What are the steps involved in the period closing process for payables?

You cannot close a period in Payables if any of the following conditions exist:

- Outstanding payment batches. Confirm or cancel all incomplete payment batches.

- Future dated payments for which the Maturity Date is within the period but that still have a
status of Issued.
- Unaccounted transactions. Submit the Payables Accounting Process to account for transactions,
or submit the Unaccounted Transaction Sweep to move any remaining unaccounted transactions
from one period to another.
- Accounted transactions that have not been transferred to general ledger. Submit the Payables
Transfer to General Ledger process to transfer accounting entries.

To complete the close process in Payables:

1. Validate all invoices.

Run Invoice Validation Concurrent program.

2. Confirm or cancel all incomplete payment batches.

3. If you use future dated payments, submit the Update Matured Future Dated Payment Status
Program. This will update the status of matured future dated payments to Negotiable so you can
account for them.

4. Resolve all unaccounted transactions.

Submit the Payables Accounting Process to account for all unaccounted transactions. Review the
Unaccounted Transactions Report. Review any unaccounted transactions and correct data as
necessary.

Then resubmit the Payables Accounting Process to account for transactions you corrected. Or
move any unresolved accounting transaction exceptions to another period (optional).
- Payables Accounting Process.
- Submit the Unaccounted Transactions Sweep Program.

5. Transfer invoices and payments to the General Ledger and resolve any problems you see on
the output report:
- Payables Transfer to General Ledger Program.

6. In the Control Payables Periods window, close the period in Payables.

- Controlling the Status of Payables Periods.

7. Reconcile Payables activity for the period. You will need the following reports:
- Accounts Payable Trial Balance Report (this period and last period).
- Posted Invoice Register.
- Posted Payment Register.
8. If you use Oracle Purchasing, accrue uninvoiced receipts.

9. If you use Oracle Assets, run the Mass Additions Create Program transfer capital invoice line
distributions from Oracle Payables to Oracle Assets.

10. Post journal entries to the general ledger and reconcile the trial balance to the General Ledger

---------------------------------------------------------------

Accounts payable activity must be reconciled 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 using sub-ledger
accounting (hereafter referred to as SLA), 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. In Release 12 the detailed level of posting can be controlled by GL
summarize options and also at SLA journal line type level. Subledger Accounting can contain all of the
detailed subledger accounting level analysis, so that the general ledger can remain “thin”. Then,
Subledger Accounting online inquiry and BI Publisher reports can be utilized to report and analyze
balances, and their
transactions.

Procedures:

1. Complete All Transactions for the Period Being Closed

Ensure that all transactions have been entered for the period being closed.
Completing all transactions for Oracle Payables:
* Complete Invoices and Credits
* Complete Prepayments
* Complete Expense Reports
* Complete Invoice Import
* Complete Payments
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. One
consideration for Accounts Payable where there are multiple operating units within the same ledger is
that all operating units must be ready to close at the same time. All of the operating units that share a
ledger also share the same period statuses. When you update the period status to ‘open’ in one
operating unit, that period is opened for all operating units within the ledger. When you attempt to
update the period status to ‘closed’ in one operating unit, the system checks for unposted transactions
in all operating units within the ledger. If there are unposted transactions in any of the operating units,
the system asks you to resolve the un-posted transactions for those operating units before it allows you
to close the period for the ledger. If Multi-org Access Control is implemented, period closing can be
performed across OU’s from a single responsibility, through one OU at a time.

2. Run the Payables Approval Process for All Invoices

Run the Payables Approval process to approve all unapproved invoices and invoice lines in the system,
so that they can be paid by Oracle Payments and posted to the general ledger.

