oracle reconciliation oaug

8/12/2019 Oracle Reconciliation Oaug

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It’s month end, now comes the

reconciliation crunch!

Richard Byrom

Oracle Applications Consultant

http://www.richardbyrom.com

http://www.richardbyrom.com/




Agenda

• Presentation assumptions and objectives

• Why and how should we reconcile

• Setup issues

• Close procedures for each module,

reconciliation results & two way drill down

• Additional Tips

• Conclusion• Questions and Answers



Objectives

• This presentation emphasizes the importance

of on a regular basis so as to ensure

improved control over financial information

• To discuss different setup issues and that

may impact your ability to reconcile.

• To outline the month end close process for

each module and give practical examples of

expected reconciliation results.



Objectives

Manufacturingsubledgers

Financial

subledgersOracleGeneral Ledger

Payroll &Human

Resources



Objectives

GENERAL LEDGER

Transactions- Journals -

- Interfaces -

Master Data

- Chart of Accounts! -

- Sources & Categories -

- Document Sequencing-

FIXED ASSETSTransactions

- Additions / Disposals -

- Depreciation -

Master Data

- Asset Categories -

ACCOUNTS PAYABLE

Transactions

- Invoices / Memos -

- Payments -

Master Data

- Suppliers -

ACCOUNTS

RECEIVABLETransactions

- Invoices / Memos -

- Receipts -

Master Data

- Customers -

CASH MANAGEMENT

Transactions

- Reconciled Payments -

- Reconciled Receipts -

- Miscellaneous Transactions -

Master Data

- Bank Accounts -



What should be reconciled?

• Control Accounts

• Inter Modular Movement

• Intercompany Accounts



What happens if we don’t reconcile properly?

• Potential data corruption notdetected

• Sub modules may not be posted

to the GL

• Multiple months may remain open

for a variety of modules

• Repetitive errors may not be

detected

• Posting of non standard journals

to control accounts• Open item system carries forward

problems to next year.



Why the problem with reconciliations

• Inadequate training/inexperienced users

• Lack of understanding of the system

architecture• Trying to use old procedures for a new

system

• Bad Management



How should we reconcile?

• Establish your out of system procedures• Ensure that all the standard functionality provided

by the system is understood and used

• Make use of additional tools is necessary



Setup Issues – General Ledger

• Sequential numbering of documentationshould be taken into consideration.

• Chart of accounts should beappropriately designed and have anappropriate groupings and sub groupingby using parent and child relationships.

• Document types and sub types need tobe looked at



Month end close steps

1. Pre-posting activities

2. Posting to supporting systems

3. Run verification Reports

4. Reconcile against interfacing systems

5. Close periods

6. Problem Solution

7. Two way drill



Receivables Steps – Pre-posting

• Pre-posting activities

– Enter Receipts

– Enter Invoices

– Record NSF checks – Run Autoinvoice Interface

– Print New Invoices

– Run Incomplete Invoice Reports

– Adjustment Approval Report



Receivables Steps – GL Posting

• Posting to GL

(AR) Interfaces > General Ledger



Receivables Steps – Reconciliation

Results

Jul-02

Beginning AR Trial Balance 94,890,824.48

+ Transaction Register 26,197,804.53

- Receipt Register -42,318,784.05

+/- Adjustment Reqister 0.00

- Prepayments Remittance Report* 0.00

Ending AR Balance 78,769,844.96



Receivables Steps – Reconciliation

Results

Description Amount Comments

Current Period End AR Aging Total 39,330,142.00 Extracted from AR Aging Report for Jul-02

Prior Period End AR Aging Total 55,454,778.25 Extracted from AR Aging Report for Jun-02

Change in AR Balance -16,124,636.25 x

+ Invoices/Debit Memos 26,409,424.57 Extracted from AR Sales Journal Reports

- Credit Memos -211,620.04 Extracted from AR Sales Journal Reports

- Cash Receipts -42,318,784.05 Extracted from AR Receipt Journal Reports - Write Offs 0.00

