Oracle EBS R12 Assets Period Closing Procedures

13,143 views

Published on

a white paper that lists steps and reports required to close Oracle Assets

Published in: Business
1 Comment
6 Likes
Statistics
Notes
  • http://www.dbmanagement.info/Tutorials/Oracle_EBS.htm
       Reply 
    Are you sure you want to  Yes  No
    Your message goes here
No Downloads
Views
Total views
13,143
On SlideShare
0
From Embeds
0
Number of Embeds
27
Actions
Shares
0
Downloads
1,281
Comments
1
Likes
6
Embeds 0
No embeds

No notes for slide

Oracle EBS R12 Assets Period Closing Procedures

  1. 1. Oracle Applications White PaperORACLE EBS R12 ASSETS CLOSINGPERIOD PROCEDURESJan 2010Author: Mohamed Nazih CPA, PMP, Oracle Financials Consultant m.nazih@gmail.comVersion 1.0
  2. 2. R12 Assets - Closing Period © 2010ContentsAbout the Author ................................................................................... 3Introduction ......................................................................................... 4Purpose .............................................................................................. 4Who Should Read This ............................................................................. 4 Oracle EBS R12 Assets - Closing Period Procedures ............................................ 5 Overview of the Period Close ............................................................................ 5 Complete Transactions .................................................................................... 5 Run Depreciation........................................................................................... 5 Create, Transfer, and Post Journals .................................................................... 6 Reconciling Journals Transfer Process .................................................................. 7 Reconciling Journals Import Process (GL) .............................................................. 7 Reconcile FA to GL......................................................................................... 8 Reconcile Asset Cost Account ..................................................................................... 9 Reconcile Asset CIP Cost Account ............................................................................... 10 Reconcile Reserve Account ....................................................................................... 11 Reconcile Depreciation Expense ................................................................................. 11Information Sources............................................................................... 12Information Sources............................................................................... 12 Page 2 of 12
  3. 3. R12 Assets - Closing Period © 2010About the Author Mohamed Nazih is a Proficient functional consultant in Oracle e-Business Suite with more than six years of experience of solutions design, configuration, testing and documentation and three full life cycle implementations. Prior to Oracle, he worked as a certified accountant and auditor for six years. This experience gave him an advantage to team up with financial staff in many companies in delivering high quality professional services, such as consulting, support, and training. While not working, Mohamed Nazih takes care of his family. Furthermore, he is a self-learner and avid reader in project management, change management, business intelligence, science, and environment issues. Mohamed Nazih values an atmosphere of ethics, punctuality, and team- working. Page 3 of 12
  4. 4. R12 Assets - Closing Period © 2010Introduction Closing the books is a necessary step in the accounting cycle. In order to issue the financial statement, accounting staff must ensure that subledgers’ balances are cross checked with relevant General Ledger accounts’ balances. Doing so in Oracle EBS R12, requires performing actions in order and running many reports to ascertain that ledgers and accounts are in harmony and no surprises will be discovered at year end.Purpose This paper will help you understand the steps, order, and reports required to close Oracle Receivables period. Proper closing each month helps minimizing year end time needed to issue financial statements.Who Should Read This This paper is aimed to super users and applications’ auditors, as well as functional consultants and implementers. Page 4 of 12
