Oracle period end closing process it is mainly useful to know basics of Finance. he period close process for perpetual costing enables you to summarize costs related to inventory and manufacturing activities for a given accounting period. Generally, you should open and close periods for each separate inventory organization independently. By keeping only one period open, you can ensure that your transactions are dated correctly and posted to the correct accounting period. (For month-end adjustment purposes, you can temporarily hold multiple open periods.) The accounting periods and the period close process in Cost Management use the same periods, fiscal calendar, and other financial information found in General Ledger (GL). Inventory and Work in Process (WIP) transactions automatically create accounting entries. All accounting entries have transaction dates that belong in one accounting period. You can report and reconcile your transaction activity to an accounting period and GL. Note: Transactions use default accounts when standard costing is used. If Subledger Accounting (SLA) is enabled and SLA rules are customized, then the default accounts are not used. Note: Purchasing holds the accounting entries for receipts into receiving inspection and for deliveries into expense destinations. This includes any perpetual receipt accruals. Purchasing also has a separate period open and close, and uses separate processes to load the general ledger interface. It is not required to summarize transaction records before closing one accounting period, and opening the new accounting period. The period status is set to Closed not Summarized until the summarization process is completed. You can set the profile option CST:Period Summary to perform the summarization process automatically when you close the period. You can also set the option to perform the summarization process manually, which enables you to delay or not perform summarization. The Period Close Reconciliation report can be run at any time during the period. If generated for an open period, then it is a simulation of the period summarization. If generated for a Closed not Summarized period, then it creates summarization data that cannot be changed and sets the period status to Closed.. If generated for a Closed period, then it retrieves the summarized data. Caution: If you are using Oracle Enterprise Install Base and have the profile option 'CSE: Use eIB Costing Hook set to Y, then be aware that the accounted value and onhand value of eIB trackable items will not reconcile if your asset subinventories have quantities of these items that have already been converted to fixed assets. For details about the meaning of some of the terms used in this discussion and for a set of recommendations to avoid potential reconciliation issues for eIB trackable items, see the Oracle Enterprise Install Base and Implementation Guide.

1. International Ltd.
Year End – Process Steps
Sep 29, 2014

2. Contents
 Year End Checklist
 Basic Hygiene Factors
 Monthly Closing Activities
 Year End Process
 Prerequisites of Opening First Period
 Running Income Statement Program
 Running Balance Sheet Program

3. 3
Basic Hygiene Factors
Routine Monthly Closing
Activities
Running Year End Process
Prerequisites of First
Open Period
Year End Check List is divided into following parts
1
2
3
4

4. 4
Basic Hygiene Factors
Account Definition
• Retained Earning
Account must be
defined
Account
Classification
• Check for account
type of each Natural
Accounts (Asset,
Liability, Expense,
Revenue, Equity)
• Rectify any
misclassified Accounts.
Prior Periods
• Prior Monthly periods
must be closed except
the last period of the
Year.
If Account type is not set up correctly then carry forward and the
result of Year end will not be correct.

5. 5
Monthly Closing Activities
Perform Manual Transactions /Adjustments in
Sub-ledgers
Run Create Account Accounting in all the Sub-
ledgers
Transfer the Entries from Sub-ledgers to GL
Post the Entries in GL
Close all the Subledger Period

6. 6
Year End Process
• Ensure that you are in Adjustment Period.
1.
Ensure
• Run the Create Income Statement Closing Journals process to transfer income
statement year–end account balances of your revenue and expense accounts to the
retained earnings account.
• Journal entries are created to reverse debits and credits of ending year-to-date actual
balances for the period you want to close.
• The income statement accounts are zeroed out, and the balance (net of the reversed
revenue and expense accounts) is transferred to the closing account you specify.
2.
Income
Statement
• Run Close Process - Create Balance Sheet Closing Journals
• Journal Entries are created to reverse debits and credits of ending year–to–date actual
balances for the period you want to close
• Post the balance sheet closing journals to zero–out balance sheet account balances..
• Close the Last Adjustment Period.
3.
Balance
Sheet
Statement
• Open the first adjustment Period.
• In the first adjusting period of the new fiscal year, reverse the balance sheet
closing journals to repopulate the balance sheet accounts.
• Open First Open Period.
4.
First
Period

7. 7
Prerequisites of Opening First Period
1.
• Back up the database
2.
• Verify that next Calendar Periods have been defined.
3.
• Once this process completes successfully, run a trial balance
report for the new year and verify that all of the revenue and
expense accounts have a beginning balance of zero.
Opening the first period of the new year prematurely can result in posting performance degradation.
This can occur because the posting program rolls forward all affected account balances to all open
periods.

8. 8
Running Income Statement Program
1). Navigate to the Standard Report Submission Window.
Navigation = Reports >> Request >> Standard
2) Select Single Request, then ‘Close Process - Create Income Closing Journals’.
3) Enter the Parameters:
• Period: The latest open period will be defaulted here. Typically, you specify an
adjustment period that represents the last day of your fiscal year.
• Account From/To: Enter the starting and ending account ranges. The range can span
multiple balancing segments and include the entire chart of accounts.
General Ledger only extracts balances of revenue and expense accounts within
the range you specify.
• Closing Account: This is typically the retained earnings account. You may
specify any account that is valid and enabled. If you are closing multiple
balancing segments, General Ledger creates separate closing accounts for each
balancing segment.
• Category: Income Closing Statement is defaulted for the journal category.
• Source: Closing Journals is defaulted.

9. 9
Running Balance Sheet Close Program
1) Navigate to the Standard Report Submission Window.
Navigation = Reports >> Request >> Standard
2) Select Single Request, then ‘Close Process - Create Balance Sheet Closing Journals’.
3) Enter the Parameters:
• Period: The latest open period will be defaulted here. Typically, you specify an
adjustment period that represents the last day of your fiscal year.
• Account From/To: Enter the starting and ending account ranges. The range can
span multiple balancing segments and include the entire chart of accounts.
General Ledger only extracts balance sheet account balances within the range
you specify.
• Closing Account: You may specify any account that is valid and enabled. If you
are closing multiple balancing segments, General Ledger creates separate
closing accounts for each balancing segment.
• Category: Balance Sheet Close is defaulted for the journal category. NOTE: If
the balance sheet closing account is within the range you specified, General
Ledger ignores this account when extracting balances.

10. 10
If in Doubt
ASK
Rather than
doing
Experiments

11. Thank You