Period Closure Activities For Oracle Apps

Period Closure Activities For Oracle Apps

The following is a note on the period closure process entailing the checking of transactional data, running of transfers of transactional data to the General ledger, reviewing/reconciling of reports and closure of periods in Oracle’s modules. These activities can be taken up roughly in the sequence in which they have been detailed below. Several of these activities (like GL transfers, reconciliations) can be performed concurrently prior to the closure of periods. However, the specific activity of closing of periods in respective/relevant modules should take the following order:

Close Period in Payables

1. Close Period in Purchasing
2. Close Period in Inventory
3. Close Period in FA
4. Close Period in Receivables
5. Close Period in GL

S.No	Activity	Reports To Check	Remarks
AP1	Run Payables Accounting concurrent Process	View Payables Accounting Process Output for any exceptions Frequency: Daily
AP2	Payables transfer To GL Process and POST Journal	Review Journal Import Execution report for exceptions Frequency: Daily
AP3	Open Next AP Period	Frequency: Month End	From Control Payables Period
AP4	Run Unaccounted Transaction Report	Review Output Frequency: Month End
AP5	Sweep Unaccounted Transactions If any to next period OR correct the accounting in the current Period	Review output Frequency: Month End	Sweeping  can also be done from Control Payables Period while closing the period
AP6	Reconcile AP Trial Balance To GL	Review For Following Reports a. Posted Invoice Register b. Posted Payments Register c. Review Payables Trial Balance Report and Reconcile. Frequency: Month End
AP8	Run Mass Addition Create	Review output Frequency: Month End
AP8	Close Current Payables Period	Frequency: Month End	From Control Payables Period
PO1	Open New Purchasing Period	Frequency: Month End	From Control Purchasing Period Ensure AP8 is done.
PO2	Run Journal Import for Purchasing GL Batches and POST Journals to GL	Frequency: Daily	Please run import in summary Form.
PO3	Close Purchasing Period	Frequency: Month End
FA1	Review and Post Mass Addition	Frequency: Weekly
FA2	Enter Manual Assets	Frequency: As and when
FA3	Execute Asset Maintenance Transactions	Frequency	Transactions like Retirements, Transfers..
FA4	Run Depreciation	Review output Frequency: Weekly
FA5	Run Report Sets and reconcile with GL	Report Set a. Cost Summary/Detail Reports b. Reserve Summary/Detail report c. Reconcile Addition/Reclass/Transfer/Adjustment d. Account Reconcile Reserve Ledger Report
FA6	Run Depreciation with Period Close checked	Review output Frequency: Month End	System Closes the current period and opens the next period
AR1	Ensure All Transactions are completed Ensure a l invoice- able  shipments are auto invoiced in AR	Run Margin Analysis Load Run( for Current Period ) Run Margin Analysis Report for OM Review Output of Sales and Shipments Frequency: Month End
AR2	AR  transfer To GL Process and POST Journal	Review Journal Import Execution report for exceptions Frequency: Daily / Weekly
AR3	Run Period End Report Set Reconcile AR India Trial Balance To GL	AR Reconciliation Report Other Reports: Aging Reports  - For  Beginning Balance  Transaction Register-  For Invoice, CM/DM Transactions  Adjustment Register -  For Adjustments  Invoice Exception Report  - For Invoice Exceptions  Applied Receipts Register - For Applied Receipts  Unapplied Receipts Register - For Unapplied Receipts  Aging Reports  - For Ending Balance  Frequency: Monthly
AR4	Open Next AR Period	Frequency: Monthly
AR5	Close Current AR Period	Frequency: Monthly
INV1	Resolve Pending, Un costed  /Inventory Transactions	Steps to be followed for each organization 1.             Navigation: Transaction----->Pending Transaction-------->query for process flag type error--------->find Identify the job order number from source tab and validate the job order number, item number and qty  needs submission or not. if it is a valid transaction then to post the same in inventory check the submit box on the left side corner and save the transaction After 5 minutes check whether the transaction is submitted. If it is submitted it will not appear in the pending transaction screen,. If it is not getting eliminated, check for error description and correct the error and submit it again. If it is not a valid transaction, doubly verify and give the list to us for elimination. 2.             Pending receiving transaction Navigation: Receiving------->Transaction status summary-----find Check these are valid MIN number. if it is valid then delete the line and recreate the balance transaction from receiving transaction menu. If it is not a valid transaction then delete the transaction. 3.             Pending OM resolution check whether any delivery id is appearing in  India Excise invoice generation program if available it means that inventory is not depleted from staging sub inventory then check the order number using the delivery id from ship confirm localized form if it is a valid transaction then note down the item number from ship confirm localized form From inventory module go to reservation and check for any reservation against the item. If any reservation is created for any non pick released order then delete the reservation From inventory module go to transaction open interface form and enter the item number and if this item is available in this form then delete the item from this form. Check for this item availability of stock in staging subinventory.the qty in staging sub inventory should be equal or greater than the qty picked for this order. now follow the below navigation path and submit the program Navigation:shipping------->Interface------->run the interface trip stop report using delivery id as input check if the report is successful Now go to on hand qty and check the qty is depleted from staging sub inventory. .               