I) period-end processing in Oracle Purchasing Release 11i.

IntroductionThe procedures for performing period-end processing in Oracle Purchasing Release 11i.

[edit]Business Requirements

We must reconcile the purchasing activity for the accounting period that is to be closed.

[edit]Steps

The following steps are taken in performing period-end processing for Oracle Purchasing.

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Complete All Transactions for the Period Being Closed

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

Completing all transactions for Oracle Purchasing:

1. Complete Requisitions 2. Complete Purchase Orders and Releases

3. Complete Receipts and Returns

Submit the Confirm Receipts Workflow Select Orders process in Purchasing to send notifications through the Web, e–mail, or Notification Details Web page (accessible through the Notifications Summary menu in Purchasing) to requestors or buyers who create requisitions in Purchasing or

Oracle Self–Service Purchasing. It lets people know they should have received an item.

The Confirm Receipts workflow sends notifications for items with a Destination or Deliver–To Type of Expense, a Routing of Direct Delivery, and a Need–By date that is equal to or later than

today’s date.

Requestors can create receipt transactions by responding to the notification.

1. Print all new Purchase Orders 2. Respond to all Workflow Notifications

Notifications may either require action e.g. notify approver approval required, or are FYI notifications only e.g. notify requestor requisition has been approved. Users should close all FYI

notifications and respond to those that require a response.

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Review the Current and Future Commitments (Optional)

Run the Purchase Order Commitment by Period Report

The Purchase Order Commitment By Period Report shows the monetary value of purchased commitments for a specified period and the next five periods. You can use the report sorted by

buyer to monitor buyer performance. You can also use the report when negotiating with a supplier by limiting the commitments to a specific supplier.

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Review the Outstanding and Overdue Purchase Orders (Optional)

Run the following reports:

Purchase Order Detail Report Open Purchase Orders (by Buyer) Report

Open Purchase Orders (by Cost Center) Report

These reports can be used to review all, specific standard, or planned purchase orders. The quantity ordered and quantity received is displayed so the status of the purchase orders can be

monitored.

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Follow Up Receipts - Check With Suppliers

From the details obtained from the Purchase Order Detail Report regarding un-receipted purchase orders, the appropriate department can then follow up with the suppliers as to the

status of the ordered items.

If the goods have been received, but the receipt has not entered into Oracle Purchasing, then the receipt transaction needs to be actioned by the appropriate personnel.

Attention: Where you have selected to accrue receipts at period end, make sure that all receipts have been entered for a specific period before creating receipt accruals for that period. It is not necessary to enter all the receipts for a period prior to closing that period. Simply backdate the

receipt date when entering receipts for a closed period.

Warning: Where you have Oracle Inventory installed, it is not possible to process a receipt to a closed Purchasing period.

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Identify and Review Un-invoiced Receipts (Period-End Accruals)

By running the Un-invoiced Receipts Report, all or specific un-invoiced receipts that can be accrued, can be reviewed. These are items that have been received that the supplier has not invoiced you for yet. Receipt accruals can be reviewed by account and by item. This report

indicates exactly what has to be accrued, and for what amount, and helps in the preparation of accrual entries.

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Follow Up Outstanding Invoices

For any items identified to have been received but not invoiced, the appropriate department can then follow up the details from the Un-invoiced Receipts Report with the supplier. Entering of

invoices, matching of unmatched invoices, and resolution of any invoice holds, where possible, should be carried out at this point in the period-end process.

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Complete the Oracle Payables Period-End Process

Complete the steps to close the Oracle Payables period, which corresponds to the Oracle Purchasing period being closed, to enable creation of receipts accrual entries. Performing the

Oracle Payables Period-End process, effectively prevents any further invoices or payments being entered into Oracle Payables for the closed period.

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Run the Receipt Accruals - Period End Process

Run the Receipt Accruals - Period-End process to accrue receipts, as no journal entries are created when receipt transactions are entered. This process is used to create period-end

accruals for un-invoiced receipts for Expense distributions for a specific purchasing period. Each time the process is run, Oracle Purchasing creates an un-posted journal entry batch in the

General Ledger for the receipt accruals. Journal entries are created for the amount of the receipt liabilities, debiting the charge account and crediting the Receipt Accrual Liability Account.

If encumbrance or budgetary control are being used, another journal entries batch is created, corresponding to the encumbrance reversal entries for the un-invoiced receipts that were

accrued. The accrual journal entries are then reversed out at the start of the new accounting period when you open the next Purchasing period. Oracle Purchasing creates accrual entries

only up to the quantity the supplier did not invoice for partially invoiced receipts.

Attention: This step is only required if the Accrue Expense Items flag is set to Period End, on the Accrual tabbed region of the Purchasing Options window for the current Organisation.When the

Accrue Expense Items flag is set to At Receipt, a reversal is not required.

If encumbrance or budgetary control is being used, Oracle Purchasing reverses the encumbrance entry when creating the corresponding accrual entry.

Identify the purchasing period for the receipt accrual entries. Oracle Purchasing creates receipt accruals for all receipts entered up to the end of the nominated period.

This process can be run as many times as needed.

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Reconcile Accrual Accounts - Perpetual Accruals

Identify the period-end balances of the following accounts in the General Ledger:

Purchase Price Variance A/P Accrual Account

Inventory Account - (Refer to Chapter 3 Period-End Procedures for Oracle Inventory)

Reconcile the balance of the Purchase Price Variance account using the Purchase Price Variance Report.

Manually remove the Invoice Price Variance amount from the A/P Accrual Account using your General Ledger.

Identify the Invoice Price Variances amount and Accrued Receipts amount in the A/P Accrual Account. Run the Invoice Price Variance Report for the current period. Identify the invoice price variance for all purchase orders charged to the Inventory A/P Accrual Account and compare it

with the balance of the Invoice Price Variance account in the General Ledger.