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

a) Review 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 that 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 then re-run the Payables Approval process to approve
these invoices.

b) Review the Journal Entries Report

This report enables review and analysis of accounting entries in the Payables subledger, as accounted by
SLA. Using the report parameters, you can produce a detailed or summary listing of the accounting
information you want to review. This report is owned by SLA. The report also lists, in detail, transactions
that have been accounted with error and all entries that could not be transferred to the general ledger.
When a transaction is accounted with errors, review the details and make necessary changes. By altering
the parameters, the report also lists those transactions which have been posted in the general ledger,
and those which have not been posted but have been accounted. SLA groups the report by ledger,
ledger currency, source, category, and event class. Data is then sorted by accounting date, event type,
supplier name, document number, and voucher number.

c) Review the Unaccounted Transactions Report

This report enables review of all unaccounted invoice and payment transactions and a view of the
reason that Payables cannot account for a transaction. Accounts Payable sorts the report by transaction
type (invoice or payment), exception, supplier, transaction currency, and transaction number. Run this
report after you have run the Create 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.

d) Optionally run a Payment Process Request at the month end

By running a month end Payment Process request, you may create a payment for as
many due invoices as possible.

e) Confirm all Payment Instructions

Run the Payment Instruction Register for the period that is to be closed, or finalize any outstanding
payments. Use Oracle Payments to confirm any payment instructions. Check the status of the Payment
Process Request/Payments/Payment Instructions to ensure that all payments have been processed. The
Payment Instruction Register lists each payment created for a payment process profile or for a manual
payment. Actual payments can be compared against this register to verify that Oracle Payables/Oracle
Payments has recorded payments correctly. The report lists each payment in a payment process
request, including setup
and overflow payment documents, in ascending order, by payment number. This Oracle Financials E-
Business Suite Release 12 Period End Procedures 24 report is automatically submitted when payment
instructions are being created and can also be submitted from the standard report submission (SRS)
screen.

Attention: Oracle Payables prevents the closing of a period in which all payments have not been
confirmed.

f) Optionally run the Payments Register

The Payment Register details payments printed in a particular accounting period. This 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) 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 Posted
Payment Register report total and then compare this calculated amount to the total displayed on the
Payments Register Report.

4. Reconcile Payments to Bank Statement Activity for the Period

Once detailed bank statement information has been entered into Cash Management, the information
must be reconciled with the subledger transactions.
Cash Management provides two methods to undertake reconciliations:

a) Automatic
Bank statement details are automatically matched and reconciled with subledger transactions. This
method is ideally suited for bank accounts which have a high volume of transactions.

b) Manual
This method requires a manual match of bank statement details with subledger transactions. This
method is ideally suited to reconciling bank accounts which have a small volume of monthly
transactions. The manual reconciliation method can also be used to reconcile any bank statement
details, which could not be reconciled automatically.

5. Transfer All Approved Invoices and Payments to the General Ledger

Release 12 provides 3 modes of accounting: Final, Final Post and Draft. The transactions that have been
accounted in Final Post have already been transferred to, and posted in the general ledger. The
transactions that have been accounted in the Final Mode have been transferred to GL or can still be
within the subledger based on the parameter Transfer to General Ledger (either 'Yes or 'No') in the
Create
Accounting program.
When accounting mode is Final and transfer to GL is set to ‘No’ then, “Transfer Journal Entries to GL”
program needs to be run from the Standard Report Submission (SRS) window. Please review the
“Transfer Journal Entries to GL” report generated by this program; make sure there are no errors
reported on this report. The transactions in draft accounting mode can be included on accounting
reports but cannot be transferred to the general ledger. A draft entry does not update balances and
does not reserve funds.
SLA creates detail or summary journal entries for all eligible events when you post. The journal entries
are posted in Oracle General Ledger to update account balances. Invoice journal entries debit the
expense or other account entered on an invoice distribution line, and credit the liability account
specified on the invoice, unless you have modified the SLA rules to create alternative accounting entries
to address your specific business needs.

Payment journal entries debit the liability account and credit the cash account of the
bank account used to pay an invoice. The Create Accounting process transfers data to the General
Ledger tables, creating journal entries for these invoice and payment transactions. Posting is determined
by the parameter ‘Post in GL’ which is set during Create Accounting.

