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What’s New In R12 The Close Formal Close Schedule “Period Close” Activities to Do In Advance Close Checklist Reconciling AR to the Aging Document Your Accounting Activity Reconciling AR to GL Improve Your Close Process

Copyright @ 2012 by Cathy Cakebread 2

Applicable for 11i and R12

› Mostly

I am NOT an SLA Expert!


Subledger Accounting (SLA)

› Standardized “Accounting Engine”

More Reports Especially Reconciling

Reports

› SLA Reports

› More Accounting Detail Reports

› Report to Reconcile AR with GL



Oracle

Receivables

Oracle

Receivables

Oracle General

Ledger

Subledger

Accounting

Oracle General

Ledger

Prior to SLA – GL Interface

With SLA - Create Accounting

Greater Control Over Accounts Used

› “Default Accounts” (AR)

› “Real Accounts” (SLA)

Ability to Customize

› But: Should You?

AR != GL

Customized:

› Run AR to GL Reconciliation Report to see Differences

Control – Accounting – AR to GL Reconciliation Report

› Verify Setups


AR to GL Reconciliation Report **

Cross Currency Exchange Gain/Loss Report**

Unapplied Receipts Journal **

Receipts Journal **

Cumulative Activity Balance Report (bug)**

Customer Open Balance Letter (bug)

IEX: Create Dunning and Broken Promises Call Backs

Other Receipt Applications

Publish Actual Receipt

Publish Receipt Forecast

Publish Transaction Check

Receipt Analysis – Days Late

Reversed Notes Receivable Report ** Applicable to Close


Control Requests Run

› Account Analysis Report (bug)

› Journal Entries Report (bug)

› Subledger Period Close Exceptions Report

› Sales Journal by Customer

› Sales Journal by GL Account (bug) **

› Receipt Journal Report **

› Third Party Balances Report (bug) ** See Note 1269489.1 for AR Period End Process and related

known patches

** Does not always appear on the list of possible reports


Visibility

Too Much to Do

Not Enough Time

STRESS!


Brevity!

Accuracy!

Control!

Suggestions:

Have a Close Schedule

Use a Close Checklist

Create and Utilize Standard Reconciling Procedures

Store Reports (Soft Copy) by Period Copyright @ 2012 by Cathy Cakebread 10

Clear Cut-Offs / Deadlines › Defined In Advance › Consistency!

Useful For: › Bank Deposits › Shipments › Inter-company Activity › Miscellaneous Cash › Other Interfaces › Avoiding the ‘Just One More Thing’ Syndrome


Accept/Reject Adjustments

Complete/Delete Incomplete Transactions

Resolve AutoInvoice Rejects

Clear Lockbox Exceptions

Run Revenue Recognition Process

Enter Miscellaneous Cash

Apply Unapplied Cash


Make Unapplied Receipts On-Account

› Doesn’t Matter is Batch is “Closed”!!!

Apply all Unapplied Receipts


Complete All Interfaces › AutoInvoice › AutoLockbox › Others….

Enter Final Transactions Clear Exceptions Verify Accounting Entries Transfer to SLA * Transfer to General Ledger Post in General Ledger Close the Current Period Open the New Period

› Tip: Only One Period Open at a Time!!


See What You Need to Do

› And, The Sequence To Do Them

Know What’s Done

› And, What’s Left to Do



TASK

DESCRIPTION

PROCESSED

BY

1.

Complete manual payments and adjustments for the period

and cleanup of “Out of Balance” batches

2.

Complete final Projects Streamline Process

3.

Complete final Receivables Interface from Order Management

4.

Complete manual invoices and credit memos

5.

Run your final AutoInvoice process

6.

Correct all AutoInvoice rejects and re-run (as needed)


9) Run the AR:Journal Entries report (to verify what the journal entries will look like)

Reports Accounting (Print Accounting Reports)

Type Single Request

Name AR: Journal Entries Report

Reporting Level Ledger

Reporting Context Applicable Ledger

GL Date From Period start date e.g. 01-SEP-12

GL Date To Period end date e.g.,30-SEP-12

Posting Status Posted and Unposted (not the default)

Print Detail by Account blank

Print Detail by Category blank

Print Summary by Account Yes

Print Summary by Category Yes

Use the defaults (“Yes”) for all record types and leave the rest of the parameters blank

AR: Journal Entries Report (AR Version)

› Summary By Category

If Issues, Detail by Category or Account

Journal Entries Report (SLA Version)

Receipts Journal (SLA)

Sales Journal by GL Account (SLA)

› Totals Should Match Transaction Register

› If issues, Sales Journal By Customer (SLA)


Mode – Final

Transfer to General Ledger - Yes

Post to General Ledger – Yes

Run Regularly - Daily?


Subledger Period Close Exceptions

Report (SLA) Any Exceptions? Not Transferred? Not Posted?

