Period Name: _________________ Period Close Date: ______________

Task

Description

Processed By

1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11.

Check unapplied prepayments Approve all invoices Review all transactions & payments to be transferred to GL Transfer all transactions & payments to GL Review the result of the transfer from AP to GL Post GL batches (Optional) Run the Unposted Invoice Sweep Reconcile Accounts Payable Activity with GL journals Close AP accounting period Enter Accruals for invoices not yet received Open the next AP accounting period

Oracle Payables Period Check List Detailed Instructions

This describes the actions to be performed and reports to be printed before closing a period in Oracle Payables Version 11i.

Business Requirements
The aim of Sub-ledger closing is to enable, for a given period, reconciliation of the balances and transactions of Sub-ledger accounting with those of general accounting. Attention : The option chosen for the transfer of Subledger journals to General Ledger, either in detail or in summary, may, in some cases, have a direct impact on the auditability of accounting data. The decision of transferring in detail or in summary belongs to each country, according to their specific tax and internal reporting requirements. Whenever it is possible, it is highly recommended to transfer in summary.

Closing Process

1. Check unapplied prepayments Check if there are any unapplied prepayments which should have been applied to invoices, and which have not been, by mistake. Run the Prepayment Status Report and set the report parameter Unapproved Invoices only to Yes to identify all invoices which are not approved. Include Prepayments : Yes Include Credit/Debit memos : No Include Invoices : No

2. Approve all invoices

PURPOSE OF PROCEDURE : All non approved invoices will not be transferred to GL. Therefore, you should check that there are no unapproved invoices in AP in the period you are closing. You can : A Either submit the program of automatic approval for all invoices and manually release the remaining holds which could not be released automatically. STEPS : Run the Invoice Register and set the report parameter Unapproved Invoices only to Yes to identify all invoices which are not approved. Run the Payables Approval process : this process checks the PO matching, tax, period status, exchange rate and distribution information for invoices and either applies or releases invoice holds. This process automatically produces a report called Auto Approval Report which displays the name and number of holds placed or released. Run the Invoice on Hold Report to identify the remaining holds by supplier and invoice. You can also submit the Invoice on Hold Report before every payment batch to help identify invoices you want to release from hold. Attention : once you have released all holds do not forget to check that all invoices are approved, for instance by submitting the Invoice Register for unapproved invoices again. B Or submit a report which prints all unapproved invoices, release holds and approve all invoices manually and individually. STEPS : Run the Invoice Register and set the report parameter Unapproved Invoices only to Yes to identify all invoices which need to be approved. Run the Invoice on Hold Report to identify the remaining holds by supplier and invoice. Attention : once you have released all holds do not forget to check that all invoices are approved, for instance by submitting the Invoice Register for unapproved invoices again. 3. Review all transactions & payments to be transferred to GL PURPOSE OF PROCEDURE : review accounting entries before transferring the data to GL. STEPS
FOR INVOICES

 Run the Posting Hold Report to identify invoices for which Oracle Payables cannot create journal entries because there is a posting hold, distribution variance, ... (Optional) Run the Expense Distribution Detail Report to review detail invoice distribution accounting information. STEPS
FOR PAYMENTS

Check that all payment batches have been created on the correct accounting period. Navigate to the Payment Batch screen in order to confirm or cancel payment batches which are not confirmed. Run the Payment Register to review payments made in the period. The report is sorted by Bank Account. (Optional) Run the Payment Distribution Report to review detailed payment distribution accounting information. The report is sorted by Bank Account. Attention : it is not possible to close a period in AP which contains not confirmed payment batches. 4. Transfer all transactions & payments to GL The transfer from Oracle Receivables to General Ledger creates unposted Journals in General Ledger (see step 11). Note that the transfer will create a separate journal for the following categories : Purchase Invoices Payments Prepayment Applications ... Transfer invoices and payments to GL using the Payables Transfer to General Ledger Program. Select the audit parameters, set the report parameter Submit Journal Import to Yes and the report parameter Create Summary Journal to No. Attention : this program does not update the balances in Oracle General Ledger. You must post these journal entries in GL (task 5). 5. Review the result of the transfer from AP to GL Oracle Payables automatically prints the Accounts Payable Journal Entry Audit Report after you transfer accounting information to your general ledger. The report shows the total number and amount of journal entries for each batch so that you can easily verify the results after you post.

Use the Accounts Payable Journal Entry Exception Report to identify all exceptions, such as an invalid account or a missing exchange rate, that occurred during the transfer from AP to GL. This report is also automatically printed after you transfer accounting information to your general ledger. 6. Post GL batches To update GL balances with Payables entries, you need to post the GL batches created by the Transfer to GL program. This is done in General Ledger using the Post Journals functionality. If you do not perform this step manually it is automatically handled by the industrialisation process overnight. 7. (Optional)Run the Unposted Invoice Sweep Oracle Payables prevents you from closing a period which contains unposted invoices or payments. The Unposted Invoice Sweep program allows to move all unposted invoices and payments from one accounting period to another accounting period. When you submit this report, you enter the name of the period you want to move invoices and payments from, and the name of the period you want to move to. Oracle Payables then changes the GL Date of all unposted invoices and payments in the period you want to move from, to the first day of the accounting period you want to move to. When you submit this report you can : A - either chose not to transfer the unposted invoices and payments but only to review them before actually transferring them. To do this you must set the report parameter Sweep Now to No. Oracle prints the Preliminary Invoice Sweep Report. B - Or chose to transfer all unposted invoices and payments from one accounting period to another. To do this you must set the report parameter Sweep Now to Yes. Oracle prints the Actual Invoice Sweep Report. 8. Reconcile Accounts Payable Activity with GL journals To reconcile your Accounts Payable Trial Balance for a given period : add the current periods posted invoices total invoice amount from Posted Invoice Register subtract the current periods posted payments from the prior periods Accounts Payable Trial Balance.

