Close End Period Future Process

Future Process Definition Close End Period

EBS PROJECT

Future Business Definition

Close End Period

Future Process Model

Version 2.0

May 2008

Gimasys – Confidential


Table of Contents

1. DOCUMENT CONTROL..............................................................................................................31.1. Document Revision.............................................................................................................3

2. OBJECTIVE....................................................................................................................................3

3. OVERVIEW OF ACCOUNTING PERIOD CLOSE.....................................................................3

4. SUB-LEDGER PROCESSES.........................................................................................................34.1. INVENTORY......................................................................................................................3

4.1.1. Process end period....................................................................................................34.1.2. Accounting and Reconcile reports............................................................................3

4.2. CASH MANAGEMENT....................................................................................................34.3. ACCOUNT PAYABLES....................................................................................................3

4.3.1. AP Reconciliation.....................................................................................................34.3.2. GL Transfer...............................................................................................................34.3.3. Create Mass Addition................................................................................................34.3.4. Closing an AP Accounting Period............................................................................34.3.5. Accounting and Reconcile reports............................................................................3

4.4. PURCHASING...................................................................................................................34.4.1. Period End Checklist.................................................................................................34.4.2. Receipt Accruals - Period-End Process....................................................................34.4.3. Reconciling A/P Accrual Accounts Balance............................................................3

4.5. FIXED ASSETS..................................................................................................................34.5.1. Run Depreciation......................................................................................................34.5.2. Projecting Depreciation Expense..............................................................................34.5.3. GL Journal Entries Create.........................................................................................34.5.4. Accounting and Reconcile reports............................................................................3

4.6. ACCOUNT RECEIVABLES..............................................................................................34.6.1. Period End Process....................................................................................................34.6.2. Steps for Closing Period...........................................................................................34.6.3. Accounting and Reconcile reports............................................................................34.6.4. Reconcile Posted Journal Entries..............................................................................3

4.7. GENERAL LEDGER..........................................................................................................3



1. DOCUMENT CONTROL

1.1. Document Revision

Document Created By Date Status Version #



2. OBJECTIVE

This document is used to perform accounting period close and reconcile data the month-end close for each subledger within the Oracle Applications. This includes transferring transactions from the Oracle subledger to Oracle GL and maintaining the period statuses within each of the modules. Each subledger has its own period statuses to be maintained to effectively close and open the accounting periods for the module.



3. OVERVIEW OF ACCOUNTING PERIOD CLOSE



4. SUB-LEDGER PROCESSES

4.1. INVENTORY

4.1.1. Process end period

You can perform the general ledger transfer at any time during an open period—not just at period close. The transfer loads summary or detail accounting activity for any open period into the general ledger interface, including both inventory and work in process entries. When more than one period is open, the transfer selects transactions from the first open period up to the entered transfer date, and passes the correct accounting date and financial information into the general ledger interface.

1. To transfer transactions to the general ledger: Navigate to the General Ledger Transfer window. You can also use the All Reports

window and enter Transfer transactions to GL in the Name field. In the Parameters window enter the following information:

o Enter the date up to which you want to transfer transactions to the general ledger.

o Optionally, enter text describing the transfer.o Oracle Inventory displays the name of the accounting period that contains the

date of the transfer.o Choose the Submit button.

Oracle Inventory uses accounting periods to group material and work in process transactions for accounting purposes.

2. To view accounting periods:

Navigate to the Inventory Accounting Periods window.Review the following information:Status: Displays status of an accounting period as Future, Open, Closed, Processing, or Error.Period: Displays the name of the period.Num: Displays the number indicating the order of the period within the calendar year.Year: Displays the calendar year containing the accounting period.From: Displays the beginning date of the period.To: Displays the ending date of the period.Close Date: Displays the date on which you closed the period.

3. To view transaction distributions for a period:

Choose the Distributions button. See: Viewing Material

4. To view subinventory values at close:Choose the Values at Close button to display the ending value for all closed subinventories.

5. Opening an Accounting PeriodAn accounting period must be open for you to complete a transaction; that is, the transaction date you enter must fall within the beginning and ending dates you define for the period.



6. To open an existing accounting period:Follow the steps for viewing accounting periods.Select a period with a status of Future.Choose the Change Status button.Choose the OK button to open the period.

7. Updating an Accounting PeriodYou can change the end date of an open accounting period to shorten or extend the period.Attention: If you use Oracle General Ledger, you should not use this form to update the period end date. If Oracle Inventory and Oracle General Ledger period end dates are inconsistent, the journal import process could assign a different general ledger period. Therefore, when you post the entries in Oracle Inventory to Oracle General Ledger, they would be in different accounting periods.

8. To update open accounting periods:Following the steps for viewing accounting periods.Enter a new end date for the period.You can enter a value here only for those periods whose end date is equal to or later than the current date. The new end date must be equal to or later than the current date. Oracle Inventory updates the start date for the following period to the day after this period’s new end date.

9. Closing an Accounting PeriodYou can close the earliest accounting period with a status of Open or Error. An automatic general ledger transfer is processed when you close an accounting period.

10.To view pending activity for a period before closing it:

Follow the steps for viewing accounting periods.Choose the Pending button. The Pending Transactions window appears.Resolution Required: Displays the number of unprocessed material transactions, uncosted material transactions, and pending WIP costing transactions existing in this period. These must be resolved before the period is closed.Resolution Recommended: Displays the number of pending receiving transactions, pending material transactions, and pending shop floor move transactions existing in this period. You can close the accounting period, however, after it is closed these transactions cannot be processed.

