AP Period Close Process

Business Requirements
We must reconcile the accounts payable activity for the accounting period that is to be closed. The following steps are taken in performing period-end processing for Oracle Payables. The posting level for Oracle Payables must be determined, when planning period-end procedures. Where detail level accounting transactions are required to be posted to the general ledger, there may be technical constraints involved, relating to the physical data storage volume, and posting and report processing speed degradation caused by the sheer volume of posted transactions. Functionally, however, detail posting to the general ledger provides enhanced reporting opportunities in some cases.
Steps
Complete All Transactions for the Period Being Closed:
Keep on Running queries from Apatghealthcheck.sql which will tell you about Orphan Records.
Ensure that all transactions have been entered for the period being closed.
Completing all transactions for Oracle Payables:
Complete Invoicing and Credits
Complete Prepayments
Complete Expense Reports
Complete Invoice Import
Note: If you import transactions from an external system, or you are using Internet Expenses or Xpense Xpress, ensure you have imported all transactions, and reviewed all audit trails for completeness.
Payables Approval Process
Run the Payables Approval Process(Invoice Validation Program in 11i) for All Invoices/Invoice Batches.
The Payables Approval process is run to try to approve all unapproved invoices in the system, so that they can be paid and posted to the general ledger. Invoice Validation Program will take care of all the Validations.

General Ledger
Review and Resolve Amounts to Post to the General Ledger.

Review the Invoice on Hold Report
If there is any Hold on the Invoice it will not accounted. So we need to remove all the holds on the invoices.
After Running Invoice Validation We need to run the Invoice on Hold report.
This report enables review of any holds currently applied to invoices that would prevent the payment and/or posting of these invoices. The report details all invoices for which Oracle Payables cannot select for posting and therefore cannot create journal entries. Where possible resolve any identified holds which will prevent posting to the general ledger, and re-run the Payables Approval process to approve these invoices.

Review the Payables Accounting Entries Report

This report enables review and analysis of 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.
Payables groups the report by set of books, journal category, and bank accounts. Data is then sorted by accounting date, event type, supplier name, document number, and voucher number.

Review the Unaccounted Transactions Report

This report enables review of all unaccounted invoice and payment transactions and see the reason that Payables cannot account for a transaction. Payables sorts the report by transaction type (invoice or payment), exception, supplier, transaction currency, and transaction number.
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.

Optionally Run a Month End Payment Batch
By running a month end payment batch, you may arrange a payment for as many due invoices as possible.
Run Updated Mature Dated Future Payments Program to Change the status of the Payments to Negotiable so that we can account these Payments.

Confirm all Payment Batches
Optionally run the Final Payment Register for the period that is to be closed, or finalise any outstanding payment batches. Use the Payment Batches window to confirm any unconfirmed payment batches.
Note: The Final Payments Register lists each payment created for a payment batch. Actual payments can be compared against this register to verify that Oracle Payables has recorded payments correctly. The report lists each payment in a payment batch, including setup and overflow payment documents, in ascending order, by payment number.
Attention : Oracle Payables prevents the closing of a period in which all payment batches have not been confirmed.

Optionally Run the Payments Registers
Optionally, run the Payment Register.
This report details payments printed in a particular accounting period. The report can be used to review payment activity for each bank account used during the specified time period.
Warning: The report total only shows the net (less discounts and voids) payment amount, whereas the Posted Payment Register total is the total payment amount, including discounts. If only verifying report totals, these two reports would not balance. Therefore it is necessary to subtract the discounts taken from the report total and then compare this calculated amount to the total displayed on the Payment Register Report.

Reconcile Payments
Reconcile Payments to Bank Statement Activity for the Period.
(Refer to Period-End Procedures for Oracle Cash Management)
Attention: The Payables Accounting process must be re-run for any reconciliation accounting entries generated to be Transferred to the General Ledger.