At any given time, the balance of the A/P accrual accounts can account for the following transactions:

Uninvoiced Receipts Over-invoiced Receipts

Errors(Invoices or inventory transactions charged to this Account by mistake)

You need to analyze the balance of the A/P accrual accounts, distinguish accrued receipts from invoice price variances, and identify errors.

The Accrual Reconciliation Report is used to analyse un-invoiced receipts and to reconcile the balance of the Accounts Payable accrual accounts.

This report enables you to identify the following problems in receiving, purchasing, inventory, work in process, or accounts payable transactions:

Quantities differ between receipts and invoices Incorrect purchase order or invoice unit prices

Discrepancies in supplier billing Invoice matched to the wrong purchase order distribution Received against the wrong purchase order or order line

Miscellaneous inventory or work in process transactions that do not belong to the accrual accounts

Payables entries for tax and freight that do not belong to the accrual accounts

The Purchasing Options can be set to accrue both Expense and Inventory purchases as they are received. When this happens, an Accounts Payable liability is temporarily recorded to the

Expense or Inventory Accounts Payable accrual accounts. When the invoice is matched and approved by Oracle Payables, the Accounts Payable accrual accounts are cleared, and the

liability is recorded from the supplier site.

There are two versions of this report, detailed as follows:

The Accrual Reconciliation Rebuild Report

This version of the report selects the accounting entries from the appropriate source (sub-ledgers). This accounting information resides in a temporary table, and remains until this

information is rebuilt again. Typically, this report is run at period end.

The Accrual Reconciliation Report

This version of the report uses the accrual information residing in the temporary tables that was selected the most recent time the Accrual Reconciliation Rebuild Report was run. This report is

typically run throughout the accounting period, providing interim reports, whereas the rebuild report is used to select and report on current accrual information at period end.

These reports can be used to identify any discrepancies between PO receipts and AP invoices. The report will also detail any miscellaneous transactions erroneously posted to the accrual

accounts.

After researching the reported accrual balances, the Accrual Write-Offs window can be used to indicate which entries are to be removed and written off from this report. After writing off these entries, the Accrual Write-Off Report can be used as supporting detail for the manual journal

entry in General Ledger.

The Accrual Reconciliation Report can help in monitoring potential problems with purchasing and receiving activities that can affect the accuracy of the AP accrual accounts.

Ensure that prior to closing the period, quantity differences (i.e., when the quantity received for a purchase order shipment is smaller than the quantity invoiced) and price differences are resolved.

Prerequisites:

Oracle Payables and Oracle Purchasing installed. If expense purchases are accrued on receipt, this report enables reconciliation with the

accounts payable accrual account. If expense purchases are accrued at period end, and inventory receipts are not

performed, no information will be available to report.

Attention :Most commercial installations accrue expense receipts at period end, as the information is not required as the receipt occurs. If expense purchases are accrued on receipt, more entries must be reconciled in the Accounts Payable accrual accounts. If you also receive

inventory, the Receiving Value Report by Destination Account must be run to break out the receiving/inspection value by asset and expense.

Attention: The Accrual Reconciliation Report requires transactions to appear on the report prior to creating records into the Oracle General Ledger interface tables.

Attention: For Oracle Purchasing, all transactions are automatically transferred to the General Ledger interface. For Oracle Inventory, and Oracle Work In Progress, a GL transfer or period

close must first be performed for the transactions to appear on this report. For Oracle Payables, journal entries must be created for the invoices.

The Accrual Reconciliation Report requires the transactions to be transferred to the General Ledger interface to ensure the report balances to the General Ledger.

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Perform Year End Encumbrance Processing (Optional)

Oracle Financials provides a number of facilities for the processing of outstanding encumbrances as part of year end processing.

The default processing for Oracle Financials at year end is to extinguish any outstanding encumbrances/ unused funds when you close the last period of the Financial Year within Oracle

General Ledger.

The carry forward process enables managers to perform any of the following:

Carry forward encumbrances for existing transactions (purchases/requisitions). Carry forward encumbrances, and the encumbered budget. Carry forward the funds available as at the end of the year.

Other facilities available:

Use mass allocations to bring forward part of the funds available. Carry forward budgets into the current appropriation budget, or to a separate budget to

identify between current year and carry forward amounts if required. Mass budget processing also allows you to combine these budgets.

Attention: You must complete the Year End Encumbrance processing in Oracle Purchasing before commencing the year end Encumbrance processing in Oracle General Ledger.

(Refer to Period-End Procedures for Oracle General Ledger)

The steps required to complete Year end Encumbrance processing in Oracle Purchasing are:

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Identify Outstanding Encumbrances

Print the Encumbrance Detail Report to review the requisition and purchase order encumbrances, if the encumbrance option for requisitions or purchase orders has been enabled, and requisitions and purchases have entered and approved. Use this report to review the accounts encumbered.

The Encumbrance Detail Report reflects activity from General Ledger, not Purchasing or Oracle Payables. Therefore, use the Encumbrance Detail Report in a way that matches the accounting

method:

Receipt accrual: Generate the Encumbrance Detail Report as needed when the Accrue at Receipt option is used. Upon entering receipt information, an automated process transfers the

receipt information to General Ledger using the Journal Import Process. Period-end accrual: Generate the Encumbrance Detail Report at period-end. During the

period, the encumbrance detail on the report is based on invoice matching information from Payables, not on receiving information. After the Receipt Accruals - Period-End process is run,

the Encumbrance Detail Report reflects the true period-end receipt information. Cash basis: If cash-basis accounting is used, the encumbrances on the Encumbrance

Detail Report remain until payment information from Payables is transferred to General Ledger. When cash-basis accounting is used and the Payables Transfer to General Ledger process is

submitted, Payables transfers only accounting information for paid invoices to the General Ledger.