Navigation:WIP----->Pending Move Transaction-------->query for process flag type error--------->find Identify the job order number from source tab and validate the job order number, item number and qty  needs submission or not. if it is a valid transaction then to post the same in inventory check the submit box on the left side corner and save the transaction after 5 minutes check whether the transaction is submitted. If it is submitted it will not appear in the pending transaction screen,. if it is not getting eliminated, check for error description and correct the error and submit it again. if it is not a valid transaction, doubly verify and give the list to us for elimination. Navigation:WIP----->Pending Resource Transaction-------->query for process flag type error--------->find Identify the job order number from source tab and validate the job order number, item number and qty  needs submission or not. if it is a valid transaction then to post the same in inventory check the submit box on the left side corner and save the transaction after 5 minutes check whether the transaction is submitted. If it is submitted it will not appear in the pending transaction screen,. if it is not getting eliminated, check for error description and correct the error and submit it again. if it is not a valid transaction, doubly verify and give the list to us for elimination. Frequency: Month End
INV2	Check for Zero/Unusual Costs (Material, Resource etc.)	Run & Review Purchase Price Variance Report WIP Account Distribution Report Frequency: Monthly
INV3	Update Standard Costs Before Inventory Period Close	After above Review Frequency: Monthly
INV4	Run Inventory Close Cycle> GL Transfer for Each Inventory Org.	Review Material Account Distribution Summary Report (Parameters: Account, Transaction Type, GL Batch). Frequency: Daily / Weekly
INV5	Run & Review Inventory Reports Reconcile Inventory/WIP Valuation to GL	Reports                                                               ·         Inventory Value Report                     ·         All Inventories Value Report     ·         Sub inventory Account Value Report            ·         Period Close Value Summary Report                            ·         WIP Value Report for the month cum to date option ·         Receiving Account Distribution Report            ·         Receiving Value Report ·         Material Account Distribution Summary Report ·         WIP Account Summary Report        ·         Purchase Price Variance Report & IPV Frequency: Month End
INV6	Run Inventory Close Cycle> Close Inventory Periods for Each Inventory Org. (Closing spawns one last GL batch)	Review Material Account Distribution Summary Report (Parameters: Account, Transaction Type, GL Batch) Frequency: Monthly After PO Period Close	Closed Inventory Period cannot be reopened. *Closing a period executes the general ledger transfer automatically.  However, one can also run this process without closing a period using the Transfer Transactions to General Ledger form.  Since a closed period  cannot be reopened, running this process before period close allows one to proof the interfaced transactions and make adjustments to the period via new inventory transactions as necessary. On Period Closure, the button for “Values At Close” on the Accounting Close Cycle>Inventory Accounting Periods form can be clicked to obtain period end summarized values of inventory by each sub-inventory.(This will correspond to the Period Close Value Summary Report.)
GL1	Ensure All Journals from different Journal Sources have been imported . Generate Reversal, Allocations & Recurring journals Review all categories in journal batches Post and verify journal post concurrent process is in order.	Journal Sources: Payables:  Purchase Invoices, Payments Purchasing: Receiving , Receiving India Fixed Assets: Additions, Reclass, Transfers, Retirements, Depreciation, Adjustments Receivables: Sales Invoices, Trade Receipts, Credit Memos, Debit Memos, Adj RG Register Entry: RG Register Data Entry Inventory: MTL, WIP(includes EAM) LMW Payroll LMW Other Branches Frequency: Monthly	Journals can be reviewed and posted on a weekly basis to have current and up to date data in GL for MIS reporting. Choose to Post Sub ledger Transfers in Summary mode. Inventory GL Transfers (MTL & WIP) happen in Summary mode.
GL2	Review Journals	Review Journal Import Errors. Correct Journal Interface lines for errors. Frequency: Monthly
GL3	Open Next Period	Frequency: Monthly	Will Open next period and one Future Entry period.
GL4	Enter Currency Daily Rates	Frequency: Monthly	Enter for Date range
GL5	Run Trial Balance & MIS Reports	Run Trial Balance Summary1 Report Review GL and ADI  Reports for MIS Frequency: Monthly	Depending on the currency of Postings in the GL, the ADI reports will reflect current financials on any day of a month.
GL6	Close Current GL Period	Frequency: Monthly	Do not “Permanently Close” the period. Opening of the next fiscal year, in Apr. transfers revenue data to the P&L account as defined in the set of books. Changes in the previous year will be carried forward and impact this account.

