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R12 Period Closing Process
Knowledge Resource
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2/28/2014

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Guhanadh Padarthy

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 Contents

Period Close Advisor: E-Business Suite ................................................................................................................................... 3

What is Period Close & Period Close Advisor? ................................................................................................................ 3
Announcing the Period Close Checklist .......................................................................................................................... 3
Project Accounting .............................................................................................................................................................. 4
Project Accounting: Evaluate & Prepare ......................................................................................................................... 4
Project Accounting: Process Transactions ...................................................................................................................... 5
Project Accounting: Create Accounting .......................................................................................................................... 7
Project Accounting: Reconcile ........................................................................................................................................ 8
Project Accounting: Close ............................................................................................................................................... 9
 Period Close Advisor: E-Business Suite

What is Period Close & Period Close Advisor?

What is Period Close?

Closing is the process of accounting for all transactions at

the end of each period so all supporting information is
transferred to the General Ledger. Subledgers cannot be
closed if the required transactions in that period are not
processed. Subledgers are E-Business Applications that
post (transfer accounting records) to the General Ledger:
for example, Payables, Receivables, Inventory, etc.
What is the Period Close Advisor?

This Period Close Advisor allows you to get proactive by

providing guidance on recommended period end
procedures for E-Business Release 12.x. It is intended to be
generic and does not relate to a specific organization or
industry. Step by step best practices with tips and
troubleshooting references are provided to assist you
through each phase.

The subledger application tabs are listed in the

recommended order of closing based on the data flow
dependency as shown in the diagram. For example, Order
Management feeds data into Oracle Receivables so it
needs to be closed prior to Oracle Receivables. If you do
not use a product listed, skip that tab and go on to the
next. For example, if you do not use Oracle Inventory, skip
that tab and move on to the procedures for the next one
listed, Oracle Projects.

Announcing the Period Close Checklist

Did you ever wish that the vast information available in this Advisor, be made available in a
spreadsheet format? We heard you and came up with this new format of Period Close Advisor!

You can use this spreadsheet to create an Activity Log of your Period Close tasks. Assign ownership
of the activities/ tasks to specific persons. You can also use the log to record the sequence of Period_Close_Checkli
st_v1.4.xls
events as they happen, the time taken by the tasks as well as the status. You can easily
accommodate and track any custom processes/ reports that you may run as part of the Period
Close.
 Project Accounting
How to use this Period Close Advisor:

This Period Close Advisor provides guidance on

recommended period end procedures for E-Business
Release 12.x. The subledger application tabs are listed in
the recommended order of closing based on the data flow
dependency as shown in the diagram. Step by step best
practices with tips and troubleshooting references are
provided to assist you through each phase. Review the
'Using the Period Close Advisor' section under the 'Intro'
tab for more details on how to use this advisor.

Projects

This tab describes the processes and activities required for a successful period close in Oracle Projects Release R12.
Period end procedures for Oracle Projects have two main functions: changing the status of the current period to
"Closed" and activating all the processes and controls necessary to produce reports that accurately reflect the period
activity, while allowing minimum interruption of transaction processing.

Unlike other subledgers, Projects transactions are categorized not only by General Ledger (GL) periods, but also by a
specific set of Projects (PA) periods. The two sets of periods may be the same or different depending on your
configuration. Period close processes for Projects therefore involve both sets of periods.

There are a number of configuration options which determine how these periods relate to each other:

 PA: Enable Enhanced Period Processing (profile option) - when enabled control of GL periods for Projects
occurs at the application level. When not enabled, control of GL Periods for Projects is maintained in the GL
Application.
 Maintain Common PA and GL Periods (implementation option) - when enabled, PA and GL periods for Projects
must use the same calendar and period type, and period statuses are maintained together rather than
individually.
 Calendar Name (implementation option) - defines the calendar for PA periods.
 PA Period Type (implementation option) - defines the period type for PA periods

You should review the definition and usage information for each of these settings in the Oracle Projects Implementation
Guide and the Oracle Projects Fundamentals Guide to fully understand how these settings may affect your period close
processes.