Based on this report you can identify those transactions that you wish to carry forward into the new financial year.

Refer below for the steps required to cancel transactions that are not to be to carried forward.

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Perform MassCancel in Oracle Purchasing (Optional)

MassCancel enable the cancellation of requisitions and purchase orders on the basis of user selected criteria.

Define MassCancel

The Define MassCancel window is used to nominate a date range for transactions, as well as any of the following:

Document Type Supplier Name

Accounting Flexfield Range

This process will automatically generate a MassCancel listing report identifying the following:

Unable to Cancel Requisitions (reasons provided) Unable to Cancel Purchase Orders (reasons provided)

Partially in range Documents Fully in Range Documents

Run MassCancel

When this process is run, Oracle Purchasing creates journal entries to zero out the encumbrances associated with the canceled requisitions and purchase orders.

Attention: If you wish to cancel both purchase orders and requisitions, you must initiate MassCancel twice. Note that when canceling a purchase order, you have the option of canceling

the original requisition at the same time.

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Close the Current Oracle Purchasing Period

Close the current Purchasing Period in the Control Purchasing Periods window. Oracle Purchasing automatically un-marks all the receipts previously accrued to ensure that these

receipts can be accrued again if they are still not invoiced in the next accounting period (where you have selected to accrue receipts at period end).

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Open the Next Oracle Purchasing Period

Open the next purchasing period in the Control Purchasing Periods window.

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Run Standard Period End Reports (Optional)

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Suppliers Quality and Performance Analysis Reports

Suppliers Report:

Use the Suppliers Report to review detailed information entered for a supplier in the Suppliers and Supplier Sites windows. This report also shows if a supplier is on PO Hold.

You have the option to include supplier site address and contact information. Payables lists your suppliers in alphabetical order, and you can additionally order the report by supplier number.

Suppliers Audit Report:

Use the Supplier Audit Report to help identify potential duplicate suppliers. This report lists active suppliers whose names are the same up to a specified number of characters. The report ignores

case, spaces, special characters, etc.

The report lists all site names and addresses of each potential duplicate supplier. Payables inserts a blank line between groups of possible duplicate suppliers. After duplicate suppliers have

been identified, they can be combined using Supplier Merge. If purchase order information is merged, then any references to the supplier in blanket purchase orders, quotations, and

autosource rules are updated to the new supplier.

Supplier Quality Performance Analysis Report:

The Supplier Quality Performance Analysis Report can be used to review suppliers' quality performance, for percents accepted, rejected, and returned. This report is useful to identify

suppliers with quality performance issues.

Supplier Service Performance Analysis Report:

The Supplier Service Performance Analysis Report lists late shipments, early shipments, rejected shipments, and shipments to wrong locations. This report can be used to derive a supplier service

penalty by multiplying the days variance quantity by a percentage of the price.

The % Open Current is the percentage of the ordered quantity not yet received, but within the receipt tolerance days or not past due.

The % Open Past Due is the percentage of the ordered quantity not received by the promise date and beyond the receipt tolerance days.

The % Received On Time is the percentage of the ordered quantity received on the promise date or within the receipt tolerance days.

The % Received Late is the percentage of the ordered quantity received after the promise date and outside the receipt tolerance days.

The % Received Early is the percentage of the ordered quantity received before the promise date and outside the receipt tolerance days.

The Days Variance is calculated as the summation of the date differential (transaction date subtracted from promise date) multiplied by the corrected received quantity (the received quantity plus or minus corrections) for each shipment, all divided by the total corrected received quantity.

The result is the quantity per day the supplier is in variance.

Supplier Volume Analysis Report:

The Supplier Volume Analysis Report shows the dollar value of items purchased from a supplier. The report prints the items that are assigned sourcing rules. Use the report to compare actual

purchase percentages with sourcing percentage.

The Expenditure is the sum of the item line amounts for standard purchase orders for the supplier.

The Actual Percentage is the items expenditure as a percentage of the total expenditure for the date range of the report.

The Intended Commitment is the total expenditure multiplied by the split percentage entered in the sourcing rules.

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Analyse Requisitions

Requisition Activity Register

The Requisition Activity Register shows requisition activity and monetary values. Purchasing prints the requisitions in order of creation date and prepared name.

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Review Quotation, RFQ and Purchase Order Statuses

Purchase Order Statuses may optionally be reviewed early in the period close processing for Oracle Purchasing.

Blanket and Planned PO Status Report:

The Blanket and Planned PO Status report can be used to review purchase order transactions for items you buy, using blanket purchase agreements and planned purchase orders. For each

blanket purchase agreement and planned purchase order created, Purchasing provides the detail of the releases created against these orders. Purchasing prints the blanket agreement or planned

purchase order header information, if no release exists.

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Savings Analysis Reports

Savings Analysis Report (by Category):

The Savings Analysis Report (By Category) shows buyer performance by category. Use the report to compare the market, quote, or list price to the actual price.

The Negotiated Amount is the product of the price on the quotation and the quantity ordered. If a quote is not defined, Purchasing prints the product of the market price of the item ordered and the

quantity ordered. If the market price is not defined, Purchasing uses the list price.

The report includes a price type Legend at the bottom of each page for the price type. If the line price type is Q, the line price was from the Quote. If the line price type is M, the line price was

from Market Price, and if the line price type is L, the line price was from List Price.

The Actual Amount is the product of the actual price listed on the purchase order line and the quantity ordered.

The Amount Saved is the negotiated amount less the actual amount, with negative figures in parentheses.

Savings Analysis Report (by Buyer):

The Savings Analysis Report (By Buyer) shows buyer performance by purchase order.