total cash plus discounts taken from the Posted Payment Register This amount should equal the balance for the current periods Accounts Payable Trial Balance. You can also use the Accounts Payable Trial Balance to the Accounts Payable liability in your general ledger. STEPS
FOR INVOICES

(Optional) Run the Posted Invoice Register to verify that the total invoice amount equals the total invoice distribution amount. (Optional) Run the Accounts Payable Trial Balance to list all unpaid and partially paid invoices by supplier. You can use this report to verify that the total account payable liabilities in Oracle Payables equal those in your General Ledger. Attention : The Accounts Payable Trial Balance only takes into account data which has been transferred to GL. STEPS
FOR PAYMENTS

(Optional) Run the Posted Payment Register to review posted payments in a given period. Oracle Payable sorts and subtotals the listing by bank and 0bank account. (Optional) Run the Posted Invoice Register to verify that the total invoice amount equals the total invoice distribution amount.

9. Close AP accounting period After reconciling the accounts payable activity for the period close the period in Oracle Payables. You can close a period in Oracle Payables independently of Oracle Receivables and Oracle General Ledger. Attention : it is not possible to close a period in AP which contains not confirmed payment batches. You must confirm your payment batches to update Oracle Payables payment history before you can close a period. This prevents you from creating payments in a period which you have already closed.

Attention : When you close a period, Oracle Payables checks if you have any unposted invoices or payments in that period. If you have any, Oracle Payables prevents you from closing the period.

10. Enter Accruals for invoices not yet received This is done manually in GL for countries who do not use PO.

11. Open the next AP accounting period Open the next accounting period in AP. Note that it is not recommended to have more than one Oracle Payables period open at one time. Oracle Payables prevents you from opening a period if it is an adjusting period.

Useful Reports for reconciling AP and GL

Accounts Payable Trial Balance: Verify that total Accounts Payable liabilities in Payables equal those in the General Ledger. To reconcile these balances you can compare the cumulative total liability provided by this report with the total liability provided by your General Ledger. Accrual Rebuild Reconciliation Report: Analyze the balance of the Accounts Payable (A/P) accrual accounts. You can accrue both expense and inventory purchases as you receive them. When this happens, you temporarily record an Accounts Payable Liability to your Expense or Inventory A/P Accrual accounts. When Payables creates the accounting for the matched and validated invoice, Payables clears the A/P accrual accounts and records the liability from the supplier site. Run this report at period end. Accrual Reconciliation Report: The same report as the Accrual Rebuild Reconciliation Report with one key difference. The Accrual Rebuild Reconciliation Report creates records in a temporary table which are used as the basis for the report. The Accrual Reconciliation Report simply uses the records created by the Accrual Rebuild Reconciliation Report as a basis for the report. Run this report during the accounting period. Accrual Write-Off Report: Provide supporting detail for your write-off journal entries. The process is as follows: Analyze the Accrual Reconciliation Report for transactions that you should expense out of the accrual accounts. Researched the reported accrual balances.

Use the Accrual Write-Off window to indicate which entries you wish to remove and write off from this report. Use the Accrual Write-Off Report as supporting detail for your manual journal entry.

Matched and Modified Receipts Report: After you automatically create invoice distributions by matching an invoice for goods to a receipt, that receipt can be modified in Purchasing. For example, you might need to adjust a receipt because the quantity received was incorrectly recorded, or the product was defective and returned to the supplier. Use this report to identify receipts that have been changed after invoice matching, and for which no users have seen modifications. Payables Account Analysis Report: Review and analyze accounting entries in Payables. You can use the report parameters to limit the report to just the accounting information you want to review. The Payables Account Analysis report is helpful when you reconcile your accounts with your General Ledger. For example, you can reconcile the prepaid expense account between Payables and your General Ledger. You can submit this report in detail and compare it to an account analysis report in your General Ledger. Payables Accounting Entries Report: Use this report to review and analyze 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. Posted Invoice Register: Use the Posted Invoice Register to review accounting lines, summarized by invoice, that have been transferred to the General Ledger. Because it presents amounts that have been charged to liability accounts, this report is valid only for an accrual set of books. The Posted Invoice Register is primarily a reconciliation tool. Use this report along with the Posted Payment Register and the Accounts Payables Trial Balance Report to reconcile balances between Payables and your General Ledger. Posted Payment Register: Use the Posted Payment Register to review accounting lines, summarized by payments that have been transferred to the General Ledger. Because it presents amounts that have been charged to liability accounts, this report is valid only for an accrual set of books. You can submit the Posted Payment Register for one payment journal entry batch or all payment journal entry batches. The Posted Payment Register is primarily a reconciliation tool. Use this report along with the Posted Invoice Register and the Accounts Payables Trial Balance Report to reconcile balances between Payables and your General Ledger.

Receipt 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 the General Ledger for each uninvoiced receipt you choose using this window.

Receiving Account Distribution Report: The Receiving Account Distribution Report lists the accounting distributions for your receiving transactions. This report supports the distributions created for the following transactions: Purchase Order Receipts Purchase Order Receipt Adjustments Purchase Order Returns to Supplier Deliver to Expense Destinations Return to Receiving from Expense Destinations Match Unordered Receipts This report helps you reconcile your receiving accounting to the General Ledger. Unaccounted Transactions Report: Identify and review all unaccounted invoice and payment transactions and see the reason that Payables cannot account for a transaction. 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. Uninvoiced Receipts Report: Run before the Receipt Accrual - PeriodEnd 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.