  5. 5. R12 Assets - Closing Period © 2010Oracle EBS R12 Assets - Closing Period ProceduresOverview of the Period Close At the end of each accounting period, companies must complete the closing process in Assets and reconcile Assets activity for the period.Complete Transactions  Completing all transactions for Oracle Assets:  Prepare and Post Mass Additions  Complete Manual Additions, Adjustments, Transfers, Retirements, and Reinstatements  Ensure that:  All transactions have been entered for the period being closed o Once a depreciation period in Oracle Assets has been closed, it cannot be re-opened  All assets have been assigned to a distribution line. Otherwise, period end Depreciation Process will not complete, and will not close the period. Run: o Assets Not Assigned To Any Books o Assets Not Assigned To Any Cost Centers  No transactions are being entered as Oracle Assets prevents transaction data entry while the Depreciation Run Process is runningRun Depreciation  Run Depreciation process is performed independently for each asset book  When the process is run, Oracle Assets automatically calculates depreciation for all assets, calculates gains and losses for all retirements, and then runs the appropriate Reserve Ledger Report  Ensure to: Page 5 of 12
  6. 6. R12 Assets - Closing Period © 2010  Run Depreciation without closing the period  Review Journal Entry Reserve Ledger Report for Cost, calculated depreciation expense, and accumulated depreciation  Make necessary activities  Re-Run Depreciation without closing the period and review the Reserve Ledger Report again  Run Depreciation with closing the periodCreate, Transfer, and Post Journals  Run Accounting after processing all postable records.  The following approach may be applied After an asset addition:  Run Create Accounting - Assets for the Addition Process Category to send Cost and Cost Clearing lines to GL  Run Depreciation without closing the period  After depreciation runs, you can run the Create Accounting for the Depreciation Process Category to get the Depreciation Expense and Reserve lines sent to GL  If needed you can later update the asset and enter whatever transaction is needed. (for example : cost adjustment). For this particular asset, the depreciation data is automatically rolled back  And then run Create Accounting to send to GL the adjustment journal and the reversal journal for Rollback Depreciation (in which the prior depreciation expense is credited and the reserve is debited): o Rerunning depreciation will then depreciate again this asset And Create Accounting will send to GL new Depreciation lines Page 6 of 12
  7. 7. R12 Assets - Closing Period © 2010Reconciling Journals Transfer Process  Subledger Accounting Program report:  Is produced by Create Accounting program  Shows subledger journal entries created for successful accounting events  Journal Entries report (in Posted status mode):  includes all transactions that should be posted to General Ledger (i.e. associated transaction type has Post to GL set to Yes)  displays: o details of what is or will be posted to each GL account for a specific period and o Journals by receivables categories  Ensure the following is correct Subledger Accounting Program report total should equal Journal Entries report totalReconciling Journals Import Process (GL)  Journal Import Execution report:  Is produced by (GL) journal import process  Shows total debits and credits for the journals it created  Posting Execution report: Is produced by (GL) journal posting journals process  Unposted Journals report  General Journals report  Ensure the following is correct: total of these report should equal (what is transferred by Receivables = what is posted by GL) Page 7 of 12
  8. 8. R12 Assets - Closing Period © 2010Reconcile FA to GL After posting, reconcile subledger details with General Ledger. Page 8 of 12
  9. 9. R12 Assets - Closing Period © 2010 Reconcile Asset Cost Account Ending Balance Ending Balance of Assets’ Cost of Assets’ Cost GL Accounts total in in Trial Balance Cost Summary Should equal Report Report in Cost Detail Report Additions Adjustments Retirements Reclasses Transfers = Cost in = Net Change in = Cost Retired in = Cost in = Cost in Asset Cost Asset Asset Asset Transfer Additions Adjustments Retirements Reclassification Reconciliation Report Report Report Reconciliation Report Report Page 9 of 12
  10. 10. R12 Assets - Closing Period © 2010 Reconcile Asset CIP Cost Account Page 10 of 12
  11. 11. R12 Assets - Closing Period © 2010 Reconcile Reserve Account Ending Balance Ending Balance of Reserve GL of Reserve total Accounts in in Trial Balance Reserve Should equal Report Summary Report in Reserve Detail Report Additions Adjustments Retirements Reclasses Depreciation Transfers = Accumulate = Reserve = Cost Retired = Accumulated Depreciation = Depreciation in = Cost in Adjustment in - NBV Retired in Depreciation in in Asset Reserve Asset Asset Account Asset Additions Adjustments Retirements Reclassification Reconciliation Transfers Report Report Report Reconciliation Reserve Report Report Ledger Reconcile Depreciation Expense Page 11 of 12
  12. 12. R12 Assets - Closing Period © 2010Information Sources o Metalink Note: 557948.1 o Metalink Note: 961285.1 o Reconciling Oracle Assets . Whitepaper by Brian R. Bouchard, September 10, 2007 (Oracle Community) o Oracle Assets Users Guide Release 12.1 Part No. E13586-02 Page 12 of 12

×