The Negotiated Amount is the product of the price on the quotation and the quantity ordered. If a quote is not defined, Purchasing prints the product of the market price of the item ordered and the

quantity ordered. If the market price is not defined, Purchasing uses the list price.

The report includes a price type Legend at the bottom of each page for the price type. If the line price type is Q, the line price was from the Quote. If the line price type is M, the line price was

from Market Price, and if the line price type is L, the line price was from List Price.

The Actual Amount is the product of the actual price listed on the purchase order line and the quantity ordered.

The Amount Saved is the negotiated amount less the actual amount, with negative figures in parentheses.

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Encumbrance Accounting Reports

Encumbrance Detail Report

The Encumbrance Detail Report can be used to review requisition and purchase order encumbrances for a range of accounts if the encumbrance option for requisitions or purchase

orders has been enabled, and there are entered and approved requisitions and purchases. Use this report to review the accounts encumbered.

Cancelled Purchase Orders Report Cancelled Requisition Report

Use these reports to review all purchase orders and requisitions cancelled, particularly where you have defined multiple Mass Cancel batches.

Defining Accrual Options   To define accrual options:

1. Navigate to the Accrual alternative region in the Purchasing Options window.2. Choose one of the following Accrue Expense Items options:On Receipt: Accrue expense items upon receipt. You can override this flag in the Shipment Details window when you are entering purchase orders and releases.Period End: Accrue expense items at period end.Attention: When using Cash Basis Accounting, you should set this option to Period End, but you will not normally run the Receipt Accrual - Period End process.3. For Accrue Inventory Items, you currently have only one choice: On Receipt.4. Enter the default Expense AP Accrual Account.5. Save your work.

Accrual Process for Period-End AccrualsKey points for accruing expense purchases at period-end include:

o You record the total uninvoiced receipt liabilities accrued during the accounting period.

o Actual journal entries are created for the amount of the receipt liabilities, debiting the charge account and crediting the PO distribution accrual account (normally the Expense A/P Accrual Account defined in the Define Purchasing Options form).

o You reverse accrual journal entries manually at the start of the new accounting period.

o If you are using encumbrance accounting, purchase order encumbrance is relieved when the invoice(s) matched to the purchase order are posted to the general ledger.

Receiving Transactions

Purchasing does not record any accounting entries for expense during a receiving transaction if you use period-end accruals. You record all of your uninvoiced liabilities at month end using the Receipt Accruals - Period-End process. See: Receipt Accruals - Period End Process

Receipts Accruals-Period End

Use the Receipt Accruals - Period End process to create period-end accruals for your uninvoiced receipts for expense distributions. Purchasing creates an accrual journal entry in your general ledger for each uninvoiced receipt you choose using this form. If you use encumbrance or

budgetary control, Purchasing reverses your encumbrance entry when creating the corresponding accrual entry.

Purchasing never accrues an uninvoiced receipt twice. Each time you create accrual entries for a specific uninvoiced receipt, Purchasing marks this receipt as accrued and ignores it the next time you run the Receipt Accrual - Period-End process. Purchasing creates accrual entries only up to the quantity the supplier did not invoice for partially invoiced receipts.

Purchasing creates the following accounting entries for each distribution you accrue using the Receipt Accruals - Period-End process:

Account Debit Credit

PO charge account @ Uninvoiced Quantity * PO Price XX

Expense A/P accrual account @ Uninvoiced Quantity * PO price XX

As soon as you open the next period, Purchasing reverses the accrual entries using the following accounting entries:

Account Debit Credit

Expense A/P accrual account @ Uninvoiced Quantity * PO price XX

PO charge account @ Uninvoiced Quantity * PO Price XX

Match, Approve, and Post an Invoice

When you enter an invoice in Payables, you match each invoice line to a specific purchase order shipment in Purchasing. You can set up Payables to ensure that you pay only for the quantity you received. If you accrue your uninvoiced receipts at period-end, Payables records the expense transactions part of the accounting transactions:

Account Debit Credit

PO Distribution Charge Account @ Invoice Quantity * PO Price XX

PO Distribution Variance Account @ Invoice Quantity * (Invoice Price - PO Price) XX

A/P Liability @ (Invoice price * Invoice Quantity) XX

Attention: Normally, you charge the original expense account for any invoice price variances, so your PO distribution variance account is the same as the PO distribution charge account. You do not record invoice price variances for expense purchases. Purchasing uses the Account Generator to set your purchase order distribution variance account to be the same as your purchase order charge account. If you want to record your invoice price variances to a separate account, use the Account Generator to define the business rules you use to determine the correct invoice price variance account.

Complete Period Transactions

If you use encumbrance or budgetary control, Purchasing creates encumbrance journal entries in your general ledger each time you approve a purchase order. Similar to accrual journal entries, encumbrance journal entries recognize a liability towards your supplier before any invoicing transactions occur. Unlike accrual journal entries, encumbrance journal entries are not actual transactions. General Ledger tracks actual and encumbrance journal entries and balances separately.

Period-End Checklist

Purchasing provides you with complete flexibility and control for your period-end accruals. You can use the Uninvoiced Receipts Report to analyze your uninvoiced non-inventory receipts before you accrue these receipts. You can then use the Receipt Accruals - Period-End process as many times as you want to generate accrual entries for the receipts you choose.