Cross Validation Rules Vs Security Rule

Cross Validation Rules Vs Security Rule

Cross Validation Rules(CVS)

• Cross Validation Rule applies on Segment values.
• Cross validation rules prohibit invalid account combinations
• Cross validation rule once created would immediately take affect with all the responsibilities

Security Rule(SR)

• Security rules applies at Value Set level while
• SR restrict user dedine segment values
• security rule to take affect it should be assigned to a responsibility

Period close Activity for all modules

Period close for all modules

Payables
   1. Complete All Transactions for the Period Being Closed
   2. Run the Payables AutoApproval Process for All Invoices / Invoice Batches
   3. Review & Resolve Amounts to Post to the General Ledger
   4. Reconcile Payments to Bank Statement Activity for the Period
   5. Transfer All Approved Invoices Payments, Reconciled Payments to the General Ledger
   6. Review the Payables to General Ledger Posting Process After Completion
   7. Submit the Unaccounted Transactions Sweep Program
   8. Close the Current Oracle Payables Period
   9. Accrue Uninvoiced Receipts
  10. Reconcile Oracle Payables Activity for the Period
  11. Run Mass Additions Transfer to Oracle Assets
  12. Open the Next Payables Period
  13. Run Reports for Tax Reporting Purposes (Optional)
  14. Run the Key Indicators Report (Optional)
  15. Purge Transactions (Optional)

Purchasing
   1. Complete All Transactions for the Period Being Closed
   2. Review the Current and Future Commitments (Optional)
   3. Review the Outstanding and Overdue Purchase Orders (Optional)
   4. Follow up Receipts-Check with Suppliers
   5. Identify and Review Un-invoiced Receipts (Period End Accruals)
   6. Follow Up Outstanding Invoices
   7. Complete the Oracle Payables- Period End Process
   8. Run Receipt Accruals - Period End Process
   9. Reconcile Accounts - Perpetual Accruals
  10. Perform Year End Encumbrance Processing. (Optional)
  11. Close the Current Purchasing Period.
  12. Open the Next Purchasing Period.
  13. Run Standard Period End Reports (Optional)

Inventory/WIP
   1. Complete All Transactions for the Period Being Closed.
   2. Check Inventory and Work In Process Transaction Interfaces.
   3. Check Oracle Order Management Transaction Process.
   4. Review Inventory Transactions.
   5. Balance the Perpetual Inventory.
   6. Validate Work In Process Inventory.
   7. Transfer Summary or Detail Transactions
   8. Close the Current Oracle Payables and Oracle Purchasing Periods
   9. Close the Current Inventory Period
  10. Open the Next Inventory Period
  11. Run Standard Period End Reports (Optional)

Order Management
   1. Complete All Transactions for the Period Being Closed
   2. Ensure all Interfaces are Completed for the Period (Optional)
   3. Review Open Orders and Check the Workflow Status
   4. Review Held Orders
   5. Review Discounts
   6. Review Backorders
   7. Review and Correct Order Exceptions
   8. Reconcile to Inventory
   9. Reconcile to Receivables (Optional)
  10. Run Standard Period End Reports

