financial reports

9. Close accounting period

Enter Manual Journal Entries

Enter manual journal entries needed for current month close such as adjustments and accruals.

Navigation: (GL) Journals-> Enter.

Reverse Entries

Reverse any accrual-type journal entries from the previous period. This reversal can be done at the time the journal entry is recorded. Check to make sure all journals marked for reversal have been reversed.

Navigation: (GL) Journals-> Enter, then Review journal or batch. Click on ‘More Details’ and reverse journal.

Note: Remember to reverse PO accrual entries.

Run Journal Import

Run journal import to load journal entries from Purchasing, Manufacturing and Inventory.

Navigation: (GL) Journals -> Import -> Run.

Source Purchasing

Manufacturing

Inventory

Generate Recurring Journal Entries

Generate recurring journal entries. Review journal entries in journal form and record amounts for current month.

Navigation: (GL) Journals-> Generate-> Recurring.

Navigation: (GL) Journals-> Enter.

Generate Mass Allocations

Generate Mass Allocations for the current month.

Note: If the Mass Allocation you are generating requires manual journal entries or other allocations to be entered first, remember to post entries before continuing.

Navigation: (GL) Journals -> Generate -> Allocation.

Post Journal Entries

Manual journal entries can be posted at the time of entry (More Actions) or by Navigating to the journalpost form.

Journal entries created through feeder systems can be posted through AutoPost or by Navigating to the journal-post form.

Recurring and Mass Allocation entries can be posted at the time of review (More Actions) or by Navigating to the journal-post form.

Reconcile Feeder Systems

Reconcile sub-systems to the General Ledger by following the reconciliation procedures provided in the various sections above.

Run Month End Reports

The General Ledger has a list of standard reports that can be used to analyze monthly activity. These reports include: Journal Entry Report, Account Analysis Report, and Trial Balance – Detailed or Summary.

Along with these standard reports, there are also FSG’s (Financial System Generated) reports that are created specifically for your company.

Journal Entry Report

The Journal Entry Report reviews journal activity for a given period or range of periods.

Navigation: (GL) Reports -> Request -> Standards.

Report Journal Entry Report

Parameters Currency USD

Company 01

Start Account

End Account

Start Period

End Period

Note: The Journal Entry Report is not time sensitive and can be run at any time.

Note: It is not mandatory to run the Journal Entry Report, however, this report provides supporting documentation for month end close.

Account Analysis Report

The Account Analysis Report prints the beginning balance, journal lines, and ending balance of the accounts you request.

Navigation: (GL) Reports -> Request -> Standards.

Report Account Analysis Report

Parameters Type Line

Currency USD

Balance Type A (actual)

Starting Period

Ending Period

Flexfield From

Flexfield To

Order By Account

Segment

Note: The Account Analysis Report is not time sensitive and can be run at any time.

Note: It is not mandatory to run the Account Analysis Report, however, this report provides supporting documentation for month end close.

Account Analysis – Subledger Detail Report

The Account Analysis – Subledger Detail Report should be used to analyze detailed transactions from

Oracle Payables and Oracle Receivables posted to any account.

Navigation: (GL) Reports -> Request -> Standards.

Report Account Analysis – Payables

Detail Report

Parameters Currency USD

Starting Period

Ending Period

Flexfield From

Flexfield To

Note: The Account Analysis- Subledger Detail Report is not time sensitive and can be run at any time.

Note: It is not mandatory to run the Account Analysis- Subledger Detail Report, however, this report provides supporting documentation for month end close.

Trial Balance- Detail Report

The Trial Balance – Detail Report can be used to review General Ledger account balances and activity detail.

Navigation: (GL) Reports -> Request -> Standards.

Report Trial Balance – Detail Report

Parameters Page break Segment

Page break Segment Low

Page break Segment High

Currency USD

Period

Amount Type PTD, YTD

Note: The Trial Balance- Detail Report is not time sensitive and can be run at any time.

Note: It is not mandatory to run the Trial Balance- Detail Report, however, this report provides supporting documentation for month end close.

FSG’s

Financial Statements can be run as preliminary reports to aid in month end analysis, as well as provide a final scenario of the month’s activities. New FSG’s can be created at any time.

FSG’s can be run two ways, as follows.

Navigation: (GL) Reports -> Request -> Financial.

Navigation: (GL) Reports -> Request -> Standard – Program: Run Financial Statement Generator

Report FSG Reports: (examples)

Balance Sheet

Income Statement

Statement of Operating

Expenses

Parameters Period

Currency USD

Segment Overrides

Content Set

Note: FSG’s are not time sensitive and can be run at any time.

Note: It is not mandatory to run FSG’s, however, they provides supporting documentation for month end close.

Close Current General Ledger Period and Open Next Period

Close the accounting period in General Ledger and open the next period once you believe all reconciliation is considered complete. Reports can still be run for periods that are ‘closed’ and ‘permanently closed’, however no entries can be entered or posted for these periods. The main difference between ‘closing’ a period and ‘permanently closing’ a period is that a ‘permanently closed’ period can NEVER be reopened.

Once the General Ledger period is closed, open the next General Ledger period.

Navigation: (GL) Setup -> Open/Close.