Oracle Apps Tutorial | How to Process Transactions During Period-End Close
By Jag - August 01, 2012
Oracle Apps Tutorial | How to Process Transactions During Period-End Close
To efficiently and effectively perform a period-end close in Oracle, you need to know the flow of transactions and journal entries from each module. To ensure all the transactions are processed and accounted for in the General Ledger, you will need to perform the following processes in order. The list below encompasses the most common modules (AR, PO, AP, Inventory, WIP, FA, Cost Mgt, Cash Mgt, Order Mgt, Shipping)
The 1st process to complete is the Inventory Purchase Order and Receiving process. This will ensure all the inventory receipts can flow to RMA’s, inventory, Payables, and WIP.
Note: If you have configured intercompany projects or are using inter-project billing, you will need to wait until Projects is closed before you can close Payables.
To efficiently and effectively perform a period-end close in Oracle, you need to know the flow of transactions and journal entries from each module. To ensure all the transactions are processed and accounted for in the General Ledger, you will need to perform the following processes in order. The list below encompasses the most common modules (AR, PO, AP, Inventory, WIP, FA, Cost Mgt, Cash Mgt, Order Mgt, Shipping)
The 1st process to complete is the Inventory Purchase Order and Receiving process. This will ensure all the inventory receipts can flow to RMA’s, inventory, Payables, and WIP.
Completing Purchase Order and Receipt
Processes
Processes
1. Interface all purchase orders and receipts from external systems
2. Cost all receipts in Inventory
After you complete the above steps, you can now create accounting in AR and Cash Management for the Cash Management related transactions
3. Process accounting for receipt activities to the GL
The 2nd process to complete is the Order and RMA process. This will ensure all the shipments flow to inventory and invoices flow to AR.
Completing Order and RMA Process
1. Import or enter all other orders and RMA’s into Order Management
2. Process and interface all internal requisitions to Order Management. Process all receipts from RMA’s
3. Process all shipments and returns
4. Interface all shipping transactions to Inventory
5. Interface all invoices and credit memos to AR
6. Cost all shipping and RMA transactions in Inventory
After you complete the above steps, you can now create accounting in AR and Cost Management for the Order related transactions
7. Process accounting for invoices and credit memos to the GL
8. Process accounting for shipments and returns to the GL
The 3rd process to complete is the Cash Management process. This will ensure all the miscellaneous transactions flow to AR.
Completing Cash Management Process
1. Interface bank information and external payment to Cash Management
2. Interface all miscellaneous receipts to AR
After you complete the above steps, you can now create accounting in AR and Cash Management for the Cash Management related transactions
3. Process accounting for miscellaneous receipts to the GL
4. Process accounting for Cash Management Activities to the GL
The 4th process to complete is the external supplier invoice Payables process. This will ensure all supplier invoices flow to Projects and Fixed Assets. If you are using average costing, it also ensures that invoice price variances are interfaced to Cost Management.Note: If you have configured intercompany projects or are using inter-project billing, you will need to wait until Projects is closed before you can close Payables.
Completing Payables Process
1. Interface invoices from external systems
2. Interface IPV to Cost Management. You can only interface IPV to Cost Management if you use average costing
3. Interface all project related invoices
4. Interface all fixed asset invoices
After you complete the above steps, you can now create accounting in Payables for the Payables related transactions
5. Process accounting for receipt activities to the GL
The 5th process to complete is the Purchasing Period-End Accrual process. This will ensure an accurate accrual of expense related purchases.
Completing the Purchasing Period-End Accrual Process
1. Verify all supplier invoices are matched to expense purchase orders
After you complete the above steps, you can now create accounting in AR and Cash Management for the Cash Management related transactions
2. Process accounting for receipt activities to the GL
The 6th process to complete is the Inventory and Manufacturing processes. This will ensure inventory and manufacturing transactions flow to Cost Management and Projects.
Completing Inventory and WIP Processes
1. Interface all transactions to Inventory and WIP from external systems
2. Process all Inventory and WIP transactions
3. Interface inventory and WIP (Project Manufacturing only) to Projects
4. Cost all inventory and WIP transactions
5. Interface cost adjustments and item cost updates from external systems
After you complete the above steps, you can now create accounting in Cost Management for the inventory and manufacturing transactions
6. Process accounting for inventory and manufacturing activities to the GL
The 7th process to complete is the Projects process. This will ensure project cost and revenue flows to General Ledger, project invoices flow to AR, and asset lines flow to FA. If you have configured intercompany projects or are using inter-project billing, you will need to flow these invoices to Payables.
Completing Projects Process
1. Interface all expenditures from external systems
2. Interface transactions from Inventory and WIP
3. Interface receipts for Purchasing
4. Interface vendor invoices from Payables
5. Interface Project invoices to AR
6. Interface intercompany and inter-project invoices to Payables
7. Interface inter-project invoice from Payables
8. Interface asset lines to FA
After you complete the above steps, you can now create accounting in AR and Cash Management for the Cash Management related transactions
9. Process accounting for project activities to the GL
10. Process accounting for project-related receivables activities to the GL
11. Process accounting for project-related asset activities to the GL
The 8th process to complete is the Receivables process. This will ensure AR invoice and cash receipts flow to General Ledger.
Completing Receivables Process
1. Interface all invoices and cash receipts from external systems
2. Interface invoices and credit memos from Order Management
3. Interface invoices and credit memos from Projects
4. Enter all invoices and receipts
After you complete the above steps, you can now create accounting in AR and Cash Management for the Cash Management related transactions
5. Process accounting for receivables activities to the GL
The 9th and last process to complete is Asset process. This will ensure asset transactions and depreciation flows to the General Ledger.
Completing Asset Process
1. Interface all asset lines from Projects
2. Interface all asset lines from external systems
3. Interface all asset lines from Payables
After you complete the above steps, you can now create accounting in AR and Cash Management for the Cash Management related transactions
4. Process accounting for asset activities to the GL
1 comments
Awesome idea for providing how to process the transactions during period end close, because it is helpful to companies.
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