For your period-end reconciliation, you should perform the following steps:

1. Identify the purchasing period you want to reconcile and close.2. Enter all receiving transactions for goods and services you received during the period. Purchasing automatically creates receipt accruals for all receipts you entered up to the end of this period. To prevent any period-end disruption, Purchasing lets you provide a receipt date that is different from the date you enter the receipts. You never have to enter all the receipts for a period before the end of this period. You can enter these receipts later. You simply need to back date the receipt date.3. Enter and match all invoices you received during the period for your receipt accrual entries. You should make sure that you solve all posting holds problems in Payables before accruing receipts. Purchasing creates accrual journal entries for all purchase orders you received and did not match to an invoice. If you matched a purchase order to an invoice, Purchasing does not accrue the corresponding receipts. Purchasing does not accrue any purchase order that you closed on or before the end of the accrual period you choose. If the invoice is on posting hold, Payables has not yet accounted for the liability corresponding to the invoice. Under these conditions, the liability corresponding to this invoice would not appear in your books for the period. Payables lets you recognize this liability in the following period.4. Close your accounts payable period corresponding to the purchasing period for your receipt accrual entries. Note: The List of Values for period end accruals does not require the Accounts Payable period to be closed, however it's strongly recommended that closed periods are used, as the receipt accruals process will not pick up invoices entered after the accruals process is run for the period.rcvaccov5. For period-end accruals of expense purchases, run the Uninvoiced Receipts Report. Use this report to analyze your uninvoiced receipts. The Uninvoiced Receipts Report lets you use the same selection criteria for your uninvoiced receipts as the Receipt Accruals - Period-End process. You always know exactly what you accrue and for what amount.6. For period-end accruals of expense purchases, use the Receipt Accruals - Period-End process as many times as you need. You can use the search criteria to choose what you want to accrue and accrue your receipts steps by steps. You create accruals for a specific

purchasing period. Purchasing automatically accrues all uninvoiced receipts your entered up to the end of the accrual period you specify. See: Receipt Accruals - Period End Process.Each time you use the Receipt Accruals - Period-End process, Purchasing creates an unposted journal entries batch in your general ledger for your receipt accruals. If you are using encumbrance, Purchasing creates another journal entries batch in your general ledger corresponding to the encumbrance reversal entries for the uninvoiced receipts you accrued.Purchasing never accrues your uninvoiced receipt twice. Each time you create accrual entries for a specific uninvoiced receipt, Purchasing marks this receipt as accrued and ignores it the next time you use the Receipt Accruals - Period-End process. Purchasing creates accrual entries only up to the quantity your supplier did not invoice for your partially invoiced receipts.7. Post Accrual and Encumbrance Reversal journal entry batches in your general ledger (See the following section to identify Accrual and Encumbrance Reversal journal entry batches.)8. Perform all the steps you need to close your accounting period and generate your period-end reports and financial statements in your general ledger.9. Use your general ledger system to reverse all the receipt accrual and encumbrance reversal batches you created for your period-end accruals.10. Close the purchasing period for your receipt accruals. When you close a purchasing period, Purchasing automatically un-marks all the receipts you previously accrued to make sure you can accrue these receipts again if they are still uninvoiced in the next period. See: Uninvoiced Receipts Report

Receipt Accruals - Period-End ProcessUse the Receipt Accruals - Period-End process to create period-end accruals for your uninvoiced receipts for Expense distributions. Purchasing creates an accrual journal entry in your general ledger for each uninvoiced receipt you choose using this form. If you use encumbrance or budgetary control, Purchasing reverses your encumbrance entry when creating the corresponding accrual entry. Attention: When using Cash Basis Accounting, you should use the Purchasing Options window to set the Accrue Expense Items flag to Period End, but you will not normally run the Receipt Accrual - Period-End process. See: Defining Accrual Options.

Purchasing provides you with complete flexibility and control for your period-end accruals. You can use the Uninvoiced Receipts Report to analyze your uninvoiced receipts before you accrue them. You can then run the Receipt Accruals - Period-End process as many times as you want to generate accruals entries for the receipts you choose. Purchasing does not accrue receipts for purchase orders on or before the last date of the Accrual Period.

You create accruals for a specific purchasing period. Purchasing automatically accrues all uninvoiced receipts you entered up to the end of the accrual period you specify. Each time you run the Receipt Accruals - Period-End process, Purchasing creates an unposted journal entries batch in your general ledger for your receipt accruals. If you are using encumbrance or budgetary control, Purchasing creates another journal entries batch in your general ledger corresponding to the encumbrance reversal entries for the uninvoiced receipts you accrued.

Each time you create accrual entries for a specific uninvoiced receipt, Purchasing marks this receipt as accrued and ignores it the next time you run the Receipt Accrual - Period-End process. Purchasing creates accrual entries only up to the quantity the supplier did not invoice for partially invoiced receipts.

Follow the steps listed below:

o Identify the purchasing period for your receipt accrual entries. Purchasing creates receipt accruals for all receipts you entered up to the end of this period. To prevent any period-end disruption, Purchasing lets you provide a receipt date that is different from the date you enter the receipts. You never have to enter all the receipts for a period before the end of this period. You can enter these receipts later. You simply need to backdate the receipt date. Of course, you should make sure you entered all receipts for a specific period before you create receipt accruals for that period.

o Enter and match all invoices you received during the period for your receipt accrual entries.

o Close the accounts payable period corresponding to the purchasing period for your receipts accrual entries.

o Run the Uninvoiced Receipts Report and analyze your uninvoiced receipts that are accrued at period end.

o Run the Receipt Accrual - Period-End process as many times as you need. You can use the search criteria to choose what you want to accrue and accrue your receipts step by step. This process creates accounting accrual entries using the journal source 'Purchasing' and the journal category 'Accrual'.

o Perform all the steps you need to close your accounting period and generate period-end reports and financial statements in your general ledger.

o Run the Accrual Reconciliation Report after period close to analyze your receipts accrued on receipt.

o Use your general ledger system to reverse all the receipt accrual and encumbrance reversal batches for your period-end accruals.

o Close the purchasing period for your receipt accruals. When you close a purchasing period, Purchasing automatically un-marks all the receipts you previously accrued to make sure you can accrue these receipts again if they are still uninvoiced in the next period.

o After you have opened your next period in General Ledger and have either closed the previous general ledger period or have completed all previous month receipt accruals, you can reverse the previous month's receipt accruals in the

new month. You perform this by reversing each general ledger journal batch in General Ledger.

