Whats New In R12 The Close Formal Close Schedule Period Close Activities to Do In Advance Close Checklist Reconciling

AR to the Aging Document Your Accounting Activity Reconciling AR to GL Improve Your Close Process

Copyright @ 2012 by Cathy Cakebread

Applicable for 11i and R12

Mostly

I am NOT an SLA Expert!

Copyright @ 2012 by Cathy Cakebread

Subledger Accounting (SLA)

Standardized Accounting Engine

More Reports Especially Reconciling Reports

SLA Reports More Accounting Detail Reports Report to Reconcile AR with GL

Copyright @ 2012 by Cathy Cakebread

Prior to SLA GL Interface

Oracle Receivables Oracle General Ledger

With SLA - Create Accounting

Oracle Receivables Subledger Accounting Oracle General Ledger

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Greater Control Over Accounts Used Default Accounts (AR) Real Accounts (SLA) Ability to Customize But: Should You? AR != GL Customized: Run AR to GL Reconciliation Report to see Differences Control Accounting AR to GL Reconciliation Report Verify Setups

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AR to GL Reconciliation Report ** Cross Currency Exchange Gain/Loss Report** Unapplied Receipts Journal ** Receipts Journal ** Cumulative Activity Balance Report (bug)** Customer Open Balance Letter (bug) IEX: Create Dunning and Broken Promises Call Backs Other Receipt Applications Publish Actual Receipt Publish Receipt Forecast Publish Transaction Check Receipt Analysis Days Late Reversed Notes Receivable Report

** Applicable to Close

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Control Requests Run

Account Analysis Report (bug) Journal Entries Report (bug) Subledger Period Close Exceptions Report Sales Journal by Customer Sales Journal by GL Account (bug) ** Receipt Journal Report ** Third Party Balances Report (bug) **
See Note 1269489.1 for AR Period End Process and related known patches ** Does not always appear on the list of possible reports
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Visibility Too Much to Do Not Enough Time

STRESS!

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Brevity! Accuracy! Control!

Suggestions: Have a Close Schedule Use a Close Checklist Create and Utilize Standard Reconciling Procedures Store Reports (Soft Copy) by Period
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Clear Cut-Offs / Deadlines

Useful For:

Defined In Advance Consistency!

Bank Deposits Shipments Inter-company Activity Miscellaneous Cash Other Interfaces Avoiding the Just One More Thing Syndrome

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Accept/Reject Adjustments Complete/Delete Incomplete Transactions Resolve AutoInvoice Rejects Clear Lockbox Exceptions Run Revenue Recognition Process Enter Miscellaneous Cash Apply Unapplied Cash

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Make Unapplied Receipts On-Account

Doesnt Matter is Batch is Closed!!!

Apply all Unapplied Receipts

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Complete All Interfaces

AutoInvoice AutoLockbox Others.

Enter Final Transactions Clear Exceptions Verify Accounting Entries Transfer to SLA * Transfer to General Ledger Post in General Ledger Close the Current Period Open the New Period

Tip: Only One Period Open at a Time!!

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See What You Need to Do

And, The Sequence To Do Them

Know Whats Done

And, Whats Left to Do

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TASK

DESCRIPTION

PROCESSED BY

1.

Complete manual payments and adjustments for the period and cleanup of Out of Balance batches

2.

Complete final Projects Streamline Process

3.

Complete final Receivables Interface from Order Management

4.

Complete manual invoices and credit memos

5.

Run your final AutoInvoice process

6.

Correct all AutoInvoice rejects and re-run (as needed)

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9) Run the AR:Journal Entries report (to verify what the journal entries will look like) Reports Accounting (Print Accounting Reports) Type Name Reporting Level Reporting Context GL Date From GL Date To Posting Status Print Detail by Account Single Request AR: Journal Entries Report Ledger Applicable Ledger Period start date e.g. 01-SEP-12 Period end date e.g.,30-SEP-12 Posted and Unposted (not the default) blank

Print Detail by Category Print Summary by Account

Print Summary by Category

blank Yes
Yes

Use the defaults (Yes) for all record types and leave the rest of the parameters blank

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AR: Journal Entries Report (AR Version)

Summary By Category If Issues, Detail by Category or Account

Journal Entries Report (SLA Version) Receipts Journal (SLA) Sales Journal by GL Account (SLA)

Totals Should Match Transaction Register If issues, Sales Journal By Customer (SLA)
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Mode Final Transfer to General Ledger - Yes Post to General Ledger Yes

Run Regularly - Daily?

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Subledger Period Close Exceptions Report (SLA)

Any Exceptions? Not Transferred? Not Posted?

