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MONTH END CLOSE CHECKLISTS
BY:
HASLINA BINTI HASAN
2.
Creating Accounting
3.
4.
Post to GL
5.
Reconcile Accounting
6.
Close Period
Normally the month end start sometime first Monday of week of the current month, Normal
procedure is that the whole month end completes in 4-5 working days. Here are the sequence in
which month end process performed.
GL Reconciliation Report
Complete Transactions
That means completing all transactions for Oracle Payables:
Complete Prepayments
2.
3.
Complete Payments
4.
5.
6.
7.
Review Accounting
o Payables Accounting Process Report
o Posted Invoices Register
o Posted Payments Register
2.
3.
i.
ii.
iii.
Explore the Control Account feature with Third Party Balances report.
You should avoid reversing batches (or modifying Journals) in GL, if transferred by
SLA.
Always use Period Close Exception report prior to closing Periods in GL and
reconciling to Account Analysis & Trial Balance reports.
Closed: Journal entry, posting, and transaction entry are not allowed unless the
accounting period is reopened. Receivables verifies that there are no unposted items
in this period. Receivables does not let you close a period that contains unposted
items.
Close Pending: Similar to Closed, but does not validate for Unposted items. Journal
entry, posting, and transaction entry are not allowed unless the accounting period is
reopened.
Future: This period is not yet open, but you can enter transactions in this period.
However, you cannot post in this period until you open it.
Not Opened: This period has never been opened and journal entry and posting are
not allowed.
5. Create accounting
In Release 12 this step is new, as it enables you to create accounting for your completed
transactions, which will be feed into General Ledger.
6. Review Unposted Items Report
You can review the Unposted Items Report to determine if any exceptions have been encountered,
that will need to be resolved, to ensure all accounting has been successful for all transactions.
7. Reconcile Transaction Activity for the Period (Transaction & Receipt)
Receipt Register
Check that Receivables Receipts Balance by running the Receipt Journal report and the
Receipt Register for the same GL Date range.
Use the Receipt Journal to View information about Receipts that appear in your Journal
Entries report. Use the Receipt Register to Review a list of receipts for the date range that
you specify. The total of the Receipt Journal should equal the total of all receipts in the
Receipt Register. These reports display information about both InvoiceRelated and
Miscellaneous Receipts.
Transaction Register
Adjustments Register
Invoice Exceptions
Applied Receipts Register
Unapplied Receipts Register
Aging Report (this period)
Most of these reports havent changed between Release 11i and Release 12, except that they look
at the SLA tables instead of the AR tables.
9. Post Receivables transactions in General Ledger
10. Reconciling AR and GL Balances
The following is a list of the Critical Reports required for Reconciliation between AR and GL
You record the total uninvoiced receipt liabilities accrued during the accounting period.
Actual journal entries are created for the amount of the receipt liabilities, debiting the
charge account and crediting the PO distribution accrual account (normally the Expense
A/P Accrual Account defined in the Define Purchasing Options form).
You reverse accrual journal entries manually at the start of the new accounting period.
If you are using encumbrance accounting, purchase order encumbrance is relieved when
the invoice(s) matched to the purchase order are posted to the general ledger.
Receiving Transactions
Purchasing does not record any accounting entries for expense during a receiving transaction if
you use period-end accruals. You record all of your uninvoiced liabilities at month end using the
Receipt Accruals - Period-End process.
corresponding to the invoice. Under these conditions, the liability corresponding to this invoice
would not appear in your books for the period. Payables lets you recognize this liability in the
following period.
4. Close your accounts payable period corresponding to the purchasing period for your
receipt accrual entries.
Note: The List of Values for period end accruals does not require the Accounts Payable period to be
closed, however it's strongly recommended that closed periods are used, as the receipt accruals
process will not pick up invoices entered after the accruals process is run for the period.
5. For period-end accruals of expense purchases, run the Uninvoiced Receipts Report.
Use this report to analyze your uninvoiced receipts. The Uninvoiced Receipts Report lets you use
the same selection criteria for your uninvoiced receipts as the Receipt Accruals - Period-End
process. You always know exactly what you accrue and for what amount.
6. For period-end accruals of expense purchases, use the Receipt Accruals - Period-End
process as many times as you need.
You can use the search criteria to choose what you want to accrue and accrue your receipts steps
by steps. You create accruals for a specific purchasing period. Purchasing automatically accrues all
uninvoiced receipts your entered up to the end of the accrual period you specify.
Each time you use the Receipt Accruals - Period-End process, Purchasing creates an unposted
journal entries batch in your general ledger for your receipt accruals. If you are using
encumbrance, Purchasing creates another journal entries batch in your general ledger
corresponding to the encumbrance reversal entries for the uninvoiced receipts you accrued.
Purchasing never accrues your uninvoiced receipt twice. Each time you create accrual entries for a
specific uninvoiced receipt, Purchasing marks this receipt as accrued and ignores it the next time
you use the Receipt Accruals - Period-End process. Purchasing creates accrual entries only up to
the quantity your supplier did not invoice for your partially invoiced receipts.
10. Close the purchasing period for your receipt accruals. When you close a purchasing period,
Oracle Purchasing automatically un-marks all the receipts you previously accrued to make sure you
can accrue these receipts again if they are still uninvoiced in the next period.
Complete Adjustments
Complete Retirements
Complete Transfers
Complete Reinstatements
You need to make sure the step 8 must be completed only if you done transfer and posting for the
accounting entries to GL.
These steps are basically takes care of data movement, then next step for you to tie FA and GL.
For reconciliation of assets you need to take advantage of some of seeded and newly added report
that will help business user to reconcile and closing the period.
6. Reconcile your Fixed Asset and GL
Journal Entry Reserve Ledger - reconcile with the Account Analysis with Payables
Details Report.
Balance Report
o
GL Report
o
Journal - posted/Unposted
Account analysis
Generally, we should open and close periods for each separate inventory organization
independently.
Inventory and work in process transactions automatically create accounting entries. All
accounting entries have transaction dates that belong in one accounting period. We can
report and reconcile our transaction activity to an accounting period and General Ledger.
We can transfer summary or detail transactions to General Ledger. We can transfer these
entries to General Ledger when we close the period or perform interim transfers.
When we transfer to General Ledger, a general ledger (GL) batch ID and organization code
are sent with the transferred entries. We can review and report the GL batch number in
General Ledger and request Inventory and Work in Process reports by the same batch
number. We can also view general ledger transfers in Inventory and drill down by GL batch
ID into the inventory and WIP accounting distributions.
The period close process permanently closes an open period. We can no longer charge
transactions to a closed period. Once we close a period, it cannot be reopened. As a
precaution, we can do a GL transfer without closing the period.
If inventory organizations parameter for Transfer to GL is none, accounting entries are not
transferred to the General Ledger.
Oracle Inventory uses accounting periods to group material transactions and work in process
transactions for accounting purposes. So normally these details are grouped for a month and the
transaction details are posted to GL.
An automatic general ledger transfer is processed when we close an accounting period.
Pending Transactions
Before closing the inventory Period, make sure all pending transactions are resolved. In pending
transaction form we can see all pending transactions or while trying to close the period,
automatically system will display all pending transaction information.
In pending transactions we can find number of unprocessed material transactions, uncosted
material transactions, and pending WIP costing transactions existing in this period. These must be
resolved before the period is closed.
Resolution Recommended on pending receiving transactions, pending material transactions, and
pending shop floor move transactions existing in this period.
2.
Re-import
o Post Journals
3.
4.
5.
6.
7.
8.
Close GL Period
9.
Drill down to journals in GL, SLA and subledger transactions (invoices, etc.)