Project Accounting: Evaluate & Prepare

Preparing for Period Close begins with thorough product training to establish proper application setup and usage. User
Guides, Product Information Centers, and other key documents are linked within this advisor and provide detailed
product information that should be reviewed.
Evaluating and maintaining current code levels is also essential to a successful period close. As a Best Practice, you
should always ensure you are on the latest code with recommended patches applied. This will help avoid known issues,
prevent potential data corruption and provide the latest features and functionality. Having a proactive patching plan and
periodic proactive patching process is the best way to stay current.

Project Accounting: Process Transactions

Ensure that all transactions have been entered for the period being closed.

1. Complete all Maintenance Activities

As there are a number of maintenance activities that can affect the period close procedure, you should ensure that all
changes and updates in the following areas have been completed where required:

Project Maintenance (revenue/billing based options)

a) Billing burden schedules and burden schedule overrides
b) Bill rate schedules and bill rate overrides
c) Project labor multiplier changes
d) Revenue budget changes
e) Project and Task percent (%) complete
f) Funding changes
g) Changes in the task "Ready to Accrue" checkbox

Implementation Maintenance
a) Employee assignment updates
b) Cost rate schedule changes
c) Organization labor costing rules
d) Standard costing burden schedule maintenance
e) Changes in Auto Accounting rules or lookup sets

Attention: You may need to implement workflow procedures, or use function and responsibility restrictions to prevent
access to these areas during the period close procedure.

2. Run Maintenance Processes

It is recommended that the following maintenance processes be run in preparation for the period end:
a) Run PRC: Compile All Burden Schedule Revisions to ensure that all burden schedules have been compiled.
b) Run PRC: Add New Organization Compiled Burden Multipliers to ensure that any newly created organizations or
organizations added to your burdening hierarchies have been added to all affected burden schedules with
appropriate multipliers assigned.
c) If changes or additions were made to pre-existing resource lists, run PRC: Update Project Summary Amounts
After Resource List Change

3. Complete Processing of Timecards for the Projects Period Being Closed

a) Import all timecards entered via Oracle Time and Labor (OTL)
Note: Run PRC: Transaction Import with Transaction Source = Oracle Time and Labor
b) Import any timecards created in 3rd party systems via PRC: Transaction Import
c) Verify that all pre-approved timecard batches entered in Projects in the current PA period have been released
and approved.
Attention: During transaction import, one rejected expenditure item will cause an entire expenditure to be rejected.
Tip: If Oracle Projects is the direct data source for payroll or for reconciling labor costs to payroll, verify that all
timecards are entered or accounted for by running the AUD: Missing Timecards Report.
4. Interface Supplier Invoices from Oracle Payables
Before generating project revenue or running final cost event processes, all eligible supplier invoice costs and purchase
order receipts should be imported from Oracle Payables and Oracle Purchasing by running the PRC: Interface Supplier
Costs process.
Attention: To ensure that all transactions are included in the correct period, you should verify that all new supplier
invoice and purchase order receipt processing for the current period has stopped prior to the final interface.
Tip: Review the Payables tab in this advisor for further details.

5. Interface Expense Reports from Oracle Payables

Before generating project revenue or running final cost distribution processes, all eligible expense reports should be
imported from Oracle Payables.
Note: Run PRC: Interface Expense Reports from Payables

6. Interface Project Related Inventory Transactions

The following processes must be completed in order to import project related inventory transactions:
a) Run the Cost Collector to collect Projects-related costs in Inventory
b) Transfer the costs to the Projects transaction import table using the Project Cost Transfer form in Inventory
c) Run PRC: Transaction Import in Projects to import the interfaced costs
Attention: Entering new expenditures or adjusting existing expenditures during the final cost distribution process may
cause reconciliation problems. Access to these activities should be controlled after verifying that all transactions for the
period have been accounted for

7. Run the Cost Distribution Processes

Run all cost distribution processes to cost all enabled expenditures that have an expenditure item earlier than or equal
to the current period end date:
a) PRC: Distribute Labor Costs
b) PRC: Distribute Usage and Miscellaneous Costs
c) PRC: Distribute Expense Report Adjustments
d) PRC: Distribute Supplier Cost Adjustments
e) PRC: Distribute Borrowed and Lent Amounts
f) PRC: Total Burdened Cost (If using Project Burdening)
g) PRC: Create and Distribute Burdened Transactions (If using Project Burdening)

8. Generate Draft Revenue for All Projects

After all costs have been imported from outside sources (including Payables, Purchasing, and Inventory) and all
distribution processes have completed successfully, run the revenue generation process PRC: Generate Draft Revenue
for a Range of Projects to generate revenue for all projects.
Attention: Multiple simultaneous revenue generation processes can be run only if the ranges of projects specified for
the processes do not overlap.

