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Oracle Financials E-Business Suite, Release 12 Period End Procedures i

ORACLE FINANCIALS

E-BUSINESS SUITE, RELEASE 12 PERIOD-END PROCEDURES

An Oracle White Paper

Created: June 2009

Updated: 12-SEP-2012



Oracle Financials E-Business Suite Release 12 Period End Procedures

Introduction

Background

This document has been put together by members of Oracle's internal EMEAFinancials Professional Community, acknowledging that every Financials customerneeds to successfully close the accounting books each period. Before the first externalpublication, various people from EMEA Applications Consulting and Financials

Product Development have reviewed and enriched the content. Read the paragraph‘Status and Feedback’ below, if you have any comments or feedback.

Objectives

This document provides guidance on period end procedures in Release 12 for OraclePayables, Oracle Purchasing, Oracle Inventory, Oracle Order Management, OracleReceivables, Oracle Assets, Oracle Projects, Oracle Cash Management, OracleTreasury and Oracle General Ledger. It is intended to be generic, and does not relateto a specific organization. Both mandatory and optional steps are included herein.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 involvedfor each, with particular emphasis on balancing the subledger applications to OracleGeneral Ledger, and attempts to provide an overview of the relative timing of theseprocedures for all installed Oracle applications.

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

Although this document particularly refers to ‘Period-End Procedures’, many of theprocesses can be performed more regularly throughout the accounting period, asrequired. 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 OracleFinancials was implemented for a single operating unit. Where an organization hasimplemented the ‘Multi-Org’ features of Oracle Financials, these procedures wouldneed to be performed for each operating unit individually unless Multi-Org AccessControl is enabled.

Note: R12 requires multi-org functionality to be used. For further details refer toOracle® 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 SystemAdministrator on a regular basis. Some Workflow Processes like the RequisitionApproval Workflow or the Purchase Order Approval Workflow will require a directresponse from a message recipient rather than a System Administrator.

Organization

This white paper contains twelve chapters and one appendix where you can findinteresting links to more information.




The first chapter describes the dependencies between the modules and the biggestchange between Release 11i and Release 12, which is the introduction of SubledgerAccounting (SLA). Then, the next ten chapters outline period-end proceduresappropriate to the Oracle Applications covered in this document. The last chapterdisplays a summary of the main period-end procedures for each application and therelative timing of each.

Attention: If you are using more than one application, the last chapter is a

good reference to see that the order of the steps for each application areundertaken in the right sequence, relative to the other applications you areusing.

Status and Feedback

This white paper is intended to be a living document. As we gather new or changedinformation, we will revise and re-publish this paper. Therefore, we welcome allfeedback from you. On the bottom of the My Oracle Support note where you havedownloaded this document is a link where you can email us your comments.




Table of Contents

INTRODUCTION ......................................................................................................................................................................... II

CHAPTER 1 SLA AND PERIOD END CLOSE DEPENDENCIES ....................................................................................................... 8Sub Ledger Accounting (SLA) – Business Process .............................................................................................................. 8

Sub Ledger Accounting (SLA) – Process Change ................................................................................................................ 8

Subledger Accounting (SLA) – Reconciliation ............. ............. ............ .............. ............. .............. ............ .............. ............ 9

Subledger Accounting (SLA) Close Process – General Steps ............................................................................................ 10

General – Period End Close Dependencies ....................................................................................................................... 11

CHAPTER 2 ORACLE ORDER MANAGEMENT........................................................................................................................... 12 Business Requirements ................. ............. ............ .............. ............. .............. ............ ............. .............. ............. ............. .. 12

Procedures ......................................................................................................................................................................... 12

1. Complete All Transactions for the Period Being Closed ........................................................................................... 122. Ensure all Interfaces are Completed for the Period (Optional) .................................................................................. 133. Review Open Orders and Check the Workflow Status .............................................................................................. 144. Review Held Orders ................................................................................................................................................... 145. Review Customer Acceptances (Optional) ................................................................................................................ 15

6. Review Discounts ...................................................................................................................................................... 157. Review Backorders .................................................................................................................................................... 158. Review and Correct Order Exceptions ....................................................................................................................... 159. Reconcile to Oracle Inventory ................................................................................................................................... 1610. Create Service Contracts (Optional) ........................................................................................................................ 1611. Reconcile to Oracle Receivables (Optional) ............................................................................................................ 1612. Run Standard Period End Reports............................................................................................................................ 16

CHAPTER 3 ORACLE CASH MANAGEMENT ............................................................................................................................. 18 Business Requirements ................. ............. ............ .............. ............. .............. ............ ............. .............. ............. ............. .. 18

Procedures ......................................................................................................................................................................... 18

1. Complete Daily Cash Management Activities ........................................................................................................... 182. Load Bank Statements ............................................................................................................................................... 183. Generate Sweep Transactions .................................................................................................................................... 184. Create Bank Statement Cashflows ............................................................................................................................. 185. Reconcile Bank Statements ........................................................................................................................................ 196. Create Miscellaneous Transactions ............................................................................................................................ 196a.Complete Bank Transfers .......................................................................................................................................... 197. Review Auto-Reconciliation Execution Report ......................................................................................................... 198. Resolve Exceptions on the Auto-Reconciliation Execution Report ........................................................................... 209. Run Bank Statement Detail Report ............................................................................................................................ 2010. Run Transactions Available for Reconciliation Report ........................................................................................... 2011. Resolve Un-reconciled Statement Lines .................................................................................................................. 2012. Post to General Ledger ............ ............. .............. ............. ............ .............. ............. .............. ............ .............. .......... 2013. Run the GL Reconciliation Report .............. ............. .............. ............ .............. ............. ............ .............. ............. .... 2014. Run the Account Analysis Report for the General Ledger Cash Account ............................................................... 2115. Review the Account Analysis Report ...................................................................................................................... 2116. Correct any Invalid Entries to the General Ledger Cash Account (Optional) ............ .............. ............ .............. ...... 21

CHAPTER 4 ORACLE PAYABLES.............................................................................................................................................. 22 Business Requirements ................. ............. ............ .............. ............. .............. ............ ............. .............. ............. ............. .. 22

Procedures ......................................................................................................................................................................... 22

1. Complete All Transactions for the Period Being Closed ........................................................................................... 222. Run the Payables Approval Process for All Invoices................................................................................................. 233. Review and Resolve Amounts to Post to the General Ledger ................................................................................... 234. Reconcile Payments to Bank Statement Activity for the Period ................................................................................ 245. Transfer All Approved Invoices and Payments to the General Ledger .............. ............. ............ .............. ............. .... 246. Review the Payables to General Ledger Posting process After Completion. ............................................................ 257. Submit the Unaccounted Transactions Sweep Program............................................................................................. 258. Close the Current Oracle Payables Period ................................................................................................................. 269. Accrue Uninvoiced Receipts ...................................................................................................................................... 2610. Reconcile Oracle Payables Activity for the Period .................................................................................................. 2611. Run Mass Additions Transfer to Oracle Assets ....................................................................................................... 29




12. Open the Next Oracle Payables Period .................................................................................................................... 2913. Run Reports for Tax Reporting Purposes (Optional) ............................................................................................... 2914. Run the Key Indicators Report (Optional) ............................................................................................................... 30

CHAPTER 5 ORACLE PROJECTS ............................................................................................................................................... 32 Business Requirements ................. ............. ............ .............. ............. .............. ............ ............. .............. ............. ............. .. 32

Project Periods and General Ledger Periods .................................................................................................................. 32Period Statuses ............................................................................................................................................................... 32General Exception Handling at Period End ................................................................................................................... 32

Procedures ......................................................................................................................................................................... 33

1. Change the Current Oracle Projects Period Status from Open to Pending Close ...................................................... 332. Open the Next Oracle Projects Period ....................................................................................................................... 333. Complete all Maintenance Activities ......................................................................................................................... 334. Run Maintenance Processes ....................................................................................................................................... 345. Complete All Transactions for the Period Being Closed ........................................................................................... 346. Run the Cost Distribution Processes .......................................................................................................................... 356a. Run the Generate Cost Accounting Events Program................................................................................................ 357. Interface Cost Transactions to Other Applications .................................................................................................... 358. Generate Draft Revenue for All Projects ................................................................................................................... 369. Review and Release Revenue for All Projects ........... ............. ............. .............. ............. ............ .............. ............. .... 3610. Run Generation Revenue Accounting Events Process ............................................................................................. 3611. Run Create Accounting to Process Revenue Accounting Events ............................................................................ 3612. Generate Invoices..................................................................................................................................................... 3713. Transfer Invoices to Oracle Receivables ............ ............. ............ .............. ............. .............. ............ .............. .......... 3714. Run Period Close Exceptions and Tieback Reports ................................................................................................. 3715. Run Final Project Costing and Revenue Management Reports ............................................................................... 3716. Change the Current Oracle Projects Period Status from Pending Close to Closed .................................................. 3817. Advance the PA Reporting Period (Optional).......................................................................................................... 3818. Update Project Summary Amounts ............. ............. .............. ............ .............. ............. ............ .............. ............. .... 3819. Restore Access to User Maintenance Activities ...................................................................................................... 3820. Reconcile Cost Distribution Lines with General Ledger (Optional) ........................................................................ 3821. Permanently Close the Oracle Projects Period (Optional) ....................................................................................... 38

CHAPTER 6 ORACLE RECEIVABLES......................................................................................................................................... 39 Business Requirements ................. ............. ............ .............. ............. .............. ............ ............. .............. ............. ............. .. 39

Procedures ......................................................................................................................................................................... 39

1. Complete All Transactions for the Period Being Closed ........................................................................................... 392. Reconcile Transaction Activity for the Period ........................................................................................................... 393. Reconcile Outstanding Customer Balances ............................................................................................................... 414. Review the Unapplied Receipts Register ................................................................................................................... 425. Reconcile Receipts ..................................................................................................................................................... 42

6. Reconcile Receipts to Bank Statement Activity for the Period ............ .............. ............. ............ .............. ............. .... 427. Post to the General Ledger ......................................................................................................................................... 438. Reconcile the General Ledger Transfer Process ........................................................................................................ 439. Reconcile the Journal Import Process ........................................................................................................................ 4310. Print Invoices ........................................................................................................................................................... 4411. Close the Current Oracle Receivables Period .......................................................................................................... 4412. Review the Subledger Period Close Exceptions Report .......................................................................................... 4413. Third Party Balances Report .................................................................................................................................... 4414. Reconcile Posted Journal Entries ............................................................................................................................. 4515. Review the Unposted Items Report.......................................................................................................................... 4516. Review Account Analysis Report ............................................................................................................................ 4517. Open the Next Oracle Receivables Period ............................................................................................................... 4518. Run Reports for Tax Reporting Purposes (Optional) ............................................................................................... 45

CHAPTER 7 ORACLE PURCHASING.......................................................................................................................................... 46

Business Requirements ................. ............. ............ .............. ............. .............. ............ ............. .............. ............. ............. .. 46 Procedures ......................................................................................................................................................................... 46

1. Complete All Transactions for the Period Being Closed ........................................................................................... 462. Review the Current and Future Commitments (Optional) ......................................................................................... 463. Review the Outstanding and Overdue Purchase Orders (Optional) ........................................................................... 464. Follow Up Receipts - Check With Suppliers ............................................................................................................. 475. Identify and Review Un-invoiced Receipts (Period-End Accruals) ............ ............. .............. ............ .............. .......... 476. Follow Up on Outstanding Invoices .......................................................................................................................... 477. Complete the Oracle Payables Period-End Process ................................................................................................... 478. Run the Receipt Accruals - Period End Process ........................................................................................................ 479. Reconcile Accrual Accounts - Perpetual Accruals .................................................................................................... 4810. Perform Year End Encumbrance Processing (Optional) ............ ............ .............. ............. ............ .............. ............. 50




