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Oracle Financials E-Business Suite Release 12 Period End Procedures

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

This document intends to provide a reference for planning period-end procedures for ‘real-life’
implementations. It describes the fundamental period-end steps involved for each, with particular
emphasis on balancing the subledger applications to Oracle General Ledger, and attempts to provide
an overview of the relative timing of these procedures for all installed Oracle applications.

It is therefore the intention of this document to provide content from which relevant sections can be
extracted, according to the applications installed for a particular organization. Any organization may
choose to customize their period-end and year-end processes, for example opting to run additional
reports, particular to the organization.

Although this document particularly refers to ‘Period-End Procedures’, many of the processes can be
performed more regularly throughout the accounting period as required. Each subledger application
provides control as to when and how often data is transferred from the subledger application to the
General Ledger.

Assumptions

These ‘Period-End Procedures’ were written with the assumption that Oracle Financials was
implemented for a single operating unit. Where an organization has implemented the ‘Multi-Org’
features of Oracle Financials, these procedures would need to be performed for each operating unit
individually unless Multi-Org Access Control is enabled.

Note: R12 requires multi-org functionality to be used. For further details refer to Oracle®
Applications Upgrade Guide: Release 11i to Release 12

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

How this whitepaper is organized

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

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

Chapter 1 SLA and Period End Close dependencies

1. Sub Ledger Accounting (SLA) – Business Process

The new Subledger Accounting architecture in Release 12 provides a common repository of all your
accounting information. Whenever you want to account for your subledger transactions, onine or as
a background batch process, the accounting is generated by Subledger Accounting.

Subledger Accounting helps to maintain a common link between General Ledger balances and
underlying transactions automatically, for internal and external audit purposes, and for ease of
drilldown.

Subledger Accounting provides a comprehensive view of all subledger accounting data. It behaves
like a detailed version of your General Ledger and provides a rich store of information for reporting
and analysis.

• Oracle’s Subledger Accounting, coupled with Oracle General Ledger, gives you the best of both
worlds.

• It allows your general ledger to be free of extraneous data, so that you can maintain a simple chart
of accounts and store only what is needed for general ledger reporting and analysis.

• The moment you need to access more detailed information, you can go directly to Subledger
Accounting to see the detail from all transaction sources that feed the GL account balance without
having to go back to multiple source systems and applications.

• Just as Oracle General Ledger stores balances and journals, Subledger Accounting stores subledger
balances and subledger journals for all of your subledgers that require accounting.

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

2. Sub Ledger Accounting (SLA) – Process Change

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

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

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

The subledger accounting journal represents your REAL accounting and the balancing lines are
created as part of these Subledger Accounting Journals.

When you close a period in Release 12 you’re actually closing subledger accounting. The journals can
then be posted to General Ledger to update the General Ledger balances.

Differences between R11i and R12

3. SubLedger Accounting (SLA) – Reconciliation

From a reconciliation perspective the picture below shows what’s changed between R11i and R12. In
Release 11i you reconciled your transactions and distributions to General Ledger through
transactional reports. In the accounting reports in Release 11i you’d see the balances but not the
transactional information.

In Release 12 there is no reason to reconcile distributions on transactions to General Ledger. You can
still reconcile transaction reports to accounting reports. The new accounting reports in Release 12
now also contain more comprehensive information not just on balances but also on suppliers,
customers and transactions.

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

Reconciliation between R11i and R12

4. General – Period End Close Dependencies


Before you start with the Period-End process you have to know what the dependencies are between
the various Modules as described in the Chapters in this document.

The diagram above shows the dependencies between some of the main Financials products and a
couple of supply chain products.

You have to close Oracle Payables before you close Oracle Purchasing to account for Purchasing
Accruals at Period end. You also close Oracle Payables before you close Oracle Inventory and Oracle
Assets.

You actually have to close Oracle Cash Management before you close Oracle Receivables, as bank
reconciliation in Cash Management will create miscellaneous receipts in Oracle Receivables.

Finally you close all of your subledgers before you close General Ledger.

Chapter 2 Oracle Projects

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

5. Business Requirements

Period end procedures for Oracle Projects has two main functions:

Changing the status of the current period to closed

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

1. Project Periods and General Ledger Periods

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

However, projects may be based on a different periodic cycle to that of the General ledger. Project
periods may be based on a different period of time such as a week.

If the two sets of periods overlap, then you may need to put in place special procedures for the
reconciliation of Projects to the General ledger, and other modules.

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

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

Never Opened The period has never been used.

Future Enterable The period is open to accept transactions from other modules. Usually used where
modules are maintained in different periods, and transactions are likely to be posted across
modules.

Open Period is available for data entry

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

Permanently Closed No further processing is possible.

Pending Close This status prevents transaction entry, and allows users to correct unprocessed items
prior to completing the period close.

3. General Exception handling at Period End

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

The Subledger Period Close Exceptions Report lists all accounting events and journal entries that fail
period close validation.

You can generate the Subledger Period Close Exceptions Report through a concurrent request for
the application associated with the responsibility or for all applications in the General Ledger
responsibility.

6. Procedures

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

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

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

2. 2. Open the Next Oracle Projects Period

It is recommended that you open the next period to minimize interruption to users, who may
require the ability to enter transactions in the new period during the current period close procedure.
This process needs to be performed for each Operating Unit defined.

3. 3. Complete all Maintenance Activities

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

Project Maintenance (revenue/billing based options)

Billing burden schedules and burden schedule overrides

Bill rate schedules and bill rate overrides

Project labor multiplier changes

Revenue budget changes

Project/Task % complete

Funding changes

Changes in the task Ready to Accrue checkbox

Implementation Maintenance

Employee assignments

Labor cost rates

Standard costing burden schedule maintenance

Other Maintenance

Retroactive changes in employee assignments

Retroactive changes in labor cost rates

Changes in Auto-Accounting Rules or Lookup Sets

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

4. 4. Run Maintenance Processes

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

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

Run PRC: Compile All Burden Schedule Revisions


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

Run PRC: Add New Organization Compiled Burden Multipliers

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

Run PRC: Update Project Summary Amounts After Resource List Change

5. 5. Complete All Transaction for the Period Being Closed

1.