11.To close an accounting period:Following the steps for viewing accounting periods.Select a period with a status of Open or Error.Choose the Change Status button.

Change the status to either Future or Closed.

4.1.2. Accounting and Reconcile reports

Material Account Distribution DetailUse the Material Account Distribution Detail Report to view the accounts charged for inventory transactions. You can review inventory transaction values transferred to the general ledger by GL batch. This feature helps you reconcile your inventory accounting to your general ledger.



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

4.2. CASH MANAGEMENT

If you use Cash Management with your other Oracle applications, you should consider changing your closing processes to ensure that:

Any reconciliation transactions created by Cash Management are properly entered. Account balances are updated. Reports include accurate information.

Specifically, we recommend the steps below:

1. Reconcile all your bank statements.2. Transfer all transactions from Payables and Receivables to your General Ledger interface

tables.3. Run Journal Import in General Ledger.4. Post journals in General Ledger.5. Run the GL Reconciliation Report from Cash Management for each bank account. This

report compares the statement balance you specify to the General Ledger ending balances.

Use this report to reconcile the General Ledger cash account balance to the bank statement closing balance and to identify any discrepancies in your cash position. The General Ledger cash account should pertain to only one bank account. This report is available in Summary and in Detail format.The Summary report lists the General Ledger cash account balance and an adjusted balance for the bank statement. It also lists a separate adjustment amount for unreconciled receipts, payments, and journal entries which have been recorded in the General Ledger cash account, as well as bank errors. The Detail report provides details for the unreconciled items as well as the information contained in the Summary report.

6. Review the report for errors.7. If there are errors in the report, correct them in Cash Management, as needed. Repeat the

above steps until there are no more errors.

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 unreconciled 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.

4.3. ACCOUNT PAYABLES

Definition: All activities related to transfer of transactions to GL and period closing in Oracle AP



Begin : Verification of unapproved invoicesEnd : Closing AP period and reporting Invoices & Payments activities

The main sub processes constituting this major process are the following: AP Reconciliation GL Transfer Reporting

4.3.1. AP Reconciliation

The process to reconcile AP transactions at period end before a period is closed. AP transactions can be reconciled at period end using the following method:

Balance in previous period end AP Trial Balance xxxxxx+ Current period Posted Invoice report balance xxxxxx- Current period Posted Payment report balance xxxxxx= Balance in current end AP Trial Balance xxxxxx

Use the Accounts Payable Trial Balance report to reconcile your accounts payable liability in your general ledger. Compare the Accounts Payable Trial Balance to the accounts payable balance in your general ledger system for a given period. However, because the Trial Balance presents the outstanding accounts payable liability information, it is only valid for an accrual set of books.

The following is the process flow for performing AP reconciliation:

4.3.2. GL Transfer

GL transfer is the process to transfer all AP accounting entries to GL. The Payables Transfer to General Ledger program transfers your invoice and payment accounting distributions and audit information you select to the general ledger interface (GL_INTERFACE) table. You can then use your general ledger system to import this information, create journal entries, and post these journal entries whenever you wish.



This process should continue on a daily basis to facilitate the requirement of an online system.

The following is the process flow for performing GL Transfer:

4.3.3. Create Mass Addition

Create Mass Addition is a process to transfer assets information from invoice line distributions in Payables to Oracle Fixed Assets by running the Mass Additions Create program.

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

4.3.4. Closing an AP Accounting Period

Payables prevents you from closing an accounting period until you post all transactions with an accounting date in that period. If there are unposted invoices or payments that you want to move forward into the next accounting period, you can submit the Unposted Invoice Sweep program to move them forward.



You should close a period when no one is entering any invoices or payments. This way you avoid the possibility of someone entering (without saving) a transaction in an open period, you close the period, and someone then saves a transaction. If this does happen, just submit the Unposted Invoice Sweep program. Following are steps to complete the close process in Payables:

1. Determine whether any checks are unaccounted for.

Run the Missing Documents Report.

If checks are missing, goto step #2. Otherwise, goto step #4.

2. Locate the missing checks.

3. Void the missing checks.

4. Notify the Accounts Payable Supervisor that all checks are accounted for.

5. Verify that all requests for payment have been entered.

6. Verify that all manual checks have been recorded.

7. Verify that documents have been processed.

8. Report invoices on hold.

Run the Invoices on Hold report.

9. List all of the general ledger account entries made during the period.

Run Expense Distribution Detail Report.

10. Determine whether general ledger account distribution errors exist.

Review the Expense Detail Distribution report to identify any account distribution errors. If distribution errors exist, goto task #11. Otherwise, goto task #15.

11. Identify the errors on the Expense Detail Distribution report.

12. Deliver the annotated report to an Accounts Payable Clerk.

13. Correct the account distribution errors.

14. Inform the Accounts Payable Supervisor that account distribution errors have been corrected.

15. Print a listing of aged accounts payable balances and a listing of all checks written during the period.

Run the Accounts Payable Trial Balance Report.

Run the Payment Register.

16. Verify the current accounts payable aging.

Compare the total of the new aging with the prior aging after adding vouchers and subtracting payments. If the aging is correct, goto task #20. Otherwise, goto task #17.