11. Close the Current Oracle Purchasing Period ............................................................................................................ 5212. Open the Next Oracle Purchasing Period ............ .............. ............. ............ .............. ............. .............. ............. ........ 5213. Run Standard Period End Reports (Optional) .......................................................................................................... 52

CHAPTER 8 ORACLE INVENTORY-COST MANAGEMENT ......................................................................................................... 55 Business Requirements ................. ............. ............ .............. ............. .............. ............ ............. .............. ............. ............. .. 55

Procedures ......................................................................................................................................................................... 55

1. Complete All Transactions for the Period Being Closed ........................................................................................... 552. Check Inventory and Work in Process Transaction Interfaces .................................................................................. 553. Check and fix pending Transactions .......................................................................................................................... 564. Transfer Summary or Detail Transactions ................................................................................................................. 565. Open the Next Inventory Period ................................................................................................................................ 576. Close the current Oracle Payables and Oracle Purchasing Periods ............. ............. .............. ............ .............. .......... 577. Close the Current Inventory Period............................................................................................................................ 578. Run Standard Period-End Reports and reconcile the Perpetual Inventory with GL .................................................. 579. Validate the Work in Process Inventory .................................................................................................................... 58

CHAPTER 9 ORACLE ASSETS................................................................................................................................................... 59 Business Requirements ................. ............. ............ .............. ............. .............. ............ ............. .............. ............. ............. .. 59

Procedures ......................................................................................................................................................................... 59

1. Complete All Transactions for the Period Being Closed ........................................................................................... 592. Assign All Assets to Distribution Lines ..................................................................................................................... 593. Run Calculate Gains and Losses (Optional) .............................................................................................................. 594. Run Depreciation ....................................................................................................................................................... 605. Create Accounting ..................................................................................................................................................... 606. Rollback Depreciation ............................................................................................................................................... 617. Create Deferred Depreciation Journal Entries (Optional) .......................................................................................... 618. Depreciation Projections (Optional) .......................................................................................................................... 619. Review and Post Journal Entries ................................................................................................................................ 6110. Reconcile Oracle Assets to the General Ledger Using Reports ............................................................................... 6211. Run Responsibility Reports (Optional) .................................................................................................................... 63

CHAPTER 10 ORACLE TREASURY ........................................................................................................................................... 64 Business Requirements ................. ............. ............ .............. ............. .............. ............ ............. .............. ............. ............. .. 64

Procedures ......................................................................................................................................................................... 64

1. Complete Daily Trading Activities ............................................................................................................................ 642. Perform Revaluation .................................................................................................................................................. 643. Generate Accruals and Amortization ......................................................................................................................... 644. Generate Journals ....................................................................................................................................................... 655. Transfer Journals to General Ledger .......................................................................................................................... 65

CHAPTER 11 ORACLE GENERAL LEDGER ............................................................................................................................... 66 Business Requirements ................. ............. ............ .............. ............. .............. ............ ............. .............. ............. ............. .. 66

Period End Close ........................................................................................................................................................... 66Combined Basis Accounting .......................................................................................................................................... 66

Procedures ......................................................................................................................................................................... 66

1. Ensure the Next Accounting Period Status is set to Future Entry .............................................................................. 662. Complete Oracle Sub-ledger Interfaces to Oracle General Ledger ............................................................................ 673. Upload Journals from Web Applications Desktop Integrator (Web ADI) to Oracle General Ledger (Optional) ..... 674. Complete Non-Oracle Sub-ledger Interfaces to Oracle General Ledger (Optional: only required if you want to postfrom non-Oracle systems) .............................................................................................................................................. 675. Generate Reversal Journals (Optional) ...................................................................................................................... 686. Generate Recurring Journals (Optional) .................................................................................................................... 687. Generate Mass Allocation Journals (Optional) .......................................................................................................... 688. Review and Verify Journal Details of Unposted Journal Entries ............................................................................... 689. Post All Journal Batches ............................................................................................................................................ 689a. Run the Period Close Exceptions Report ................................................................................................................. 69

10. Run GL Trial Balances and Preliminary Financial Statement Generator Reports (FSGs) ............ .............. ............. 6911. Revalue Balances (Optional) ................................................................................................................................... 7012. Translate Balances (Optional) .................................................................................................................................. 7013. Consolidate Ledgers (Optional) ............................................................................................................................... 7013a. Reconcile Intercompany (optional) ........................................................................................................................ 7114. Review and Correct Balances (Perform Reconciliations) ........................................................................................ 7115. Enter Adjustments and / or Accruals and Post ......................................................................................................... 7216. Perform Final Adjustments ...................................................................................................................................... 7217. Close the Current Oracle General Ledger Period .............. ............. ............ .............. ............. .............. ............. ........ 7218. Open the Next Oracle General Ledger Period ......................................................................................................... 7319. Run Financial Reports for the Closed Period ........... ............. ............. .............. ............. ............ .............. ............. .... 7320. Run Reports for Tax Reporting Purposes (Optional) ............................................................................................... 73




21. Perform Encumbrance Year End Procedures (Optional) ......................................................................................... 73CHAPTER 12 PERIOD END PROCESSING - SUMMARY............................................................................................................... 75APPENDIX: MORE INFORMATION............................................................................................................................................ 81

Related My Oracle Support Information ..................... ............. ............ .............. ............. ............ .............. .............. .......... 81

CHANGE LOG.......................................................................................................................................................................... 82



Oracle Financials Release 12 Period End Procedures 8

Chapter 1 SLA and Period End Close dependencies

Sub Ledger Accounting (SLA) – Business Process

The new Subledger Accounting architecture in Release 12 provides a commonrepository of all your accounting information. Whenever you want to account for

your subledger transactions, online or as a background batch process, the accountingis generated by Subledger Accounting.

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

Subledger Accounting provides a comprehensive view of all subledger accountingdata. It behaves like a detailed version of your general ledger and provides a rich storeof information for reporting and analysis.

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

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

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

Subledger Accounting offers a new model between the subledgers and GL.

Sub Ledger Accounting (SLA) – Process Change

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

In Release 11i the transactions and distributions represented the accounting. InRelease 12 however, distributions on transactions in subledgers are considered to bethe default accounting and should therefore not be used for reconciliation purposes.



Oracle Financials E-Business Suite Release 12 Period End Procedures 9

The reason is that subledger accounting enables you to change the accounting fortransactions so it is different from the default accounting. Therefore, thesubledger

accounting becomes the single source of truth for accounting reconciliations .

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

The subledger accounting journal represents your REAL accounting and thebalancing 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 the general ledger to update the GL balances.

Differences between R11i and R12

Subledger Accounting (SLA) – Reconciliation

From a reconciliation perspective the picture below shows what has been changedbetween R11i and R12. In Release 11i, you reconciled transactions and distributionsto the general ledger through transactional reports. In the accounting reports inRelease 11i, the balances are displayed but not the transactional information.

In Release 12, there is no reason to reconcile distributions on transactions to thegeneral ledger. You can still reconcile transaction reports to accounting reports. Thenew 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 shouldignore distributions in Release 12, especially if you have altered your subledgeraccounting rules.




Reconciliation between R11i and R12

Subledger Accounting (SLA) Close Process – General Steps

Here are some guidelines, from a general perspective, how you can perform the closeprocess for every subledger:

a) Complete transactionsb) Create accountingc) Reconcile transactionsd) Post to General Ledgere) Reconcile accountingf) Close period

Step b), Create Accounting, is a new step in Release 12, as it is an SLA feature. The

accounting can be created immediately online, or can be run as a process in thebackground e.g. as a batch job at a time that matches your business needs.

The important thing to note, is that the accounting is not the distribution on thetransaction. The final accounting by SLA could result in different accounting entriesbeing generated based on the accounting rules you have configured. Therefore, youneed to ensure that all your accounting for your transactions is created before youpost to General Ledger, in order to update the balances correctly.



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Chapter 2 Oracle Order Management

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

Business Requirements

Open Sales Orders should be reviewed and, where possible, appropriate actionsshould be undertaken to finalize the Order Workflows and close these Sales Orders.

Procedures

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

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 authorizations

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

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

Confirm OM-shipping transaction for the period

Sales order acknowledgments

Cancel backordered included items

Respond to workflow approval notifications

Confirm that invoice interface (OM-> AR interface) has been completed

Optionally, confirm that service contracts for warranties and extended warrantieshave 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 arenot selected, increasing system speed and efficiency. Closed orders are excluded frommany of the standard reports available in Order Management, so reporting can belimited only to the active orders.

* Close lines and close orders are implemented using workflow. Order Managementprovides 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 orline workflow, close 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 if allthe lines associated with it are closed. It closes the order header if it finds that all thelines are closed.




Attention: Be sure to include the standard sub-processes of close lineand close order at the end of all your line and order flows to ensurethat your orders and returns close once all prerequisites have beenmet.

Close Order Lines

* An order line is eligible to close when it completes all of the line-level activitieswithin the workflow process. Order lines can close independent of each other. Oncean order line is closed, no changes can be made to any fields except the descriptiveflexfield, 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 onlygeneric holds are present .If orders or lines have activity specific holds present, theywill not be closed by workflow activity.

Attention: If MOAC is enabled for the Order Management

responsibility, perform the above tasks for each operating unit.

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 theOrder 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 have completed.

* Use the Order Import Correction window to examine the orders and optionallycorrect data if it fails the import process. Use the Error Message window to determineif your data failed to import.

Order Import from Oracle Purchasing for Internal Orders.

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

a) Enter and approve all internal purchase requisitions in Oracle Purchasing.

b) Run the Create Internal Sales Orders Process in Oracle Purchasing for allrequisitions within the current period.

Use the Create Internal Sales Orders process to send requisition information fromapproved, inventory-sourced requisition lines to the Order Management interfacetables. Then, the Order Import process is run from within Order Management togenerate the internal sales orders. The Create Internal Sales Orders and Order Importprocesses can be scheduled to run automatically at specified intervals.

c) Run Order Import to create internal sales orders from internal requisitions.

d) Run the Internal Order and Purchasing Requisition Discrepancy Report whichdisplays the differences between the purchasing requisition entered and the actualitems 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, andinternal requisition and internal sales order hold discrepancies.

e) Use the Order Import Correction window to examine the orders and optionallycorrect data if it fails the import process.

Use the Error Message window to determine if your data failed to import.

f) Invoice Interface / AutoInvoice, for external orders. Internal orders do not gothrough the Invoice interface/ AutoInvoice process.

This process will ensure all shipped sales order information is transferred to OracleReceivables when it reaches the appropriate point in the order workflow. TheAutoInvoice Process updates Oracle Receivables for invoice and revenueinformation, as well as credit memos and credits on account created from returns.

Attention: This process is only applicable for Order Workflow Definitionsthat include the Invoice Interface or Invoice Line processes.

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

3. Review Open Orders and Check the Workflow Status

Use the Sales Orders Workbench to review open orders using the Advanced TabbedRegion to specify controls such as whether to find closed orders/lines and cancelledorders/lines.

The Sales Orders window displays the order header status in the main tab of theOrder 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 theWorkflow Status page. The window shows in tabular format all the activities an orderheader or line has completed and the corresponding results.

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

4. Review Held Orders

Run the following reports to assist with reviewing sales orders on hold:

a) Orders on Credit Check Hold Report

The Orders on Credit Check Hold Report identifies all of the credit holds currentlyoutstanding for a customer within a date range, or identifies why a particular order ison hold. Order Management allows you to perform a credit check on customer ordersand automatically places orders on hold that violate your credit checking rules. Thisreport 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, includingthe factor for shipments and receivables for a certain number of days.

b) Hold Source Activity Report

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

c) Outstanding Holds Report




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

5. Review Customer Acceptances (Optional)

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

6. Review Discounts

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

a) Order Discount Detail Report

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

b) Order Discount Summary ReportThe Order Discount Summary Report reviews discounts applied to orders. Thisreport provides order level pricing information, including agreement, salespersonand total order discount.