Enter and Approval all Timesheets for the PA Period

Import all timesheets entered via Self-Service Time.

Run PRC: Transaction Import. Transaction Source = Oracle Self-Service Time.

Verify that all pre-approved timesheet batches in the current PA period have been released and
approved.

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

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

Run the AUD: Missing Timecards Report

2. Interface Supplier Invoices from Oracle Payables

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

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

Run PRC: Interface Supplier Invoices from Payables

3. Interface Expense Reports from Oracle Payables

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

Run PRC: Interface Expense Reports from Payables

4. Project Related Inventory Transactions


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

Run the Cost Collector

Project Cost Transfer

Run PRC: Transaction Import.

The following transaction sources are pre-defined.

Source Description

Inventory Manufacturing Material Costs

Inventory Inventory Issues and Receipts entered in the Miscellaneous Transactions


Misc window in Oracle Inventory

Work In Manufacturing Resource Costs


Process

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

· 6. Run the Cost Distribution Processes

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

PRC: Distribute Labour Costs

PRC: Distribute Usage & Miscellaneous Costs

PRC: Distribute Expense Report Adjustments

PRC: Distribute Supplier Invoice Adjustment Costs

PRC: Distribute Borrowed and Lent Amounts

PRC: Total Burdened Cost (If using Project Burdening)

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

Note: PRC: Distribute Expense Report is now obsolete.

7. 6a. Run the Generate Cost Accounting Events Program


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

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

8. 7. Interface Cost Transactions to Other Applications

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

Transfer from Projects to GL can be achieved by submitting ‘Create Accounting’ – (PRC: Create
Accounting) process from the SRS screen. This program is owned by SLA. This program creates
accounting, transfers& posts to GL with the appropriate parameters.

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

Interface CIP Assets to Oracle Assets

- PRC: Interface Assets

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

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

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

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

10.

8. Generate Draft Revenue for All Projects


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

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

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

11. 9. Review and Release Revenue for All Projects

Perform review of the revenue generated and approve the same.

12. 10. Run Generation Revenue Accounting Events Process

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

13. 11. Run Create Accounting to Process Revenue Accounting Events

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

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

14. 12. Generate Invoices

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

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

This process:

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


company billing to be processed for cross charging

Deletes unreleased inter-company invoices

Creates inter-company credit memos and invoice cancellations.

15. 13. Transfer Invoices to Oracle Receivables

Run PRC: Interface Invoices to Receivables


Run PRC: Interface Inter-company Invoices to Receivables

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

17.

14. Run Period Close Exception and Tieback Reports

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

AUD: Cross Charge GL Audit

AUD: Missing Timecards

EXC: Transaction Exception Details

EXC: Transaction Exception Summary

PRC: Tieback Invoices from Receivables

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

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

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

18. 15. Run Final Project Costing and Revenue Management Reports

Run all of the following project costing management reports:

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

MGT: Task - Revenue, Cost, Budgets by Resources

MGT: Revenue, Cost, Budgets by Work Breakdown Structure


MGT: Employee Activity Report

MGT: Invoice Review

MGT: Unbilled Receivables Aging

MGT: Agreement Status by Customer

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

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

Re-run the Period close exception reports to identify the items.

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

20. 17. Advance the PA Reporting Period (Optional)

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

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

21. 18. Update Project Summary Amounts

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

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

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

22. 19. Restore Access to User Maintenance Activities

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

23. 20. Reconcile Cost Distribution Lines with General Ledger (Optional)

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

Run AUD: Project Subledger Summary

Run AUD: Project Subledger: Detail by Project


Run AUD: Project Subledger: Detail by Expenditure Type

24. 21. Permanently Close the Oracle Projects Period (Optional)

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

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

1.

Chapter 3 Oracle Order Management

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

1. Business Requirements

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

2. Procedures

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

1. 1. Complete All Transactions for the Period Being Closed

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

Enter and book all Orders

Schedule Orders

Enter and book Return Material Authorisations

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

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

Sales Order Acknowledgments

Cancel Backordered Included Items

Respond to Workflow Approval Notifications

Confirm that invoice interface has been completed

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

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

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

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

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

Close Order Lines

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

Holds Effect on Eligible Lines

The close order and close line workflow activities will close order or lines if only generic holds are
present .If orders or lines have activity specific holds present, they will not be closed by workflow
activity

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

2. 2. Ensure all Interfaces are completed for the Period (Optional)

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

Order Import from External Order Systems.

If you are using external order processing systems for data entry of orders, use the Order Import to
update Oracle Order Management from your external systems. Alternatively, if you are using the
Order management public API to create orders, ensure that the processes calling the public API is
completed.

Use the Order Import Correction window to examine the orders and optionally correct data if it fails
the import process. Use the Error Message window to determine if your data failed to import.

Order Import from Oracle Purchasing, for Internal Orders.


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

Enter and approve all Internal Purchase Requisitions in Oracle Purchasing.

Run the Create Internal Sales Orders Process in Oracle Purchasing for all requisitions within the
current period. Use the Create Internal Sales Orders process to send requisition information from
approved, inventory-sourced requisition lines to the Order Management interface tables. Then the
Order Import process is run from within Order Management to generate the internal sales orders.
The Create Internal Sales Orders and Order Import processes can be scheduled to run automatically
at specified intervals.

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

Run the Internal Order and Purchasing Requisition Discrepancy Report. The Internal Order and
Purchasing Requisition Discrepancy Report displays the differences between the purchasing
requisition entered and the actual items ordered during order entry. This report includes all open
and closed orders, order numbers, order date ranges, order types, requisition numbers, items, ship
to information, scheduled dates, and internal requisition and internal sales order hold discrepancies.

Use the Order Import Correction window to examine the orders and optionally correct data if it fails
the import process. Use the Error Message window to determine if your data failed to import.