   To run the Receipt Accruals - Period End process:

1. Navigate to the Submit Requests window.2. Select Requests in the first field.3. Select Receipt Accruals - Period-End in the Name field.4. Enter the Extended Value. The default is 0.5. Enter the Supplier to restrict period-end receipt accruals to a single supplier.6. Enter the item Category to restrict period-end receipt accruals to a single category.7. Enter the Period for which you want to perform period-end receipt accruals. Purchasing automatically provides you with a list of acceptable accrual periods. This list contains periods that you closed in your accounts payable system and either opened or did not use in your general ledger system.8. Save your work to begin the process.

Uninvoiced Receipts ReportThe Uninvoiced Receipts Report should be run before the Receipt Accrual - Period-End process. With this report, you can review all or specific uninvoiced receipts for both period end and online accruals. Uninvoiced receipts are goods and services you have received that your supplier did not invoice yet. This report indicates exactly what you have to accrue and for what amount, and helps you analyze your receipt accrual entries. The accrual amount is the difference between the quantity received and the quantity billed multiplied by the unit price of the item.

Report SubmissionIn the Submit Requests window, select Uninvoiced Receipts Report in the Name field.

Report ParametersAccrued Receipts 

Enter Yes to indicate that you want to include accrued receipts on the report. Otherwise, the report includes only unaccrued receipts.

Include Online Accruals 

Enter Yes to indicate that you want to include online accruals on the report. Typically, you use the Accrual Reconciliation Report rather than this report to analyze your online accruals.

Categories From/To 

Enter the beginning and ending purchasing categories.

Minimum Extended Value 

Enter the minimum extended value for the report.

Period Name 

Enter a period name to restrict the report to the periods up to and including the specified period.

Suppliers From/To 

Enter the beginning and ending supplier names.

Sort By 

Choose one of the following options: Category Sort the report by purchasing category. Supplier Sort the report by supplier name.

Dynamic Precision Option 

Enter the decimal precision for quantities on the report.

Receipt Accruals - Period-End ProcessUse the Receipt Accruals - Period-End process to create period-end accruals for your uninvoiced receipts for Expense distributions. Purchasing creates an accrual journal entry in your general ledger for each uninvoiced receipt you choose using this form. If you use encumbrance or budgetary control, Purchasing reverses your encumbrance entry when creating the corresponding accrual entry. Attention: When using Cash Basis Accounting, you should use the Purchasing Options window to set the Accrue Expense Items flag to Period End, but you will not normally run the Receipt Accrual - Period-End process. See: Defining Accrual Options.

Purchasing provides you with complete flexibility and control for your period-end accruals. You can use the Uninvoiced Receipts Report to analyze your uninvoiced receipts before you accrue them. You can then run the Receipt Accruals - Period-End process as many times as you want to generate accruals entries for the receipts you choose. Purchasing does not accrue receipts for purchase orders on or before the last date of the Accrual Period.

You create accruals for a specific purchasing period. Purchasing automatically accrues all uninvoiced receipts you entered up to the end of the accrual period you specify. Each time you run the Receipt Accruals - Period-End process, Purchasing creates an unposted journal entries batch in your general ledger for your receipt accruals. If you are using encumbrance or budgetary control, Purchasing creates another journal entries batch in your general ledger corresponding to the encumbrance reversal entries for the uninvoiced receipts you accrued.

Each time you create accrual entries for a specific uninvoiced receipt, Purchasing marks this receipt as accrued and ignores it the next time you run the Receipt Accrual - Period-End process.

Purchasing creates accrual entries only up to the quantity the supplier did not invoice for partially invoiced receipts.

Follow the steps listed below:

o Identify the purchasing period for your receipt accrual entries. Purchasing creates receipt accruals for all receipts you entered up to the end of this period. To prevent any period-end disruption, Purchasing lets you provide a receipt date that is different from the date you enter the receipts. You never have to enter all the receipts for a period before the end of this period. You can enter these receipts later. You simply need to backdate the receipt date. Of course, you should make sure you entered all receipts for a specific period before you create receipt accruals for that period.

o Enter and match all invoices you received during the period for your receipt accrual entries.

o Close the accounts payable period corresponding to the purchasing period for your receipts accrual entries.

o Run the Uninvoiced Receipts Report and analyze your uninvoiced receipts that are accrued at period end.

o Run the Receipt Accrual - Period-End process as many times as you need. You can use the search criteria to choose what you want to accrue and accrue your receipts step by step. This process creates accounting accrual entries using the journal source 'Purchasing' and the journal category 'Accrual'.

o Perform all the steps you need to close your accounting period and generate period-end reports and financial statements in your general ledger.

o Run the Accrual Reconciliation Report after period close to analyze your receipts accrued on receipt.

o Use your general ledger system to reverse all the receipt accrual and encumbrance reversal batches for your period-end accruals.

o Close the purchasing period for your receipt accruals. When you close a purchasing period, Purchasing automatically un-marks all the receipts you previously accrued to make sure you can accrue these receipts again if they are still uninvoiced in the next period.

o After you have opened your next period in General Ledger and have either closed the previous general ledger period or have completed all previous month receipt accruals, you can reverse the previous month's receipt accruals in the new month. You perform this by reversing each general ledger journal batch in General Ledger.