Transfer All Approved Invoices and Payments
Transfer All Approved Invoices and Payments to the General Ledger.
The Request Submit window facilitates the transfer of Oracle Payables accounting entries to the General Ledger and creates unposted journal entries.
Oracle Payables creates detail or summary journal entries from the invoice and payment activity when you post. The journal entries are posted in Oracle General Ledger to update account balances.
Submit the Payables Accounting Process to transfer approved invoice and payment accounting entries to the Oracle General Ledger interface tables.
Invoice journal entries, debit the expense or other account entered on an invoice distribution line, and credit the liability account nominated on the invoice.
Payment journal entries, debit the liability account and credit the cash account of the bank account used to pay and invoice.
The Payables Accounting Process transfers data to the General Ledger interface tables, creating journal entries for these invoice and payment transactions, if the option Submit Transfer to GL is set to Yes in the Parameter window.
The Payables Accounting Process will initiate the General Ledger Journal Import process, if the option Submit Journal Import is set to Yes in the Parameter window
Attention :The generated journal batch needs to be posted from within Oracle General Ledger. The journal batch may be automatically posted in General Ledger if the Source of Payables has been included in the Automatic Posting options established in General Ledger.

Review the Payables

Review the Payables to General Ledger Posting process After Completion.
The following reports can optionally be run to review the invoices and payments that were posted to Oracle General Ledger, from Oracle Payables, for the period that is to be closed, i.e. the current accounting period.

Payables Accounting Process Report
Payables Accounting Process Report Use this report to review accounting entries created by the Payables Accounting Process. The report has two sections:
Accounting Entries Audit Report. The audit report provides, in detail or summary, a listing of accounting entries created by the accounting process.
Accounting Entries Exception Report. The exception report lists in detail all accounting entries that were created with an error status and a description of that error. The Entries Exception Report is generated only when the accounting process encounters accounting entries that fail validation.

The Posted Invoices Register
This report is used to review invoices for which information has been posted to Oracle General Ledger to create journal entries, and can be used to verify that the total invoice amount equals the total invoice distribution amount. The report lists each Accounts Payable Liability Accounting Flexfield and the invoices posted to the account.

The Posted Payments Register
This report is used to review the payments posted to Oracle General Ledger during a particular accounting period, and can be used to review the payment activity for each bank account used during that period.

Submit the Unaccounted Transactions
Submit the Unaccounted Transactions Sweep Program.
The Unaccounted Transactions Sweep Program transfers unaccounted transactions from one accounting period to another. Because you cannot close a Payables period that has unaccounted transactions in it, if your accounting practices permit it, you might want to use this program to change the accounting date of the transactions to the next open period. For example, you have invoices for which you cannot resolve holds before the close, and your accounting practices allow you to change invoice distribution GL dates. Submit the program to change invoice distribution GL dates to the first day of the next open period so you can close the current period.
The Unaccounted Transactions Sweep Program will not roll forward accounted transactions, or accounted transactions with error. To create successful accounting entries for accounted transactions with error, correct any accounting errors and resubmit the Payables Accounting Process.
The program transfers unaccounted transactions to the period you specify by updating the GL dates to the first day of the new period. You can then close the accounting period from which Payables moved the invoices and payments.
In the Control Payables Periods window if you try to close a period and unaccounted transactions exist, then Payables opens a window. From the window you can submit the Unaccounted Transactions Sweep Program or you can submit a report to review accounting transactions that would be swept by the program. When you submit the Unaccounted Transactions Sweep Program, Payables automatically produces the Unaccounted Transactions Sweep Report to identify transactions that were redated and identify any transactions that need updating. If you submit the report in preliminary sweep mode the Unaccounted Transactions Sweep Review report shows which transactions will be redated if you submit the Unaccounted Transactions Sweep Program.

Close the Current Oracle Payables Period
Close the accounting period by using the Control Payables Periods window to set the Period Status to Closed.


