105017797 period end processing in oracle payables release 11i

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9/5/12 Period-End Processing in Oracle Payables (Release 11i)

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Parent Categories: Oracle Applications | Oracle-apps-l | HOWTOs

Major Editors: nallamilliraman ORACLE_APPS_MANOJ David K. Dickson

Period-End Processing in Oracle Payables (Release 11i)

updated Jun 6, 2010 7:19 am | 40,770 view s

Contents1 Introduction

2 Business Requirements

3 Steps

3.1 Payables Approval Process

3.2 General Ledger

3.2.1 Review the Invoice on Hold Report

3.2.2 Review the Payables Accounting

Entries Report

3.2.3 Review the Unaccounted

Transactions Report

3.2.4 Optionally Run a Month End

Payment Batch

3.2.5 Confirm all Payment Batches

3.2.6 Optionally Run the Payments

Registers

3.3 Reconcile Payments

3.4 Transfer All Approved Invoices and

Payments

3.5 Review the Payables

3.5.1 Payables Accounting Process

Report

3.5.2 The Posted Invoices Register

3.5.3 The Posted Payments Register3.6 Submit the Unaccounted Transactions

3.7 Close the Current Oracle Payables

Period

3.8 Accrue Uninvoiced Receipts

3.9 Reconcil e Oracle Payables Activity for

the Period

3.9.1 Run the Accounts Payables Trial

Balance Report

3.10 Run Mass Additions Transfer to Oracle

Assets

3.11 Open the Next Oracle Payables Period

3.12 Run Reports for Tax Reporting

Purposes (Optional)

3.13 Run the Key Indicators Report

(Optional)

3.13.1 The Key Indicators Current Activity

Report

3.13.2 The Key Indicators State of the

System Report

3.14 Purge Transactions(Optional)

Introduction

The procedures for performing period-end process ingin Oracle PayablesRelease 11i.

Business Requirements

We must reconcile the accounts payable activity for the accounting period that is to beclosed. The following steps are taken in performing period-end processing for OraclePayables. The posting level for Oracle Payables must be determined, when planning period-end procedures. Where detail level accounting transactions are required to be posted to thegeneral ledger, there may be technical constraints involved, relating to the physical datastorage volume, and posting and report processing speed degradation caused by the sheervolume of posted t ransactions. Funct ionally, however, detail post ing to the general ledger

provides enhanced reporting opportunities in some cases.

Steps

Can be simplified as followed:

Prepare for Period Close >Run Validation/Review and Resolve Holds > create Accounting >Transfer and Review > Close the period in AP > Post Journal entries in GL > Reconcile APactivity for the Period > Close Po Period.

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1. Complete All Transact ions for the Period Being Closed:

2. Keep on Running queries from Apatghealthcheck.sql which will tell you about Orphan

Records.

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

4. Completing all transactions for Oracle Payables:

1. Complete Invoicing and Credits

2. Complete Prepayments

3. Complete Expense Reports

4. Complete Invoice Import

Note: If you import transactions from an external system, or you are using Internet Expensesor Xpense Xpress, ensure you have imported all transactions, and reviewed all audit trails forcompleteness.

Payables Approval Process

Run the Payables Approval Process(Invoice Validation Program in 11i) for All Invoices/InvoiceBatches.

The Payables Approval process is run to try to approve all unapproved invoices in the system,so that they can be paid and posted to the general ledger. Invoice Validation Program willtake care of all the Validations.

General Ledger

Review and Resolve Amounts to Post to the General Ledger.

Review the Invoice on Hold Report

If there is any Hold on the Invoice it will not accounted. So we need to remove all the holds onthe invoices.

After Running Invoice Validation We need to run the Invoice on Hold report.

This report enables review of any holds currently applied to invoices that would prevent thepayment and/or posting of these invoices. The report details all invoices for which OraclePayables cannot select for posting and therefore cannot c reate journal entries. Wherepossible resolve any identified holds which will prevent posting to the general ledger, and re-run the Payables Approval process to approve these invoices.