Invoice Interface / AutoInvoice, for external orders. Internal orders do not go through the Invoice
interface/ Autoinvoice process. This process will ensure all shipped Sales Order information is
transferred to Oracle Receivables when it reaches the appropriate point in the Order Workflow. The
AutoInvoice Process updates Oracle Receivables for invoice and revenue information, as well as
credit memos and credits on account created from returns.

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

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

3. 3. Review Open Orders and Check the Workflow Status

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

The Sales Orders window displays the order header status in the Main tab of the Order Information
tabbed region. The order line status is displayed in the Main tab of the Line Items tabbed region.

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

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

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

Orders on Credit Check Hold Report

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

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

Hold Source Activity Report

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

Outstanding Holds Report

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

5. 5. Review Customer Acceptances (Optional)

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

6. 6. Review Discounts

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

Order Discount Detail Report

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

Order Discount Summary Report

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

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

Backorder Detail Report

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

Backorder Summary Report

The Backorder Summary Report lists all unshipped orders. This report includes only open orders in
an order cycle that includes Pick Release. It displays order information such as order number,
customer name and number, order type, purchase order, order date, last shipped date, and the
monetary amounts ordered, shipped and outstanding.

This report also includes total amounts for customers and currencies. These amounts involve totals
for shippable items only.

8. 8 Review and Correct Order Exceptions

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

Unbooked Orders Report

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

Retry Activities in Error

There are cases when retrying a workflow activity in error will not resolve the problem. When
Exception Management encounters this situation, the workflow activity is set to Notified instead of
being retried.

Sales Order Workflow Status Report

The Sales Order Workflow Status Report enables Order Management users to locate orders that are
not progressing through associated workflows as expected.

9. 9. Reconcile to Oracle Inventory

Run the following reports for reconciliation with Oracle Inventory

Backorder Detail Report

Review Backorders (Already discussed under section 7.)

Returns by Reason Report


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

10. 10. Create Service Contracts (Optional)

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

11. 11. Reconcile to Oracle Receivables (Optional)

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

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

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

Order/Invoice Detail Report

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

12. 12. Run Standard Period End Reports

The following reports should be run each period:

Cancelled Orders Report

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

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

Salesperson Order Summary Report

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

Salespeople can use this report to see their current outstanding orders and their status. This report
shows open orders, quantity ordered, shipped, cancelled, and invoiced and their potential
commission.
The report displays all open and closed orders for a salesperson, customer or customer number,
agreements, order numbers, order date ranges, order types, line type, and detailed sales credit
information for lines in a selected range.

Customer Acceptance Report

Generate Pre-billing Acceptance Program for Pre-billing, Implicit Acceptance.

2.

Chapter 4 Oracle Cash Management

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

1. Business Requirements

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

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

During the Bank Reconciliation process miscellaneous transactions can be created for bank-
originated entries, such as bank charges and interest.

Cash forecasting is a planning tool that helps anticipate the flow of cash in and out of the enterprise,
allowing the projection of cash needs and evaluation of the company's liquidity position.

2. Procedures

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

1. 1. Complete Daily Cash Management Activities

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

2. 2. Load Bank Statements

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

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

3. 3. Generate Sweep Transactions

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

4. 4. Create Bank Statement Cashflows

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

5. 5. Reconcile Bank Statements

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

Cash Management provides two methods to undertake reconciliations:

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

(Refer Reconciling Bank Statements Automatically)

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

(Refer Reconciling Bank Statements Manually)

6. 6. Create Miscellaneous Transactions

During the reconciliation process miscellaneous transactions for bank-originated entries, such as
bank charges and errors can be created. Oracle Payables payments or Oracle Receivables receipts
can also be manually created.
Note: The automatic reconciliation process can be set up to create miscellaneous transactions
automatically.

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

7. 6a.Complete Bank Transfers

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

8. 7. Review Auto-Reconciliation Execution Report

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

This report shows import and reconciliation errors that occurred when running the Auto-
Reconciliation program. Cash Management automatically produces this report during the automatic
reconciliation process. You may also request it as needed from the Submit Request window.

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

This report lists the details of any miscellaneous transactions that were created in Receivables during
the automatic reconciliation process.

9. 8. Resolve Exceptions on the Auto-Reconciliation Execution Report

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

10. 9. Run Bank Statement Detail Report

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

11. 10. Run Transactions Available for Reconciliation Report

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

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

12. 11. Resolve Un-reconciled Statement Lines

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

13. 12. Post to General Ledger

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

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

14. 13. Run the GL Reconciliation Report

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

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

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

Reconcile all statements in Cash Management.

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

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

16.
14. Run the Account Analysis Report for the General Ledger Cash Account

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

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

17. 15. Review the Account Analysis Report

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

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

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

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

3.

Chapter 5 Oracle Payables

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

1. Business Requirements

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

The posting level for Oracle Payables must be determined, when planning period-end procedures.
Where detail level accounting transactions are required to be posted to the general ledger using
sub-ledger accounting (hereafter referred to as SLA), there may be technical constraints involved,
relating to the physical data storage volume, and posting and report processing speed degradation
caused by the sheer volume of posted transactions. In Release 12 the detailed level of posting can be
controlled by GL summarize options and also at SLA journal line type level. Subledger Accounting can
contain all of the detailed subledger accounting level analysis, so that the General Ledger can remain
“thin” and Subledger Accounting online inquiry and BI Publisher reports can be utilized to report
and analyze balances and their transactions.
2. Procedures

1. 1. Complete All Transactions for the Period Being Closed

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

Completing all transactions for Oracle Payables:

Complete Invoicing and Credits

Complete Prepayments

Complete Expense Reports

Complete Invoice Import

Complete Payments

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

One consideration for Accounts Payable where there are multiple operating units within the same
ledger is that all operating units must be ready to close at the same time. All of the operating units
that share a Ledger also share the same period statuses. When you update the period statuses to
‘Open’ in one operating unit, that period is opened for all operating units within the ledger.