Receivables
   1. Complete All Transactions for the Period Being Closed
   2. Reconcile Transaction Activity for the Period
   3. Reconcile Outstanding Customer Balances
   4. Review the Unapplied Receipts Register
   5. Reconcile receipts.
   6. Reconcile Receipts to Bank Statement Activity for the Period
   7. Post to the General Ledger
   8. Reconcile the General Ledger Transfer Process
   9. Reconcile the Journal Import Process
  10. Print Invoices
  11. Print Statements (Optional)
  12. Print Dunning (Reminder) Letters (Optional)
  13. Close the Current Oracle Receivables Period
  14. Reconcile Posted Journal Entries
  15. Review Unposted Items Report
  16. Open the Next Oracle Receivables Period
  17. Run Reports for Tax Reporting Purposes (Optional)
  18. Run Archive and Purge programs (Optional)

Assets
   1. Complete All Transactions for the Period Being Closed
   2. Assign All Assets to Distribution Lines
   3. Run Calculate Gains and Losses (Optional)
   4. Run Depreciation
   5. Create Journal Entries
   6. Rollback Depreciation and/or Rollback Journal Entries (Optional)
   7. Create Deferred Depreciation Journal Entries (Optional)
   8. Depreciation Projections(Optional)
   9. Review and Post Journal Entries
  10. Reconcile Oracle Assets to Oracle General Ledger Using Reports.
  11. Run Responsibility Reports (Optional)
  12. Archive and Purge Transactions (Optional)

Projects
   1. Change the Current Oracle Projects Period Status from Open to Pending Close
   2. Open the Next Oracle Projects Period
   3. Complete All Maintenance Activities
   4. Run Maintenance Processes
   5. Complete All Transaction Entry for the Period Being Closed
   6. Run the Final Cost Distribution Processes
   7. Interface Transactions to Other Applications (AP, GL, FA)
   8. Generate Draft Revenue for All Projects
   9. Generate Invoices
  10. Run Final Project Costing and Revenue Management Reports
  11. Transfer Invoices to Oracle Receivables
  12. Interface Revenue to General ledger (Project Billing Only)
  13. Run Period Close Exception and Tieback Reports
  14. Change the Current Period Oracle Projects Status from Pending Close to Closed
  15. Advance the PA Reporting Period (Optional)
  16. Update Project Summary Amounts
  17. Restore Access to User Maintenance Activities
  18. Permanently Close the Oracle Projects Period (Optional)
  19. Reconcile Cost Distribution Lines with General Ledger (Optional)

Cash Managment
   1. Load Bank Statements
   2. Reconcile Bank Statements
   3. Create Miscellaneous Transactions
   4. Review AutoReconciliation Execution Report
   5. Resolve Exceptions on the AutoReceonciliation Execution Report
   6. Run Bank Statement Detail Report
   7. Run Transactions Available for Reconcilaition Report
   8. Resolve Un-reconciled Statement Lines
   9. Run the GL Reconciliation Report
  10. Run the Account Analysis Report for the General Ledger Cash Account
  11. Review the Account Analysis Report
  12. Correct any Invalid Entries to the General Ledger Cash Account (Optional)
  13. Perform the Bank Reconciliation

General Ledger
   1. Ensure the Next Accounting Period Status is Set to Future Entry

  Journal
   2.1 Complete Oracle Sub-ledger Interfaces to Oracle General Ledger
   2.2 Upload Journals from ADI (Applications Desktop Integrator) to Oracle General Ledger
   2.2 Complete Non-Oracle Sub-ledger Interfaces to Oracle General Ledger (Optional)
   2.3 Generate Reversal Journals (Optional)
   2.4 Generate Recurring Journals (Optional)
   2.5 Generate Mass Allocation Journals (Optional)
   2.6 Review and Verify Journal Details of Unposted Journal Entries
   2.7 Post All Journal Batches

 Reports
 1. Run General Ledger Trial Balances and Preliminary Financial Statement Generator Reports (FSGs)
  2.. Revalue Balances (Optional)
  3. Translate Balances (Optional)
  4. Consolidate Sets of Books (Optional)
  5. Review and Correct Balances (Perform Reconciliations)
  6. Enter Adjustments and / or Accruals and Post
  7. Perform Final Adjustments

  Closing
  1. Close the Current Oracle Gneral Ledger Period
  2. Open the Next Oracle General Ledger Period
  3. Run Financial Reports for the Closed Period
  4. Run Reports for Tax Reporting Purposes (Optional)
  5. Perform Encumbrance Year End Procedures (Optional) 

Period Close Processing Checklist -> R12 General Ledger

These are Closure Checklist for Payables Period end.