Run the Accounts Payables Trial Balance Report
This report is used to facilitate reconciliation of the total accounts payable liabilities in Oracle Payables, with the Oracle General Ledger Creditors Control Account, for a specific accounting period. This report lists, and sub-totals, by vendor, all unpaid and partially paid invoices for which Oracle Payables created journal entries (i.e. posted invoices). These invoices represent the outstanding accounts payable liability for the organisation.
To obtain the most up-to-date trial balance for a given period, journal entries should be posted for the invoice and payment activity for the period, prior to running the report.
For reconciliation of Oracle Payables and Oracle General Ledger when posting is only performed at period end, the following reconciliation method can be used:
To the previous periods Accounts Payables Trial Balance, add the current period’s posted invoices (total amount from the Posted Invoices Register) , and subtract the current period’s posted payments (total cash plus discounts taken, from the Posted Payments Register) . The calculated amount should equal the balance for the current period’s Accounts Payables Trial Balance.
Attention: However, when posting to the general ledger from Oracle Payables is performed multiple times throughout each accounting period, the Posted Invoices Register and Posted Payments Register reports must be run after each posting run, for reconciliation of Oracle Payables liabilities with Oracle General Ledger’s Creditor Control.

[edit]Run Mass Additions Transfer to Oracle Assets
After you have completed all Payables transaction entry, and confirmed all invoice holds, and carry forwards, submit the Mass Additions Create progam to transfer capital invoice line distributions from Oracle Payables to Oracle Assets.
For foreign currency assets, Payables sends the invoice distribution amount in the converted functional currency. The mass addition line appears in Oracle Assets with the functional currency amount. Oracle Assets creates journal entries for the functional currency amount, so you must clear the foreign currency amount in your general ledger manually.
After you create mass additions, you can review them in the Prepare Mass Additions window in Oracle Assets.
It is recommended to do a final Mass Additions Create after the period close to ensure that all Payables invoices are 1) included in the correct period; and 2) any additional invoicing will become part of the next periods invoice and asset processing period.
Suggestion: If the volume of transactions in Accounts Payable requiring Assets update is large, you should consider running the Mass Additions Create process on a more regular basis.

Open the Next Oracle Payables Period
Open the next accounting period by using the Control Payables Periods window to set the Period Status to Open.

Run Reports for Tax Reporting Purposes (Optional)
A variety of standard reports can be used to provide tax information which is required to be reported to the relevant Tax Authority, including withholding tax.
The Financial Tax Register can be used to view the output from the Tax Reporting Ledger using Reports Exchange and Application Desktop Integrator (ADI). Using these products you can change the layout of the report, publish the report in different formats, and export the data to a tab delimited or HTML file.
The Tax Reporting Ledger consists of accounting information created in Oracle Receivables, Oracle Payables, and Oracle General Ledger. The Financial Tax Register uses this data to generate Tax Register reports using the Rxi reporting tool.
The following tax registers are available:
Tax Register
Interim Tax Register
Nonrecoverable Tax Register
The following summary levels are available within each Tax Register:
Transaction Header
Transaction Line
Accounting Line

Global Intercompany System(Centra/GIS)-

PURPOSE
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Global InterCompany System Setup Release 11i SCOPE & APPLICATION-----Financial consultant, Oralce General Ledger Users

Overview
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The Global Interompany System manages intercompany transactionsbetween multiple Subsidiaries within a Global Organization.The main advantage of using GIS is to manage intercompany transactions that occur between sets of books. It streamlines the transaction and saves time bypreventing unbalanced intercompany transactions.Unbalanced entries could occur if two subsidiaries enter the transactions for services that occurs between them, using different exchange rates or currencies GIS prevents this from occurring by requiring the sender and the receiver (the two subsidiaries) to approve the amount, exchange rate and date.Once the transaction is approved each subsidiary then transfers and posts the balanced transaction to its operating set of books .

Features
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Account Generation: Define Auto Accounting Rules that establish pre set rules to automaticallygenerate account code combinations for the sender /receiver distribution and clearing lines.