When you attempt to update the period status to ‘Closed’ in one operating unit, the system checks
for unposted transactions in all operating units within the ledger. If there are unposted transactions
in any of the operating units, the system asks you to resolve the un-posted transactions for those
operating units before it allows you to close the period for the ledger. If Multi-org Access Control is
being implemented, period closing can be performed across OU’s from a single responsibility,
through one OU at a time.

2. 2. Run the Payables Approval Process for All Invoices

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

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

a. Review the Invoice on Hold Report

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

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

b. Review the Journal Entries Report


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

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

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

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

c. Review the Unaccounted Transactions Report

This report enables review of all unaccounted invoice and payment transactions and a view of the
reason that Payables cannot account for a transaction. Accounts Payable sorts the report by
transaction type (invoice or payment), exception, supplier, transaction currency, and transaction
number.

Run this report after you have run the Create Accounting Process. The report will then show only
transactions that had problems that prevented accounting. You can then correct the problems and
resubmit the accounting process.

Note that this report does not include invoices that have no distributions.

d. Optionally Run a Month End Payment Process Request

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

e. Confirm all Payment Instructions

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

The Payment Instruction Register lists each payment created for a payment process profile or for a
manual payment. Actual payments can be compared against this register to verify that Oracle
Payables/Oracle Payments has recorded payments correctly. The report lists each payment in a
payment process request, including setup and overflow payment documents, in ascending order, by
payment number. This report is automatically submitted when payment instructions are being
created. This can also be submitted from the SRS screen.

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

f. Optionally Run the Payments Register

The Payment Register details payments printed in a particular accounting period. The report can be
used to review payment activity for each bank account used during the specified time period.
Warning: The report total only shows the net ( less discounts) payment amount, whereas the
Posted Payment Register total is the total payment amount, including discounts. If only
verifying report totals, these two reports would not balance. Therefore it is necessary to
subtract the ‘Discounts Taken’ from the Posted Payment Register report total and then
compare this calculated amount to the total displayed on the Payments Register Report.

4. 4. Reconcile Payments to Bank Statement Activity for the Period

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

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

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

When accounting mode is Final and transfer to GL set to ‘No’ then ‘Payables Transfer To General
Ledger ’ needs to be run from the Standard report submission (SRS) window.

The transactions in Draft accounting mode can be included on accounting reports but cannot be
transferred to General Ledger. A draft entry does not update balances and does not reserve funds.

SLA creates detail or summary journal entries for all eligible events when you post. The journal
entries are posted in Oracle General Ledger to update account balances.

Invoice journal entries, debit the expense or other account entered on an invoice distribution line,
and credit the liability account nominated on the invoice, unless you have modified the SLA rules to
create alternative accounting entries to address your specific business needs.

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

The Create Accounting process transfers data to the General Ledger tables, creating journal entries
for these invoice and payment transactions. Posting is determined by the parameter ‘Post in GL’
which is set during Create Accounting.

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

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

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


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

a. Payables Accounting Process Report

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

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

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

b. The Posted Invoices Register

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

c. The Posted Payments Register

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

7. 7. Submit the Unaccounted Transactions Sweep Program

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

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

The program transfers unaccounted transactions to the period you specify by updating the GL dates
to the first day of the new period. You can then close the current accounting period in Oracle
Payables.

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

8. 8. Close the Current Oracle Payables Period

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

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

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

· For the application associated with the responsibility

· For all applications in the General Ledger responsibility

9. 9. Accrue Uninvoiced Receipts

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

10. 10. Reconcile Oracle Payables Activity for the Period

a. Run the Accounts Payable Trial Balance Report

This report is used to facilitate reconciliation of the total accounts payable liabilities in Oracle
Payables, with the Oracle General Ledger Creditors Control Account, for a specific accounting
period. The Accounts Payable Trial Balance Report is a BI Publisher report, which is based on a
Subledger Accounting extract and enables you to identify the open Accounts Payable transactions
that make up each Accounts Payable balance.

This report lists, and sub-totals, by vendor, all unpaid and partially paid invoices for which Oracle
Payables created journal entries (i.e. posted invoices). These invoices represent the outstanding
accounts payable liability for the organization.

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

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

Use the following reports to reconcile your transferred invoices and payments to your Accounts
Payable Trial Balance to ensure that your Trial Balance accurately reflects your accounts payable
liability:

Accounts Payable Trial Balance (for last day of prior period)


Payables Posted Invoice Register - Invoice journals must be posted in general ledger to appear on
this report.

Payables Posted Payment Register - Payment journals must be posted in general ledger to appear on
this report.

Accounts Payables Trial Balance (for last day of current period) - This balancing process will help you
ensure that all liabilities recorded in Payables are reflected in the general ledger AP liability
accounts. If the balance reported by the accounts payables trial balance does not equal the balance
in the AP liability account, you can use the Account Analysis report and the General Ledger reports
to determine what journals are being posted to that account. Before running your reports, run the
Transfer Journal Entries to GL Program for all transactions in the period that you are
reconciling. Also, be sure to post the transactions in the general ledger.

Attention: Typical AP/GL Reconciliation Example


31st March Accounts Payables Trial Balance Report
+ April Payables Posted Invoice Register
–April Payables Posted Payment Register
–- 30th April Accounts Payables Trial Balance Report
=0

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

b. Run Third Party Balances Report

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

Suppliers and Customers. It retrieves the following information:

· Third party balances for third party control accounts

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

· Third party and third party site information

· User transaction identifiers for the associated event

The balances in this report can be compared with the General Ledger balances for the same control
accounts to reconcile.
Note: A comparison between the accounts in payables with the accounts in GL might not match as
SLA has the ability to override the accounting. For more information refer to ‘SLA Implementation
Guide’.

c. Submit and review Account Analysis Report

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

Review this report and compare it with ‘Third Party Balances’ report. This report is owned by SLA.

Note: To avoid duplication with subledger journal entries, General Ledger journal entries imported
from Subledger Accounting are not included in the report.