1. Complete Transactions : that means Completing all transactions for Oracle Payables:
   • • .. Complete Invoicing and Credits
     • .. Complete Prepayments
     • .. Complete Expense Reports
     • .. Complete Invoice Import
   • you can use Invoices On Hold Report
2. Approve Invoices :The Payables Approval process is run to try to approve all unapproved invoices in the system, so that they can be paid by Oracle Payments and posted to the General Ledger
3. Complete Payments
4. Reconcile Payments/Bank Statements
5. Resolve Potential Accounting Issues
   • Create Accounting
   • Journal Entries Report
   • Unaccounted Transactions Report
6. Post (GL) Payables Transactions
7. Review Accounting
   1. Payables Accounting Process Report
   2. Posted Invoices Register
   3. Posted Payments Register
8. Unaccounted Transactions Sweep
9. Close Payables Period
   • Subledger Period Close Exceptions Report
10. Accrue Un-invoiced Receipts
11. Reconcile Payables Activity to GL
    1. AP Trial Balance Report (Account definition, Data Mgr Program)
    2. Third Party Balances Report
    3. Account Analysis Report
12. Mass Addition Transfer to Assets

While doing the reconcilation , you might have these issue

• Transactions do not appear in Open Account Balances Listing report
• Accounting does not appear in Account Analysis report
• Cancelled invoices/payments result in errors in accounting and reports
• Create accounting program errors
• Transfer to GL program errors

These are known issues and you check with corresponding metalink note.

Make sure you should follow the best Practice

• It always encouraged to include all LIABILITY accounts in Open Account Balances Report Definition.
• 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.
• You can use only SLA or GL (not both) to create manual journal entries for subledger transaction corrections.

Supply Chain Management (SCM) :Techno-functional Guide

This article is an easy guide for Techno-functional consultant to understand SCM from Implementation as well as Oracle Application product Prospective.Lets start the topic with some of high points of earlier post .

• As mention in earlier post a Supply Chain is a network of retailers, distributors, transporters, storage facilities and suppliers that participate in the sale, delivery and production of a particular product.
  • Make a note a supply chain is product specific, not company specific
• Supply chain management (SCM) is a systematic approach to manage the entire flow of information, materials, and services from raw material suppliers through factories and warehouses to the end customer.
• Moreover , SCM involves the flows of material, information and finance in a network consisting of customers,suppliers, manufacturers, and distributors.
• You should be clear with Flow that SCM can manage :
  • The flow of actual materials, the top middle bars
    • From suppliers : flows of raw materials, intermediate products, finished goods
    • Reverse material flows : returns, repairs, servicing, recycling, disposal
  • and the information flows
    • From suppliers : manufacturing capacity, delivery schedules, promotions they have going
    • Reverse flows : sales, orders, inventory, quality, promotions
  • And finally, there are financial flows:
    • From suppliers: Credits, consignment, payment terms, invoice
    • Reverse Flows : payments, consignment
• Supply Chain Management is the management of the entire value-added chain, from the supplier to manufacturer right through to the retailer and the final customer.
• SCM has three primary goals: Reduce inventory, increase the transaction speed by exchanging data in real-time, and increase sales by implementing customer requirements more efficiently
• The need for SCM is because effective Supply Chain Mgt. is the next logical step towards increased profits and market share.
• Supply Chain Management (SCM) in line manager prospective is "let's-keep-things-moving-efficiently".

What is Oracle's SCM Solution for Customer

Oracle Supply Chain Management (SCM) basically integrates and automates all key supply chain activities starting from design, planning, and procurement to manufacturing and fulfillment.It depends upon how the company or Line managers planning to use these application module in there business line. For better understanding from Product point, lets understood on eight key area as per figure:

Here are the details with underline Product which is potentially used.