17. Correct the source of the differences.

18. Verify that the corrections have been made.

Re-run the AP Trial Balance Report.



Re-run the Payment Register.

19. Reprint the general ledger account entries made during the period.

Submit the Invoice Accounting Details report.

20. Transfer AP transactions to GL.

Submit the Payables Transfer to General Ledger program.

Review the Accounts Payable Journal Entry Exception report.

Unless there are no exceptions, Oracle Payables automatically prints this report after you initiate posting in Oracle Payables. Resolve any items that do not transfer.

21. Close accounts payable transactions.

22. Print the close reports.

Posted Invoice Register.

Posted Payment Register.

23. Complete a Journal Entry form.

24. Attach the Posted Payment and Invoice Register to the Journal Entry form.

25. Deliver the Journal Entry form to the Controller.

26. Verify that the journal entry is correct.

The journal entry should conform to Generally Accepted Accounting Practices (GAAP) as they affect the Company's fiscal policy.

Verify that the appropriate accounts are affected.

Verify that the magnitude of the accounts payable distribution to each department is reasonable.

Verify that all transactions associated with accounts payable are recorded in the database.

Discuss any problems with the Accounts Payable Supervisor.

If an adjustment is required, goto task #27. Otherwise, goto task #29.

27. Note the problem on the Journal Entry form.

28. Return the Journal Entry form to the Accounts Payable Supervisor.

29. Approve the journal entry.

30. Return the Journal Entry form to the Accounts Payable Supervisor.

31. Complete a Journal Entry form for the required adjustment.

Fill out a Journal Entry form including the correcting amounts and the appropriate accounts.

Attach supporting documents.

32. Approve the journal entry(s).

33. Deliver the Journal Entry form(s) to the General Accounting Manager.




Accounts Payable Trial Balance Report

Use the Accounts Payable Trial Balance Report to verify that total accounts payable liabilities in Payables equal those in the general ledger. To reconcile these balances you can compare the cumulative total liability provided by this report with the total liability provided byyour general ledger.The Trial Balance Report lists and subtotals by supplier and liability account all unpaid and partially paid invoices that Payables has transferred to the general ledger. These invoices represent your organization’s outstanding accounts payable liability. Therefore, to obtain the most up–to–date trial balance, you should transfer your invoice and payment activity to the general ledger before submitting this report.Since this report presents your outstanding accounts payable liability information, it is only valid for an accrual set of books. If you use future dated payments, the Relieve Future Dated Payment Liability Payables option determines when this report considers invoice liability relieved by a future dated payment. If the option is set to When Payment is Issued, then the invoice amounts paid by future dated payments do not appear in this report. If the option is set to When Payment Matures, then the invoice amounts continue to appear in this report until the payment status is updated to Negotiable. If the option is set to When Payment Clears, then the invoice amounts continue to appear in this report until the payment is cleared.

Payables Account Analysis Report

Use this report to review and analyze accounting entries in Payables. You can use the report parameters to limit the report to just the accounting information you want to review.This report is helpful when you reconcile your accounts with your general ledger. For example, you can reconcile the prepaid expense account between Payables and your general ledger. You can submit this report in detail and compare it to an account analysis report inyour general ledger. The report sorts accounting data by balancing segment first. Within each balancing segment group you can specify the order of the other account segments by using the Order By parameters. Within each account, the data is sorted by the following:

accounting date supplier name document number order of creation (line ID of the accounting entry line)

Posted Invoice Register

Use the Posted Invoice Register to review accounting lines, summarized by invoice, that have been transferred to general ledger. Because it presents amounts that have been charged to liability accounts, this report is valid only for an accrual set of books.The Posted Invoice Register is primarily a reconciliation tool. Use this report along with the Posted Payment Register and the Accounts Payables Trial Balance Report to reconcile balances between Payables and your general ledger. To make their output easier to read, each of these reports can be generated for a single liability account. For example, if you are using Automatic Offsets and the liability for your invoices is allocated across multiple balancing segments, then you can use the Liability Account parameter to limit your reports to a singlebalancing organization. You can generate the report in summary or in detail. When generated in detail, the report displays invoices charged to liability accounts and the accounting information that has been transferred to the general ledger. Also included is the supplier and amount information for each invoice listed. Payables displays the total invoice amount in the invoice currency and the



transferred distribution amount in both the invoice currency and accounted currency for easier reconciliation with general ledger.Note: The posted distribution amount only includes distribution lines that have been transferred to general ledger. When generated in summary, the report lists totals for each liability account and does not include any invoice detail. When you run the report in detail and you choose Journal Entry Batch as the sorting option, the output is grouped by liability account, journal entry batch name, and invoice currency. When your sorting option is Entered Currency, the groupings are by liability account, invoice currency, and then journal entry batch name. Within these groups records are sorted by supplier name, invoice number, and invoice date.