Unposted Items Report

› Should be None

AR to GL Reconciliation Report

› Out of Balance Only – Yes


AR Reconciliation Report (new in 11i) and

Starting Aging Balance › Transaction Register

› Applied Receipts Register

› Unapplied and Unresolved Receipts Register

› Adjustment Register

› Invoice Exceptions Report

› Currency Gains/Losses Report

Ending Aging Balance



MONTH: ________________

PREPARED BY: ______________________

ACTIVITY SOURCE

Starting Balance Aging - Old

Invoices Transaction Register

Debit Memos Transaction Register

Credit Memos ( ) Transaction Register

Transaction Register Subtotal

Applied Payments ( ) Applied Receipts Register (Applied Amount Total)

Discounts Taken ( ) Applied Receipts Register (Earned Discount + Unearned Discount)

Unapplied Activity ( ) Unapplied and Unresolved Receipts Register

(On-Account Amount + Unapplied Amount) * -1

Adjustments Adjustments Register (may be + or -)

Journal Entries Report – Summary By Category › Verify That No Illogical Entries (AR vs. Non AR by Category)

Transaction Register (Split by Company and Currency) › Invoices, Debit Memos, Credit Memos, Commitments

› Credit Memo Total Should be Negative

› Watch Bottom Total in 11.5.9+ – includes ALL Currencies

Applied Receipts Register – › Add Totals and Multiply by -1

› Result May be Negative or Positive

› Note that Total Does Not Include Discounts (in 11.5.9+)

› Note: Cash Received Does Not Equal Amount Applied!

Adjustment Register (May be Negative or Positive) Invoice Exceptions Report (= Items Not Aged)

Known Bugs in Reports: › AR Reconciliation Report, Journal Entries Report, Applied Receipts

Register


Inconsistent Use of Dates › Always Use First Date to Last Date of Period

Use of Wrong Sign on Spreadsheet

Buggy Version of a Report

Improper Entry on Spreadsheet

More Than One AR Period Open at a Time

Watch Currency and Company


Key Accounts

› AR, Cash, Unapplied Cash…

What Does AR Say?

› Ending Aging Balance

› Journal Entries Report

What Does SLA and GL Say?

› Account Analysis Report (GL Version)

Are There Differences?


Control Requests Run

› Account Analysis Report (bug)

› Journal Entries Report (bug)

Any Not Transferred or Not Posted?

› Sales Journal by GL Account (bug) **

Sales Journal by Customer

› Receipts Journal Report **

› Third Party Balances Report (bug) ** See Note 1269489.1 for AR Period End Process and related

known patches

Also Run: AR to GL Reconciliation Report



ACTIVITY Balance to Journal Entries AR1 AR2 Cash1 Cash2 Unapplied

Aging Report Totals

Starting Balance

Invoices

Debit Memos

Credit Memos

CM - Application

Applied Payments

Discounts Taken

Unapplied Activity

Adjustments

Items Not Aged

Manual - Journal Entries

Cash-AR

Cash-Misc.

Unapplied Cash

NEW BALANCE

NEW REPORT TOTALS

Difference

Current JE's

JE's To Date

TOTAL

ATB- By Account

Difference

Note - Unapplied activity impacts ATB but is included in the applied receipts total when posted to GL

New Report Totals = The New Aging and The Account Analysis Reports (gray areas are from the Account Analysis Report)

Add NEW BALANCE to JE's (current and to date) - should = ATB by Account totals

GL Starting Balance

+/- Current Period Activity

+/- Current Period Manual Journal Entries

+/- To Date Manual Journal Entries

Should Equal: › Aging by Account

› Ending GL Balance


Why Are There Differences?

› Account Usage From Other Sources

› Manual Journal Entries

› Journal Import Not Completed Successfully

› Changes to Standard Accounts, e.g., Unapplied Cash

› Improper Setups

› Unposted Items

› SLA Definitions Differ from AR Defaults

Check: AR to GL Reconciliation Report – For Key

Accounts

SLA vs. AR

and Activity from Other Sources Copyright @ 2012 by Cathy Cakebread 29


Reconciling Deposits

• May Be Included in the Process Above - or Separate

• Reconcile With Bank Deposits

• Keep Batches Consistent (Lockbox Process)

• Daily!

• Use Deposited Cash Reports

in Reports - Other

• Receipts Journal (new)

• Use Cash Management?

• Reconcile Credit Card Receipts

• Lag Time Issues

• Have Procedures for Re-Entry of Prior Period Data

• Accounts Shared with Accounts Payable?

Resolve Inappropriate Usage of Accounts

Isolate Accounts by Application

Reduce Manual Journal Entries

Suggest Process Improvements

Get In the Habit of Pre-Doing as Much As You Can

Create and Use a Close Schedule

Use a Close Checklist

Know in Advance: AR/GL Differences due to SLA


My Oracle Support

› Note: 1269489.1 – Period Close for AR (with

patch numbers)

› Note: 961285.1 – EBS Period Close Procedures

› Note: 557869.1 – Critical EBS patches



Cathy Cakebread Consultant See www.cathycakebread.com for more papers For this paper: www.cathycakebread.com/close [email protected] (650) 610-9130

http://www.cathycakebread.com/

http://www.cathycakebread.com/close

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