Security
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This is enabled by assigning a specific responsibility for each GIS subsidiary by the System Administrator. The GIS subsidiary name is entered in the profile option: Intercompany :Subsidiary Systemat the responsibility level.Currency-------- When the currency of two subsidiaries are different and they enter transactions in GIS, the currency is converted to the respective target set of books currency.

Currency
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When the currency of two subsidiaries are different and they enter transactions in GIS, the currency is converted to the respective target set of books currency.

Import of Intercompany transactions from outside sources
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GIS is flexible enough to include an open interface table to import andvalidate inter company transactions into the GIS system. The intercompanylines can be automatically generated according to the auto accounting rulesdefined for these transactions. Once they are uploaded successfully they can be viewed in the GIS Enter Intercompany Transactions window .

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Implementation Scenario 1: GIS With a Corporate Chart Of Accounts
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If corporate and all the subsidiaries in a Global company use the same standard chart of accounts in their respective set of books, then the same standard chart of accounts can be used to create one common Inter companySet of Books in Oracle General Ledger and this will be used within GIS by all the subsidiaries to enter transactions between each other, and also with thecorporate company.Each subsidiary is set up as a GIS subsidiary giving it a unique name and the corresponding balancing segment value to enter transactions using the same Intercompany Set of books in GIS Example:

1. Create a set of books named 'Intercompany Set of Books' in Oracle General ledger. Assign a responsibility to this set of books. If you are not using the MRC feature of Oracle General Ledger when creating this set of books the option 'Neither' should be checked meaning this is neither a Primary or Reporting set of books .

2. Define this as a Subsidiary in GIS with Parent privileges, call it 'Corporate Intercompany'. Note for the GIS system every company should be defined as a subsidiary. Assign the following values in the 'Define Subsidiary Window'.

Subsidiary Corporate Intercompany
Chart of Accounts Standard Chart of accounts
Calendar Standard calendar
Currency USD
Company 01 (balancing segment value)

Repeat step two for subsidiary 2, subsidiary 3, subsidiary 4 and so on with different Name, Currency and a unique balancing segment value for the company field .

3. In the subsidiaries set of books field enter the respective standard set of books name for each of these subsidiaries . This is the set of books to which the transactions from GIS will be transferred once they are balanced and approved . The set of books entered here can be on the same local instance of Oracle system where the GIS is accessed or a remote Oracle instance (Physically on a another server or in a different country, also a non Oracle General Ledger system)

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Implementations Scenario 2: GIS without a Corporate Chart of Accounts
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This set up scenario can be used where all the given subsidiaries of a Global company and the Corporate company do NOT use the same standard chart of accountsIn this case each subsidiary may be at a different location,using different set of books and chart of accounts and different calendars .To facilitate intercompany transactions within GIS each of these Subsidiarieshave to have an additional set of books defined for the purpose of using it with the GIS system, which is separate and specific to each subsidiary.This example requires 6 set of books defined in total.Three of which are for GIS purpose defined in the instance where GIS is used andthe other three are respective standard accounting set of books and can be local or remote to the GIS instance.

Examples
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1.US Intercompany :Intercompany set of books (for entering GIS transactions)
2.US Corporate Office :US Set of books (GIS transactions get transferred to this SOB)3.Japan Intercompany :Japan intercompany set of books (for entering GIS transactions)
4.Japan Subsidiary :Japan Set of books (GIS transactions get transferred to this SOB)5.UK Intercompany :UK Intercompany books (for entering GIS transactions )
6.UK Subsidiary(remote) :UK Set of books (transactions get transferred to this SOB)

When a transaction is entered in GIS by the Japan Subsidiary for the UK subsidiary, the Japan subsidiary responsibility enters the transaction in GIS Japan intercompany SOB. The UK subsidiary responsibility approves this transaction in the GIS UK Intercompany SOB. The corporate responsibility OR the individual subsidiaryresponsibilities can run the "Transfer Intercompany Transactions " program totransfer the transactions to their corresponding set of books, which in this case would be 'Japan Subsidiary' set of books and 'UK Subsidiary(remote)' set of books'.