11. 11. Run Mass Additions Transfer to Oracle Assets

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

For foreign currency assets, Payables sends the invoice distribution amount in the converted
functional currency. The mass addition line appears in Oracle Assets with the functional currency
amount.

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

It is recommended to do a final Mass Additions Create after the period close to ensure that all
Payables invoices are

included in the correct period and

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

Suggestion: If the volume of transactions in Accounts Payable requiring Assets


update is large, you should consider running the Mass Additions Create process on a
more regular basis.

12. 12. Open the Next Oracle Payables Period

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

13. 13. Run Reports for Tax Reporting Purposes (Optional)

A variety of standard reports can be used to provide tax information, which is required to be
reported to the relevant Tax Authority, including withholding tax.
Withholding tax is handled by Payables whereas other tax requirements are handled by eBTax.

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

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

The following tax registers are available:

· Deferred Output Tax Register

· Recoverable and Non-Recoverable Tax Registers

· Single Cross Product Tax Register

· Standard Input and Output Tax Registers

The following summary levels are available within each Tax Register:

· Transaction Header

· Transaction Line

· Accounting Line

0. 14. Run the Key Indicators Report (Optional)

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

When you submit the Key Indicators Report, Payables generates reports you can use to review
Payables transaction activity, and review the current number of suppliers, invoices, payments and
matching holds in your Payables system.

The Key Indicators Report generates the following two reports:

a. The Key Indicators Current Activity Report

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

b. Key Indicators Invoice Activity Report


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

c. The Key Indicators State of the System Report

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

Suppliers:

· Number of suppliers.

· Number of supplier sites.

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

Invoices:

· Number of invoices.

· Number of invoice distributions.

· Average lines per invoice. The number of invoices divided by the number of distributions.

· Scheduled payments. Number of scheduled payments based on payment terms and manual
adjustments in the Scheduled Payments tab.

· Average payments per invoice. The number of invoices divided by the number of scheduled
payments.

Payments:

· Number of payments (both manual and computer generated) created and recorded in Payables.

· Invoice payments. Number of invoice payments made by Payables. A payment document can pay
multiple invoices.

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

Matching holds:

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

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

15. 15. Purge Transactions (Optional)


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

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

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

16.

Chapter 6 Oracle Receivables

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

15. Business Requirements

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

Oracle Receivables provides a comprehensive set of reports to facilitate reconciliation of outstanding


customer balances, transactions, receipts, and accounts balances.

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

16. Procedures

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

0. 1. Complete All Transactions for the Period Being Closed

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

Completing all transactions for Oracle Receivables:

Complete Invoicing, Credits and Adjustments


Complete Receipts and Reversals

Complete Invoice and Customer Import

Complete LockBox Processing

Run the revenue recognition program (Optional)

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

0. 2. Reconcile Transaction Activity for the Period

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

a. The Transaction Register

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

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

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

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

By using the following formula, ensure that the Transaction Register matches the Sales Journal:

Transaction Register (Items eligible for posting) + 2 * Credit Memo Total = Sales Journal (Debits plus
Credits)

E.g. $100 + (2 * $20) = Debits $120 + Credits $20

($120 Debits - $20 Credits)


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

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

c. Review the Journal Entries Report

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

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

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

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

Note: To avoid duplication with subledger journal entries, General Ledger journal entries imported
from Subledger Accounting are not included in the report

d. Review the AR to GL Reconciliation Report:

The AR to GL Reconciliation report compares the account balances in Oracle Receivables to those in
Oracle General Ledger, and highlights journal sources where discrepancies might exist. This report
simplifies the reconciliation process by comparing Receivables and General Ledger account balances
in a single place.

Run the AR to GL Reconciliation report:

After the Create Accounting program in Receivables has completed, and

You have reviewed the Unposted Items report to confirm that all journal entries have posted, and

You have used the posting execution reports to confirm that the journal entries exported from
Receivables match those posted in General Ledger.

This report will show a difference between Receivables and GL account balances only if items did not
successfully post to GL accounts. The Difference column indicates that the activity in Receivables
compares to the journal source of Receivables in the G.L. If the actual balance of a specific account is
different in Receivables than in the general ledger, then the following columns highlights the type of
journals that affect the account balances:

· GL Source Manual: Manual journal entries made in the General Ledger.

· GL Subledgers Not AR: Journal entries posted to the General Ledger from other subledgers, such as
Oracle Payables or a legacy feeder system.

· Unposted in GL: Unposted journals in the general ledger.

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

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

0. 3. Reconcile Outstanding Customer Balances

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

Period-End Balance = Outstanding Balance at Start of Period + Transactions +


Adjustments - Invoice Exceptions - Applied Receipts - Unapplied Receipts

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

Component Report

Beginning Aging reports


Balance

Transactions Transaction Register

Adjustments Adjustment Register

Exceptions Invoice Exceptions Report

Applied Receipts Applied Receipts Register (Identify payments received from


customers)

Unapplied Unapplied and Unresolved Receipts Register (Identify payments


Receipts received from customers)
Ending Balance Aging report (As of the last day of the accounting period)

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

1. 4. Review the Unapplied Receipts Register

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

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

2. 5. Reconcile Receipts

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

Receipts Journal Report

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

Receipt Register

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

Attention: Normally the total of the Receipts Journal report should equal the total of
all the receipts in the Receipt Register for the same GL date range. Unfortunately
currently (January 2009) this is not always the case. See the following Metalink bugs
and enhancement requests for more details:
Note 393682.1: Unable to Reconcile Receipt Register to Receipt Journal –
Enhancement 5567693 is still pending.
Bug 7423482: Receipt Register and Receipt Journal do not show on-account activity –
deemed functionality.
Bug 7589198: Receipt Register does not match Receipt journal – still in progress.

Both reports display invoice related receipts and miscellaneous receipts.