1.Develop : SCM start with developing new products where Product specifications are created.

• Oracle Product Life cycle Management(PLM)
• Oracle Advanced product Catalog (EGO )

2.Market :Marketing and Sales generates demand for the Product by publicizing its features and how it would address customer priorities. In the process, Marketing also gets customer feedback and communicates to Product development group. These are application potentially can be used.

• Telesales (AST)
• Trade Management (OZF)
• Incentive Compensation (CN)
• Order Capture (ASO)
• Partners Online (POL) *

* Oracle Partners Online (POL) is also known as Oracle Partners Online (PRM).

3. Plan :Planning is the strategic portion of SCM. You need a strategy for managing all the resources that go toward meeting customer demand for your product or service.

• Advanced Supply Chain Planning (MSC)
• Global Order Promising (GOP )

4.Sell & Manage Orders :Maintain and manage the customer orders, order holds, notes and release the orders to warehouse for fulfillment based on requested date, product availability and customer credit limit.

• Order management (OM)
• Advanced Pricing (QP)
• Configurator (CZ)
• iStore (IBE)

5.Procure :Here you normally choose the suppliers that will deliver the goods and services you need to create your product. Develop a set of pricing, delivery and payment processes with suppliers and create metrics for monitoring and improving the relationships.

• Purchasing (PUR)
• iProcurement(iPROC)

6.Manufacture :Schedule the manufacturing activities necessary for production, testing, packaging and preparation for delivery.

• Cost Management (CST)
• Process Manufacturing (GMA)
• Project Manufacturing (PJM)
• Quality (QA)
• Work in Process(WIP )

7.Fulfill & Release Management :Coordinate the receipt of orders from customers, develop a network of warehouses, pick carriers to get products to customers and set up an invoicing system to receive payments.

• Shipping Execution (WSH)
• Inventory Management (INV)
• WareHouse Management System (WMS)
• Transportation Execution (FTE )

8.Service & Maintain :Create a network for receiving defective and excess products back from customers and supporting customers who have problems with delivered products.

• Depot Repair (CSD)
• Field Service (CSF)
• Install Base (CSI)
• Service Contracts (OKS)
• Service Fulfillment Manager (XDP)
• Spares Management(CSP )

Oracle Product Acronym Listing can be re-validated from Robert's Blog.

This does not cover the Financial flow with SCM.Will take a detail discussion in some other post.

SCM Oracle Solutions

SCM Of Oracle E-Business Suite does covers each area of SCM as discussed in other post. Here is how best can describe as involvement of all five key participant.

Within SCM these are the business Process that can be fit with these application Module.

1)Procure to Pay

Here is flow that can be best understood with Oracle Modules Involvement.

Under this Business Process Oracle module can be potentially used as

• Oracle Purchasing(PUR)
• iProcurement(iProc)
• iSupplier Portal(isupplier)
• Payables(AP)
• Purchasing Intelligence(for BI)

Check out earlier Post for P2P details.

2) Order to Cash

Here is flow that can be best understood with Oracle Modules Involvement.

Under this Business Process Oracle module can be potentially used as

• Oracle Order Management (OM)
• Oracle Inventory (INV)
• Shipping Execution (WSH)
• Advanced Pricing (QP)
• Oracle Configurator (CZ)
• Warehouse Management (WMS)
• Receivables(AR)

Check out earlier Post for O2C, 1 & 2 details.

3) Lead to Service

Under this Business Process Oracle module can be potentially used as

• CRM Foundation (JTF)
• Sales Online (ASF)
• Marketing Online (AMS)
• Customer Care (CSC)
• Install Base (CSI)
• Depot Repair (CST)
• Service Contracts (OKS)
• iStore (IBE)
• iSupport (IBU)
• Field Service (CSF )

4) Forecast to Plan

Under this Business Process Oracle module can be potentially used as

• Material Planning (MRP)
• Advanced Supply Chain Planning (ASCP)
• Collaborative Planning

5) Demand to Build

Under this Business Process Oracle module can be potentially used as

• Demand Planning (MSD)
• Bills of Material (BOM)
• Work in Process (WIP)
• Cost Management (CST)
• Flow Manufacturing (FLM )