7. Review Backorders

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

a) 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 orderedand backordered quantities.

b) Backorder Summary Report

The Backorder Summary Report lists all unshipped orders. This report includes onlyopen orders in an order cycle that includes pick release. It displays order informationsuch as order number, customer name and number, order type, purchase order, orderdate, last shipped date, and the monetary amounts ordered, shipped and outstanding.

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

8. Review and Correct Order Exceptions

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

a) Unbooked Orders Report

Use this report to review orders entered but not booked. They may indicateincomplete processing, which needs to be corrected, completed, or deleted asappropriate.

b) Retry Activities in Error




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

c) Sales Order Workflow Status Report

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

9. Reconcile to Oracle Inventory

Run the following reports for reconciliation with Oracle Inventory:

a) Backorder Detail Report

b) Review Backorders (Already discussed under section 7.)

c) Returns by Reason Report

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

10. Create Service Contracts (Optional)

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

11. Reconcile to Oracle Receivables (Optional)

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

a) 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.

b) Order/Invoice Detail Report

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

12. Run Standard Period End Reports

The following reports should be run each period:

a) Cancelled Orders Report

The Cancelled Orders Report reviews all orders that have been cancelled. This reportprovides 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, thequantity 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 cancellationsby salesperson, or review cancellations by customers.

b) 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 andtheir potential commission.

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

c) Customer Acceptance Report

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




Chapter 3 Oracle Cash Management

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


Oracle Cash Management is an enterprise cash management solution that helps youeffectively 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 OraclePayables, Oracle Receivables and Oracle General Ledger.

During the Bank Reconciliation process miscellaneous transactions can be created forbank-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'sliquidity position.

Procedures

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

1. Complete Daily Cash Management Activities

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

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 into CashManagement. Bank statements can be either manually entered or loadedelectronically from information received directly from your bank.

For organizations with high transaction volumes bank statements should be loadedand reconciled on a daily basis.

Refer to “Entering Bank Statements Manually” and “Loading Bank Statement OpenInterface” in the Oracle Cash Management User Guide.

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 thebank posts the sweeps. Once the bank statements are imported, run the SweepTransaction Generation concurrent program. The program will scan the bank statement for sweep lines and, based on the cash pool setup in the system, createsweep transactions between your internal bank accounts, which can be accounted forand subsequently reconciled.

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 createsystem transactions (cash flows) to match banking information.




Once the bank statements are imported, run the Bank Statement Creation concurrentprogram. This program will scan the bank statement for specific codes, as defined inthe Bank Statement Cashflow Mapping, and create cashflows, which can beaccounted for and subsequently reconciled.

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:

a) Automatic

Bank statement details are automatically matched and reconciled with subledgertransactions. This method is ideally suited for bank accounts which have a highvolume of transactions.

Refer to “Reconciling Bank Statements Automatically” in the Oracle CashManagement User Guide.

b) Manual

This method requires a manual match of bank statement details with subledgertransactions. This method is ideally suited to reconciling bank accounts which have asmall volume of monthly transactions. The manual reconciliation method can also beused to reconcile any bank statement details, which could not be reconciledautomatically.

Refer to “Reconciling Bank Statements Manually” in the Oracle Cash ManagementUser Guide.

6. Create Miscellaneous Transactions

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

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

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

6a.Complete Bank Transfers

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

7. Review Auto-Reconciliation Execution Report

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

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

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




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

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.

9. Run Bank Statement Detail Report

This report shows statement and transaction information for a specific bank accountstatement, including bank statement header information, statement line detail, andreconciled 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 theoption to select only un-reconciled statement lines.

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. Detailedinformation 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 theSystems Parameters window is checked. It does not list reversed receipts due to usererror nor does it list the associated original receipts that were not reconciled. Thisreport groups transactions by status so that void or reversed transactions are separatefrom other transactions.

11. Resolve Un-reconciled Statement Lines

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

12. Post to General Ledger

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

Attention: Final journal entries cannot be further modified in Cash Management.Please make sure you are satisfied with the draft journal entries before creating finalaccounting. 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 journalscannot be transferred or posted to General Ledger.

13. Run the GL Reconciliation Report

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




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

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

* Reconcile all statements in Cash Management.

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

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

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

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

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 theSource of the transactions. Valid sources will include Payables and Receivables.Transactions entered directly via General Ledger will have a Source of Manual orpossibly Spreadsheet if Web Applications Desktop Integrator (Web ADI) is used.

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

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

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




Chapter 4 Oracle Payables

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


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

The posting level for Oracle Payables must be determined when planning period-endprocedures. Where detail level accounting transactions are required to be posted tothe General Ledger using sub-ledger accounting (hereafter referred to as SLA), theremay 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 byGL summarize options and also at SLA journal line type level. Subledger Accountingcan contain all of the detailed subledger accounting level analysis, so that the generalledger can remain “thin”. Then, Subledger Accounting online inquiry and BIPublisher reports can be utilized to report and analyze balances, and their

transactions.

Procedures


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

Completing all transactions for Oracle Payables:

* Complete Invoices and Credits

* Complete Prepayments

* Complete Expense Reports* Complete Invoice Import

* Complete Payments

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

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

When you attempt to update the period status to ‘closed’ in one operating unit, thesystem 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 toresolve the un-posted transactions for those operating units before it allows you toclose the period for the ledger. If Multi-org Access Control is implemented, periodclosing can be performed across OU’s from a single responsibility, through one OU ata time.




2. Run the Payables Approval Process for All Invoices

Run the Payables Approval process to approve all unapproved invoices and invoicelines in the system, so that they can be paid by Oracle Payments and posted to thegeneral ledger.

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

a) Review the Invoice on Hold Report

This report enables review of any holds currently applied to invoices that wouldprevent the payment and/or posting of these invoices. The report details all invoicesthat Oracle Payables cannot select for posting and therefore cannot create journalentries.

Where possible, resolve any identified holds which will prevent posting to the generalledger, and then 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 Payablessubledger, as accounted by SLA. Using the report parameters, you can produce adetailed or summary listing of the accounting information you want to review. Thisreport is owned by SLA.

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

By altering the parameters, the report also lists those transactions which have beenposted in the general ledger, and those which have not been posted but have beenaccounted.

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 aview of the reason that Payables cannot account for a transaction. Accounts Payablesorts 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 willthen show only transactions that had problems that prevented accounting. You canthen correct the problems and resubmit the accounting process.

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

d) Optionally run a Payment Process Request at the month end

By running a month end Payment Process request, you may create a payment for asmany due invoices as possible.

e) Confirm all Payment Instructions

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

The Payment Instruction Register lists each payment created for a payment processprofile or for a manual payment. Actual payments can be compared against thisregister to verify that Oracle Payables/Oracle Payments has recorded paymentscorrectly. The report lists each payment in a payment process request, including setupand overflow payment documents, in ascending order, by payment number. This




report is automatically submitted when payment instructions are being created andcan also be submitted from the standard report submission (SRS) screen.

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

f) Optionally run the Payments Register

The Payment Register details payments printed in a particular accounting period. Thisreport can be used to review payment activity for each bank account used during thespecified time period.

Warning: The report total only shows the net (less discounts) paymentamount, whereas the Posted Payment Register total is the total paymentamount, including discounts. If only verifying report totals, these two reportswould not balance. Therefore it is necessary to subtract the ‘Discounts Taken’from the Posted Payment Register report total and then compare this calculatedamount to the total displayed on the Payments Register Report.

4. Reconcile Payments to Bank Statement Activity for the Period

Refer to Chapter 3 Period-End Procedures for Oracle Cash Management.

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

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

When accounting mode is Final and transfer to GL is set to ‘No’ then, “TransferJournal Entries to GL” program needs to be run from the Standard Report Submission

(SRS) window. Please review the “Transfer Journal Entries to GL” report generatedby this program; make sure there are no errors reported on this report.

The transactions in draft accounting mode can be included on accounting reports butcannot be transferred to the general ledger. A draft entry does not update balances anddoes 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 invoicedistribution line, and credit the liability account specified on the invoice, unless youhave modified the SLA rules to create alternative accounting entries to address yourspecific business needs.

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

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

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




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

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

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

a) The Subledger Accounting Program Report generated by the Create Accountingprogram.

This report provides either the summary or details (dependent on the parametersprovided during Create Accounting program) of the subledger journal entries createdas a result of running “Create Accounting Program”. This report also provides anyerrors that may have occurred during generation of the journal entries.

b) The Posted Invoices Register

This report is used to review invoices for which information has been posted toOracle General Ledger to create journal entries, and can be used to verify that thetotal invoice amount equals the total invoice distribution amount. The report lists eachAccounts 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 aparticular accounting period, and can be used to review the payment activity for eachbank account used during that period.

7. Submit the Unaccounted Transactions Sweep Program

The Unaccounted Transactions Sweep Program transfers unaccounted transactionsfrom one accounting period to another. Because you cannot close a Payables periodthat has unaccounted transactions in it, if your accounting practices permit it, youmight want to use this program to change the accounting date of the transactions tothe 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 invoicedistribution GL dates, you can submit this program to change invoice distribution GLdates 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 accountedtransactions, or accounted transactions with errors. To create successful accountingentries for accounted transactions with errors, correct any accounting errors andresubmit the Create Accounting Process.

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

To submit the Unaccounted Transactions Sweep Program:

1. In the Control Payables Periods window if you try to close a period that hasexceptions then the system enables the Exceptions button.

2. Choose the Exceptions button in the Control Payables Periods window. Payablesopens a message window. From the window you can choose the following buttons:

• Review (This submits the Period Close Exceptions Report.)

• Sweep

3. Choose the Sweep button. Payables opens the Sweep to Period window. In theSweep to Period field, Payables provides the next open period. You can accept thisdefault or enter another open period.




4. Choose the Submit button to submit the Unaccounted Transactions SweepProgram.

Payables automatically produces the Unaccounted Transactions Sweep report.

8. Close the Current Oracle Payables Period

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

Close Exceptions Report.

The Subledger Period Close Exceptions Report lists all accounting events and journalentries that fail period close validation. It is automatically submitted by GeneralLedger 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 aconcurrent request as follows:

* For the application associated with the responsibility* For all applications in the General Ledger responsibility

9. Accrue Uninvoiced Receipts

(Refer to Chapter 7 Period-End Procedures for Oracle Purchasing)

10. Reconcile Oracle Payables Activity for the Period

a) Run the Open Account AP Balance Listing Report (Accounts Payable TrialBalance*)

This report basically generates the payables trial balance that can be used forreconciliation of the total accounts payable liabilities in Oracle Payables, with theOracle General Ledger Creditors Control Account, for a specific accounting period.The Open Account AP Balance Listing is based on a Subledger Accounting extract

and enables you to identify theopen Accounts Payable transactions that make upeach Accounts Payable balance.




*Accounts Payable Trial Balance report name.

Please refer to the My Oracle Support note # 604739.1and 553484.1 to understand which specific report isapplicable in your case. This report can be used togenerate payables trial balance.

In R12, there are 4 Concurrent Programs related to the trial balance:

1. Report Name = "Accounts Payable Trial Balance (Old) "Short Name = APXTRBALThis is the R11i Accounts Payable Trial Balance; it should be disabled in R12.

2. Report Name = "Accounts Payable Trial Balance"Short Name = APXTRBALThis is the R12 Accounts Payable Trial Balance; this is the correct report name to runif Trial Balance Remodel Phase 4 or higher has been applied. This report is amodified version of the Open Account Balance Listing report.

3. Report Name = "Open Account Balance Listing"Short Name = XLATBRPTThis is a Subledger Accounting report. This report should NOT be used for

Payables. Instead, use the applicable Payables modified version of the report.