Unposted Items Report

Should be None

AR to GL Reconciliation Report
Out of Balance Only Yes

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AR Reconciliation Report (new in 11i) and Starting Aging Balance

Transaction Register Applied Receipts Register Unapplied and Unresolved Receipts Register Adjustment Register Invoice Exceptions Report Currency Gains/Losses Report

Ending Aging Balance

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MONTH: ________________ PREPARED BY: ______________________

ACTIVITY
Starting Balance Invoices Debit Memos Credit Memos (

SOURCE
Aging - Old Transaction Register Transaction Register ) Transaction Register Transaction Register Subtotal

Applied Payments ( Discounts Taken ( Unapplied Activity ( Adjustments

) Applied Receipts Register (Applied Amount Total) ) Applied Receipts Register (Earned Discount + Unearned Discount) ) Unapplied and Unresolved Receipts Register (On-Account Amount + Unapplied Amount) * -1 Adjustments Register (may be + or -)

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Journal Entries Report Summary By Category

Transaction Register (Split by Company and Currency)

Invoices, Debit Memos, Credit Memos, Commitments Credit Memo Total Should be Negative Watch Bottom Total in 11.5.9+ includes ALL Currencies

Verify That No Illogical Entries (AR vs. Non AR by Category)

Applied Receipts Register

Adjustment Register (May be Negative or Positive) Invoice Exceptions Report (= Items Not Aged) Known Bugs in Reports:

Add Totals and Multiply by -1 Result May be Negative or Positive Note that Total Does Not Include Discounts (in 11.5.9+) Note: Cash Received Does Not Equal Amount Applied!

AR Reconciliation Report, Journal Entries Report, Applied Receipts Register

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Inconsistent Use of Dates

Always Use First Date to Last Date of Period

Use of Wrong Sign on Spreadsheet Buggy Version of a Report Improper Entry on Spreadsheet More Than One AR Period Open at a Time Watch Currency and Company

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Key Accounts
AR, Cash, Unapplied Cash

What Does AR Say?

Ending Aging Balance Journal Entries Report

What Does SLA and GL Say?

Account Analysis Report (GL Version)

Are There Differences?

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Control Requests Run

Account Analysis Report (bug)
Journal Entries Report (bug) Any Not Transferred or Not Posted? Sales Journal by GL Account (bug) ** Sales Journal by Customer Receipts Journal Report **

Third Party Balances Report (bug) **

See Note 1269489.1 for AR Period End Process and related known patches

Also Run: AR to GL Reconciliation Report

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ACTIVITY

Balance to Aging

Journal Entries Report Totals

AR1

AR2

Cash1

Cash2

Unapplied

Starting Balance Invoices Debit Memos Credit Memos CM - Application Applied Payments Discounts Taken Unapplied Activity Adjustments Items Not Aged Manual - Journal Entries

Cash-AR Cash-Misc. Unapplied Cash NEW BALANCE NEW REPORT TOTALS Difference Current JE's JE's To Date TOTAL ATB- By Account Difference Note - Unapplied activity impacts ATB but is included in the applied receipts total when posted to GL New Report Totals = The New Aging and The Account Analysis Reports (gray areas are from the Account Analysis Report) Add NEW BALANCE to JE's (current and to date) - should = ATB by Account totals

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GL Starting Balance +/- Current Period Activity +/- Current Period Manual Journal Entries +/- To Date Manual Journal Entries

Should

Equal:

Aging by Account Ending GL Balance

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Why Are There Differences?

Account Usage From Other Sources
Manual Journal Entries Journal Import Not Completed Successfully Changes to Standard Accounts, e.g., Unapplied Cash Improper Setups Unposted Items SLA Definitions Differ from AR Defaults

Check: AR to GL Reconciliation Report For Key

Accounts
SLA vs. AR and Activity from Other Sources
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Reconciling Deposits
May Be Included in the Process Above - or Separate Reconcile With Bank Deposits Keep Batches Consistent (Lockbox Process) Daily! Use Deposited Cash Reports

in Reports - Other Receipts Journal (new) Use Cash Management? Reconcile Credit Card Receipts Lag Time Issues Have Procedures for Re-Entry of Prior Period Data Accounts Shared with Accounts Payable?
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Resolve Inappropriate Usage of Accounts Isolate Accounts by Application Reduce Manual Journal Entries Suggest Process Improvements Get In the Habit of Pre-Doing as Much As You Can Create and Use a Close Schedule Use a Close Checklist Know in Advance: AR/GL Differences due to SLA

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My Oracle Support
Note: 1269489.1 Period Close for AR (with

patch numbers) Note: 961285.1 EBS Period Close Procedures Note: 557869.1 Critical EBS patches

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Cathy Cakebread Consultant See www.cathycakebread.com for more papers For this paper: www.cathycakebread.com/close cathyc@cathycakebread.com (650) 610-9130

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