Attention: The generated journal batch needs to be posted from within Oracle General Ledger if the
mode of accounting was ‘Final’, Transfer to General Ledger was ‘Yes’ and Post in GL was set to ‘No’.The
journal batch will be automatically posted in General Ledger if the mode of accounting was ‘FINAL’ and
Post in GL was set to ‘Yes’.

6. Review the Payables to General Ledger Posting process After Completion.

The following reports can be run to review the invoices and payments that were posted to Oracle
General Ledger, from Oracle Payables, for the period that is to beclosed, i.e. the current accounting
period.

a) The Subledger Accounting Program Report generated by the Create Accounting

program.This report provides either the summary or details (dependent on the parameters provided
during Create Accounting program) of the subledger journal entries createdas a result of running
“Create Accounting Program”. This report also provides anyerrors that may have occurred during
generation of the journal entries.

b) 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 eachAccounts Payable Liability Accounting Flexfield and the
invoices posted to theaccount.

c) 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 eachbank account used during
that period.

7. 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, you can submit this 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 errors. To create successful
accounting entries for accounted transactions with errors, correct any accounting errors and resubmit
the Create 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 current
accounting period in Oracle Payables.

To submit the Unaccounted Transactions Sweep Program:

1. In the Control Payables Periods window if you try to close a period that has exceptions then the
system enables the Exceptions button.
2. Choose the Exceptions button in the Control Payables Periods window. Payables opens a message
window. From the window you can choose the following buttons:
• Review (This submits the Period Close Exceptions Report.)
• Sweep
3. Choose the Sweep button. Payables opens the Sweep to Period window. In the Sweep to Period field,
Payables provides the next open period. You can accept this default or enter another open period.

4. Choose the Submit button to submit the Unaccounted Transactions Sweep

Program. Payables automatically produces the Unaccounted Transactions Sweep report.

8. Close the Current Oracle Payables Period

Close the accounting period by using the Control Payable s Periods window to set the Period Status to
‘closed’. This process automatically submits the Subledger Period Close Exceptions Report. The
Subledger Period Close Exceptions Report lists all accounting events and journal entries that fail period
close validation. It is automatically submitted by General Ledger when closing a GL period if there are
unprocessed accounting events or untransformed journal entries.
You can also generate the Subledger Period Close Exceptions Report through a
concurrent request as follows:
* For the application associated with the responsibility
* For all applications in the General Ledger responsibility

9. Run Mass Additions Transfer to Oracle Assets

After you have completed all Payables transaction entries, and confirmed all invoice holds, and carry
forwards, submit the Mass Additions Create program 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. 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:
* Included in the correct period and
* 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 Createprocess on a more regular basis.

10. 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.

11. 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. Withholding tax is handled by Payables whereas
other tax requirements are handled by E-Business Tax. The E-Business Tax data extract draws tax
information from each application and stores the data in an interface table. Output from the tax extract
is designed to look as
close to a simple tax report as possible. Suggested Reports include: Financial Tax Register Use the
Financial Tax Register to view the output from the Tax Reporting Ledger. The Tax Reporting Ledger
consists of accounting information created in Oracle Payables, and Oracle General Ledger. The short
name of this report is RXZXPFTR.
These tax registers are available:
• Tax Register (default)
• Interim Tax Register
• Nonrecoverable Tax Register
These summary levels are available within each Tax Register:
• Transaction Distribution Level
• Transaction Level (default)
• Transaction Line Level
Tax Audit Trail Report
Use the Tax Audit Trail report to review tax information for posted or partially posted invoices. This
report provides detail tax and invoice information and the total amounts for each tax rate code in the
invoice currency and functional currency. The report lists, for each tax rate code, distributions of all
posted or partially posted
The report includes, for each invoice, both the tax amount and the invoice amount subject to tax. The
short name of this report is ZXXTATAT.

12. Run the Key Indicators Report (Optional)

This report enables review of the accounts payables department’s productivity. This statistical
information can be useful for cash flow analysis and forecasting purposes, when combined with similar
information from Oracle Accounts Receivable. When you submit the Key Indicators Report, Oracle
Payables generates reports you can use to review payables transaction activity, and review the current
number of suppliers, invoices, payments and matching holds in the system.