Review the Payables Accounting Entries Report

This report enables review and analysis of accounting entries in the Payables subledger. Youcan request the report for a specific run of the Payables Accounting Process or the PayablesTransfer to General Ledger program. Using the report parameters, you can produce a detailedor summary lis ting of the accounting information you want to review.

The report also list s in detail any transactions that have been accounted with error and allentries that could not be transferred to the general ledger interface. When a transaction isaccounted with errors, use the Update Accounting Entries window to update any invalidaccounts.

Payables groups the report by set of books, journal category, and bank accounts. Data isthen sorted by accounting date, event t ype, supplier name, document number, and vouchernumber.

Review the Unaccounted Transactions Report

This report enables review of all unaccounted invoice and payment transactions and see thereason that Payables cannot account for a transaction. Payables sorts the report bytransaction type (invoice or payment), exception, supplier, transaction currency, andtransaction number.

Run this report after you have run the Payables Accounting Process. The report will thenshow only transactions that had problems that prevented accounting. You can then correctthe problems and resubmit the accounting process.

Note that this report does not include invoices that have no distributions.

Optionally Run a Month End Payment Batch

By running a month end payment batch, you may arrange a payment for as many dueinvoices as possible.

Run Updated Mature Dated Future Payments Program to Change the s tatus of the Paymentsto Negotiable so that we can account these Payments.

Confirm all Payment Batches

Optionally run the Final Payment Register for the period that is to be closed, or finalise anyoutstanding payment batches. Use the Payment Batches window to confirm any unconfirmedpayment batches.

Note: The Final Payments Register lists each payment created for a payment batch. Actualpayments can be compared against this register to verify that Oracle Payables has recordedpayments correctly. The report lists each payment in a payment batch, including setup andoverflow payment documents, in ascending order, by payment number.

Attention : Oracle Payables prevents the c losing of a period in which all payment batcheshave not been confirmed.

Optionally Run the Payments Registe rs

Optionally, run the Payment Register.

This report details payments printed in a particular accounting period. The report can be used


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Warning: The report total only shows the net (less discounts and voids) payment amount,whereas the Posted Payment Register total is the total payment amount, includingdiscounts. If only verifying report totals, these two reports would not balance. Therefore it isnecessary to subtract the discounts taken from the report total and then compare thiscalculated amount to the total displayed on the Payment Register Report.

Reconcile Payments

Reconcile Payments to Bank Statement Activity for the Period.

(Refer to Period-End Procedures for Oracle Cash Management)

Attention: The Payables Accounting process must be re-run for any reconciliation accountingentries generated to be Transferred to the General Ledger.

Transfer All Approved Inv oices and Payments

Transfer All Approved Invoices and Payments to the General Ledger.

The Request Submit window facilitates the transfer of Oracle Payables accounting entries tothe General Ledger and creates unposted journal entries.

Oracle Payables creates detail or summary journal entries from the invoice and paymentactivity when you post. The journal entries are posted in Oracle General Ledger to updateaccount balances.

Submit the Payables Accounting Process to t ransfer approved invoice and paymentaccounting entries to the Oracle General Ledger interface tables.

Invoice journal entries, debit the expense or other account entered on an invoice

distribution line, and credit the liability account nominated on the invoice.

Payment journal entries, debit the liability account and credit the cash account of the bank

account used to pay and invoice.

The Payables Accounting Process transfers data to the General Ledger interface tables,creating journal entries for these invoice and payment transact ions, if the option SubmitTransfer to GL is set to Yes in the Parameter window.

The Payables Accounting Process will initiate the General Ledger Journal Import process, ifthe option Submit Journal Import is set to Yes in the Parameter window

Attention :The generated journal batch needs to be posted from within Oracle General Ledger.The journal batch may be automatically posted in General Ledger if the Source of Payableshas been included in the Automatic Posting options established in General Ledger.

Review the Payables

Review the Payables to General Ledger Posting process After Completion.

The following reports can optionally be run to review the invoices and payments that wereposted to Oracle General Ledger, from Oracle Payables, for the period that is to be closed,i.e. the current accounting period.

Payables Accounting Process Report

Payables Accounting Process Report Use this report to review accounting entries created bythe Payables Accounting Process. The report has two sections:

Accounting Entries Audit Report. The audit report provides, in detail or summary, a listing

of accounting entries created by the accounting process.