Posted Payment Register

Use the Posted Payment Register to review accounting lines, summarized by payments that have been transferred to general ledger. Because it presents amounts that have been charged to liability accounts, this report is valid only for an accrual set of books. You can submit the Posted Payment Register for one payment journal entry batch or all payment journal entry batches.The Posted Payment Register is primarily a reconciliation tool. Use this report along with the Posted Invoice Register and the Accounts Payables Trial Balance Report to reconcile balances between Payables and your general ledger. To make the output easier to read, each of these reports can be generated for a single liability account. For example, if you are using Automatic Offsets and the liability for your invoices is allocated across multiple balancing segments, then you can use the Liability Account parameter to limit your reports to a singlebalancing organization. You can generate the report in summary or in detail. When generated in detail, the report displays payments that relieve liability accounts and that have had their accounting information transferred to the general ledger. Also included is the supplier and amount information for each payment listed. Payables displays the payment amount in the entered currency and the liability amount relieved in the accounted currency. In detail mode, the report also displays the payment document and disbursement type for each batch of payments. It provides a report total and subtotals for each payment document and bank account. When generated in summary, the report lists totals for each liability account and does not include any payment detail. When you run the report in detail and you choose Journal Entry Batch as the sorting option, the output is grouped by liability account, journal entry batch name, bank account, and payment currency. When your sorting option is Bank Account, the groupings are by liability account, bank account, journal entry batch name, and payment currency. Withinthese groups, records are sorted by payment number, payment date, and supplier name.

Unaccounted Transactions Report

Use this report to identify and review all unaccounted invoice and payment transactions and see the reason that Payables cannot account for a transaction. Payables sorts the report by transaction type (invoice or payment), exception, supplier, transaction currency, and transaction number. Run this report after you have run the Payables 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.



4.4. PURCHASING

4.4.1. Period End Checklist

1. Identify the period you want to reconcile and close.

2. Enter all receiving transactions for goods and services you received during the period.

3. Enter and match all invoices you received during the period for your receipt accrual entries (In Payables).

4. Perform the GL Transfer in Inventory and reconcile your A/P Accrual entries (See detail below).

5. Identify the period-end balances of the following accounts in your general ledger:

Purchase Price Variance

A/P Accrual Account

Inventory Accounts

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

7. Identify the Invoice Price Variances amount and Accrued Receipts amounts in the A/P Accrual Account

8. Close your accounts payable period corresponding to the purchasing period for your receipts accrual entries.

9. Perform period-end accruals steps for purchasing and one-time items (as described in the following section).

10. Close the period in Purchasing (You do not need to reverse any journal entry batch in the following period).

4.4.2. Receipt Accruals - Period-End Process

Use the Receipt Accruals - Period-End process to create period-end accruals for your uninvoiced receipts for Expense distributions. Purchasing creates an accrual journal entry in your general ledger for each uninvoiced receipt you choose using this form.

Purchasing provides you with complete flexibility and control for your period-end accruals. You can use the Uninvoiced Receipts Report to analyze your uninvoiced receipts before you accrue them. You can then run the Receipt Accruals - Period-End process as many times as you want to generate accruals entries for the receipts you choose. Purchasing does not accrue receipts for purchase orders on or before the last date of the Accrual Period.

You create accruals for a specific purchasing period. Purchasing automatically accrues all uninvoiced receipts you entered up to the end of the accrual period you specify. Each time you run the Receipt Accruals - Period-End process, Purchasing creates an unposted journal entries batch in your general ledger for your receipt accruals.

Each time you create accrual entries for a specific uninvoiced receipt, Purchasing marks this receipt as accrued and ignores it the next time you run the Receipt Accrual - Period-End process. Purchasing creates accrual entries only up to the quantity the supplier did not invoice for partially invoiced receipts.

Follow the steps listed below:



1. Identify the purchasing period for your receipt accrual entries. Purchasing creates receipt accruals for all receipts you entered up to the end of this period. To prevent any period-end disruption, Purchasing lets you provide a receipt date that is different from the date you enter the receipts. You never have to enter all the receipts for a period before the end of this period. You can enter these receipts later. You simply need to backdate the receipt date. Of course, you should make sure you entered all receipts for a specific period before you create receipt accruals for that period.

2. Enter and match all invoices you received during the period for your receipt accrual entries.

3. Close the accounts payable period corresponding to the purchasing period for your receipts accrual entries.

4. Run the Uninvoiced Receipts Report and analyze your uninvoiced receipts that are accrued at period end.

5. Run the Receipt Accrual - Period-End process as many times as you need. You can use the search criteria to choose what you want to accrue and accrue your receipts step by step. This process creates accounting accrual entries using the journal source 'Purchasing' and the journal category 'Accrual'.

6. Run the Accrual Reconciliation Report after period close to analyze your receipts accrued on receipt.

7. Use your general ledger system to reverse all the receipt accrual for your period-end accruals in the following period.

8. Close the purchasing period for your receipt accruals. When you close a purchasing period, Purchasing automatically un-marks all the receipts you previously accrued to make sure you can accrue these receipts again if they are still uninvoiced in the next period.

9. After you have opened your next period in General Ledger and have either closed the previous general ledger period or have completed all previous month receipt accruals, you can reverse the previous month's receipt accruals in the new month. You perform this by reversing each general ledger journal batch in General Ledger.

To run the Receipt Accruals - Period End process:

1. Navigate to the Submit Requests window.

2. Select Requests in the first field.

3. Select Receipt Accruals - Period-End in the Name field.

4. Enter the Extended Value. The default is 0.

5. Enter the Supplier to restrict period-end receipt accruals to a single supplier.

6. Enter the item Category to restrict period-end receipt accruals to a single category.

7. Enter the Period for which you want to perform period-end receipt accruals. Purchasing automatically provides you with a list of acceptable accrual periods. This list contains periods that you closed in your accounts payable system and either opened or did not use in your general ledger system.