Attention: The revenue generation process should not be run concurrently with the generation of invoices (PRC:
Generate Draft Invoices for any given project.

9. Review and Release Revenue for All Projects

Perform a final review of the revenue generated. If necessary make adjustments and regenerate the revenue as
required. When the review is complete, release the revenue.

10. Generate Draft Invoices and Inter-Company Invoices

a) Run PRC: Generate Invoices to generate invoices to be interfaced to Oracle Receivables.
b) Run PRC: Generate Inter-Company Invoices for a Range of Projects for all projects to create inter-company
invoices from cross charged transactions previously identified by inter-company billing to be processed for cross
charging.
Note: This process also deletes unreleased inter-company invoices and creates inter-company credit memos and invoice
cancellations.

11. Transfer Invoices to Oracle Receivables

a) Review the generated invoices created in step 9, perform adjustments and regenerate if necessary.
b) After review, release and approve the draft and inter-company invoices for transfer to Receivables.
c) Run the PRC: Interface Invoices to Receivables and PRC: Interface Inter-Company Invoices to Receivables
processes.
d) Run the Auto Invoice Master Program from within Receivables with the appropriate transaction sources (these
can be found in the Billing and Internal Billing tabs of the implementation options form) to import the invoices
and inter-company invoices into Receivables
e) In Projects, run the PRC: Tieback Invoices from Receivables to complete the transfer process.
Attention: Make sure that Oracle Receivables has not closed its period until all Oracle Projects invoices have been
interfaced to Oracle Receivables

Tip: Some of the above processes may be run using PRC: Submit Interface Streamline Processes, which ensures that
processes and reports are run and completed in the correct order. If you use the Streamline process, the order of some
of the above steps may be changed or completed more succinctly.

Tip: Review the Receivables tab in this advisor for further details.

12. Generate Asset Lines and Interface to Assets

Attention: See the Create Accounting section for details of this step, as it can only be completed after your expenditure
items have been finally accounted.

Project Accounting: Create Accounting

Subledger Accounting (SLA) & Create Accounting Process

In Release 12, Subledger Accounting (SLA) architecture was implemented, creating a common repository of all your
accounting information to maintain a common link between General Ledger (GL) balances and underlying transactions
automatically, for internal and external audit purposes, and for ease of drilldown.

Create Accounting is the new process in Release 12 that creates the accounting in the subledger accounting tables and
offers flexibility in how you generate your accounting. Accounting can be created immediately online or run as a process
and can be generated 3 different ways:

1. Draft: The transactions accounted in draft mode can be included on accounting reports but cannot be transferred to
the General Ledger. This mode is for informational purposes only allowing you to review the accounting entries via
the output report or using the Subledger Accounting Inquiry screen prior to creating final entries.
2. Final: The transactions that have been accounted in Final Mode are accounted but not yet transferred to General
Ledger. When using Final mode, you have the option to transfer and post to General Ledger based on the settings of
the "Transfer to General Ledger" and "Post in GL" parameters.
3. Final Post: Transactions that have been accounted in Final Post are transferred to and posted in the General Ledger.

1. Run the Generate Accounting Events Processes

There are new programs in R12 that have to be run to create accounting events in SLA for the transactions in Projects.
These events will later be used by SLA and the PRC: Create Accounting process to create the accounting entries that will
eventually be interfaced and posted to the General Ledger. The programs to be run are:
a) PRC: Generate Cost Accounting Events
b) PRC: Generate Cross Charge Accounting Events
c) PRC: Generate Revenue Accounting Events

Frequency: Run these processes at regular intervals during the period rather than just at period end so issues can be
found and resolved during the period.

2. Run Create Accounting to Process Accounting Events

This program (also new in R12) is used to generate accounting entries from accounting events and then optionally
transfer and post these to the General Ledger based on the parameters selected.