Accounting Entries Exception Report. The exception report lists in detail all accounting

entries that were created with an error status and a description of that error. The Entries

Exception Report is generated only when the accounting process encounters accounting

entries that fail validation.

The Posted Invoices Register

This report is used to review invoices for which information has been posted to Oracle GeneralLedger to create journal entries, and can be used to verify that the total invoice amount equals

the total invoice distribution amount. The report lists each Accounts Payable LiabilityAccounting Flexfield and the invoices posted to the account.

The Posted Payments Register

This report is used to review the payments posted to Oracle General Ledger during aparticular accounting period, and can be used to review the payment activity for each bankaccount used during that period.

Submit the Unaccounted Transactions

Submit the Unaccounted Transactions Sweep Program.

The Unaccounted Transactions Sweep Program t ransfers unaccounted transactions from oneaccounting period to another. Because you cannot close a Payables period that hasunaccounted transactions in it, if your accounting practices permit it, you might want to usethis program to change the accounting date of the transactions to the next open period. Forexample, you have invoices for which you cannot resolve holds before the close, and youraccounting practices allow you to change invoice distribution GL dates. Submit the program

to change invoice distribution GL dates to the first day of the next open period so you canclose the current period.

The Unaccounted Transactions Sweep Program will not roll forward accounted transactions,or accounted transactions with error. To create successful accounting entries for accountedtransactions with error, correct any accounting errors and resubmit the Payables AccountingProcess.

The program transfers unaccounted transact ions to the period you specify by updating the GL


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.Payables moved the invoices and payments.

In the Control Payables Periods window if you try to close a period and unaccountedtransactions exist, then Payables opens a window. From the window you can submit theUnaccounted Transactions Sweep Program or you can submit a report to review accountingtransactions that would be swept by the program. When you submit the UnaccountedTransactions Sweep Program, Payables automatically produces the UnaccountedTransactions Sweep Report to identify t ransactions that were redated and identify anytransactions that need updating. If you submit the report in preliminary sweep mode theUnaccounted Transactions Sweep Review report shows which transactions will be redated ifyou submit the Unaccounted Transactions Sweep Program.

Close the Current Oracle Payables Period

Close the accounting period by using the Control Payables Periods window to set the PeriodStatus to Closed.

Accrue Uninvoiced Receipts

(Refer to Period-End Procedures for Oracle Purchasing)

Reconcile Oracle Payables Activity for the Period

Run the Accounts Payables Trial Balance Report

This report is used to facilitate reconciliation of the total accounts payable liabilities in Oracle

Payables, with the Oracle General Ledger Creditors Control Account, for a specificaccounting period. This report list s, and sub-totals, by vendor, all unpaid and partially paidinvoices for which Oracle Payables created journal entries (i.e. posted invoices). Theseinvoices represent the outstanding accounts payable liability for the organisation.

To obtain the most up-to-date trial balance for a given period, journal entries should be posted

for the invoice and payment activity for the period, prior to running the report.

For reconciliation of Oracle Payables and Oracle General Ledger when posting is onlyperformed at period end, the following reconciliation method can be used:

To the previous periods Accounts Payables Trial Balance, add the current periods postedinvoices (total amount from the Posted Invoices Register) , and subtract the current periodsposted payments (total cash plus discounts taken, from the Posted Payments Register) .The calculated amount should equal the balance for the current periods Accounts PayablesTrial Balance.

Attention: However, when posting to the general ledger from Oracle Payables is performedmultiple times throughout each accounting period, the Posted Invoices Register and PostedPayments Register reports must be run after each posting run, for reconciliation of OraclePayables liabilities with Oracle General Ledgers Creditor Control.

Run Mass Additions Transfer to Oracle Assets

After you have completed all Payables transaction entry, and confirmed all invoice holds, andcarry forwards, submit the Mass Additions Create progam to transfer capital invoice linedistributions from Oracle Payables to Oracle Assets.