8. Save your work to begin the process.

4.4.3. Reconciling A/P Accrual Accounts Balance

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



Uninvoiced Receipts

Over-invoiced Receipts

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

Analyzing the A/P Accrual Account Balance

You need to monitor potential problems with purchasing and receiving activities that can affect the accuracy of your A/P accrual accounts. You can use the Accrual Reconciliation Report to identify the following problems in receiving, purchasing, inventory, work in process, or accounts payable transactions:

Quantities differ between receipts and invoices

Discrepancies in supplier billing

Invoice matched to wrong purchase order or wrong purchase order line

Received against the wrong purchase order or order line

Miscellaneous inventory transactions that do not belong to the accrual accounts

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

Using the Accrual Reconciliation Report

Use the Accrual Reconciliation Report to analyze the balance of the Accounts Payable (A/P) accrual accounts. To submit this report, you must have Purchasing and Payables installed. 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 A/P accrual accounts. When Payables matches and approves the invoice, Payables clears the A/P accrual accounts and records the liability from the supplier site.

Typically, you run this report at month end. After you have entered your receipt transactions and matched your invoices, you can run the Accrual Reconciliation Report for any transaction date range and identify any differences between your PO Receipts and A/P Invoices. This report also displays any miscellaneous transactions recorded in error to your accrual accounts. These miscellaneous transactions or transactions unrelated to purchase order receipts may be from Payables, Inventory, or Work in Process (depending on your installation). After you have researched the reported accrual balances, you can use the Accrual Write-Off form to indicate which entries you wish to remove and write off from this report. And, after you have written off these entries, you can use the Accrual Write-Off Report as supporting detail for your manual journal entry.

Resolving Quantity Differences

The Accrual Reconciliation Report lets you easily identify quantity differences (i.e., when the quantity received for a purchase order shipment is smaller than the quantity invoiced). Such differences leave residual balances that never clear from the A/P accrual accounts. You should investigate the cause of these differences and take corrective actions before closing your period.

Common causes of quantity differences include late inventory receipts, incorrect receipt quantities, and supplier overbilling. To correct late receipts, ensure that receivers enter all receipts into inventory. To correct receipt quantities, enter receipt corrections. To correct overbilling errors, follow your standard procedure for supplier debit memos to clear the difference.

Resolving Price Differences

The Accrual Reconciliation Report lets you determine how much you should have paid and whether the PO or invoice is correct. Such differences leave residual balances that never clear



from the A/P accrual accounts. You should investigate the cause of these differences and take corrective actions before closing your period.

4.5. FIXED ASSETS

This process guide you run depreciation and create journal entries in General Ledger at period end.

4.5.1. Run Depreciation

When you run depreciation, Oracle Assets gives you the option of closing the current period if you check the Close Period check box on the Run Depreciation window. If all of your assets depreciate successfully, Oracle Assets automatically closes the period and opens the next period for the book. If you do not check the Close Period check box when you run depreciation, Oracle Assets does not close the period.Once depreciation has been processed for an asset in the current open period, you cannot perform any transactions on those assets unless depreciation is rolled back or the current period is closed.Attention: Ensure that you have entered all transactions for the period before you run depreciation. Once the program closes the period, you cannot reopen it.

To run depreciation

1. Open the Run Depreciation window.2. Choose the Book for which you want to run depreciation.3. Choose whether you want Oracle Assets to close the period after successfully depreciating all assets.4. Choose Run to submit concurrent requests to run the calculate gains and losses, depreciation, and reporting programs.

Attention: You cannot enter transactions for the book while depreciation is running.Oracle Assets automatically runs the Journal Entry Reserve Ledger report when you run the depreciation program for a corporate book, and the Tax Reserve Ledger report for a tax book, so you can review the depreciation calculated.5. Review the log files and report after the request completes.6. If the log file lists assets that did not depreciate successfully, correct the errors and re–run depreciation.

To roll back depreciation

1. Select Rollback Depreciation from the navigator menu to open the Submit Requests window and the parameters window.2. On the Parameters window, specify the book for which you want to roll back depreciation. The period automatically defaults to the current open period.3. Choose Submit Request to roll back the depreciation.

4.5.2. Projecting Depreciation Expense

Depreciation projections are estimates of actual depreciation expense. You can project depreciation expense for any depreciation book. You can run depreciation projection only for the current depreciation parameters set up in your system.Note: You cannot run depreciation projections using the unit of production depreciation method on budget books.Path:



1. Navigate to the Depreciation Projections window.2. Enter the Projection Calendar to specify how you want to summarize the projection.You can summarize the results by year, quarter, month, or any other interval. For example, you can choose a monthly or quarterly calendar.3. Enter the Number of Periods for which you want to project depreciation. You can project depreciation expense for any number of future periods, on up to four depreciation books at once.4. Enter the Starting Period for your projection.5. Check Cost Center Detail to print a separate depreciation projection amount for each cost center. Otherwise, Oracle Assets prints a consolidated projection report for each expense account without cost center detail.6. Check Asset Detail to print a separate depreciation amount for each asset. Otherwise, Oracle Assets prints a consolidated projection report without asset detail.7. Enter the Book(s) that you want to include in your projection.8. Save your work.Oracle Assets submits a concurrent process to calculate the projection, and automatically runs the Depreciation Projection Report.