3. 6. Reconcile Receipts to Bank Statement Activity for the Period


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

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

4. 7. Post to the General Ledger

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

The posting process for Oracle Receivables involves a single step:

Create Accounting: This request-owned by SLA can be submitted from the tr1ansactions screen or
even from the SRS screen. The accounting is done at the ledger level and the program has the ability
to transfer and import into General Ledger based on the parameters specified.

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

5. 8. Reconcile the General Ledger Transfer Process

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

Create Accounting will generate a report which details the transferred transactions, transactions in
error etc.

Once transactions and receipts have been transferred to the GL tables, Oracle Receivables regards
these items as having been ‘posted’ within the sub-ledger. Account balances for transactions and
receipts can be reconciled by generating the Sales Journal by GL Account Report, the Receipts
Journal Report (in ‘transaction’ mode) and the Journal Entries Report for posted items. The account
totals in the Sales and Receipt journals should match the corresponding account balances in the
Journal Entries Report.

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

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

If SLA final accounting lines exist, then SLA accounting is displayed. If SLA accounting lines do not
exist, then AR distribution accounting is displayed.
6. 9. Reconcile the Journal Import Process

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

When the Create Accounting Program is submitted with the posting mode as ‘Final Post’, then the
Journal Import produces an execution report that shows you the total debits and credits for the
journals it created. These totals should match the totals on the Journals - (180 Char) report totals
(Select posting status as ‘Posted’)

When the Create Accounting Program is submitted with the posting mode as ‘Final’ then journal
import process produces an execution report that shows you the total debits and credits for the
journals it created. These totals should match with the totals on the journals- (180 Char)-
report (Select posting status ‘Unposted’while executing the program)

‘Draft’ method is used to create accounting to determine the accounting impact of their entries
Draft entries can be included on accounting reports but cannot be transferred to General Ledger. A
draft entry does not update balances and does not reserve funds.

7. 10. Print Invoices

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

If Balance Forward Billing functionality is used, then ensure that the consolidated (BFB) invoices have
been generated for the current period.

Note: Balance Forward Billing replaces consolidated billing invoices (CBI) feature of 11i. For more
information on the setup of balance forward billing refer to Oracle Receivables Implementation
Guide Or Oracle Receivables User Guide 12.

8. 11. Close the Current Oracle Receivables Period

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

9. 12. Review the Subledger Period Close Exceptions Report:

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

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

For the application associated with the responsibility


For all applications in the General Ledger responsibility

13. 13. Third Party Balances Report

Run Third Party Balances Report from the SRS screen

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

§ Third party balances for third party control accounts

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

§ Third party and third party site information

§ User transaction identifiers for the associated event

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

0. 14. Reconcile Posted Journal Entries

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

1. 15. Review the Unposted Items Report

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

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

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

2. 16. Review Account Analysis Report

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

Review this report and compare it with Third Party balances report.
This report is owned by SLA.

Note: To avoid duplication with subledger journal entries, General Ledger journal entries imported
from Subledger Accounting are not included in the report.

3. 17. Open the Next Oracle Receivables Period

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

4. 18. Run Reports for Tax Reporting Purposes-ebTAX (Optional)

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

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

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

The following tax registers are available:

§ Deferred Output Tax Register

§ Recoverable and Non-Recoverable Tax Registers

§ Single Cross Product Tax Register

§ Standard Input and Output Tax Registers

The following summary levels are available within each Tax Register:

§ Transaction Header

§ Transaction Line

§ Accounting Line

19. 19. Run Archive and Purge Programs (Optional)

The Archive and Purge cycle is divided into four separate processes, Selection and Validation,
Archive, Purge, and optionally Copying to a file. The Selection and Validation and Archive processes
form the Archive-Preview program. This program selects eligible transaction using criteria you
specified, validates the data to identify the transaction chains, then stores this information in the
archive tables. The Purge program uses the information in the archive tables to delete eligible
transactions from the database tables. Alternatively, you can run selection and validation, archive,
and purge processes together using the Archive and Purge program. The final process is to transfer
the archive data to a separate storage medium.
Warning: You should not use the Receivables Archive and Purge program if you are
using cash basis accounting.

20.

Chapter 7 Oracle Purchasing

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

19. Business Requirements

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

20. Procedures

The following steps are performed while closing the period in Oracle Purchasing.

0. 1. Complete All Transactions for the Period Being Closed

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

Complete all transactions for Oracle Purchasing:

Complete Requisitions

Complete Purchase Orders and Releases

Complete Receipts and Returns

Submit the Confirm Receipts Workflow Select Orders process in Purchasing to send notifications
through the Web, e–mail, or Notification Details Web page (accessible through the Notifications
Summary menu in Purchasing) to requestors or buyers who create requisitions in Purchasing or
iProcurement. The Confirm Receipts workflow sends notifications for items with a Destination or
Deliver–To Type of Expense, a Routing of Direct Delivery, and a Need–By date that is equal to or
later than today’s date.

Requestors can create receipt transactions by responding to the notification.

Print or Archive all new Purchase Orders


Respond to all Workflow Notifications

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

0. 2. Review the Current and Future Commitments (Optional)

Run the Purchase Order Commitment by Period Report

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

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

Run the following reports:

Purchase Order Detail Report

Open Purchase Orders (by Buyer) Report

Open Purchase Orders (by Cost Center) Report

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

0. 4. Follow Up Receipts - Check With Suppliers

From the details obtained from the Purchase Order Detail Report regarding purchase orders not
received, the appropriate department can then follow up with the suppliers as to the status of the
ordered items.

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

Attention: Where you have selected to accrue receipts at period end, make sure that
all receipts have been entered for a specific period before creating receipt accruals
for that period.
It is not necessary to enter all the receipts for a period prior to closing that period. Simply backdate
the receipt date when entering receipts for a closed period.

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

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

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

2. 6. Follow Up Outstanding Invoices

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

3. 7. Complete the Oracle Payables Period-End Process

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

4. 8. Run the Receipt Accruals - Period End Process

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

If encumbrance or budgetary control is being used, another journal entries batch is created,
corresponding to the encumbrance reversal entries for the un-invoiced receipts that were accrued.
Reversal of accrual entries for the next period will happen automatically if:

the Profile option ‘GL: Launch Auto Reverse After Open Period' is set to 'Y'

and for the accrual journal category the reverse option is selected.