The Key Indicators Report generates the following reports:

a) Key Indicators Current Activity Report

Use the Key Indicators Report to review your accounts payable department's productivity. The Key
Indicators Report provides current activity indicators that compare current period activity with prior
period activity in three major areas: suppliers, invoices, and payments. Payables further breaks down
each category into basic items, exception items, and updates. The report provides the number of
transactions for each indicator (such as number of automatic payments created during a period) and
amount values where applicable to the Key Indicator (such as total value of automatic payments created
during a period).

b) Key Indicators Invoice Activity Report

Report that compares the invoice activity for each of your accounts payable processors during the
period you specify and the previous period. Oracle Payables produces this report only if you choose ‘Yes’
for the Include Invoice Detail parameter.

c) Key Indicators State of the System Report

The Key Indicators State-of-the-System Report provides a period-end view of Oracle Payables, as well as
average values. For example, it includes:
Suppliers:
* Number of suppliers.
* Number of supplier sites.
*Average sites per supplier (number of sites divided by the number of suppliers)
Invoices:
* Number of invoices.
* Number of invoice distributions.
* Average lines per invoice (number of invoices divided by the number of distributions.)
* Scheduled payments (number of scheduled payments based on payment terms and manual
adjustments in the Scheduled Payments tab).
* Average payments per invoice (number of invoices divided by the number of scheduled payments).

Payments:
* Number of payments (both manual and computer generated) created and recorded in Payables.
* Invoice payments (number of invoice payments made by Payables - a payment document can pay
multiple invoices).
* Average invoices per payment (number of payment documents divided by the number of invoice
payments).

Matching holds:
* Matching holds (number of matching holds in Payables).
* Average matching holds per invoice on matching hold (number of matching holds divided by the
number of invoices on matching hold).

------------------

FA CLOSE

Here are steps & procedures for performing period-end processing in Oracle Assets Release 12.

In FA, at period end, we require to run depreciation for depreciation books set up for the
organization, and to Create accounting for Oracle General Ledger. Oracle Assets has only a
single open depreciation period in each depreciation book.
1.Complete All Transactions for the Period Being Closed

You need to ensure that all transactions have been entered for the period being closed. Once a
depreciation period in Oracle Assets has been closed, it cannot be re-opened. Check that no-one
is entering transactions as Oracle Assets prevents transaction data entry while the Depreciation
Run Process is running. You need to complet all transactions for Oracle Assets:

 Prepare and Post Mass Additions

 Complete Manual Additions
 Complete Adjustments
 Complete Retirements
 Complete Transfers
 Complete Reinstatements

2.Then if you required, you need to assign distribution lines to all assets.

If an asset has not been assigned to a distribution line, the period end Depreciation Process will
not complete, and will not close the period. Take the advantage of running "Assets Not Assigned
to Any Cost Centers Listing " report to determine which assets have not been assigned to a
distribution line.

3.Run Calculate Gains and Losses

This is optional , the Calculate Gains and Losses program for retirements can be submitted prior
to running depreciation. The Calculate Gains and Losses process is performed independently for
each depreciation book.

4.Run the depreciation

In Release 11i when you ran depreciation you would automatically close the period whereas in
Release 12 you can now run depreciation without closing the period.

5.Create accounting

Create Journal Entries (FAPOST) is replaced by Create Accounting – Assets process

(FAACCPB)
6.RollBack Depreciation for adjustment

When you are trying to do adjustment on a particular asset, FA automatically rolls-back

depreciation for that particular asset.This is one of the area where you will experience change if
you are coming from other versions.

7.Once you are sure that all the balances are correct you need to run depreciation and close the
period.

8.Create accounting

You need to run "create accounting" very similar as mention in step 5.

9.Post Asset Transaction in GL

You need to make sure the step 8 must be completed only if you done transfer and posting for
the accounting entries to GL.

These steps are basically takes care of data movement , then next step for you to tie FA and GL.

For reconciliation of assets you need to take advantage of some of seeded and newly added
report that will help business user to reconcile and closing the period.