4. Report Name = "Open Account AP Balances Listing"Short Name = XLAAPRPTThis is the subledger Open Account Balance Listing report modified for Payables and

should be used as the Trial Balance.

Please refer to the My Oracle Support note # 553484.1 for more details on this report.The report provides details of the outstanding accounts payable liability for theorganization.

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

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

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

Open Account AP Balance Listing Report or Accounts Payable Trial Balance (for lastday of prior period). This is run to generate trail balance as of last day of priorperiod.

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

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

Open Account AP Balance Listing Report or Accounts Payable Trial Balance (for lastday of current period). This is run to generate trial balance as of last day of currentperiod)

This balancing process will help you ensure that all liabilities recorded in Payablesare reflected in the general ledger AP liability accounts. If the balance reported bythe Open Account AP Balances Report (or Accounts Payable Trial Balance) does not




equal the balance in the AP liability account, you can use the Account Analysis reportand the General Ledger reports to determine what journals are being posted to thataccount. Before running your reports, run the Transfer Journal Entries to GLProgram for all transactions in the period that you are reconciling. Also, be sure topost the transactions in the general ledger.

Attention: Typical AP/GL Reconciliation Example

31st March Open Account AP Balances Report (or Accounts Payable TrialBalance)+ April Payables Posted Invoice Register–April Payables Posted Payment Register–- 30th April, Open Account AP Balances Report (or Accounts Payable TrialBalance)= 0

Attention: When posting to the General Ledger is performed multiple timesthroughout each accounting period, thePosted Invoices Register and Posted

Payments Register reports must be run after each posting run, forreconciliation of Oracle Payables liabilities with Oracle General Ledger’sTrade Creditor Control Account.

Attention: A comparison between the accounts in payables with the accountsin GL might not match, as SLA has the ability to override the accounting. Formore information refer to ‘SLA Implementation Guide’.

b) Run Third Party Balances Report (Optional)

This report is used to display balance and account activity information forsuppliers 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 eachcontrol 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 forthe same control accounts to reconcile.

c) Submit and review Account Analysis Report

The Account Analysis Report provides drill-down information about themovement on a particular account for a period or range of periods. It onlyincludes journal entries transferred to and posted to general ledger. Review thisreport.

Optionally compare it with ‘Third Party Balances’ report (if applicable). Thisreport is owned by SLA.

Note: To avoid duplication with subledger journal entries, general ledger journalentries imported from SLA are not included in the report.




11. Run Mass Additions Transfer to Oracle Assets

After you have completed all Payables transaction entries, and confirmed all invoiceholds, and carry forwards, submit the Mass Additions Create program to transfercapital invoice line distributions from Oracle Payables to Oracle Assets.

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

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

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

* Included in the correct period and

* Any additional invoicing will become part of the next periods invoice and assetprocessing period.

Suggestion: If the volume of transactions in Accounts Payable requiringAssets update is large, you should consider running the Mass Additions Createprocess on a more regular basis.

12. Open the Next Oracle Payables Period

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

13. Run Reports for Tax Reporting Purposes (Optional)

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

Withholding tax is handled by Payables whereas other tax requirements are handledby E-Business Tax.

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

Suggested Reports include:

Financial Tax Register Use the Financial Tax Register to view the output from the Tax Reporting Ledger.The Tax Reporting Ledger consists of accounting information created in OraclePayables, and Oracle General Ledger. The short name of this report is RXZXPFTR.These tax registers are available:

• Tax Register (default)• Interim Tax Register• Nonrecoverable Tax Register

These summary levels are available within each Tax Register:• Transaction Distribution Level• Transaction Level (default)• Transaction Line Level

Tax Audit Trail Report Use the Tax Audit Trail report to review tax information for posted or partially postedinvoices. This report provides detail tax and invoice information and the totalamounts for each tax rate code in the invoice currency and functional currency. Thereport lists, for each tax rate code, distributions of all posted or partially posted




invoices. The report includes, for each invoice, both the tax amount and the invoiceamount subject to tax. The short name of this report is ZXXTATAT. Note: Please refer to Oracle E-Business Tax Reporting Guide for complete detailson tax related reports.

14. Run the Key Indicators Report (Optional)

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

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

The Key Indicators Report generates the following reports:

a) Key Indicators Current Activity Report

Use the Key Indicators Report to review your accounts payable department'sproductivity. The Key Indicators Report provides current activity indicators thatcompare 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 created duringa period) and amount values where applicable to the Key Indicator (such as totalvalue of automatic payments created during a period).

b) Key Indicators Invoice Activity Report

Report that compares the invoice activity for each of your accounts payableprocessors during the period you specify and the previous period. Oracle Payablesproduces this report only if you choose ‘Yes’ for the Include Invoice Detailparameter.

c) 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, it includes:Suppliers:

* Number of suppliers.

* Number of supplier sites.

*Average sites per supplier (number of sites divided by the number of suppliers).

Invoices:

* Number of invoices.

* Number of invoice distributions.

* Average lines per invoice (number of invoices divided by the number of distributions.)

* Scheduled payments (number of scheduled payments based on payment termsand manual adjustments in the Scheduled Payments tab).

* Average payments per invoice (number of invoices divided by the number of scheduled payments).




Payments:

* Number of payments (both manual and computer generated) created andrecorded in Payables.

* Invoice payments (number of invoice payments made by Payables - a paymentdocument can pay multiple invoices).

* Average invoices per payment (number of payment documents divided by thenumber of invoice payments).

Matching holds:

* Matching holds (number of matching holds in Payables).

* Average matching holds per invoice on matching hold (number of matchingholds divided by the number of invoices on matching hold).




Chapter 5 Oracle Projects

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


Period end procedures for Oracle Projects have two main functions:

Changing the status of the current period to closed

Activating all the processes and controls necessary to produce reports that accuratelyreflect the period activity, while allowing minimum interruption of transactionprocessing.

Project Periods and General Ledger Periods

In Oracle subledgers, such as Projects, transactions are summarized into periodiccycles for reporting and reconciliation. Most subledgers have a periodic cycle thatparallels 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 specialprocedures for the reconciliation of Projects to the general ledger, and other modules.

Period Statuses

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

*Never Opened - Period has never been used.

* Future Enterable - Period is open to accept transactions from other modules.Usually used where modules are maintained in different periods, and transactions arelikely 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 correctunprocessed items prior to completing the period close.

General Exception Handling at Period End

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

Suggestion: If you have different periods inProjects, you may want to consider using one of the alternate general ledger period conventions,such as a 5-4-4 period split. This will enable youto more easily align Projects with General Ledgerfor reconciliation purposes.




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

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

Procedures

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 theperiod but does not allow transaction entry.

This process needs to be performed for each operating unit defined.

2. Open the Next Oracle Projects Period

It is recommended that you open the next period to minimize interruption to users

who may require the ability to enter transactions in the new period during the currentperiod close procedure.


3. Complete all Maintenance Activities

As there are a number of maintenance activities that can affect the period closeprocedure, you should ensure that all the following maintenance activities have beencompleted:

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 maintenanceOther 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 usefunction and responsibility restrictions to prevent access to these areas duringthe period close procedure.

4. Run Maintenance Processes

It is recommended that the following maintenance processes be run in preparation forthe period end:

a) Run Burden Schedule maintenance to assure that all burden schedules have beencompiled.

Run PRC: Compile All Burden Schedule Revisions

b) Run organization maintenance to ensure all organizations have been added to allaffected 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 projectsummary amounts before, not during, the period close.

d) Run PRC: Update Project Summary Amounts After Resource List Change


Enter and Approve 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 beenreleased 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 topayroll, verify that all timecards are entered or accounted for.

Run the AUD: Missing Timecards Report

Interface Supplier Invoices from Oracle Payables

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

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

Run PRC: Interface Supplier Invoices from Payables

Interface Expense Reports from Oracle Payables

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

Run PRC: Interface Expense Reports from Payables




Project Related Inventory Transactions

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

* Run the Cost Collector

* Project Cost Transfer

* Run PRC: Transaction Import.

The following transaction sources are pre-defined.

Source Description

Inventory Manufacturing Material Costs

Inventory Misc Inventory Issues and Receipts entered inthe Miscellaneous Transactions window inOracle Inventory

Work In Process Manufacturing Resource Costs

Attention: Entering new expenditures or adjusting existing expenditures

during the final cost distribution process may cause reconciliation

problems. Access to these activities should be controlled, after verifying that all transactions for the period have been accounted for.

6. Run the Cost Distribution Processes

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

* PRC: Distribute Labor 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.

6a. Run the Generate Cost Accounting Events Program

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

The programs to be run are: PRC: Generate Cost Accounting Events and PRC:

Generate Cross Charge Accounting Events.

7. Interface Cost Transactions to Other Applications

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

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




If accounting was performed without transferring to GL, then submit PRC: SubmitInterface Streamline Processes with the appropriate streamline parameters to transferthe costs to GL. Journal Import can be submitted from GL to import the costs intoGL.

Interface CIP Assets to Oracle Assets

Run PRC: Interface Assets

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

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

Note: Ensure that all interface transaction reports and exception reports arecompleted successfully, and/or resolved prior to continuing with the period close.

Suggestion: Some of the above reports and processes may be run usingSubmit Streamline Processes, which ensures that processes and reports are runand completed in the correct order. If you use the Streamline process, theorder of some of the above steps may be changed, or completed moresuccinctly.

8. Generate Draft Revenue for All Projects

After all the cost distributions processes have completed successfully and all supplierinvoices have been imported from Oracle Payables, run the mass project revenuegeneration process.

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

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

9. Review and Release Revenue for All Projects

Perform a review of the revenue generated and approve the same.

10. Run Generation Revenue Accounting Events Process

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

11. Run Create Accounting to Process Revenue Accounting Events

This program is used to generate accounting and then transfer it to the General Ledger

based on appropriate parameters. If accounting is generated in FINAL mode withTransfer to General Ledger being set to ‘No’ then run PRC: Transfer Journal Entriesto GL with parameters to either post in GL or just to leave it unposted. If it istransferred unposted, the General Ledger posting program needs to be submitted.

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




12. Generate Invoices

Run PRC: Generate Invoices to generate invoices to be interfaced to OracleReceivables.

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.

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

14. Run Period Close Exceptions and Tieback Reports

Run the period close exceptions reports to identify transactions that have not beenfully 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 byCreate Accounting/Transfer to GL processes for any errors.

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

Suggestion: Some of the above reports and processes may be run using theSubmit Streamline Processes process. This process ensures processes andreports are run and completed in the correct order. If you use the Streamlineprocess, the order of some of the above steps may be changed, or completedmore succinctly. All the streamline options are not available in R12. Some of

them have become obsolete. Please refer to the relevant financials and projectsuser guides.

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

16. Change the Current Oracle Projects Period Status from Pending Close toClosed

When changing the status to Closed, the system checks to see if any unprocesseditems exist in the period. If unprocessed items exist, the change of status is notallowed.

Re-run the period close exception reports to identify any unprocessed items.


17. Advance the PA Reporting Period (Optional)

When you are ready to view the updated summary amounts for the next PA period inthe 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.

18. Update Project Summary Amounts

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

Attention: The update process cannot run concurrently with the interfaceprocesses.

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

19. Restore Access to User Maintenance Activities

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

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

The following Project Subledger Audit Reports print cost distribution lines related toprojects. These reports enable you to drill down from a GL account balance in thetrial 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

21. Permanently Close the Oracle Projects Period (Optional)

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

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




Chapter 6 Oracle Receivables

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


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

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

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

Procedures

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



Completing all transactions for Oracle Receivables:

* Complete Invoicing, Credits and Adjustments

* Complete Receipts and Reversals

* Complete Invoice and Customer Import* Complete Lock Box Processing

* Run the revenue recognition program (Optional; required if OM-shipping is used)

If you import transactions from an external system or Oracle Projects, ensure that youhave imported all transactions and master files, and reviewed all audit trails forcompleteness.

