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SWAT Team TrainingR12 Period Close and Reconciliation

Joe Gum & Linda Wong, Financials Product Strategy

Agenda

• Process Changes & Dependencies • Close Process

• General• Payables• Receivables• Assets• Cash Management• General Ledger

• Intercompany Reconciliation• Q & A

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Process ChangeRelease 12

Process Change - Close

Transactions

Distributions

GL Balances

Transactions

Distributions

GL Journals

Balancing Lines

GL Balances

11i R12

SLA Journals

Product Period Close

Product Period Close

GL Journals

GL Balances

Balancing Lines

Close Dependencies

GL

FAAPPO

PA

CEAR

Inv

Balancing Lines

Process Change - Reconciliation

Transactions

Distributions

GL Journals

GL Balances

Transactions

Distributions

GL Journals

Balancing Lines

GL Balances

11i R12

SLA Journals

Transactional Reports

AccountingReports

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General StepsRelease 12

Close Process – General Steps 1. Complete Transactions2. Create Accounting3. Reconcile Transactions4. Post to GL5. Reconcile Accounting6. Close Period

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PayablesRelease 12

Close Checklist - Payables 1. Complete Transactions

a. Invoices On Hold Report

2. Approve Invoices3. Complete Payments4. Reconcile Payments/Bank Statements5. Resolve Potential Accounting Issues*

a. Create Accountingb. Journal Entries Reportc. Unaccounted Transactions Report

6. Post (GL) Payables Transactions*

Close Checklist - Payables 7. Review Accounting*

a. Payables Accounting Process Reportb. Posted Invoices Registerc. Posted Payments Register

8. Unaccounted Transactions Sweep*9. Close Payables Period

a. Subledger Period Close Exceptions Report*

10.Accrue Un-invoiced Receipts11.Reconcile Payables Activity to GL*

a. AP Trial Balance Report* (Account definition, Data Mgr Program)b. Third Party Balances Report*c. Account Analysis Report*

12.Mass Addition Transfer to Assets

New and Improved AP Trial Balance

• Multiple Formats, Group By Account & Supplier. Summary & Detail. Outputs in *.pdf, *.xml • Ability to rebuild the Trial Balance definition anytime• New columns on the report to highlight anomalies• Capture Accounting Class Code=LIABILITY only• Display invoices if payments are accounted prior to invoices in AP

Payment Status as of Date & Cancellation Payment Status as of Date & Cancellation Date can help catch anomalies, as shown Date can help catch anomalies, as shown

below. At a glance, you can catch any Fully below. At a glance, you can catch any Fully Paid/Cancelled invoice appearing in the Paid/Cancelled invoice appearing in the

reportreport

AP Reconciliation Issues 1. Transactions do not appear in Open Account Balances

Listing report2. Accounting does not appear in Account Analysis report 3. Cancelled invoices/payments result in errors in accounting

and reports4. Create accounting program errors5. Transfer to GL program errors

Best Practices1. Reconcile R11i and R12 AP Trial Balance for upgraded

period. 2. Include all LIABILITY accounts in Open Account

Balances Report Definition.3. Explore the Control Account feature with Third Party

Balances report.4. Avoid reversing batches (or modifying Journals) in GL,

if transferred by SLA.5. Use Period Close Exception report prior to closing

Periods in GL and reconciling to Account Analysis & Trial Balance reports.

6. Use only SLA or GL (not both) to create manual journal entries for subledger transaction corrections.

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ReceivablesRelease 12

Close Checklist – Receivables 1. Complete Transactions2. Review Unapplied Receipts4. Reconcile Receipts to Bank Statement5. Change Period Status to Close Pending6. Create Accounting7. Review Unposted Items Report*8. Reconcile Transaction Activity*

a. Transaction Registerb. Sales Journalsc. Receipt Registerd. Receipt Journals Report e. Journal Entries Report