Accounting can be generated in either Draft or Final mode. In Draft mode you are able to review the accounting entries
via the output report or using the Subledger Accounting Inquiry screen prior to creating final entries. When using Final
mode, you have the option to interface and import the entries to General Ledger at the same time. If you do not choose
to import the entries to GL, you can do so subsequently by running PRC: Transfer Journal Entries to GL. In either case you
have the option to post the batch in GL, or leave it unposted.

This process should be run in Final mode for all Process Categories, and accounting should be transferred to the General
Ledger.

3. Generate and Interface Asset Lines

Once appropriate raw or total burdened costs have been accounted in Final mode they are eligible for generation of
asset lines. To interface CIP Assets to Oracle Assets:
a) Run PRC: Generate Asset Lines to generate the asset lines for your projects
b) Run PRC: Interface Assets to Oracle Assets to transfer the asset lines to the Mass Additions interface table
c) In Oracle Assets, navigate to Prepare Mass Additions screen to verify, edit, or correct the assets
d) Run the Post Mass Additions process in Assets to perform the actual import of the asset lines
e) Run PRC: Tieback Asset Lines from Oracle Assets to complete the transfer

Document: See the following article for a full detailed description of this process and its requirements and pre-requisites
in R12: 866310.1 PAXCPGAL & PAXCPCAL - What Are The Steps to Generate Asset Lines and Interface Them to Oracle
Fixed Assets?

Project Accounting: Reconcile

Subledger Accounting (SLA) - Reconciliation

SLA introduced changes in the way reconciliation is performed:
In Release 11i, you reconciled transactions and distributions to GL through transactional reports. In the accounting
reports in Release 11i, the balances are displayed but not the transactional information.

In Release 12, there is no reason to reconcile distributions on transactions to GL, but you can still reconcile transaction
reports to accounting reports. The new accounting reports in Release 12 now also contain more comprehensive
information - not just on balances but also on suppliers, customers and transactions.

Note: When you do account balance reconciliation, you should ignore distributions in Release 12, especially if you have
altered your subledger accounting rules.

Difference between Project Periods and General Ledger Periods

In Oracle subledgers, such as Projects, transactions are summarized into periodic cycles for reporting and reconciliation.
Most subledgers have a periodic cycle that parallels the General Ledger fiscal cycle. However, Projects periods may be
based on a different periodic cycle or a different period of time, such as a week, than that of the General Ledger. If the
two sets of periods overlap, then you may need to put in place special procedures for the reconciliation of Projects to
the General Ledger and other modules.

Tip: If you have different periods in Projects, you may want to consider using one of the alternate General Ledger period
conventions, such as a 5-4-4 period split. This will enable you to more easily align Projects with General Ledger for
reconciliation purposes.
1. Run Final Project Costing and Revenue Management Reports
Run the entire following project costing management reports:
a) MGT: Revenue, Cost Budgets by Resources (Project Level)
b) MGT: Task - Revenue, Cost, Budgets by Resources
c) MGT: Revenue, Cost, Budgets by Work Breakdown Structure
d) MGT: Employee Activity Report
e) MGT: Invoice Review
f) MGT: Unbilled Receivables Aging
g) MGT: Agreement Status by Customer

2. Reconcile Cost Distribution Lines with General Ledger (Optional)

The following Project Subledger Audit Reports print cost distribution lines related to projects. These reports enable you
to view the detailed transactions in Projects that affect a particular account balance in the GL trial balance.
a) AUD: Project Subledger Summary
b) AUD: Project Subledger: Detail by Project
c) AUD: Project Subledger: Detail by Expenditure Type
d) AUD: Cost Audit Report
e) AUD: Revenue Audit Report
f) AUD: Supplier Cost Audit Report
g) AUD: Cross Charge Audit Report

Project Accounting: Close

Closing the Period

When you attempt to update the period status to Closed for one ledger, the system checks for unposted transactions in
all operating units within the ledger. If there are unposted transactions in any of the operating units, you will need to
resolve the unposted transactions for those operating units before you can close the period for that ledger. See the
referenced documents and diagnostics within this advisor to troubleshoot these types of issues.

Attention: Closing is always executed at a ledger level and not at operating unit. You can only execute close from the
responsibility which has access to all operating units within a ledger.

Note: In Release 11i, GL automatically created the balancing lines for journals posted to GL when you closed your
periods in each of the subledgers. In Release 12, subledger accounting creates the balancing lines at the time you
account for the subledger transactions. The subledger accounting journal represents the actual accounting and the
balancing lines are created as part of these subledger accounting journals.