2. Reconcile Transaction Activity for the Period

Reconcile the transaction activity in Oracle Receivables, before posting to theGeneral Ledger using SLA. This reconciliation process checks that OracleReceivables transactions are balanced, ensuring that all items eligible for posting are

reflected on the Sales Journal. Run the following reports for the same accountingperiod date range:

a. Transaction Register

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

b. Sales Journal by Customer Report and the Sales Journal by GL Account Report




This report enables the review of all transactions for the specified period. Thesummary totals for the sales journal are by Posting Status, Company, and TransactionCurrency. 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 specifiedperiod.

The total on the Sales Journal by GL Account should equal the total of items eligiblefor 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 theSales Journal by Customer report.

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

Transaction Register (Items eligible for posting) + 2 * Credit Memo Total = SalesJournal (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, asthey are negative on the Transaction Register and positive on the Sales Journal.

Attention: Ensure that the monthly transaction total is accurate and that nodistribution issues exist.

c. Journal Entries Report

This report enables the review and analysis of accounting entries in the Receivablessubledger, as accounted by SLA. Using the report parameters, you can produce adetailed or summary listing of the accounting information you want to review.

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

By altering the parameters, the report also lists those transactions, which have beenposted in general ledger, and those which are yet to be posted but have beenaccounted.

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

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

d. AR to GL Reconciliation Report

The AR to GL Reconciliation report compares the account balances in OracleReceivables to those in Oracle General Ledger, and highlights journal sources wherediscrepancies might exist. This report simplifies the reconciliation process bycomparing 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 entrieshave posted, and

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




This report will show a difference between Receivables and GL account balancesonly if items did not successfully post to GL accounts. The Difference columnindicates how the activity in Receivables compares to the journal source of Receivables in the General Ledger. If the actual balance of a specific account isdifferent in Receivables than in GL, then the following columns highlight thetype 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 fromother subledgers, such as Oracle Payables or a legacy feeder system.

* Unposted in GL - Unposted Oracle Receivables journals in the general ledger.

During the internal reconciliation process, use the AR Reconciliation report toconfirm that your transactional and accounting data match. However, even if thedata matches, the journals could still post to incorrect GL accounts. The PotentialReconciling Items report addresses this issue by suggesting journal items thatmight potentially post to GL accounts with unexpected account types, thuscreating reconciliation issues in Oracle General Ledger.

3. Reconcile Outstanding Customer Balances

Reconcile the outstanding customer balances at the beginning of a specified periodwith the ending balance for the same period, using the following formula, known asthe 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 acustomer’s balance and the reports, which can be run and reviewed to reconcile thesecomponents:

Component Report

Beginning Balance Aging reports

Transactions Transaction Register

Adjustments Adjustment Register

Exceptions Invoice Exceptions Report

Applied ReceiptsApplied Receipts Register (Identifypayments received from customers)

UnappliedReceipts

Unapplied and Unresolved

Receipts Register (identifypayments received from customers)

Ending BalanceAging report (as of the last day of the accounting period)




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

4. Review the Unapplied Receipts Register

Use the Unapplied Receipts Register to review detailed information about yourcustomers’ 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 intoaccount all on-account and unapplied amounts. Receivables displays informationabout your on-account or unapplied payment such as GL date, batch source, batchname, payment method, payment number, payment date, on-account amount, andunapplied amount. This report includes both cash and miscellaneous receipts.

If any of the Receipts listed can now be applied to outstanding transactions, you canperform this action by re-querying the receipts and following the normal applicationprocedure.

5. Reconcile Receipts

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

a) Receipts Journal Report

This report displays details of receipts that appear in the Journal Entries Report. TheJournal Entries Report shows the receipt numbers that contribute to a particular GLaccount. Using the receipt number, you can review the detailed information on theReceipts Journal Report.

b) 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 thetotal of all the receipts in the Receipt Register for the same GL date range. Seethe following My Oracle Support 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-accountactivity – deemed functionality.

Bug 7589198: Receipt Register does not match Receipt journal – deemedfunctionality (similar to Bug 7423482).

Both reports display invoice related receipts and miscellaneous receipts.

6. Reconcile Receipts to Bank Statement Activity for the Period

(Refer to Chapter 3 Period-End Procedures for Oracle Cash Management)

Attention: The Create Accounting process must be re-run for anymiscellaneous accounting entries generated from the bank reconciliation, fortransfer to the General Ledger.




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 (provided theposting process was run for the same GL date range). After internally reconciling thetransactions and receipts using these two reports, it is possible to perform externalreconciliation during and after the posting process.

The posting process for Oracle Receivables involves a single step:

Create Accounting

This process can be submitted from the transactions screen to account for a specificreceivables transaction or from the SRS screen to account for all receivablestransactions. The accounting is done at the ledger level and the program has theability to transfer and import into the General Ledger based on the parametersspecified.

If Create Accounting is submitted in the ‘Final’ mode without transferring it to theGeneral Ledger, the entries will have to be transferred separately.

8. Reconcile the General Ledger Transfer Process

The Create Accounting program produces the Subledger Accounting Program report

that shows you the subledger journal entries created for successful accounting events.Compare this report to the Journal Entries Report (run in Posted status mode) andverify that they match. Use the same General Ledger date ranges for the JournalEntries 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, OracleReceivables regards these items as having been ‘posted’ within the sub-ledger.Account balances for transactions and receipts can be reconciled by generating theSales 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 Salesand Receipt journals should match the corresponding account balances in the JournalEntries Report.

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

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

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

9. Reconcile the Journal Import Process

Create Accounting program submits Journal Import automatically when launched in‘Mode = Final’ and ‘Transfer to GL = Yes’. Reconcile the Journal Import bymanually reviewing the transactions in the Subledger Accounting Program Report,and comparing them with the Journal Entries Report output.

The Journal Entries Report is a new Subledger Accounting BI Publisher report whichis available from the subledger applications and can be run with parameter Posted =Yes, No or ALL, which users can copy and modify the report template according totheir needs.




Attention: If the customer is using Reporting/Accounting sequences, they canrun Journal Entries Report using Sequence Ranges created in the CreateAccounting program run, and compare the total with the Journal ImportExecution Report.

10. Print Invoices

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

If the Balance Forward Billing functionality is used, 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 the OracleReceivables Implementation Guide or the Oracle Receivables User Guide.

11. Close the Current Oracle Receivables Period

Close the current period in Oracle Receivables using the Open/Close Accounting

Periods window.

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

12. Review the Subledger Period Close Exceptions Report

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

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

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

* For the application associated with the responsibility

* For all applications in the General Ledger responsibility

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 Suppliersand 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 eachcontrol 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 thesame control accounts to reconcile.




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 theJournal Entries Report (with ‘Posted = Y’) to help reconcile the posted journals.

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 to the General Ledger for the specifiedGL date range.

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

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

16. Review Account Analysis Report

The Account Analysis Report provides drill-down information about the activities

relating to a particular account for a period or range of periods. It only includes journal entries transferred to and posted to the General Ledger.

Review this report and compare it with the Third Party balances report.

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

17. Open the Next Oracle Receivables Period

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



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

The following tax registers are available:

a) Deferred Output Tax Register

b) Recoverable and Non-Recoverable Tax Registers

c) Single Cross Product Tax Register

d) Standard Input and Output Tax Registers

The following summary levels are available within each Tax Register:

* Transaction Header

* Transaction Line

* Accounting Line




Chapter 7 Oracle Purchasing

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


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

Procedures

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



Complete all transactions for Oracle Purchasing:

a) Complete Requisitions

b) Complete Purchase Orders and Releases

c) Complete Receipts and Returns

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

Requestors can create receipt transactions by responding to the notification.

d) Print or Archive all new Purchase Orders e) Respond to all Workflow Notifications

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

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 reportwhen negotiating with a supplier by limiting the commitments to a specific supplier.

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

Run the following reports:

* Purchase Order Detail Report

* Open Purchase Orders (by Buyer) Report

* Open Purchase Orders (by Cost Center) Report




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

4. Follow Up Receipts - Check With Suppliers

For purchase orders not received, the appropriate department can use the detailsobtained from the Purchase Order Detail Report, to follow up the status of the ordereditems with the suppliers.

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

Attention: Where you have selected to accrue receipts at period end, makesure that all receipts have been entered for a specific period, before creatingreceipt 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 toprocess a receipt to a closed Purchasing period.

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

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

6. Follow Up on Outstanding Invoices

For any items identified to have been received but not invoiced, the appropriatedepartment can then follow up with the supplier, using the details from the Un-invoiced Receipts Report. Entering of invoices, matching of unmatched invoices, and

resolution of any invoice holds, where possible, should be carried out at this point inthe period-end process.

7. Complete the Oracle Payables Period-End Process

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

8. Run the Receipt Accruals - Period End Process

Run the Receipt Accruals - Period-End 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 inthe General Ledger for the receipt accruals. Journal entries are created for the amountof the receipt liabilities, debiting the charge account and crediting the Expense APAccrual Account.

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

* The Profile option ‘GL: Launch Auto Reverse after Open Period' is set to 'Y'




* And the reverse option is selected for the accrual journal category.

If the profile option is set to ‘N’, then the accrual entries need to be reversedmanually.

Oracle Purchasing creates accrual entries only up to the quantity the supplier did notinvoice for the partially invoiced receipts.

Attention: This step is only required if the Accrue Expense Items flag is set toPeriod End, on the Accrual tabbed region of the Purchasing Options windowfor the current Organization.

When the Accrue Expense Items flag is set to At Receipt, a reversal is notrequired.

If encumbrance or budgetary control is beingused, Oracle Purchasing reverses the encumbranceentry when creating the corresponding accrualentry.

Identify the purchasing period for the receiptaccrual 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 inthe receiving sub ledger only. The Create Accounting Program has to be run tocreate SLA journals, which in turn will trigger the journal import.

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

* AP Accrual Account

* Inventory Account - (Refer to Chapter 8 Period-End Procedures for OracleInventory)

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

Manually remove the Invoice Price Variance amount from the AP Accrual Accountusing your General Ledger.

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

At any given time, the following transactions can account for the balance in the APaccrual 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 AP accrual accounts, distinguish accruedreceipts from invoice price variances, and identify errors.

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

* Quantity differences 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 theaccrual 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 discussed below:a) Accrual Reconciliation LR Program load run

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

b) AP and PO Accrual Reconciliation Report

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

c) Miscellaneous Accrual Reconciliation Report

The Miscellaneous Accrual Reconciliation Report shows all inventory and AP (notmatched to PO) transactions that have hit the accrual account.

d) Summary Accrual Reconciliation Report

The Summary Accrual Reconciliation Report can be used to analyze the balance of the AP accrual accounts. You can accrue both expense and inventory purchases asyou receive them. When this happens, you temporarily record an accounts payableliability to your expense or inventory AP accrual accounts. When Oracle Payablescreates the accounting for the matched and approved invoice, Oracle Payables clearsthe AP accrual accounts, records the liability from the supplier site and helps youmonitor potential problems with purchasing and receiving activities that can affect the

accuracy of your AP Accrual Accounts.

After researching the reported accrual balances, the Accrual Write-Offs window canbe 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 transactionsby submitting the Create Accounting program; and hence manual adjustment of accrual entries is not required.

The Reconciliation Reports can help in monitoring potential problems withpurchasing and receiving activities that can affect the accuracy of the AP accrualaccounts.




The Reconciliation reports also provide information on the quantity differences(between the quantity received for a purchase order shipment and the quantityinvoiced), and price differences. Ensure that prior to closing the period, thesedifferences are resolved.

Prerequisites:

* Oracle Payables and Oracle Purchasing installed.

