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What’s New In R12 The Close Formal Close Schedule “Period 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
Applicable for 11i and R12
› Mostly
I am NOT an SLA Expert!
Copyright @ 2012 by Cathy Cakebread 3
Subledger Accounting (SLA)
› Standardized “Accounting Engine”
More Reports Especially Reconciling
Reports
› SLA Reports
› More Accounting Detail Reports
› Report to Reconcile AR with GL
Copyright @ 2012 by Cathy Cakebread 4
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
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
Control – Accounting – AR to GL Reconciliation Report
› Verify Setups
Copyright @ 2012 by Cathy Cakebread 6
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 Analysis – Days Late
Reversed Notes Receivable Report ** Applicable to Close
Copyright @ 2012 by Cathy Cakebread 7
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 related
known patches
** Does not always appear on the list of possible reports
Copyright @ 2012 by Cathy Cakebread 8
Visibility
Too Much to Do
Not Enough Time
STRESS!
Copyright @ 2012 by Cathy Cakebread 9
Brevity!
Accuracy!
Control!
Suggestions:
Have a Close Schedule
Use a Close Checklist
Create and Utilize Standard Reconciling Procedures
Store Reports (Soft Copy) by Period Copyright @ 2012 by Cathy Cakebread 10
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
Copyright @ 2012 by Cathy Cakebread 11
Accept/Reject Adjustments
Complete/Delete Incomplete Transactions
Resolve AutoInvoice Rejects
Clear Lockbox Exceptions
Run Revenue Recognition Process
Enter Miscellaneous Cash
Apply Unapplied Cash
Copyright @ 2012 by Cathy Cakebread 12
Make Unapplied Receipts On-Account
› Doesn’t Matter is Batch is “Closed”!!!
Apply all Unapplied Receipts
Copyright @ 2012 by Cathy Cakebread 13
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!!
Copyright @ 2012 by Cathy Cakebread 14
See What You Need to Do
› And, The Sequence To Do Them
Know What’s Done
› And, What’s Left to Do
Copyright @ 2012 by Cathy Cakebread 15
Copyright @ 2012 by Cathy Cakebread 16
TASK
DESCRIPTION
PROCESSED
BY
1.
Complete manual payments and adjustments for the period
and 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 all AutoInvoice rejects and re-run (as needed)
Copyright @ 2012 by Cathy Cakebread 17
9) Run the AR: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)
Print Detail by Account blank
Print Detail by Category blank
Print Summary by Account Yes
Print Summary by Category Yes
Use the defaults (“Yes”) for all record types and leave the rest of the parameters blank
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)
Copyright @ 2012 by Cathy Cakebread 18
Mode – Final
Transfer to General Ledger - Yes
Post to General Ledger – Yes
Run Regularly - Daily?
Copyright @ 2012 by Cathy Cakebread 19
Subledger Period Close Exceptions
Report (SLA) Any Exceptions? Not Transferred? Not Posted?
Unposted Items Report
› Should be None
AR to GL Reconciliation Report
› Out of Balance Only – Yes
Copyright @ 2012 by Cathy Cakebread 20
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
Copyright @ 2012 by Cathy Cakebread 21
Copyright @ 2012 by Cathy Cakebread 22
MONTH: ________________
PREPARED BY: ______________________
ACTIVITY SOURCE
Starting Balance Aging - Old
Invoices Transaction Register
Debit Memos Transaction Register
Credit 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 -)
Journal Entries Report – Summary 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 Receipts
Register
Copyright @ 2012 by Cathy Cakebread 23
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
Copyright @ 2012 by Cathy Cakebread 24
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?
Copyright @ 2012 by Cathy Cakebread 25
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 Report
Copyright @ 2012 by Cathy Cakebread 26
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
Adjustments
Items 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
GL Starting Balance
+/- Current Period Activity
+/- Current Period Manual Journal Entries
+/- To Date Manual Journal Entries
Should Equal: › Aging by Account
› Ending GL Balance
Copyright @ 2012 by Cathy Cakebread 28
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 Report – For Key
Accounts
SLA vs. AR
and Activity from Other Sources Copyright @ 2012 by Cathy Cakebread 29
Copyright @ 2012 by Cathy Cakebread 30
Reconciling Deposits
• May Be Included in the Process Above - or Separate
• Reconcile With Bank Deposits
• Keep Batches Consistent (Lockbox Process)
• Daily!
• Use Deposited Cash Reports
in 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?
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 due to SLA
Copyright @ 2012 by Cathy Cakebread 31
My Oracle Support
› Note: 1269489.1 – Period Close for AR (with
patch numbers)
› Note: 961285.1 – EBS Period Close Procedures
› Note: 557869.1 – Critical EBS patches
Copyright @ 2012 by Cathy Cakebread 32
Copyright @ 2012 by Cathy Cakebread 33
Cathy Cakebread Consultant See www.cathycakebread.com for more papers For this paper: www.cathycakebread.com/close [email protected] (650) 610-9130