   To run the Receipt Accruals - Period End process:

1. Navigate to the Submit Requests window.2. Select Requests in the first field.3. Select Receipt Accruals - Period-End in the Name field.4. Enter the Extended Value. The default is 0.5. Enter the Supplier to restrict period-end receipt accruals to a single supplier.6. Enter the item Category to restrict period-end receipt accruals to a single category.7. Enter the Period for which you want to perform period-end receipt accruals. Purchasing automatically provides you with a list of acceptable accrual periods. This list contains periods that you closed in your accounts payable system and either opened or did not use in your general ledger system.8. Save your work to begin the process.

Legal Entity Configurator - New product in R12 David Haimes (Director, Financial Applicaitons Development) posted 12/19/2007 | Comments (0)

In Oracle Ebusiness Suite 11i, the Legal Entity is tied closely to a set of books and operating Unit, so your Legal Structure has to be defined in the way you set up your apps partitions (OU, Set of Books etc.). In R12 financials breaks away from that with the introduction of the Legal Entity Configurator allowing you to model your Legal

Structure separately from the partitions in your ERP system. Then you mark certain items with an owning LE, rather than use the OU or set of books to derive the LE. So

let’s see what this buys you.

Let’s first look at what we map Legal Entities to

1. Accounting Structures - Balancing Segment Values and Ledgers 2. Tax Rules in eTax - Who I am and where I am registered/located determines what

tax I need to pay 3. Bank Account - Who owns that bank account and the cash in it

4. Payables and Receivalbes Invoicing - the owner of that transaction, sometimes referred to as LE stamping

5. Intercompany Accounts and Intercompany Processing Rules

There are a number of features that you get from this, probably the biggest is tax, the new eTax module in in R12 allows very flexible definition of tax rules, based on

the Legal Entites and the tax registrations. It makes your tax calculation and reporting a breeze - at least that is what the eTax development team tell me - I have no reason to doubt them, but I am not an expert in this product so I’m not going

to try and give details here.

Intercompany is obviously a big feature, we now base the Intercompany rules on the From (transacting or Initiating) LE and the To (trading partner or Recipient) LE, which

not only allows more realistic rules, but provides us with the mapping we need to

give you the neat Interactive Reconciliation Reporting.

Also on the Intercompany Front it allows us to define a couple of important rules. Firstly we can define Intercompany Exceptions, that is for LE x, I might want to state that it should not do Intercompany with y and z. Secondly I can set a Legal Rule to tell me when there is a Legal requirement for an AGIS trsansaction to generate an

Invoice rather than just create GL journals.

Bank Account ownership is now by a LEgal Entity, so we can more easily determine when a cash transaction is crossing a Legal Entity and intercompany accounting is

needed.

There are also a large number of Legal reports which have Legal Entity as a parameter, so the numerous reports shipped in R12 will make it easy to the

compliance and statutary details you need on each Legal Entity that has to report. The Oracle Financials globalization products ship the majority of these reports.

For more details on these features, you should start with the Release Content Document, the Functional Upgrade Guide, The Financials Implementation Guide and

the product User Guides.

[edit]Introduction

The procedures for performing period-end processing in Oracle Payables Release 11i.

[edit]Business Requirements

We must reconcile the accounts payable activity for the accounting period that is to be closed. The following steps are taken in performing period-end processing for Oracle Payables. 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 the general ledger, there may be technical constraints involved, relating to the physical data storage volume, and posting and report processing speed degradation caused by the sheer volume of posted transactions.

Functionally, however, detail posting to the general ledger provides enhanced reporting opportunities in some cases.

[edit]Steps

1. Complete All Transactions 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 Expenses or Xpense Xpress, ensure you have imported all transactions, and reviewed all audit trails for

completeness.

[edit]

Payables Approval Process

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

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 will take care

of all the Validations.

[edit]

General Ledger

Review and Resolve Amounts to Post to the General Ledger.

[edit]

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 on the 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 the payment and/or posting of these invoices. The report details all invoices for which Oracle

Payables cannot select for posting and therefore cannot create journal entries. Where possible resolve any identified holds which will prevent posting to the general ledger, and re-run the

Payables Approval process to approve these invoices.

[edit]

Review the Payables Accounting Entries Report

This report enables review and analysis of accounting entries in the Payables subledger. You can request the report for a specific run of the Payables Accounting Process or the Payables Transfer to General Ledger program. Using the report parameters, you can produce a detailed or summary

listing of the accounting information you want to review.

The report also lists in detail any transactions that have been accounted with error and all entries that could not be transferred to the general ledger interface. When a transaction is accounted with

errors, use the Update Accounting Entries window to update any invalid accounts.

Payables groups the report by set of books, journal category, and bank accounts. Data is then sorted by accounting date, event type, supplier name, document number, and voucher number.

[edit]

Review the Unaccounted Transactions Report

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

Run this report after you have run the Payables Accounting Process. The report will then show only transactions that had problems that prevented accounting. You can then correct the

problems and resubmit the accounting process.

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

[edit]

Optionally Run a Month End Payment Batch

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

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

[edit]

Confirm all Payment Batches

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

payment batches.

Note: The Final Payments Register lists each payment created for a payment batch. Actual payments can be compared against this register to verify that Oracle Payables has recorded payments correctly. The report lists each payment in a payment batch, including setup and

overflow payment documents, in ascending order, by payment number.

Attention : Oracle Payables prevents the closing of a period in which all payment batches have not been confirmed.

[edit]

Optionally Run the Payments Registers

Optionally, run the Payment Register.

This report details payments printed in a particular accounting period. The report can be used to review payment activity for each bank account used during the specified time period.

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, including discounts. If

only verifying report totals, these two reports would not balance. Therefore it is necessary to subtract the discounts taken from the report total and then compare this calculated amount to the

total displayed on the Payment Register Report.