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

* If expense purchases are accrued at period end, and inventory receipts are notperformed, no information will be available to report.

* If you have installed Oracle Inventory or Work in Process, the AccrualReconciliation Report also displays any inventory or work in process transactions forthe accrual accounts.

Attention: Most commercial installations accrue expense receipts at periodend, as the information is not required as the receipt occurs. If expensepurchases are accrued on receipt, more entries must be reconciled in the APaccrual accounts.

Attention: For Oracle Purchasing, all transactions are created in Purchasingand need the GL Transfer Program to be run to transfer to the General Ledger.

For Oracle Inventory, and Oracle Work InProgress, a GL transfer or period close must firstbe performed for the transactions to appear onthese reports.

For Oracle Payables, journal entries must becreated for the invoices.

The Accrual Reconciliation Reports requires the transactions to be transferredto the General Ledger interface to ensure that the report balances to theGeneral Ledger.

10. Perform Year End Encumbrance Processing (Optional)

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

The default processing for Oracle Financials at year end is to extinguish anyoutstanding encumbrances or unused funds when you close the last period of theFinancial 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 budgetto identify between current year and carry forward amounts if required. Mass budgetprocessing also allows you to combine these budgets.




Attention: You must complete the Year End Encumbrance processing inOracle Purchasing, before commencing the year end Encumbrance processingin Oracle General Ledger.

(Refer to Chapter 11 Period-End Procedures for Oracle General Ledger.)

The steps required to complete year end encumbrance processing in OraclePurchasing are:

a) Identify Outstanding Encumbrances

Print the Encumbrance Detail Report to review the requisition and purchase orderencumbrances, if the encumbrance option for requisitions or purchase orders has beenenabled, and requisitions and purchases have entered and approved. Use this report toreview the accounts encumbered.

The Encumbrance Detail Report reflects activity from General Ledger, notPurchasing or Oracle Payables. Therefore, use the Encumbrance Detail Report in away that matches the accounting method:

* Receipt accrual - Generate the Encumbrance Detail Report as needed when theAccrue at Receipt option is used. Upon entering receipt delivery information, anautomated process transfers the receipt information to General Ledger using the

Journal Import Process.* Period-end accrual - Generate the Encumbrance Detail Report at period-end. Duringthe period, the encumbrance detail on the report is based on invoice matchinginformation 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 theEncumbrance Detail Report remain until payment information from Payables istransferred to General Ledger. When cash-basis accounting is used and the PayablesTransfer to General Ledger process is submitted, Payables transfers only accountinginformation for paid invoices to the General Ledger.

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

Refer below to the steps required to cancel transactions that are not to be carriedforward.

b) Perform Mass Cancel in Oracle Purchasing (Optional)

Mass Cancel enables the cancellation of requisitions and purchase orders on the basisof user selected criteria.

Define Mass Cancel

The Define Mass Cancel window is used to nominate a date range for transactions, aswell as any of the following:

* Document Type

* Supplier Name

* Accounting Flexfield Range

This process will automatically generate a Mass Cancel listing report identifying thefollowing:

* Unable to Cancel Requisitions (reasons provided)

* Unable to Cancel Purchase Orders (reasons provided)

* Partially in Range Documents




* Fully in Range Documents

Run Mass Cancel

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

Attention: If you wish to cancel both purchase orders and requisitions, youmust initiate Mass Cancel twice. Note that when canceling a purchase order,

you have the option of canceling the original requisition at the same time.

11. Close the Current Oracle Purchasing Period

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

12. Open the Next Oracle Purchasing Period

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

13. Run Standard Period End Reports (Optional)* Suppliers Quality and Performance Analysis Reports

a) Suppliers Report

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

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

b) Suppliers Audit Report

Use the Supplier Audit Report to help identify potential duplicate suppliers. Thisreport 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. Thereport inserts a blank line between groups of possible duplicate suppliers. Afterduplicate suppliers have been identified, they can be combined using Supplier Merge.If purchase order information is merged, then any references to the supplier in blanketpurchase orders, quotations, and auto source rules are updated to the new supplier.

c) Supplier Quality Performance Analysis Report

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

d) Supplier Service Performance Analysis Report

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

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

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




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

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

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

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

e) Supplier Volume Analysis Report

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

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

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

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

* Analyze 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 closeprocessing for Oracle Purchasing.

Blanket and Planned PO Status Report

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

* Savings Analysis Reports

a) 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 quantityordered. 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 isM, the line price was from the Market Price, and if the line price type is L, the lineprice was from the List Price.




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

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

b) Savings Analysis Report (by Buyer)

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

The Negotiated Amount is the product of the price on the quotation and the quantityordered. 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 isM, the line price was from the Market Price, and if the line price type is L, the lineprice was from the List Price.

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

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

* Encumbrance Accounting Reports

Encumbrance Detail Report

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

* Cancellation Reports

Use these reports to review all cancelled purchase orders and requisitions, particularlywhere you have defined multiple Mass Cancel batches:

a) Cancelled Purchase Orders Report

b) Cancelled Requisitions Report




Chapter 8 Oracle Inventory-Cost Management

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

Note: Since Release 12, Cost Management becomes an application module holdingInventory/Receiving/WIP accounting entries.


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

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

Reconcile the inventory and work in process costs and values.

Transfer inventory and manufacturing costs to the General Ledger.

Transfer summary or detail accounting information to the General Ledger.

Independently open and close periods for each inventory organization.Perform interim transfers to the General Ledger without closing the period.

Attention: Usually, logistic and manufacturing systems need to be alwaysopen for worker transactions, which means at month end the next period isopened to allow key-in from the first day, and then the closure process isprocessed for the past month. To avoid date entry error (when both periods areopen) there is a profile option ‘INV: Transaction date validation’.

Attention: For environments with a large number of organizations, you canopen / close many logistic organizations by batch program: “OPSR and CPSR

open period status report”, “close period status report”.

Procedures

The following steps are taken in performing period-end processing for OracleInventory:


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

receiving).

Optional - Cycle Count Pending Approval Report

2. Check Inventory and Work in Process Transaction Interfaces

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

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 IWIP)

3. Check and fix pending Transactions

Check and fix any rejected transactions from the Inventory Accounting PeriodWindow: 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 IWIP costing transactions existing in thisperiod. 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 inthis period. Though the accounting period can be closed, once it is closed thesetransactions cannot be processed in that period.

Attention: This process needs to be completed for each defined InventoryOrganization.

In case of error, correct the error at the source, and 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 cumulative problems at monthend before closing.

4. Transfer Summary or Detail Transactions

If Order Management is used, for the order-shipments which have been invoiced inAR, revenue recognition has been processed in AR, and the accounting entries

between ‘Deferred COGS account’ and ‘COGS account’ must be generated in INV-CST. For this purpose you need to run these 2 concurrent programs:

* “Collect Revenue Recognition information”

* “Generate COGS Recognition event”

Run the ‘Create Accounting-Cost Management’ program up to the period end datebefore closing the period. Since a period, once closed, cannot be re-opened, runningthis process prior to closing the period facilitates validating the interface transactions.Any adjustments to the period can be made via new inventory transactions asrequired.

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

accounting to GL.

Attention: The Transfer Journal Entries to GL Cost Management Programtransfers the accounting details for all the inventory organizations within aLedger.

View accounting, journal entries associated with transactions, and accounting eventsby accessing the Sub ledger Accounting user interface from the View Transactions




window and various statuses (e.g. Final Accounted, Draft Accounted, Errored can beselected).

5. Open the Next Inventory Period

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


6. Close the current Oracle Payables and Oracle Purchasing Periods

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

If Oracle Purchasing or Oracle Inventory are closed, a receipt cannot be entered forthat period. However, as a manual procedure, Oracle Purchasing should be closedbefore Oracle Inventory. This still allows miscellaneous transactions corrections ininventory.

7. Close the Current Inventory Period


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

The period close performs the following:

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

* Calculates period-end sub-inventory balances.

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

This along with the values in transit creates the period-end value for the currentperiod. The period-end values by sub-inventory are reported in the Period CloseSummary Report.

The period close process automatically transfers all job costs and variances by GLaccount. Discrete jobs and certain non-standard jobs are closed separately. Job closeperforms the necessary accounting for each job, including variance calculations. Forexpense non-standard jobs, the period close process writes off any remaining balancesand transfers any period costs to the General Ledger.

Warning: Closing an inventory period permanently closes the period and nofurther transactions can be charged to that period.

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 closedmatches the value reported in the General Ledger. The balance normally matcheswith the GL balance. But Journal entries from products other than Oracle Inventory,may create discrepancies.

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

a) Period Close Value Summary Report.




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

b) 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 detectunusual accounts or amounts, use the Material Account Distribution Detail Report toprint the transactions in detail.

Additional useful reports:

a) Inventory Value Report

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

b) Material Account Distribution Detail Report

Use the Material Account Distribution Detail Report to view the accounts charged forinventory transactions. Review inventory transaction values transferred to the GeneralLedger by GL batch.

9. Validate the Work in Process Inventory

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

The WIP Account Distribution Report lists detailed account information for work inprocess cost transactions, including resource, overhead and outside processingcharges, cost updates, and period close and job close variances. The system groupsthe transactions by job or schedule, by transaction type, and orders the transactions by

earliest transaction date. Detailed account information is available for specificaccounts, GL batches, or both to help reconcile the General Ledger.

This report does not list material cost transactions such as issues, completions, andscrap. This information can be found using the Material Account Distribution reportsin Oracle Inventory.




Chapter 9 Oracle Assets

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


At period end, run depreciation for each asset book set up for the enterprise.Accounting can be created for Fixed Assets (FA) transactions and sent to GL on acontinual basis throughout the period using the Create Accounting program after theintroduction of SLA. Oracle Assets has only a single open depreciation period in eachasset book.

Procedures

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



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

Completing all transactions for Oracle Assets:

* Prepare and Post Mass Additions

* Complete Manual Additions

* Complete Adjustments

* Complete Retirements

* Complete Transfers* Complete Reinstatements

2. Assign All Assets to Distribution Lines

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

Assets Not Assigned to Any Cost Centers Listing

3. Run Calculate Gains and Losses (Optional)

The Calculate Gains and Losses program for retirements can be submitted prior to

running depreciation. The Calculate Gains and Losses process is performedindependently for each depreciation book. The book and depreciation period arenominated on the Submit Request window.

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

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




4. Run Depreciation

When you Run Depreciation, Oracle Assets gives you the option of closing thecurrent period if you check the Close Period check box on the ‘Run Depreciation’window. If all of your assets depreciate successfully, Oracle Assets automaticallycloses the period and opens the next period for the book. If you do not check theClose Period check box when you run depreciation, Oracle Assets does not close theperiod.

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

Attention: Ensure that you have entered all transactions for the period beforeyou run depreciation. Once the program closes the period, you cannot reopenit.

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

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

If an asset has not been assigned to a distribution line, the Run Depreciation processwill end with an error status. By using the depreciation log file, you can determinewhich assets were unassigned, or you can review the Depreciation Program Reportvia the Requests window. The unassigned assets can then be assigned to distributionlines and the Depreciation process resubmitted. The Depreciation process onlyprocesses assets that have not already been processed.

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

This process submits concurrent requests to run the calculate gains and losses,

depreciation, and reporting programs off-line.

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

5. Create Accounting

Submit the Create Accounting process from SRS screen. This process generatesaccounting and also enables transfer to and posting in GL. This program can be run in3 modes: Draft, Final and Final Post. This program replaces the ‘Create JournalEntries’ in Oracle Assets. If the program is run in FINAL mode with POST as yes,then the entries will be automatically posted to the General Ledger. If the program isrun in FINAL mode with ‘Transfer to General Ledger’ as NO, then run TransferJournal Entries to GL – Assets later on. For more details, please refer to the OracleAssets User Guide.

