AIM

TRAINING MANUAL PERIOD END PROCEDURES Oracle E-Business Suite - Financials

Author: Creation Date: Last Updated: Document Ref: Version:

Shalini Pal January 15, 2009 January 15, 2009 Version 1.0

Training Manual

Document Control
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Date 15-Jan2009

Author Shalini Pal

Version 1.0

Change Reference No Previous Document

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Name Swarup Ghosal Chaudhury Position Project Manager

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Copy No. 1 2 3 4 Name Library Master Location Project Library

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Contents
Document Control............................................................................2 Contents...........................................................................................4 Introduction......................................................................................5 Purpose......................................................................................5 Scope and Application................................................................5 Payables Closing Procedures...........................................................6 Monthly Tasks............................................................................6 ................................................................................................7 Yearly Tasks...............................................................................7 Purchasing Closing Procedures........................................................8 Monthly Tasks............................................................................8 Yearly Tasks...............................................................................8 Receivables Closing Procedures......................................................9 Monthly Tasks............................................................................9 Yearly Tasks...............................................................................9 Fixed Assets Closing Procedures....................................................10 Monthly Tasks..........................................................................10 Yearly Tasks.............................................................................11 General Ledger Closing Procedures...............................................12 Monthly Tasks..........................................................................12 Yearly Tasks.............................................................................13

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Introduction
Purpose
The purpose of this document is to list the steps to be performed before closing / opening a period or periodically, to maintain the system. This document outlines the period end procedures for 1. Payables 2. Purchasing 3. Receivables 4. Fixed Assets 5. General Ledger. This document intends to provide a reference for planning period-end procedures. It describes the fundamental period-end steps involved for each sub-system module, with particular emphasis on balancing the application to Oracle General Ledger.

Scope and Application

This document relates to the Period End / Periodical Procedures to be performed to maintain the Oracle Applications. You need to refer to the Oracle Applications User's Guide, Configuration Document and List of Scheduled Process of the respective module for detailed procedures and steps to be performed for the tasks listed in this document.

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Payables Closing Procedures

Monthly Tasks
Open AP Accounting Period Match Invoices with PO / Receipt Enter other transactions (Invoice, Debit Memo and Prepayment) in the system. Generate Invoice Validation Report, to check the Unvalidated Invoices. Generate Invoice On Hold Report and clear all holds Generate Invoice Register for Invoices and check. Review Payment Register Submit the Create Accounting process to create accounting for the transactions Submit the Transfer Journal Entries to GL process to transfer any un transferred accounting entries to GL Submit and view the Unaccounted Transactions Report to identify and resolve issues with transactions that will prevent accounting Run Mass Additions Create, from Oracle Payables (This process should be Run only after Payables Transfer to GL) for CORPORATE book Close AP Accounting Period Run the Period Close Exceptions report Reconcile Payables activity for the period, generate the following reports and reconcile the Accounts Payable Trial balance to the General Ledger. a. Accounts Payable Trial Balance (current period and last period) b. Payables Posted Invoice Register (Current Period) c. Payables Posted Payments Register (Current Period) Notes: 1. Compare the Accounts Payable Trial Balance to the Accounts Payable Liability Balance in your General Ledger system for a given period. 2. To reconcile your accounts payable activity for April, make the following calculation: March Accounts Payable Trial Balance + April Posted Invoice Register
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April Posted Payment Register = April Accounts Payable Trial Balance = April GL Balance for AP Liability Account Close AP Accounting Period Open Next AP Period

Yearly Tasks
. If the document sequences are specific for each year, create document Sequences and Assign them to the respective Document Categories.

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Purchasing Closing Procedures

Monthly Tasks
Open Purchasing Period Enter all Receipts & Receiving transactions for goods and services you received during the period Note: GL, Purchasing and Inventory Periods should be open for Receiving. Optionally Review the Outstanding and Overdue Purchase Orders. Generate Purchase Order Detail Report, Open Purchase Orders (by Buyer) Report, Open Purchase Orders (by Cost Center) Report. These reports show the quantity ordered and quantity received Attention: If the goods have been received, but not entered into Oracle Purchasing as received, the concerned Department will have to perform the necessary data entry. Generate Uninvoiced Receipts Report and review. These are items that have been received and the vendor has not invoiced yet. Run the Receipt Accruals- Period-End Report to generate accrual entries for all non-stock items received but not invoiced. Submit Create Accounting Process from Cost Management-SLA to create accounting for all transactions Submit the Transfer Journal Entries to GL from Cost Management-SLA to transfer any un transferred accounting entries to GL Close the Purchasing Period Open Next Period