Close Checklist - Receivables9. Reconcile Outstanding Customer Balances*

a. Aging Report (last period)b. Transaction Registerc. Adjustments Registerd. Invoice Exceptionse. Applied Receipts Registerf. Unapplied Receipts Registerg. Aging Report (this period)

10.Post (GL) Receivables Transactions*11.Print Invoices12.Print Statements13.Print Dunning

Close Checklist - Receivables14.Reconcile Receivables Activity to GL*

a. AR Reconciliation Reportb. AR-GL Reconciliation Reportc. Third Party Balances Reportd. Account Analysis Report

15.Close Receivables Period*a. Subledger Close Exceptions Report b. Change Period Status to Closedc. Open Next Period

16.Tax Reporting

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Fixed AssetsRelease 12

Close Checklist – Assets 1. Complete Transactions

a. Mass Additionsb. Manual Additionsc. Adjustmentsd. Retirementse. Transfersf. Reinstatements

2. Assign All Assets to Distribution Lines3. Calculate Gain/Loss4. Run Depreciation*5. Create Accounting*6. Rollback Depreciation* for adjustments7. Run Depreciation* to close the period

Close Checklist – Assets 8. Post (GL) Asset Transactions9. Reconcile Assets & GL*

a. Reserve Ledger Reports1) General Ledger Reserve Report2) Tax Ledger Reserve Report3) Account Reconciliation Reserve Ledger Report

b. Balances Reports1) Cost Detail/Summary2) CIP Detail/Summary3) Reserve Detail/Summary4) Revaluation Detail/Summary

c. GL Reports1) Journals – Posted/Unposted2) Account Analysis

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Cash ManagementRelease 12

Close Checklist – Cash Management 1. Load & Reconcile Bank Statements

a. Auto-Reconciliation Execution Report

2. Resolve Exceptions3. Create Miscellaneous Transactions*4. Resolve Unreconciled Lines

a. Bank Statement Detail Reportb. Transactions Available for Reconciliation Report

5. Reconcile to GL*a. GL Reconciliation Reportb. Account Analysis Report for Cash Account

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General LedgerRelease 12

Close Checklist – General Ledger (per Ledger) 1. Ensure Next Period is Future Enterable or Open2. Import & Post SLA & Feeder Systems*

a. Import Journals 1. Journal Import Execution Report2. Delete Journals in Error3. Correct via Correct Journal Import Data4. Re-import

b. Post Journals

3. Post All Journals (after correcting posting errors)4. Run and Review Journals Reports5. Run Revaluation6. Run Translation

7. Reconcile Intercompany*8. Close GL Period*9. Consolidate Ledgers*10.Run Final Reports

Close Checklist – General Ledger (per Ledger)

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IntercompanyRelease 12

Intercompany Reconciliation• Compare the balance of intercompany accounts for a pair

of trading partners to see if they match• Drill down to General Ledger Balances• Drill down to journals in GL, SLA and subledger

transactions (invoices, etc.)

For one period we can open and close by transaction types

Intercompany Periods

You can decide You can decide which period to which period to sweep all the sweep all the

open open transactions totransactions to

Intercompany Periods

This is the Receivables This is the Receivables Balance in Vision SwedenBalance in Vision Sweden

This is the Payables Balance This is the Payables Balance in Vision Norwayin Vision Norway

Intercompany Reconciliation Summary

Totals of the journals Totals of the journals posted in each of the legal posted in each of the legal entities grouped by source entities grouped by source

and categoryand category

The Payables balance in “Vision NO” is less than the The Payables balance in “Vision NO” is less than the Receivables balance in “Vision SE” indicating Payables Receivables balance in “Vision SE” indicating Payables

invoices have not been posted.invoices have not been posted.

Intercompany Reconciliation SummaryBy Source

Details of the journals in Vision Details of the journals in Vision SwedenSweden

Intercompany Reconciliation Journal Details

Other Resources

• R12 Period End Close Whitepaper

AQ&Q U E S T I O N SQ U E S T I O N SA N S W E R SA N S W E R S