Oracle Applications Period Closing Processes Humtv


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Oracle Applications Period Closing Processes Humtv

  1. 1. Oracle Applications Period Closing Processes Sapphire Consulting Services
  2. 2. The Close ScheduleEstablish clear cut deadlines for when data will and willnot be accepted for inclusion in the period. After thatpoint, everything goes into the next period.Notify all users when the system is not available during theclosing to prevent new transactions from being entered onthe period in the process of being closed.If you find inappropriate usage of accounts, you may needto modify some of your setups and/or retrain some of yourusers so this does not happen again. Sapphire Consulting Services
  3. 3. The Close ScheduleFor all modules I recommend that you have only one open period at a time. You couldhave activity going into one period when you meant for it to go into another period. Thisis due to the General Ledger date defaulting to the current date and if that date is withinan open period it will use that date. Also, there are known problems with items beingposted with one side of the entry in one period and the other side in the next period. Ifind it to be just too risky to have more than one period open. If you minimize the time ittakes to close, this should not be an issue.Tip for AP : Do not enter prepayment by debiting the prepayment account in thedistribution lines of the invoice. Those lines will not be regarding as liability’ and will notbe taken into account in the balance of your supplier Sapphire Consulting Services
  4. 4. Oracle Payables1. Complete All Transactions for the PeriodBeing Closed• Complete Invoices and Credits• Complete Prepayments• Complete Expense Reports• Complete Invoice Import• Complete Payments• One consideration for Accounts Payable where there are multiple operating units within the same ledger is that all operating units must be ready to close at the same time Sapphire Consulting Services
  5. 5. Oracle Payables2. Review and Resolve Amounts to Post to the General Ledger • Review the Invoice on Hold Report. This report enables review of any holds currently applied to invoices that would prevent the payment and/or posting of these invoices. The report details all invoices that Oracle Payables cannot select for posting and therefore cannot create journal entries. • Review the Unaccounted Transactions Report. This report enables review of all unaccounted invoice and payment transactions and a view of the reason that Payables cannot account for a transaction. Accounts Payable sorts the report by transaction type (invoice or payment), exception, supplier, transaction currency, and transaction number. • Reconcile Payments to Bank Statement Activity for the Period. • Transfer All Approved Invoices and Payments to the General Ledger.Release 12 provides 3 modes of accounting: Final, Final Post and Draft. The transactions that have been accounted in Final Post have already been transferred to, and posted in the general ledger. The transactions that have been accounted in the Final Mode have been transferred to GL or can still be within the subledger based on the parameter Transfer to General Ledger (either Yes or No) in the Create Accounting program. Sapphire Consulting Services
  6. 6. Oracle Payables3. Review the Payables to General Ledger Posting processAfter Completion.• The following reports can be run to review the invoices and payments that were posted to Oracle General Ledger, from Oracle Payables, for the period that is to be closed, i.e. the current accounting period.• a) The Subledger Accounting Program Report generated by the Create Accounting program.• b) The Posted Invoices Register• c) The Posted Payments Register Sapphire Consulting Services
  7. 7. Oracle Payables4. Submit the Unaccounted Transactions Sweep Program• The Unaccounted Transactions Sweep Program transfers unaccounted transactions from one accounting period to another. Because you cannot close a Payables period that has unaccounted transactions in it, if your accounting practices permit it, you might want to use this program to change the accounting date of the transactions to the next open period. For example, you have invoices for which you cannot resolve holds before the close, and your accounting practices allow you to change invoice distribution GL dates, you can submit this program to change invoice distribution GL dates to the first day of the next open period so you can close the current period. Sapphire Consulting Services
  8. 8. Oracle Payables5. Close the Current Oracle Payables Period • Close the accounting period by using the Control Payables Periods window to set the Period Status to “closed‟. This process automatically submits the Subledger Period Close Exceptions Report. • The Subledger Period Close Exceptions Report lists all accounting events and journal entries that fail period close validation. It is automatically submitted by General Ledger when closing a GL period if there are unprocessed accounting events or un- transferred journal entries. • You can also generate the Subledger Period Close Exceptions Report through a concurrent request as follows: • * For the application associated with the responsibility • * For all applications in the General Ledger responsibility Sapphire Consulting Services
  9. 9. Oracle Payables6. Run Mass Additions Transfer to Oracle Assets • After you have completed all Payables transaction entries, and confirmed all invoice holds, and carry forwards, submit the Mass Additions Create program to transfer capital invoice line distributions from Oracle Payables to Oracle Assets. • For foreign currency assets, Payables sends the invoice distribution amount in the converted functional currency. The mass addition line appears in Oracle Assets with the functional currency amount. • After you create mass additions, you can review them in the Prepare Mass Additions window in Oracle Assets. • It is recommended to do a final Mass Additions Create after the period close to ensure that all Payables invoices are: • * Included in the correct period and • * Any additional invoicing will become part of the next periods invoice and asset processing period. • Suggestion: If the volume of transactions in Accounts Payable requiring Assets update is large, you should consider running the Mass Additions Create process on a more regular basis. Sapphire Consulting Services
  10. 10. Oracle Payables7. Open the Next Oracle PayablesPeriod• Open the next accounting period by using the Control Payables Periods window to set the Period Status to Open. Sapphire Consulting Services