Yearly Tasks
Nil

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Receivables Closing Procedures

Monthly Tasks
Open AR Accounting Period Complete all Transactions (Invoices, Credit Memos and Debit Memos) Complete all Receipts both standard and Miscellaneous Receipts. Submit the Create Accounting process to create accounting for all transactions Submit the Transfer Journal Entries to GL process to transfer un transferred accounting entries to GL Run AR Reconciliation Report to reconcile all transactions in Receivables Run AR to GL Reconciliation Report to reconcile all transactions with Receivables with the GL Control account balance Close AR Accounting Period Open Next Accounting Period

Yearly Tasks
If the document sequences are specific for each year, create document Sequences and Assign them to the respective Document Categories.

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Fixed Assets Closing Procedures

Monthly Tasks
Run Mass Additions Create from Oracle Payables (This process should be run only after Payables Transfer to GL) for CORPORATE book Optionally Run Mass Additions Create Report and check. Prepare the Mass Additions from the Fixed Asset Module, Assign Category, Expense Account, Location, Description, TAG Number, and Serial Number and change the Queue status to POST for all the new assets. Perform separately for CORPORATE Book. Run the Post Mass Additions Process. This Process will create Asset in the Asset Book, check the Asset category, Depreciation Rate and Date Placed in Service. Run separately for CORPORATE Book Check and Reconcile the Fixed Assets Clearing Account and CIP Clearing Account Enter all Retirement / Write Off transactions in the system Enter all Transfers in the system Optionally Project Depreciation, you can project depreciation expense for any number of future periods. Run Depreciation for CORPORATE Book. When the process is run, Oracle Assets automatically calculates depreciation for all assets, calculates gains and losses for all retirements, and then runs the Journal Entry Reserve Ledger Report. Check the Depreciation Calculation from the Journal Entry Reserve Ledger Report Submit the Create Accounting process to create accounting for all transactions Submit the Transfer Journal Entries to GL to transfer un transferred accounting entries to GL Check the Journal Batches in General Ledger and Post the journals. Reconcile the Asset Clearing Account and CIP Clearing Account. Reconcile Oracle Assets balance (both Original Cost and Depreciation Reserve) to the General Ledger Using Reports.

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Yearly Tasks
Maintain Assets Calendar Note: Oracle Assets automatically sets up the periods for the next fiscal year at the end of each fiscal year. Maintain Prorate Conventions Note: At the end of each fiscal year, Oracle Assets automatically sets up your Prorate conventions for the next fiscal year.

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General Ledger Closing Procedures

Monthly Tasks
Open Next Accounting Period. Suggestion: Although you can have several open accounting periods, to maximize the efficiency of the General Ledger posting process, as well as to minimize the possibility of user error, limit the number of accounting periods that are open at one time. Enter all Manual Journal entries & post them. Import Journals from the following modules if the profile " SLA: Disable Journal Import" is set to YES, resolve any problem using the Journal Import Execution Report 1. Finance Modules: Payables / Receivables / Fixed Assets 2. Cost Management (for Purchasing / Inventory / Order Management) Journals will get imported from the modules Payables, Receivables, Fixed Assets and Cost Management automatically if the profile "SLA: Disable Journal Import" is set to NO after Transfer Journal Entries to GL is run from the respective modules. By default SLA: Disable Journal Import profile is set to NO. Review the Unposted Journals Post all journal entries, including allocation entries, and recurring journals and review the Posting Execution Report to determine if there were any errors during posting. General Ledger automatically prints this report after you initiate posting. Generate Trial Balance and Financial Statements Close GL Accounting Period Open Next GL Accounting Period Notes:

1. You can reopen a closed period at any time. You cannot reopen a permanently closed period. 2. Sub-modules period should be closed before closing the GL Period.
The Period-End and Year-End processes are the same, no special procedures are required for Period-End.

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Yearly Tasks
Add Accounting Periods to the Calendar for the Next Financial Year Note: You can add periods to a calendar at any time. Your calendar can contain both adjusting and non-adjusting accounting periods. If the document sequences are specific for each year, create document Sequences and Assign them to the respective Document Categories.

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