Change in AR Balance -16,120,979.52 y

Debits Posted 26,763,035.64 Extracted from Trial Balance

Credits Posted -42,887,671.89 Extracted from Trial Balance

Change in AR Balance -16,124,636.25 x

x = y = z -3,656.73



Receivables two way drill – Invoice Status



Receivables two way drill – Invoice Accounting



Receivables two way drill – Cash Receipts



Receivables two way drill



Receivables two way drill – Receipt History



Receivables two way drill-Miscellaneous Receipts



Receivables two way drill- GL to Invoice



Receivables two way drill – Drilldown effect



Payables Steps


– Enter Employee Expense Reports

– Enter Invoices

– Run Invoices on Hold Report

– Run Payables Approval

– Check for Unapproved Invoices



Payables Steps – Reports & Period Close

• Verification Reports – Accounts Payable Trial Balance

– Posted Invoice Register

– Posted Payment Register

– Expense Distribution Report – Invoice Aging Report

– Posting Hold Report

– Invoice Register

• Close Periods



Payables Steps – Reconciliation Results

• Reconciliation can also be achieved using Tutor

Business Form FOR0672

Description Amount

(Previous Month) Accounts Payable Trial Balance -27,428,898.13

+ (Current Month) Posted Invoice Register 7,778,812.99

- (Current Month) Posted Payment Register -5,779,945.70

(Current Month) Accounts Payable Trial Balance -25,430,030.84



Reconciliation Problems

• If AP does not reconcile to GL – Check that the reports have been run for the

correct date/period.

– Run GL Post in Accounts Payable.

– Post all payables generated batches in theGeneral Ledger

– Re-Run both Trial Balance reports

– Check for Journal Entries in the AP controlaccount, not generated by Accounts Payable.

– Check for Payments/Invoice Distributions madeagainst the AP control account.



Payables two way drill – query an invoice



Payables two way drill – view accounting



Fixed Assets Steps

• Pre-posting activities – Prepare Mass Additions

– Post Mass Additions

– Delete Mass Additions

– Prepare Manual Additions

– Retire Assets

– Adjust Assets

– Capitalize CIP Assets

– Run Depreciation



Fixed Assets Steps – GL Posting

• Run Journal Entries



Fixed Assets Results

• Alternative reconciliation using FOR0674

Tutor Business Form• Printing of Reconciliation Report

Description Cost NBVPrevious Month’s Ending Balance 120,951,159.11 96,421,655.44

+ Asset Additions 658,900.00 658,900.00

+ (-) Adjustments 0.00

- Depreciation Charge -450,506.21

- Retirements 0.00

+ Capitalizations 0.00

+ (-) Reclassifications 0.00+ (-) Transfers 0.00

Current Month’s Ending Balance 121,610,059.11 96,630,049.23



Cash Management Steps


– Capture/Interface Bank Statements

– Automatically reconcile statements

– Manually reconcile amounts not cleared

– Check all statements are fully reconciled

• Bank Statement Detail Report

• Online checks



Cash Management Steps

• Post to GL – Ensure payables and receivables posting

has taken place

• Verification Reports

– Cash In Transit Report

– Cleared Transactions Report

– General Ledger Reconciliation

– Transactions available for Reconciliation



Cash Management Results

• Check Receipts against Receivables

Reports, Cash Account per GL and

Cash Management Reports

• Check Payments against Payables

Reports, Cash Account in GL and Cash

Management Reports



Cash Management two way drill – Account Inquiry



Cash Management two way drill – Drilldown effect



General Ledger Steps

• Pre-posting activities – Reconcile interfaces from feeder systems

– Enter Manual Journal Entries

– Reverse Entries

– Run Journal Import

– Generate Recurring Journal Entries

– Generate Mass allocations

• Post Journal Entries



General Ledger Results

• Verification Reports

– Journal Entry Report

– Account analysis Report

– Account Analysis – Sub Ledger Detail Report – Trial Balance – Detail Report

– Run Financial Statement Generator – FSG’s

• Close Periods



Additional Tips – File Export

• To export the results of an online inquiry oronscreen view choose File > Export from themenu

• Save the file generated to your desiredlocation

• Open the file from Microsoft Excel. Ensurethat from the open dialogue box in Excel youspecify files of type all *.*

• When the text import utility appears choosefinish, you can now sort the file according toyour personal requirements



Additional tips Cont.d – Tools>Copy File

• Use Tools > Copy file from the menu when

you are in a report

• Save the file in web or text format to your

desired location – preferably use text• Import the file into Excel using the text import

wizard as displayed – use the report column

headers as your fixed width delimiters.



Additional tips cont.d - Tutor

• Use Oracle Tutor Business forms to

give you reconciliation templates.

Concl sion



Conclusion

• Reconciliations are important in

order to identify problem areasand rectify them on a timelybasis.

• Procedures should be put inplace to facilitate reconciliation

as well as ensure that theorganisation is making use ofall possible tools.

• Setups have a significantimpact on the ease of

reconciliation.



S k I f ti



Speaker Information

Name : Richard Byrom

e-mail : [email protected]

[email protected]

Company : RPC Data Ltd

Web Site : http://www.rpcdata.com

http://www.richardbyrom.com

mailto:[email protected]


http://www.rpcdata.com/



http://www.rpcdata.com/



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