The depreciation expense journal entries can be created from an Asset Corporate oran Asset Tax book and transferred to the General Ledger.

There is no need to run Depreciation before creating accounting transactions. You canrun the Create Accounting process as many times as necessary within a period.




This program creates adjusting journal entries to depreciation expense, bonusexpense, accumulated depreciation accounts, and bonus reserve accounts when youenter prior period additions, transfers, or retirements.

Warning: Journal entries cannot be created from asset budgeting books.

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

Oracle Assets uses the ‘FA: Use Workflow Account Generation’ to make a decisionon whether to use the workflow or not. By default, on upgrade this profile option isset to ‘Yes’. If the profile is set to ‘No’, create accounting will create accountingbased on its rules and the workflow will not be used.

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

Attention: ‘Create Journal Entries’ program has now been replaced by ‘CreateAccounting’ program.

6. Rollback Depreciation

There is no separate program as in Release 11i to perform the rollback. Anyalteration on a depreciated asset will result in an automatic rollback.

Note: Rollback happens at Asset Level in Release 12, unlike at Asset Book level as inRelease 11i.

7. Create Deferred Depreciation Journal Entries (Optional)

Deferred depreciation is the difference in depreciation expense taken for an asset

between a tax book and its associated corporate book. This difference results from theuse of accelerated depreciation methods in the tax book.

Create deferred journal entries using the SLA Create Accounting Process, based onrules and in-built event class/entity model processes for deferred depreciation. Formore information, please refer to the Oracle Assets User Guide.

8. Depreciation Projections (Optional)

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

9. Review and Post Journal Entries

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

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




10. Reconcile Oracle Assets to the General Ledger Using Reports

* Reserve Ledger Reports

a) Journal Entry Reserve Ledger –

Reconcile with the Account Analysis with Payables Details Report.

b) Tax Reserve Ledger Report

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

* Balances Reports

a) Cost Detail and Cost Summary Reports

b) CIP Detail and CIP Summary Reports

c) Reserve Detail and Reserve Summary Reports

d) Revaluation Reserve Detail and Revaluation Reserve Summary Reports

e) Account Analysis Report

* Transaction Reports

a) Asset Additions Report

b) Cost Adjustments Reportc) Asset Reclassification Report

d) Asset Transfers Report

e) Asset Retirements Report

f) Reinstated Assets Report

g) Cost Clearing Reconciliation Report

* Drill Down Reports

a) Drill Down Report–

Reconcile the batch totals from this report with those of the General Journals Report

in Oracle General Ledger run for posting status = ‘Unposted’.b) Account Drill Down Report–

Reconcile journal entries to the General Ledger. The report enables detailed review of the account activity on a specific general ledger account. The report gives detailedinformation of the asset transactions represents by a journal entry line.

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

* General Ledger Reports

a) Unposted Journals Report–

Run- run the General Journals Report for Posting Status = Unposted to reconcile with

the Drill Down reports.b) Posted Journals Report–

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

c) Account Analysis Report with Payables Detail –

The ending balance of this report reconciles with the Reserve Summary Reportending balance.

d) Financial Statements Generator –




It is recommended that you create a detailed Financial Statement Generator (FSG) forall asset accounts. This can be done at cost centre level for direct comparison withthe Asset Cost Summary and Reserve Summary reports.

11. Run Responsibility Reports (Optional)

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

* Asset Additions By Cost Centre Report

* Asset Additions Responsibility Report

* Asset Disposals Responsibility Report

* Asset Inventory Report

* Asset Retirements by Cost Centre Report

* Responsibility Reserve Ledger Report




Chapter 10 Oracle Treasury

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


Oracle Treasury is a comprehensive treasury solution that helps you effectivelymanage your investments, debt, foreign exchange transactions and derivatives.

Once your financial transactions are captured in the system, manually orautomatically, Oracle Treasury facilitates settlement, valuation, accrual andaccounting for these transactions.

Procedures

The following steps are taken in performing period-end processing for OracleTreasury. You can automate steps 2-5 by running the Accounting Streamline Processconcurrent program.

1. Complete Daily Trading ActivitiesComplete trading activities for the day, validate them, if necessary, and send paymentinstructions to the bank.

2. Perform Revaluation

Revaluation is the process of adjusting the rates and prices of your financialinstruments to reflect the current market value and calculate the realized or unrealizedprofit and loss.

Revaluation is an optional step in the accounting process. If you set the ‘Accounting -Perform Deal Revaluations company parameter’ to Yes, you must performrevaluations as part of the accounting process.

3. Generate Accruals and Amortization

You can generate amortizations and accruals adjustments, split by revenue andexpense, for all money market products. These adjustments include amounts forsettling derivatives, such as Forward Rate Agreements (FRAs) and options.

Amortization and accruals adjustments are calculated incrementally for each batchperiod, rather than as an accumulating amount for multiple periods. Reversal entriesare not required.

* Navigate to the Accruals window.

* Choose a Company.

* Choose a period or an existing Batch ID.

* Choose the Calculate button.

* The accrual and amortization details for the financial transactions in the specifiedperiod appear.

You can view and delete these period adjustments, but you cannot change them. If you find the results to be incorrect, delete them and review the correspondingfinancial instrument. Once the financial instrument is correct, re-create the accruals.

* Authorize the results.




4. Generate Journals

Use the Daily Journals window to generate the daily journals for an accounting batch,view the generated journal entries, change the dates or GL accounts for your journalentries, and reallocate suspense journal entries to a GL account.

5. Transfer Journals to General Ledger

After you enter and verify all accounting changes for the journal, use the Transfer

Journals to GL window to transfer your journals from Treasury to General Ledger.Once you transfer your daily journals to General Ledger, you cannot change any of the accounting for the batch in Treasury.

Attention: There is no integration yet with SubLedger Accounting (SLA).Treasury sends the journals directly to GL and not via SLA.




Chapter 11 Oracle General Ledger

This chapter describes the procedures for performing period-end processing in OracleGeneral Ledger Release 12.

Note: The Period-End and Year-End processes are the same if Encumbrances areNot

Used. Special steps are required for Encumbrances.


Period End Close

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

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

* Never Opened - The period has never been used.

* Future Enterable - The period is open to accept transactions from other modules.

Usually used where modules are maintained in different periods, and transactions arelikely to be posted across modules.

* Open - Period is available for data entry

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

* Permanently Closed - No further processing is possible.

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

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

Combined Basis Accounting

If you have installed combined basis accounting, then the steps detailed below willneed to be completed for both your accrual and cash Ledgers. This will mean that youwill need to select the responsibility relevant to both Ledgers when completing thesetasks. Depending on the Ledger set/Data Access Set attached to a responsibility, thesetasks could be performed from a single responsibility.

Procedures

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

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

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

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




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

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

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

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

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

Journal Import:

* If not automatically completed, review the Journal Import Execution Report toidentify which journal entry batches were not successfully imported.

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

* Make the necessary corrections - in the GL_INTERFACE table, via the CorrectJournal Import Data window.

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

Note: If journal import fails when importing from the sub ledger modules, data willbe rolled back to SLA tables, so that there would not be any data left in theGL_INTERFACE table, when the profile option ‘SLA:Disable Journal Import’ is setto ‘No’.

Attention: Leave sufficient time to re-import any journal entries notsuccessfully imported from the feeder systems. Then update and post them.

3. Upload Journals from Web Applications Desktop Integrator (Web ADI) to

Oracle General Ledger (Optional)

Journal information can also be imported from spreadsheets into Oracle GeneralLedger using Web ADI.

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

(Optional: only required if you want to post from non-Oracle systems)

Following the same procedures as for Step 2:

* Ensure that the accounting information from any site specific, non-Oracle sub-ledgers has been transferred to Oracle General Ledger.

* Run the Journal Import process for these sources and ensure the resulting JournalEntries are posted either automatically by AutoPost or manually.




Note: If you are loading accounting journals for 3rd party systems directly to OracleGeneral Ledger, use the GL_Interface.

If you are using Oracle Financials Accounting Hub to generate accounting for your3rd party systems, the accounting journal details will automatically by stored in theXLA tables, prior to being transferred (in summary or detail) and imported intoOracle General Ledger.

5. Generate Reversal Journals (Optional)

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

6. Generate Recurring Journals (Optional)

Select all the Recurring Journals that require generation for the current period. Submitthe process to generate the Recurring Journals. This process can be submitted forforeign currency and for multiple ledgers, provided the access is available.

7. Generate Mass Allocation Journals (Optional)

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

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

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

8. Review and Verify Journal Details of Unposted Journal Entries

Review any remaining unposted journal entries for the current period.

Update journal entries as appropriate.

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

Standard Journal reports available included:

a) Journal Batch Summary Report

b) Journals - General Report

c) Journals - Entry Report

d) Journals - Line Report

e) Tax Journals Report

f) General Ledger - Entered Currency

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

9. Post All Journal Batches

Post all journal entries for the current period, including reversal, recurring andallocation journals.

Review the results of the post:




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

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

Update unpostable journal entries.

Locate the problems with unpostable journal entry batches using the followinginformation:

a) Control Total

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

b) Period Status

Post Actual batches to open periods.

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

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

c) Batch StatusOracle General Ledger describes the problems with unpostable batches.

Common reasons for unpostable batches are:

* Control total violations

* Posting to unopened periods

* Unbalanced journal entries

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

Post updated journal entries.

9a. Run the Period Close Exceptions Report

This is a new step in Release 12. The General Ledger accounting can run the PeriodClose Exceptions report to double check that there are no outstanding transactions inthe subledgers and GL, and ensure a follow-up with relevant colleagues if anyexceptions are identified.

10. Run GL Trial Balances and Preliminary Financial Statement Generator

Reports (FSGs)

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

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

Suggestion: To prevent confusing different versions of accounting reports fora specific accounting period, discard any obsolete versions of your report forthat accounting period.

Request financial reports such as:




a) Balance Sheets e.g. Detail Trial Balance Report

b) Income Statements

c) Gross Margin Analysis

11. Revalue Balances (Optional)

Revalue account balances to update functional currency equivalents.

12. Translate Balances (Optional)

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

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

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

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

Translate account balances to any defined currency.

13. Consolidate Ledgers (Optional)

Attention: You can consolidate using Global Consolidation System, FinancialConsolidation Hub or the Hyperion Consolidation functionality. Whicheveryou choose you can run your extract programs to extract the data from GeneralLedger to the consolidation systems.

* Consolidate within ledgers

a) Enter consolidating journal entries

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

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

Recurring Journals- use formulas

b) Post consolidating journal entries.

c) Define a reporting hierarchy that consolidates all the companies.

d) Define financial statements with the reporting hierarchy.

Suggestion: To automatically generate the amounts and accounts forconsolidating and eliminating journal entries, use recurring journal entryformulas.

Suggestion: To produce financial reports that reconcile your consolidatingcompanies with the consolidated totals, enter the consolidating entries to aseparate company, and build reports with a separate column for ‘consolidatingentries’.

* Example of consolidation across ledgers when sharing same COA and Calendar(Using Ledger Set and access granted via ‘Data Access Set’):

a) Define consolidated FSG

b) Perform revaluation and translations across ledgers




c) Enter consolidated and eliminating entries

d) Report on FSG by selecting the ledger set option while running

* Example of consolidation across ledgers using the Global Consolidation System(GCS):

a) Define consolidations.

b) Perform revaluation and translation of foreign subsidiaries as required.

c) Run consolidations.

d) Enter consolidated and eliminating entries.

e) Report on this consolidated ledger using FSG’s.

f) Analyze results using drill-down capability from Parent ledger to Subsidiaryledger/s.

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

13a. Reconcile Intercompany (optional)

Advanced Global Intercompany System in Release 12 provides more advancedfeatures such as automatic generation of intercompany invoices in AP and AR,improved online reconciliation reporting, and is also fully integrated with SLA.