If the profile option set to ‘N’ then accrual entries needs to be reversed manually.

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

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

5. 9. Reconcile Accrual Accounts - Perpetual Accruals

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

Purchase Price Variance

Invoice Price Variance Account

A/P Accrual Account

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

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

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

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

At any given time, the following transactions can account for the balance in the A/P accrual account:
Uninvoiced Receipts

Over-invoiced Receipts

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

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

The Accrual Reconciliation Reports are used to analyse un-invoiced receipts and to reconcile the
balance of the AP accrual accounts. These reports enable you to identify the following issues in
receiving, purchasing, inventory, work in process, or accounts payable transactions:

Quantities differ between receipts and invoices

Incorrect purchase order or invoice unit prices

Discrepancies in supplier billing

Invoice matched to the wrong purchase order distribution

Receipts against the wrong purchase order or order line

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

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

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

Program: Accrual Reconciliation load run

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

AP and PO Accrual Reconciliation Report

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

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

Summary Accrual Reconciliation Report

The Summary Accrual Reconciliation Report can be used to analyze the balance of the Accounts
Payable (AP) accrual accounts. You can accrue both expense and inventory purchases as you receive
them. When this happens, you temporarily record an accounts payable liability to your Expense or
Inventory AP accrual accounts. When Oracle Payables creates the accounting for the matched and
approved invoice, Oracle Payables clears the AP accrual accounts and records the liability from the
supplier site and helps you monitor potential problems with purchasing and receiving activities that
can affect the accuracy of your A/P AccrualAccounts. It displays the balance of each accrual account
as well as partial representation of source of the balance

After researching the reported accrual balances, the Accrual Write-Offs window can be used to
indicate which entries are to be removed and written off from this report. Accounting entries have
to be created in SLA and GL for these write-off transactions by submitting the Create Accounting
program and hence manual adjustment of accrual entries is not required.

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

The Reconciliation reports also provide information on the quantity differences (the quantity
received for a purchase order shipment is less than the quantity invoiced) and price differences.
Ensure that prior to closing the period, these differences are resolved.

Prerequisites:

Oracle Payables and Oracle Purchasing installed.

If expense purchases are accrued on receipt, this report enables reconciliation with the accounts
payable accrual account.

If expense purchases are accrued at period end, and inventory receipts are not performed, no
information will be available to report.

If you have installed Oracle Inventory or Work in Process, the Accrual Reconciliation Report also
displays any inventory or work in process transactions for the accrual accounts.

Attention: Most commercial installations accrue expense receipts at period


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

Attention: For Oracle Purchasing, all transactions are created in purchasing


and need the GL Transfer Program to be run to transfer to GL.
For Oracle Inventory, and Oracle Work In Progress, a GL transfer or period
close must first be performed for the transactions to appear on these
reports.
For Oracle Payables, journal entries must be created for the invoices.
The Accrual Reconciliation Reports requires the transactions to be
transferred to the General Ledger interface to ensure the report balances to
the General Ledger.

10. 10. Perform Year End Encumbrance Processing (Optional)

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

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

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

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

Carry forward encumbrances, and the encumbered budget.

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

Other facilities available:

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

Carry forward budgets into the current appropriation budget, or to a separate budget to identify
between current year and carry forward amounts if required. Mass budget processing also allows
you to combine these budgets.
Attention: You must complete the Year End Encumbrance processing
in Oracle Purchasing before commencing the year end Encumbrance
processing in Oracle General Ledger.
(Refer to Chapter 11 Period-End Procedures for Oracle General
Ledger)

· The steps required to complete Year end Encumbrance processing in Oracle Purchasing are:

· a. Identify Outstanding Encumbrances

· Print the Encumbrance Detail Report to review the requisition and purchase order encumbrances, if
the encumbrance option for requisitions or purchase orders has been enabled, and requisitions and
purchases have entered and approved. Use this report to review the accounts encumbered.

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

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

Period-end accrual: Generate the Encumbrance Detail Report at period-end. During the period, the
encumbrance detail on the report is based on invoice matching information from Payables, not on
receiving information. After the Receipt Accruals - Period-End process is run; the Encumbrance
Detail Report reflects the true period-end receipt information.

Cash basis: If cash-basis accounting is used, the encumbrances on the Encumbrance Detail Report
remain until payment information from Payables is transferred to General Ledger. When cash-basis
accounting is used and the Payables Transfer to General Ledger process is submitted, Payables
transfers only accounting information for paid invoices to the General Ledger.
Based on this report you can identify those transactions that you wish to carry forward into the new
financial year.

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

b. Perform MassCancel in Oracle Purchasing (Optional)

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

Define MassCancel

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

Document Type

Supplier Name

Accounting Flexfield Range

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

Unable to Cancel Requisitions (reasons provided)

Unable to Cancel Purchase Orders (reasons provided)

Partially in Range Documents

Fully in Range Documents

Run MassCancel

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

Attention: If you wish to cancel both purchase orders and


requisitions, you must initiate MassCancel twice. Note that when
canceling a purchase order, you have the option of canceling the
original requisition at the same time

11. 11. Close the Current Oracle Purchasing Period


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

12. 12. Open the Next Oracle Purchasing Period

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

13. 13. Run Standard Period End Reports (Optional)

Suppliers Quality and Performance Analysis Reports

Suppliers Report

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

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

Suppliers Audit Report

Use the Supplier Audit Report to help identify potential duplicate suppliers. This report lists active
suppliers whose names are the same up to a specified number of characters. The report ignores
case, spaces, special characters, etc.

The report lists all site names and addresses of each potential duplicate supplier. Payable inserts a
blank line between groups of possible duplicate suppliers. After duplicate suppliers have been
identified, they can be combined using Supplier Merge. If purchase order information is merged,
then any references to the supplier in blanket purchase orders, quotations, and auto source rules
are updated to the new supplier.