1. Run Period Close Exceptions Reports

Run the period close exceptions reports to identify transactions that have not been fully processed and that may
prevent you from closing the period:
 EXC: Transaction Exception Details by GL Period
 EXC: Transaction Exception Details by PA Period
 EXC: Transaction Exception Summary by GL Period
 EXC: Transaction Exception Summary by PA Period
 Subledger Period Close Exceptions Report

Attention: Review these reports and the output generated by the Create Accounting and Transfer to GL processes for
any errors. Make all indicated corrections and re-run the reports until there are no exceptions.

Document: See the following article for a full detailed description of the exception reports, their use, and handling of
exceptions in the PA and GL period close processes: 1336233.1 Period Close Procedures And Exceptions in Oracle
Projects Release 12
2. Sweep Transaction Accounting Events (Optional)
PA and GL periods in Projects can be closed once all transactions have successfully generated accounting events,
however, to close the period in General Ledger, it is required that accounting events be accounted and processed
through to GL. If you have accounting events that are preventing you from closing your period in GL, you can opt to
sweep these events into the next open period by running PRC: Sweep Transaction Accounting Events. The Subledger
Period Close Exceptions Report lists all events that fail period close validation.

Attention: Sweep cannot be undone! However, the process can be run in "Review" mode prior to running it in "Update"
mode.

Attention: Swept transactions are not posted to General Ledger, the GL dates are changed to the first day of the next
open period so they can be accounted, transferred and posted in that next open period. Promptly resolve issues with
swept transactions to keep your accounting current.

Note: Before running the sweep program, you will need to open the next accounting period, see step 4 below.

Note: If you sweep revenue transactions, and you use Project Status Inquiry, Project Performance Reporting, or Oracle

Daily Business Intelligence for Projects, then you must run the appropriate refresh or update processes so that reporting
tool accurately reports the GL period.

3. Change the Current Oracle Projects Period Status from Open to Pending Close
Pending Close is an interim status, which allows you to interface and adjust transactions in the period but does not allow
transaction entry. This process needs to be performed for each operating unit defined.

4. Open the Next Oracle Projects Period

It is recommended that you open the next period to minimize interruption to users who may require the ability to enter
transactions in the new period during the current period close procedure. This process needs to be performed for each
operating unit defined.

5. Change the Current Oracle Projects Period Status from Pending Close to Closed
When changing the status to Closed, the system checks to see if any unprocessed items exist in the period. If
unprocessed items exist, the change of status is not allowed. In some cases the system will provide a warning, but still
allow the period to be closed (for example, if there are items that have not yet been interfaced from Purchasing or
Payables). You should re-run the period close exception reports if necessary to identify any unprocessed items. This
process needs to be performed for each operating unit defined.

Document: 1336233.1 Period Close Procedures And Exceptions in Oracle Projects Release 12. See the "Period Close
Validation" section of this document for details on what conditions will produce an error or a warning during PA and GL
period close in Projects.

6. Advance the PA Reporting Period (Optional)

When you are ready to view the updated summary amounts for the next PA period in the Project Summary Inquiry
window, advance the PA Reporting Period.

Attention: Only one period can be designated as the current reporting period for Project Status Inquiry.

Note: The current reporting period does not have to be an open period.

7. Update Project Summary Amounts

To enable users to view the latest data to manage their projects, the appropriate summarization processes should be
run:
For projects using Project Status Inquiry (PSI) Window, you should submit a final run of the PRC: Update Project
Summary Amounts process for the current reporting (pending close) PA period.

For projects using Project Performance Reporting, you should submit PRC: Update Project and Resource Base Summaries
and then PRC: Update Project Performance Data (or if there are a large number of projects to be updated, run PRC:
Launch Update Project Performance Data).

Attention: Do not run PRC: Update Project Summary Amounts After Resource List Change during the closing or post-
closing processes.

8. Restore Access to User Maintenance Activities

After the project summary amounts have been updated for the closed, current reporting period, restore access to user
maintenance activities.

9. Permanently Close the Oracle Projects Period (Optional)

When you are satisfied with the closing of the PA period and will not need to reopen the period, change the status of the
PA period to Permanently Closed.

Attention: Once a period is permanently closed it can never be re-opened!