4.5.3. GL Journal Entries Create

Oracle Assets creates journal entries for depreciation expense, asset cost, and other accounts. Oracle Assets automatically creates transaction journal entries for your general ledger, if you have set up the journal entry category for that transaction type for that book.Oracle Assets creates journal entries that summarize the activity for each account for each transaction type.Prerequisite: Run the depreciation program for your depreciation book for this period.

To create journal entries for the general ledger:

Attention: The general ledger period for which you want to create journal entries must be open.1. Choose Journal Entries > Standard from the Navigator.2. Enter the Book and the Period for which you want to create journal entries in the Parameters window.3. Choose Submit to submit a concurrent process to create journal entries for your general ledger.4. Review the log file after the request completes.


Item Case General Ledger Fixed asset1 Use the following reports to

reconcile journal entries to general ledgeraccounts:

Unposted Journals reports

Drill down reportAccount drill down report

2 Use the following reports to reconcile asset cost accounts:

Account Analysis with Payables Detail Report

1. Cost summary report2. Cost detail report

3. Asset addition report4. Asset retirement report



5. Asset transfer reconcilation report6. Cost adjustment report7. Asset reclassification reconciliation report

3 Reconcile CIP cost accounts Account Analysis with Payables Detail Report

1. CIP summary report2. CIP detail report

3. Asset addition report4. Cost Adjustments report5. Asset Retirements report6. CIP Capitalization report7. Asset Reclassification Reconciliation report8. Asset Transfer reconciliation report9. CIP Assets report

4 Reconcile reverse accounts Account Analysis with Payables Detail Report

1. Reverse Summary Report 2. Reverse Detail Report 3. Asset Addition Report 4. Cost Adjustments Report 5. Asset Retirements report 6. Asset reclassification reconciliation report 7. Account Reconciliation reverse ledger 8. Asset transfer report

5 Reconcile depreciation expense accounts

Account Analysis with Payables Detail Report

Journal entry reserve ledger

Illustration for reconcile

Reconcile journal entries to genneral ledger:



Use the following reports to reconcile asset cost accounts:



Use the following reports to reconcile CIP cost accounts:



Use the following reports to reconcile reserve accounts:



Use the following reports to reconcile depreciation expense accounts:



You can use reports to track your mass additions from the time you bring them over from your accounts payable system to the time you post them into Oracle Assets:



You can use reports to reconcile your mass additions to your posted assets:



4.6. ACCOUNT RECEIVABLES

Definition : The process to close the period for AR on a monthly or an annual basis.Begin: Beginning of the AR close process.End: The close of the period within Oracle AR, and the opening of the next period as the current period.S-Telecom will transfer all the transaction information to General ledger on a daily basis.

The following steps will be performed at month end: Run the AR reports Reconcile AR to GL. Post all remaining transactions to GL Close Period for the month

4.6.1. Period End Process

The following process flow explains the Period End Process:



4.6.2. Steps for Closing Period

1. Complete Invoice Transactions

Run Incomplete Invoices Report to identify outstanding invoices.

Complete all Manual Invoices and Adjustments that should be billed in the current period.

Change the transaction type to VOID for any invoices that were created in error.

2. Complete Credit Memos

Complete all credit memos that should be credited this period

Change the transaction type to VOID for any credit memos that were created in error.

3. Complete Receipt Entry

Enter all receipts which should be posted in the current period:

4. Complete Misc. Transaction Entry

Enter all Misc. Transaction Activities (Bank Fees, Interest Income, Wire Transfer, etc) that should be posted in the current period:

Enter Receivables Activity to select GL offset accounts for posting.

Note: Cash Management provides function to create Misc. Transaction entries in AR subledger during its Bank Reconciliation processing.

5. Process Pending Adjustments

Approve or reject pending adjustments to customer invoices.



Run Adjustment Approval Report and Adjustment Register Report to verify outstanding and approved adjustments.

6. Open next Period

7. Print Invoices

Print Invoices created from previous steps.

Run Invoice Print Preview Report – lists all invoices selected for printing. Confirm invoice listing.

Run Invoice Print New Invoices – prints customer invoices.

Review printed Invoices documents

8. Run Journal Entries Report

Run the Journal Entries Report and review it for any unusual accounts.

Correct accounts as needed

9. Run General Ledger Interface

Run the GL Interface program to transfer completed invoices and receipt transactions to the General Ledger:

View the Journal Import report to ensure Status = SUCCESS.

10. Check Unposted Items

Check that there are no unposted items after the GL transfer:

Run Unposted Items Report to identify any items that failed to post during the GL transfer for the specified GL date range.

Note: The GL Transfer Program will generate this report if there are items that you attempt to transfer to your general ledger that are out of balance.

Run Sales Journal by GL Account Report to identify any items that are not been transferred for the specified GL date range. (Specify “unposted” for report parameter.)

11. Post Journals

12. Run Period Close Request Set

13. Complete To Reconcile Receipts and the Aged Trial Balance.

14. Make Reconciliation Adjustments

Make any adjustments required to correct reconciliation errors from Run Period Close Reconciliation step.

If any reconciliation adjustments are made, rerun the General Ledger Interface program and confirm that all transaction transfer and are imported, as in Run General Ledger Interface Step

Rerun the Unposted Items Report, to confirm that all transactions for the period have posted to the GL.