Vendor Quality Performance Analysis Report

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

Vendor Service Performance Analysis Report

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

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

The % Open Past Due is the percentage of the ordered quantity not received by the promise date
and beyond the receipt tolerance days.
The % Received On Time is the percentage of the ordered quantity received on the promise date or
within the receipt tolerance days.

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

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

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

Vendor Volume Analysis Report

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

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

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

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

Analyse Requisitions

Requisition Activity Register

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

Review Quotation, RFQ and Purchase Order Statuses

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

Blanket and Planned PO Status Report

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

Savings Analysis Reports

Savings Analysis Report (by Category)

The Savings Analysis Report (By Category) shows buyer performance by category. Use the report to
compare the market, quote, or list price to the actual price.
The Negotiated Amount is the product of the price on the quotation and the quantity ordered. If a
quote is not defined, Purchasing prints the product of the market price of the item ordered and the
quantity ordered. If the market price is not defined, Purchasing uses the list price.

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

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

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

Savings Analysis Report (by Buyer)

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

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

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

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

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

Encumbrance Accounting Reports

Encumbrance Detail Report

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

Cancelled Purchase Orders Report

Cancelled Requisition Report

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

12.

Chapter 8 Oracle Inventory

This chapter describes the procedures for performing period-end processing in Oracle Inventory
Release 12.
0. Business Requirements

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

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

Reconcile the inventory and work in process costs and values.

Transfer inventory and manufacturing costs to the General Ledger.

Transfer summary or detail accounting information to the general ledger.

Independently open and close periods for each inventory organisation.

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

Attention: Usually, logistic and manufacturing system need


to be always open for worker transactions ; means at month
end, the next period is opened to allow key-in from the first
day, then the closure process is processed for the past
month. To avoid date entry error (when both periods are
open) there is a profile option (INV: Transaction date
validation).

Attention: For large number organization environments,


there is functionality to open / close many logistic
organizations by batch program : “open period status
report”, “close period status report”.

0. Procedures

The following steps are taken in performing period-end processing for Oracle Inventory.
1. 1. Complete All Transactions for the Period Being Closed

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

Optional Report - Cycle Count Pending approval Report

2. 2. Check Inventory and Work in Process Transaction Interfaces

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

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

Cost Manager (mandatory)

Material Transaction Manager (Optional, depending on INV profile option “TP-INV: Transaction
Processing Mode” )
Move Transaction Manager (for WIP)

0. 3. Check and fix pending Transactions

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

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

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

Attention: This process needs to be completed for each


Inventory Organisation defined.

In case of error : correct source error, then relaunch transactions using :

INV / Transactions / Pending transactions

INV/ Transactions / Transaction Open interface

OM / Shipping / Interfaces
This check should be done during the month to avoid accumulated problems. Then at month end
before closing.

4. 4. Transfer Summary or Detail Transactions

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

If the Create Accounting Program is run in Final Mode without transferring to GL then run the
‘Transfer Journal Entries to GL-Cost Management’ which transfers the accounting to GL.

Attention: The Transfer Journal Entries to GL Cost


Management Program transfer the accounting details for all
the inventory organinzations within a Ledger.

Attention: If this step was by-passed, and the period was


closed, a GL Transfer would automatically be initiated, but
no adjustments to that period could then be entered,
since transactions cannot be posted to a closed period,
and a closed period cannot be re-opened.

View accounting, journal entries associated with transactions, and accounting events by accessing
the Sub ledger Accounting user interface from the View Transactions window and various statuses
for Ex: Final Accounted, Draft Accounted, Errored can be selected.

5. 5. Open the Next Inventory Period

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

Attention: This process needs to be completed for each


Inventory Organisation defined.

6. 6. Close the current Oracle Payables and Oracle Purchasing Periods

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

If Oracle Purchasing or Oracle Inventory are closed, a receipt cannot be entered for that period.
However, as a manual procedure, Oracle Purchasing should be closed before Oracle Inventory. This
still allows miscellaneous transactions corrections in inventory.
7. 7. Close the Current Inventory Period

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

Attention: This process needs to be completed for each


Inventory Organisation defined.

As explained in step 3/, prior to closing the inventory period, click on the pending button to display
any remaining pending transactions and make the appropriate resolutions.

The period close performs the following:

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

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

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

Calculates period-end sub-inventory balances.


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

This, along with values in transit creates the period-end value for the current period. The period-end
values by sub-inventory reported with the Period Close Summary Report.

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

Warning: Closing an inventory period permanently closes the


period and no further transactions can be charged to that
period.

0. 8. Run Standard Period-End Reports and reconcile the Perpetual Inventory with GL

Check that the perpetual inventory value up to the end of the period being closed matches the value
reported in the General Ledger. The balance normally matches with the General Ledger balance. But
Journal entries from products other than Oracle Inventory, may create discrepancies.

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

Period Close Value Summary Report. Use the Period Close Value Summary to see summary balances
for sub-inventories. If you run this report for a closed accounting period, the report displays the sub-
inventory values at the end of that period. If you run the report for an open period, the report
displays the sub-inventory value at the point in time you run the report.

Material Account Distribution Summary Report. Use the Material Account Distribution Summary
Report to verify inventory account activity against inventory valuation increases or decreases for the
accounting period. Finally, use this report to reconcile an account across several periods. If you
detect unusual accounts or amounts, use the Material Account Distribution Detail report to print the
transaction in detail.

Additional useful reports :


Inventory Value Report : You can see more sub-inventory balance detail by running the Inventory
Value Report, or the Elemental Inventory Value Report. These show quantity, valuation, and detailed
item information for the sub-inventories specified. (Warning : these reports show value at the point
in time you run the report).

Material Account Distribution Detail Report : use the Material Account Distribution Detail Report to
view the accounts charged for inventory transactions. Review inventory transaction values
transferred to the general ledger by GL batch.

9. 10. Validate the Work in Process Inventory

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

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

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