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7/28/2019 Close Period and Reconciliation in AR
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Whats New In R12 The Close Formal Close SchedulePeriod 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
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Applicable for 11i and R12
Mostly
I am NOT an SLA Expert!
Copyright @ 2012 by Cathy Cakebread 3
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Subledger Accounting (SLA)
Standardized Accounting Engine
More Reports Especially ReconcilingReports
SLA Reports
More Accounting Detail Reports
Report to Reconcile AR with GL
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Copyright @ 2012 by Cathy Cakebread 5
Oracle
Receivables
Oracle
Receivables
Oracle General
Ledger
Subledger
Accounting
Oracle General
Ledger
Prior to SLA GL Interface
With SLA - Create Accounting
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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
ControlAccountingAR to GL Reconciliation Report
Verify Setups
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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 AnalysisDays Late
Reversed Notes Receivable Report** Applicable to Close
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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 relatedknown patches
** Does not always appear on the list of possible reports
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Visibility
Too Much to Do
Not Enough Time
STRESS!
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Brevity!Accuracy!
Control!
Suggestions:
Have a Close Schedule
Use a Close Checklist Create and Utilize Standard Reconciling
Procedures
Store Reports (Soft Copy) by PeriodCopyright @ 2012 by Cathy Cakebread 10
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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
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Accept/Reject Adjustments
Complete/Delete Incomplete Transactions
Resolve AutoInvoice Rejects
Clear Lockbox Exceptions
Run Revenue Recognition Process
Enter Miscellaneous CashApply Unapplied Cash
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Make Unapplied Receipts On-Account
Doesnt Matter is Batch is Closed!!!
Apply all Unapplied Receipts
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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!!
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See What You Need to Do
And, The Sequence To Do Them
Know Whats Done And, Whats Left to Do
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Copyright @ 2012 by Cathy Cakebread 16
TASK DESCRIPTION PROCESSEDBY
1. Complete manual payments and adjustments for the periodand 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 allAutoInvoice rejects and re-run (as needed)
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Copyright @ 2012 by Cathy Cakebread 17
9) Run theAR: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)
PrintDetail by Account blank
PrintDetail by Category blank
Print Summary by Account Yes
PrintSummary by Category Yes
Use the defaults (Yes) for all record types and leave the rest of the parameters blank
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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)
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ModeFinal
Transfer to General Ledger - Yes
Post to General LedgerYes
Run Regularly - Daily?
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Subledger Period Close ExceptionsReport (SLA)
Any Exceptions? Not Transferred? Not Posted?
Unposted Items Report
Should be None
AR to GL Reconciliation Report
Out of Balance OnlyYes
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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
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Copyright @ 2012 by Cathy Cakebread 22
MONTH: ________________
PREPARED BY: ______________________
ACTIVITY SOURCE
Starting Balance Aging - Old
Invoices Transaction Register
Debit Memos Transaction Register
Credi t 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 -)
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Journal Entries ReportSummary 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 ReceiptsRegister
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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
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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?
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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 ReportCopyright @ 2012 by Cathy Cakebread 26
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Copyright @ 2012 by Cathy Cakebread 27
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
AdjustmentsItems 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
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GL Starting Balance
+/- Current Period Activity
+/- Current Period Manual Journal Entries
+/- To Date Manual Journal Entries
Should Equal:
Aging by Account
Ending GL Balance
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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 ReportFor KeyAccounts
SLA vs. AR
and Activity from Other SourcesCopyright @ 2012 by Cathy Cakebread 29
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Reconciling Deposits
May Be Included in the Process Above - or Separate
Reconcile With Bank Deposits
Keep Batches Consistent (Lockbox Process)
Daily!
Use Deposited Cash Reportsin 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?
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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 dueto SLA
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My Oracle Support
Note: 1269489.1Period Close for AR (withpatch numbers)
Note: 961285.1EBS Period Close Procedures
Note: 557869.1Critical EBS patches
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Cathy CakebreadConsultant
See www.cathycakebread.com for more papersFor this paper: www.cathycakebread.com/close
cathyc@cathycakebread.com
(650) 610-9130
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