Close Period and Reconciliation in AR

7/28/2019 Close Period and Reconciliation in AR

1/33


2/33

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


3/33

Applicable for 11i and R12

Mostly

I am NOT an SLA Expert!



4/33

Subledger Accounting (SLA)

Standardized Accounting Engine

More Reports Especially ReconcilingReports

SLA Reports

More Accounting Detail Reports

Report to Reconcile AR with GL



5/33


Oracle

Receivables

Oracle

Receivables

Oracle General

Ledger

Subledger

Accounting

Oracle General

Ledger

Prior to SLA GL Interface

With SLA - Create Accounting


6/33

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



7/33

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



8/33

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



9/33

Visibility

Too Much to Do

Not Enough Time

STRESS!



10/33

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


11/33

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



12/33

Accept/Reject Adjustments

Complete/Delete Incomplete Transactions

Resolve AutoInvoice Rejects

Clear Lockbox Exceptions

Run Revenue Recognition Process

Enter Miscellaneous CashApply Unapplied Cash



13/33

Make Unapplied Receipts On-Account

Doesnt Matter is Batch is Closed!!!

Apply all Unapplied Receipts



14/33

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!!



15/33

See What You Need to Do

And, The Sequence To Do Them

Know Whats Done And, Whats Left to Do



16/33


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)


17/33


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


18/33

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)



19/33

ModeFinal

Transfer to General Ledger - Yes

Post to General LedgerYes

Run Regularly - Daily?



20/33

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



21/33

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



22/33


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 -)


23/33

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



24/33

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



25/33

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?



26/33

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


27/33


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


28/33

GL Starting Balance

+/- Current Period Activity

+/- Current Period Manual Journal Entries

+/- To Date Manual Journal Entries

Should Equal:

Aging by Account

Ending GL Balance



29/33

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


30/33


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?


31/33

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



32/33

My Oracle Support

Note: 1269489.1Period Close for AR (withpatch numbers)

Note: 961285.1EBS Period Close Procedures

Note: 557869.1Critical EBS patches



33/33

Cathy CakebreadConsultant

See www.cathycakebread.com for more papersFor this paper: www.cathycakebread.com/close

[email protected]

(650) 610-9130
http://www.cathycakebread.com/http://www.cathycakebread.com/closemailto:[email protected]:[email protected]://www.cathycakebread.com/closehttp://www.cathycakebread.com/

Documents

Close Period and Reconciliation in AR