Oracle Finance Month End Closing - Basic Steps

In Oracle EBS - General ledger, an accounting period is closed after all the accounting transactions has been completed for the period.

The Period end process consists of 6 majors’ activity 

1. Completing the Transactions
2. Creating Accounting
3. Followed by Reconcile Transactions
4. Post to GL
5. Reconcile Accounting
6. Close Period

General – Period Close Dependencies

Search the open period 

Change the period status into ‘Closed’

Click to save 

Once concurrent request successfully completed, across verify period status 

Now purchasing period successfully Closed.

Step to closing the Payable Period

  You can’t close a period in payable below condition is exits

• Outstanding Payment batches. Confirm & cancel all incomplete payment batches
• Future dated payment for which the Maturity Date is within the period but that still have a status of Issued
• Unaccounted transaction. Run the Unaccounted Transaction sweep to move any remaining Unaccounted transactions from one period to another. 

Step to complete the close process in payable: 

                

Click the Exceptions button 

 Click Review, its triggers ‘Period Close Exceptions Report ‘
Once request id completed and click review the exception caused closing period in payable

Click and view the output, you can able to see there is unaccounted invoices is available, that one cause we unable to close the period.

We should clear Unaccounted Invoices and try to close period once again 

Step to clear unaccounted invoice

§  Validate All invoice.

Run Invoice validation concurrent program 

Creating Accounting program will trigger child programs

After that try to run the Period Close Exception Report and verify invoice status whether successful invoice or not

Now we can use Unaccounted Invoices, so run the Unaccounted Transactions Report to get what are the invoice numbers getting issue

Submit - Unaccounted Transactions Report 

Note: Exception Line Variance - Total of Invoice Lines does not equal Invoice Amount (Invoice Amount and Total Amount not matching)

              We have option

§  We can seek those unaccounted invoices into next period

§  We can correct invoice amount manual under the invoice bench

                   After successfully clear Unaccounted invoice, you can try to close period in Oracle Payable

Change the Period status – Closed (you can see exceptions button is disable, if invoice all good)

           Now, oracle payable period closed successfully.

Step to closing the Receivable Period

Click Manage Exceptions

If Unaccounted transaction report shows nulls values, then run Subledger Period Close Exceptions Report

After successfully submit, click output and review the which are the invoice/receipt got stuck 

Goto Transactions -> Transactions -> query Transaction number

Click to complete button.

Next run Transfer Journal Entries to GL program , it will transfer Invoice into GL 

 Reports which we have triggered are listed below.

1. Subledger Period Close Exceptions Report
2. Revenue Recognition (Revenue Recognition Execution Report)
3. Subledger Accounting Balances Update
4. Create Accounting
5. Accounting Program 
6. Submit Accounting
7. General Ledger Transfer Program (Ends in Error)

R12 Primary Ledger - Setup Steps

 

                                           R12 – Primary Ledger Set up
Primary Ledger

A primary ledger is defined as a Ledger where all day-to-day transactions are performed. 

Key Role:

1.     PL is main ledger or Activity Ledger

2.     Usually it will define local currency

3.     Operational reporting ledger

  Before creating Ledger, should be defined 4C’s.

R12 Ledger:

1.     Chart of Accounts

2.     Ledger Currency

3.     Accounting Calendar

4.     Accounting Method - new in R12   

Note:  In 11i we have only 3C’s, but in R12 we have 4C’s

  Setup to Define the Primary Ledger:

 Step1:

Navigation: 

General Ledger --> Setup --> Financials --> Accounting Setup Manager --> Accounting Setups

   Click the create Accounting Setup button.

   Click Next button 

    Step2:

    Enter valid details 

Ø Primary Ledger name

Ø Chart of Accounts (COA)

Ø Accounting Calendar

Ø Currency

Ø Select oracle Standard Subledger Accounting method – ‘Standard Accrual’

  ð Select chart of Accounts

   ð Select Accounts Calendar 

     ð Select Currency

      ð Select Subledger Accounting Method – ‘Standard Accrual’ 

 Click ‘Finish’ button to complete PL 

 To check the status of Primary ledger, Status should be ‘In Progress’

   

   To complete the Primary ledger, should recompile Char of Account key flex filed                   recompile 

     

    Unfreeze / Freeze Flexfield Definition check box

     To check the concurrent program request key field compiled successful

    

   Next , click update icon to define ‘Retained Earning Account’ number

  

      

    Select the valid combination Retained Earning Account number

 Search and create the retained Earning Account 

    

    Click to Finish the PL setup 

    Now check the status icon in Accounting Setup form. 

    Status should be ‘Complete’

Click the complete button, to complete PL setup

Warning Message popup, to confirm the Primary Ledger setup and 4C’s Setup.

Note: Once you ‘Yes’, you can’t edit or delete any values in Primary Ledger.

To verify PL created successful, by using concurrent program 

Assign Primary ledger to your General Ledger Responsibility 

 Once Assign the responsibility ,

       

      Go To -> GL responsibility -> Journals -> Enter -> New Journals

       check your Currency, ledger is valid 

      Now We've successfully setup a Primary Ledger.

Note: Check GL period open for the current month or not, if not open the GL periods for the current month in setup-> click open/close , Enter current period and open