For foreign currency assets, Payables sends the invoice distribution amount in the convertedfunctional currency. The mass addition line appears in Oracle Assets with the functionalcurrency amount. Oracle Assets creates journal entries for the functional currency amount,so you must clear the foreign currency amount in your general ledger manually.

After you create mass additions, you can review them in the Prepare Mass Additions windowin Oracle Assets.

It is recommended to do a final Mass Additions Create after the period close to ensure that allPayables invoices are 1) included in the correct period; and 2) any additional invoicing willbecome part of the next periods invoice and asset processing period.

Suggestion: If the volume of transactions in Accounts Payable requiring Assets update islarge, you should consider running the Mass Additions Create process on a more regularbasis.

Open the Next Oracle Payables Period

Open the next accounting period by us ing the Control Payables Periods window to set thePeriod Status to Open.

Run Reports for Tax Reporting Purposes (Optional)

A variety of standard reports can be used to provide tax information which is required to bereported to the relevant Tax Authority, including withholding tax.

The Financial Tax Register can be used to view the output from the Tax Reporting Ledgerusing Reports Exchange and Application Desktop Integrator (ADI). Using these products youcan change the layout of the report, publish the report in different formats, and export the datato a tab delimited or HTML file.

The Tax Reporting Ledger consists of accounting information created in Oracle Receivables,Oracle Payables, and Oracle General Ledger. The Financial Tax Register uses this data togenerate Tax Register reports using the Rxi reporting tool.

The following tax registers are available:

Tax Register

Interim Tax Register

Nonrecoverable Tax Register

The following summary levels are available within each Tax Register:

Transaction Header

Transaction Line


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Accounting Line

Run the Key Indicators Report (Optional)

This report enables review of the Accounts Payables departments productivity. Thisstatis tical information can be useful for cash flow analysis and forecasting purposes, whencombined with similar information from Oracle Accounts Receivables. The Key IndicatorsReport generates the following two reports:

The Key Indicators Current Activity Report

Use the Key Indicators Report to review your accounts payable department's productivity. TheKey Indicators Report provides current activity indicators that compare current period activitywith prior period activity in three major areas: suppliers, invoices, and payments. Payables

further breaks down each category into basic items, exception items, and updates. The reportprovides the number of transactions for each indicator (such as number of automaticpayments printed during a period) and amount values where applicable to the Key Indicator(such as total value of automatic payments written during a period).

The Key Indicators State of the System Report

The Key Indicators State-of-the-System Report provides a period-end view of Payables, aswell as average values. For example, the Key Indicators State-of-the-System Reportincludes:-.

Suppliers:

Suppliers. Number of suppliers.

Sites. Number of supplier sites.

Average sites per supplier. Payables divides the number of sites by the number of

suppliers.

Invoices:

Invoices. Number of invoices.

Distribution lines. Number of invoice dist ributions.

Average lines per invoice. Payables divides the number of invoices by the number of

distributions.

Scheduled payments. Number of scheduled payments based on payment terms and

manual adjustments in the Scheduled Payments window of the Invoice Workbench.

Average payments per invoice. Payables divides the number of invoices by the number of

scheduled payments.

Payments:

Checks. Number of payments (both manual and computer generated) created and recorded

in Payables.

Invoice payments. Number of invoice payments made by Payables. A payment document

can pay multiple invoices.

Average invoices per payment. Payables divides the number of payment documents by the

number of invoice payments.

Matching Holds:

Matching holds. The number of matching holds in Payables.

Average matching holds per invoice on matching hold. Payables divides the number of

matching holds by the number of invoices on matching hold.

Purge Transactions(Optional)

You can delete Oracle Payables or Oracle Purchasing records that you no longer need toaccess on-line to free up space in your database. You can purge invoices, purchase orders,suppliers, and related records such as invoice payments and purchase receipts.

Warning: After a record is purged, it is no longer queryable, and the record will no longerappear on s tandard reports. However, the system maintains summary information of deletedrecords to prevent you from entering duplicate invoices or purchase orders.

Suggestion: You should create a special responsibility for purging information from OraclePayables and Oracle Purchasing and assign this responsibility only to the person responsiblefor purging information from your database.

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105017797 period end processing in oracle payables release 11i

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