15. Complete to reconcile: the ATB to GL, the Transaction Register to the Sales Journal, and the Sales Journal to the GL.

16. Open/Close Periods

Control: Accounting: Open/Close Periods

Find the current Period, set Status = Closed

17. Notify GL



Notify GL Accountant that Receivables Close is complete and reconciled.

18. Print Customer Statements

Print Documents

Print draft and then final Statements for all Customers.

Generate Final Statements.

19. Print Dunning Letters

Print draft and then final Dunning Letters for all Customers.

Post Dunning Letters with overdue Invoices attached.


Reconcile Outstanding Customer Balances

Reconcile the outstanding customer balance at the beginning of a specified period with the ending balance for the same period. The following table represents the various components that affect a customer’s balance and the reports you can use to reconcile these components.

To view this information Use this reportBeginning Balance Aging Reports

Transactions Transaction Register

Adjustments Adjustment Register

Invoice Exceptions Invoice Exception Report

Applied Receipts Applied Receipts Register

Unapplied Receipts Unapplied Receipts Register

Ending Balance Aging Reports

Use the following formula to ensure your revenue accounts match your receivables aging:Beginning Balance+ Transactions+/– Adjustments– Invoice Exceptions– Applied Receipts– Unapplied Receipts= Ending Balance

Reconcile Transactions

Periodically check that Receivables transactions balance with themselves by running the Sales Journal by GL Account and the Transaction Register for the same GL Date range. This will ensure that all postable items are reflected on your Sales Journal.



The total on the Sales Journal by GL Account should equal the total of postable items in the Transaction Register. In case of any discrepancies, view your customer balances using the Sales Journal by Customer report to find which total does not balance.Use the following formula to ensure that the Transaction Register matches the Sales Journal:Transaction Register (postable items)+ 2 * Credit Memo Total= Sales Journal (Debits + Credits)You must adjust the Transaction Register total for any credits because they are negative on the Transaction Register and positive on the Sales Journal.

Reconcile Receipts

Periodically check that Receivables receipts balance by running the Receipt Journal report and the Receipt Register for the same GL Date range. Use the Receipt Journal view information about receipts that appear in your Journal Entries report. Use the Receipt Register to review a list of receipts for the date range that you specify.The total of the Receipt Journal should equal the total of all receipts in the Receipt Register. These reports display information about both invoice– related and miscellaneous receipts.Note: You can also use Oracle Cash Management to reconcile your deposits with a bank statement.

Reconcile Account Balances

Run the Sales Journal and Receipt Journal for the same General Ledger date range to see what will post to your General Ledger. Once you internally reconcile your transactions and receipts with your Sales and Receipt Journals, you can perform external reconciliation during and after the posting process. Posting within Receivables consists of two stages: General Ledger transfer and Journal Import.Run General Ledger Interface to extract transaction and receipt data from Receivables and transfer it into the General Ledger Interface table. You then run Journal Import to create your unposted journals in Oracle General Ledger. (You can run Journal Import automatically afterrunning General Ledger Interface or separately from Oracle General Ledger.) Finally, you run a separate posting process from Oracle General Ledger to create posted journal entries. Receivables provides reporting tools to track and reconcile the posting process.

Reconcile the General Ledger Transfer Process General Ledger Interface produces an execution report that shows you the total debits and credits transferred from Receivables to the General Ledger Interface table. Compare this report to your Sales and Receipt Journal totals and verify that they match. Be sure to use the same General Ledger Date ranges for the two journals and your GL transfer.

Receivables also produces the Unposted Items Report if there are any items that cannot be transferred to the General Ledger Interface table. You must take into account the total untransferred items when reconciling your Sales and Receipt Journals with the GL InterfaceExecution report. Once transactions and receipts have been transferred to the General Ledger Interface table, they are considered ’posted’ within the Receivables sub– ledger. Account balances for transactions and receipts can be reconciled by generating the Sales Journal by GL Account, the Receipt Journal (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.

The Journal Entries report shows the transaction and receipt numbers that contribute to a particular GL account. Run this report using the Summary by Account parameter to review the details that make up your general ledger journal entries. This report selects all transactionsthat will be posted to the General Ledger (i.e. associated transaction type has Post to GL set to Yes). The totals for each accounting flexfield in the Sales Journal report and the Receipt



Journal Report should match the corresponding totals in this report. You can also run this report for unposted items to see a summarized version of what would transfer to the General Ledger.

Note: The Journal Entries report can generate multiple reports. The ’Detail by Account’ version of this report is probably most useful for reconciliation purposes.

Use the Receipt Journal and the Sales Journal by GL Account report to see more detailed information before running General Ledger Interface. Use the Receipt Journal to review details of receipts that appear in your Journal Entries report. Use the Sales Journal by GL Account report to review all transactions and the associated accounting flexfield information for the GL date range and accounts that you specify.

Reconcile the Journal Import Process Journal Import lets you create detail or summary journal entries in Oracle General Ledger. Choose the Detail option to see the transaction detail in your General Ledger. In this case, the program creates one journal line for each transaction. You can see this information when you run the Unposted Journals report from the General Ledger, or online using the Account Inquiry window in the General Ledger. Choose the Summary option if you do not want the invoice detail in your General Ledger and simply want the debits and credits summarized by account.

In this case you will see one journal line for each accounting flexfield, per currency, instead of one journal line per invoice line.