A new, online reconciliation report provides drill-down to underlying sources andsource journals for easy identification of reconciliation differences.

14. Review and Correct Balances (Perform Reconciliations)

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

errors in account balances.

* Review Detail Account Balances On-line

* Review Account Balances via Reports

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

a) General Ledger Reports

General Ledger Reports facilitate tracing back each transaction to the original source.These reports list beginning and ending account balances and all journal entry linesaffecting each account balance. The report provides detailed information on each

journal entry line including source, category and date.b) Accounts Analysis Reports

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

c) Trial Balance Reports

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

d) Journal Reports




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

* Journal Reconciliation:

General Ledger Entry Reconciliation lets you reconcile transactions in GL accountsthat should balance to zero. With General Ledger Entry Reconciliation, you can

selectively cross-reference transactions in GL with each other by enteringreconciliation reference information at the journal line level. When the balance forgroup of transactions is zero you can mark the transaction as reconciled.

* Clear Suspense Accounts

Examine the General Ledger and account analysis reports to identify the source of entries to the suspense accounts.

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

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

* Reconcile Subsidiary Ledgers

Identify differences between subsidiary ledgers and the General Ledger.

Determine which differences are errors requiring adjustment to the General Ledger.

* Check other key system accounts have not been transacted by ad-hoc journals, forexample, Creditors Control, Debtors Control, Intercompany accounts, etc.

15. Enter Adjustments and / or Accruals and Post

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

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

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

16. Perform Final Adjustments

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

17. Close the Current Oracle General Ledger Period

Close the current GL accounting period in the Open and Close Periods window. Theperiod can be ‘soft closed’, if later adjustments to the balances for that period may beapplicable, or ‘permanently closed’, which means that the period cannot be re-openedin the future.

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




18. Open the Next Oracle General Ledger Period

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

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

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

This step will need to be repeated for each ledger unless a data access set is setup togive access to multiple ledgers. Any Journals entered into this period while it had astatus of Future Enterable, can now be posted as the period now has a status of Open.

This is controlled by GL: Data Access Set profile option. With a data access setacross ledgers programs can be run for multiple ledgers from a single responsibility.

19. Run Financial Reports for the Closed Period

Run a final Trial Balance Report.

Run final Financial Statement Generator Reports (FSG) or Report Sets as required by

the organization including Income Statements and Balance Sheets. FSGs can also bepublished via the Application Desktop Integrator (ADI).



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

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

The following tax registers are available:

a) Deferred Output Tax Register

b) Recoverable and Non-Recoverable Tax Registers

c) Single Cross Product Tax Register

d) Standard Input and Output Tax Registers

21. Perform Encumbrance Year End Procedures (Optional)

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

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

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

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

* Carry forward encumbrances, and the encumbered budget.

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

Other facilities available:




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

* Carry forward budgets into the current appropriation budget, or to a separate budgetto identify between current year and carry forward amounts if required. Mass budgetprocessing also allows you to combine these budgets.

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

a) Open the next encumbrance year

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

b) Open the next budget year

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

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

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

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

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

c) Run Year End Carry Forward

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

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

1) Perform the Year End Carry Forward in Preview mode

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

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

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

* Encumbrance Type - Select ‘All’ for all encumbrances, or select the encumbrancetype that you require i.e. Commitment, Obligation etc.

* From/To Budget and Budget Organization- Select the budgets where they aredifferent

* Accounting Flexfield Ranges - Select the range of relevant accounting flexfields tobe carried forward.




Chapter 12 Period End Processing - Summary

The following table displays a summary of the period-end procedures for each of the Financials applic

chapters and, an indication of the order in which the steps should be undertaken.

Projects

Chapter 5)

Order

Management

(Chapter 2)

Cash

Management

(Chapter 3)

Payables

(Chapter 4)

Receivables

(Chapter 6)

Purchasing

(Chapter 7)

Inventory / Cost

Management

(Chapter 8)

Asset

(Chap

1. Complete All

Transactions for the

Period Being Closed

1. Complete Daily

Cash Management

Activities

1. Complete All


Period Being Closed

1. Complete All


Period Being Closed

1. Complete All


Period Being Closed.

2. Run the Payables

Approval Process for

All Invoices

2. Review the

Current and Future

Commitments(Optional)

2. Check Inventory

and Work In Process

TransactionInterfaces.

2. Ensure all

Interfaces areCompleted for the

Period (Optional)

3. Review & Resolve

Amounts to Post tothe General Ledger

3. Review the

Outstanding andOverdue Purchase

Orders (Optional)

3. Check and fix

pendingTransactions.

3. Review OpenOrders and Check the

Workflow Status

4. ReconcilePayments to Bank

Statement Activityfor the Period

4. Follow upReceipts-Check with

Suppliers

4. Review Held

Orders

5. Transfer All

Approved Invoices

and Payments, to the

General Ledger

5. Identify and

Review Un-invoiced

Receipts (Period-End

Accruals)

5.Review Customer

Acceptances(Optional)

6. Review the

Payables to GeneralLedger Posting

Process AfterCompletion

6. Follow Up

Outstanding Invoices

6.Review Discounts 7. Submit the

Unaccounted

Transactions SweepProgram

7. Complete the

Oracle Payables

Period End Process

7.Review Back Orders

8. Close the CurrentOracle Payables

Period

. Change theCurrent Oracle

rojects Periodtatus from Open to

ending Close

8.Review and CorrectOrder Exceptions

. Open the Next

Oracle Projectseriod




Projects

Chapter 5)

Order

Management

(Chapter 2)

Cash

Management

(Chapter 3)

Payables

(Chapter 4)

Receivables

(Chapter 6)

Purchasing

(Chapter 7)

Inventory / Cost

Management

(Chapter 8)

Asset

(Chap

. Complete All

Maintenance

Activities

. Run Maintenance

rocesses

. Complete All

ransactions for theeriod Being Closed

. Run the Cost

Distribution

rocesses

2. Load Bank

Statements

a.Run the Generate

Cost AccountingEvents Program

3. Generate Sweep

Transactions

.Interface

ransactions to Other

Applications

4. Generate Bank

Statement Cash flows

.Generate DraftRevenue for All

rojects

5. Reconcile Bank Statements

.Review and

Release Revenue for

All Projects

6. Create

Miscellaneous

Transactions

0.Run Generation

Revenue AccountingEvents Process

6a. Complete Bank

Transfers

1.Run Create

Accounting

7. Review Auto-

ReconciliationExecution Report

9. Accrue Un-

invoiced Receipts

8. Run Receipt

Accruals - PeriodEnd Process

2.Generate Invoices 1. Complete All


Period Being Closed

10. Reconcile Oracle

Payables Activity for

the Period

2. Reconcile

Transaction Activity

for the Period

4. Transfer Summary

or Detail

Transactions11. Run Mass

Additions Transfer to

Oracle Assets

3. Reconcile

Outstanding

Customer Balances

9. Reconcile

Accounts - Perpetual

Accruals

1. Com

Transa

Period

9. Reconcile to

Inventory

4. Review the

Unapplied Receipts

Register

10. Perform Year

End Encumbrance

Processing.

(Optional)

5. Open the Next

Inventory Period

2. Assi

to Dist

10. Create ServiceContracts (Optional)

5. Reconcile receipts. 11. Close the CurrentOracle Purchasing

Period.

6. Close the CurrentOracle Payables and

Oracle Purchasing

3. Run Gains a

(Optio






Projects

Chapter 5)

Order

Management

(Chapter 2)

Cash

Management

(Chapter 3)

Payables

(Chapter 4)

Receivables

(Chapter 6)

Purchasing

(Chapter 7)

Inventory / Cost

Management

(Chapter 8)

Asset

(Chap

14. Reconcile Posted

Journal Entries

13. Run Reports forTax Reporting

Purposes (Optional)

15. Review theUnposted Items

Report

14. Run the Key

Indicators Report(Optional)

16. Review Account

Analysis Report

17. Open the Next

Oracle Receivables

Period

18. Run Reports forTax Reporting

Purposes (Optional)




Projects

Chapter 5)

Order

Management

(Chapter 2)

Cash

Management

(Chapter 3)

Payables

(Chapter 4)

Receivables

(Chapter 6)

Purchasing

(Chapter 7)

Inventory / Cost

Management

(Chapter 8)

Asset

(Chap






Appendix: More Information

Related My Oracle Support Information

The following My Oracle Support Information can be reviewed for additional

information on period end procedures.

Document Title Doc ID

AR: What are the recommended patches for AR-GLPosting, Reconciliation and Data Integrity Issues?

749679.1

'FAQs' for Period Close and Unaccounted

Transactions topic in Oracle Payables

735522.1

GL_DATE Difference On R12.0.4 Reconciliation Reports

On Standard Cash Receipt.

751830.1

How To Diagnose And Reconcile R12 Inventory AP

Accrual Transactions Using Reconciliation Reports

728871.1

How To Diagnose Issues With Create Accounting Process

For Procure To Pay Cycle in R12

558421.1

Period Close Reconciliation Report Is Showing Unusual

Discrepancy

761502.1

R12 Accounting FAQ's 579836.1

R12 Accounting, GL Transfer, Period Close and TrialBalance 'How To' documents

579373.1

R12 SLA: New R12 Payables Trial Balance -- aka Open

Account AP Balances Listing

604739.1

R12 Trial Balance FAQs 579631.1

R12 Troubleshooting Accounting Issues (in Payables) 732928.1

R12 Troubleshooting Period Close in Payables 437422.1

R12: Oracle Financials Year-End Close and Reconciliation

Resources

759002.1

R12: The Differences between the AP Trial Balance in R12

and 11i

743390.1

Release 12 Close Process & Reconciliation - 7:00 pm MDT

(Conf. Key: R12) November 19

740297.1

SLA: Troubleshooting the AP TO GL Reconciliation 605707.1

Subledger Accounting (SLA): FAQ for Support Engineers 436128.1

Useful Articles for R12 General Ledger Support Engineers 369993.1

What Is The Period Close Process For Oracle Assets In

Release 12?

557948.1




Change Log

Jun 2009 Published White Paper

16-Aug-2010 Updated the column headings for the table in Chapter 12

16-May-2012 Removed comment in Chapter 8 under Section 4 Transfer

Summary or Detail Transaction re: Inventory Period Close andhow GL Transfer is automatically initiated.

08-Jun-2012 Updated Chapter 8, section 7. Removed statements-

• Creates summary or detail inventory accounting entries in

the GL interface.

• Creates summary or detail work in process accounting

entries in the GL interface.

Oracle Financials Release 12 Period End Procedures

June 2009

Author: Oracle Consulting

Contributing Authors and Reviewers: Suneel Bhaskar, Ramaswamy Krishnamurti, Murali Voora, Sarah Bowen,

Menno Koomen, Lucia Scaltriti, Bertrand Vuigner, Terrance Wampler, Helle Hennings, Elise Mattei, Mien-Lin Tan,Julia Baeva, Simer Sahani, Bill Tokheim, Barbara Fox, Amrita Mehrok, Ashish Pathak, Kannan Tarakad, Chris

Cianciolo, Henk Brons

Oracle Corporation

World Headquarters

500 Oracle ParkwayRedwood Shores, CA 94065

U.S.A.

Worldwide Inquiries:

Phone: +1.650.506.7000

Fax: +1.650.506.7200

oracle.com

Copyright © 2009, Oracle and/or its affiliates. All rights reserved.

This document is provided for information purposes only and the

contents hereof are subject to change without notice.

This document is not warranted to be error-free, nor subject to any

other warranties or conditions, whether expressed orally or implied

in law, including implied warranties and conditions of merchantability

or fitness for a particular purpose. We specifically disclaim any

liability with respect to this document and no contractual obligations

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may not be reproduced or transmitted in any form or by any means,

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