[edit]

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 accounting entries generated to be Transferred to the General Ledger.

[edit]

Transfer All Approved Invoices and Payments

Transfer All Approved Invoices and Payments to the General Ledger.

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

Oracle Payables creates detail or summary journal entries from the invoice and payment activity when you post. The journal entries are posted in Oracle General Ledger to update account

balances.

Submit the Payables Accounting Process to transfer approved invoice and payment accounting 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 transactions, if the option Submit Transfer to GL is

set to Yes in the Parameter window.

The Payables Accounting Process will initiate the General Ledger Journal Import process, if the 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 Payables has

been included in the Automatic Posting options established in General Ledger.

[edit]

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 were posted to Oracle General Ledger, from Oracle Payables, for the period that is to be closed, i.e. the

current accounting period.

[edit]

Payables Accounting Process Report

Payables Accounting Process Report Use this report to review accounting entries created by the 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.

[edit]

The Posted Invoices Register

This report is used to review invoices for which information has been posted to Oracle General Ledger 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 Liability Accounting Flexfield and the invoices posted to the account.

[edit]

The Posted Payments Register

This report is used to review the payments posted to Oracle General Ledger during a particular accounting period, and can be used to review the payment activity for each bank account used

during that period.

[edit]

Submit the Unaccounted Transactions

Submit the Unaccounted Transactions Sweep Program.

The Unaccounted Transactions Sweep Program transfers unaccounted transactions from one accounting period to another. Because you cannot close a Payables period that has unaccounted

transactions in it, if your accounting practices permit it, you might want to use this program to change the accounting date of the transactions to the next open period. For example, you have

invoices for which you cannot resolve holds before the close, and your accounting 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 can close 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 accounted

transactions with error, correct any accounting errors and resubmit the Payables Accounting Process.

The program transfers unaccounted transactions to the period you specify by updating the GL dates to the first day of the new period. You can then close the accounting period from which

Payables moved the invoices and payments.

In the Control Payables Periods window if you try to close a period and unaccounted transactions exist, then Payables opens a window. From the window you can submit the Unaccounted

Transactions Sweep Program or you can submit a report to review accounting transactions that would be swept by the program. When you submit the Unaccounted Transactions Sweep

Program, Payables automatically produces the Unaccounted Transactions Sweep Report to identify transactions that were redated and identify any transactions that need updating. If you submit the report in preliminary sweep mode the Unaccounted Transactions Sweep Review report shows which transactions will be redated if you submit the Unaccounted Transactions

Sweep Program.

[edit]

Close the Current Oracle Payables Period

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

[edit]

Accrue Uninvoiced Receipts

(Refer to Period-End Procedures for Oracle Purchasing)

[edit]

Reconcile Oracle Payables Activity for the Period

[edit]

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 specific accounting

period. This report lists, and sub-totals, by vendor, all unpaid and partially paid invoices for which Oracle Payables created journal entries (i.e. posted invoices). These invoices 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 only performed at period end, the following reconciliation method can be used:

To the previous periods Accounts Payables Trial Balance, add the current period’s posted invoices (total amount from the Posted Invoices Register) , and subtract the current period’s

posted payments (total cash plus discounts taken, from the Posted Payments Register) . The calculated amount should equal the balance for the current period’s Accounts Payables Trial

Balance.

Attention: However, when posting to the general ledger from Oracle Payables is performed multiple times throughout each accounting period, the Posted Invoices Register and Posted Payments Register reports must be run after each posting run, for reconciliation of Oracle

Payables liabilities with Oracle General Ledger’s Creditor Control.

[edit]

Run Mass Additions Transfer to Oracle Assets

After you have completed all Payables transaction entry, and confirmed all invoice holds, and carry forwards, submit the Mass Additions Create progam to transfer capital invoice line

distributions from Oracle Payables to Oracle Assets.

For foreign currency assets, Payables sends the invoice distribution amount in the converted functional currency. The mass addition line appears in Oracle Assets with the functional currency

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 window in Oracle Assets.

It is recommended to do a final Mass Additions Create after the period close to ensure that all Payables invoices are 1) included in the correct period; and 2) any additional invoicing will

become part of the next periods invoice and asset processing period.

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

[edit]

Open the Next Oracle Payables Period

Open the next accounting period by using the Control Payables Periods window to set the Period Status to Open.

[edit]

Run Reports for Tax Reporting Purposes (Optional)

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

The Financial Tax Register can be used to view the output from the Tax Reporting Ledger using Reports Exchange and Application Desktop Integrator (ADI). Using these products you can

change the layout of the report, publish the report in different formats, and export the data to 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 to

generate 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 Accounting Line

[edit]

Run the Key Indicators Report (Optional)

This report enables review of the Accounts Payables department’s productivity. This statistical information can be useful for cash flow analysis and forecasting purposes, when combined with similar information from Oracle Accounts Receivables. The Key Indicators Report generates the

following two reports:

[edit]

The Key Indicators Current Activity Report

Use the Key Indicators Report to review your accounts payable department's productivity. The Key Indicators Report provides current activity indicators that compare current period activity with

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 report provides the number of transactions for each indicator (such as number of automatic payments printed

during a period) and amount values where applicable to the Key Indicator (such as total value of automatic payments written during a period).

[edit]

The Key Indicators State of the System Report

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

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 distributions.

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.

[edit]

Purge Transactions(Optional)

You can delete Oracle Payables or Oracle Purchasing records that you no longer need to access 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 longer appear on standard reports. However, the system maintains summary information of deleted records to

prevent you from entering duplicate invoices or purchase orders.

Suggestion: You should create a special responsibility for purging information from Oracle Payables and Oracle Purchasing and assign this responsibility only to the person responsible for

purging information from your database.