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 Posting Execution report.To see your journals, run the Unposted Journals Report from General Ledger. The grand totals on this report should match the Journal Import Execution report.

Note: If you choose the Detail option when you run Journal Import, the invoice and customer numbers appear in the description of your journal lines so you can easily see the invoices that affect each account.

4.6.4. Reconcile Posted Journal Entries

Once you have run the Oracle General Ledger Post Journals program, you can see your posted journal entries by running the Posted Journals Report. The grand totals on this report should match the totals on the Journal Import Execution report

4.7. GENERAL LEDGER



Use the following checklist as a guideline to perform period-end, year–end processing in Oracle General Ledger.

1. Set the status of the first accounting period in the new fiscal year to Future Entry.Note: The first period of the new fiscal year should not be opened until all of the year–end processing for the last period of the current year has completed.

2. (Optional) If your business rules require you to create reversing entries at the beginning of every period, generate and post accruals from the prior period now.

3. Transfer data from all of your subledgers and feeder systems to the GL_INTERFACE table (if run Journal import from sudledgers is set to No).

4. Run the Journal Import process to populate the GL_JE_BATCHES, GL_JE_HEADERS, and the GL_JE_LINES tables. This can be done automatically from the subledger systems, or manually from Oracle General Ledger.Note: If you allow suspense posting in your set of books, you can choose a Journal Import Run Option that will post any journal import errors to a suspense account. If you do not choose this run option, Journal Import will reject any source/group ID combination that contains account errors. Note: Posting from the sub–ledger systems transfers data to the general ledger interface and journal entry tables but does not update general ledger balances. You must run the postingprocess from General Ledger to update the GL_BALANCES table.

Review the Journal Import Execution Report to check the status of all imported journal entries.

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

If you encounter a small number of errors, make the necessary corrections in the GL_INTERFACE table using the Correct Journal mport Data window. Run Journal Import.

If you encounter a large number of errors, delete the Journal Import data from the GL_Interface table, correct the information in the feeder or subledger system and run Journal Import.

5. Close the period for each subledger. This prevents future subledger transactions from being posted to General Ledger in the same period.

6. Review the imported journal entries in Oracle General Ledger. You can review them online or in reports. Reviewing journal entries before posting minimizes the number of corrections and changes that need to be made after posting.Below is a list of useful reports:

Journal Batch Summary Report General Journal Report Journal Entry Report Journal Line Report Journal Source Report Journals by Document Number Report (when document sequencing is used) Unposted Journals Report.

7. Post the imported journal entries.8. Perform reconciliations of subsidiary ledgers by reviewing and correcting balances. The following reports are useful to help you reconcile:

Account Analysis with Payables Detail Account Analysis with Subledger Detail



Account Analysis with Subledger Detail II General Ledger Report Posted Journals Report Journals Report with Subledger Detail Accrual Reconciliation Report Other Reports

9. Generate all recurring journals and step–down allocations.

10. (Optional) If you did not generate and post your prior period reversals at the beginning of this period, be sure to generate reversals now.Note: Although it is customary to post reversing entries at the beginning of a new period, many companies will leave this step as a period–end procedure.

11. Revalue balances to update foreign currency journals to your functional currency equivalents.

12. Post all journal entries, including: manual, recurring, step–down allocations, and reversals.Note: Be sure to generate and post the step–down allocations in the correct order.

13. Review your posting results. The following reports are helpful: Posting Execution Report Error Journals Report

14. Update any unpostable journal entries and then post them again.Common reasons for unpostable batches include:

Control total violations Posting to unopened periods Unbalanced journal entries

All errors in the journal entry batches must be corrected and resubmitted for posting.

15. Run General Ledger reports, such as the Trial Balance reports, Account Analysis reports, and Journal reports. It is recommended you create standard report sets that are run at the end of every period. This will help you maintain a consistent audit trail.

16. Translate balances to any defined currency if you need to report inforeign currencies.

17. If using a calendar with an adjusting period that represent the last day of the fiscal year, close the current period and open the adjusting period.

18. Create and post adjusting entries and accruals in the adjusting period.

19. Run Trial Balance reports and other General Ledger Reports in the adjusting period after adjustments are made.

20. (Optional) If you are required to have an actual closing journal entry that shows the closing of your income statement accounts to retained earnings, submit the Create Income Statements Closing Journals program. This program creates an auditable closing journal entry.

21. (Optional) If you submitted the Create Income Statement Closing Journals program, post the closing journals to update account balances. Your income statement will reflect zero balances.



22. (Optional) If your local accounting rules require you to close your balance sheet, submit the Create Balance Sheet Closing Journals program.

23. Post the Balance Sheet Closing Journal by submitting the Create Balance Sheet Closing Journals program. Your balance sheet will now reflect zero balances.

24. Close the last period of the fiscal year using the Open and Close Periods window.

25. Open the first period of the new fiscal year to launch a concurrent process to update account balances. Opening the first period of a new year automatically closes our your income statement and posts the difference to your retained earnings account specified in the Set of Books form.Note: If you have already run the Create Income Statement Closing Journals program, where the closing account specified was the retained earning s account, opening the new fiscal yearhas no further impact on retained earnings because the income statement accounts now have zero balances.

26. Run FSG reports for the last period of the year.

27. (Optional) If you closed your balance sheet at year–end, reverse the Balance Sheet Closing Journals to repopulate balances of your balance sheet accounts for the new year.