10. Reconcile your Fixed Asset and GL

 Reconcile Assets to the GL Using Reports

o Journal Entry Reserve Ledger - reconcile with the Account Analysis with
Payables Details Report.
o Tax Reserve Ledger Report
o Account Reconciliation Reserve Ledger Report
 Balance Report
o Cost Detail and Cost Summary Reports
o CIP Detail and CIP Summary Reports
o Reserve Detail and Reserve Summary Reports
o Revaluation Reserve Detail and Revaluation Reserve Summary Reports
 GL Report
o Journal - posted/Unposted
o Account analysis

Once these report can tally, there is no way that your P & L report is not going to tally

---------------

CASH MANAGEMENT PERIOD CLOAS

Herewith providing the generic period close process for Cash managment for R12.
1.Make sure you have Loaded & reconciled all bank statements for month

 You must verified Auto-Reconciliation Execution Report

2.If there any , resolve all exceptions

3.Create miscellaneous transactions

This step existed in Release 11i but the difference is that in Release 12 when you create the
miscellaneous transactions in AR, the accounting is done by SLA.

4. Resolve unreconciled lines

 Bank Statement Detail Report

 Transactions available for Reconciliation Report

A Note on Transactions Available for Reconciliation Report

Take advantage of this report.This report shows all transactions available for reconciliation for a
specific bank account. It lists detailed transaction information for your Available Receipts,
AvailablePayments, and Available Journal Entries for reconciliation.

Detailed information includes the Customer, Supplier, Transaction Date, Payment Method,
Transaction Number, Currency, and Amount. It also lists detailed information for statement lines
that are available for reconciliation against other statement lines.

5.Reconcile to General Ledger

 GL Reconciliation Report
 Account Analysis Report for Cash Account

A Note on General Ledger Reconciliation Report

Use this report to reconcile the General Ledger cash account to a bank statement balance.

This report lists a balance and an adjusted balance for the bank statement. It also lists a separate
adjustment amount for un-reconciled receipts, payments, and journal entries, as well as bank
errors.

This Report will show

Hopefully these steps will be helpful for doing Closure for CE

----------------------

Continuing last article Does the "Year End Close" is different than "Month end close" - Part -I ,
lets have a look on the some steps involved for the year end process

Steps as required for year End Close in Oracle EBS.

These are the some of the standard steps performed for year-end processing in Oracle General
Ledger.

1. Set the status of the first accounting period in the new fiscal year to Future Entry. Generally
the first period of the new fiscal year should not be opened until all of the year-end processing
for the last period of the current year has completed.

2. (Optional) Create reversing entries at the beginning of every period, generate and post accruals
from the prior period now.

3. If you have other source make transfer data from all of subledgers and feeder systems to the
GL_INTERFACE table.

4. Then ,run the Journal Import process to populate the GL_JE_BATCHES, GL_JE_HEADERS,
and the GL_JE_LINES tables. This can be done automatically from the subledger systems, or
manually from Oracle General Ledger.

5. Now the next is review the Journal Import Execution Report to check the status of all imported
journal entries.

6. If there is any error journal entry batches, delete it.

7.a. If you encounter a small number of errors, make the necessary corrections in the
GL_INTERFACE table using the Correct Journal import Data window. Run Journal Import.

7.b . If you encounter a large number of errors, delete the Journal Import data from the
GL_Interface table, correct the information in the feeder or subledger system and run Journal
Import.

8. Close the period for each subledger. This prevents future subledger transactions from being
posted to General Ledger in the same period as part of regular month end close process.

9. Review the imported journal entries in Oracle General Ledger. These can be reviewed online
or in reports. Reviewing journal entries before posting minimizes the number of corrections and
changes that need to be made after posting.Normally these Reports are run for review.

 Journal Batch Summary Report

 General Journal Report
 Journal Entry Report
 Journal Line Report
 Journal Source Report
 Journals by Document Number Report (This is when document sequencing is used)
 Unposted Journals Report.

10. Then the Post all the imported journal entries.

11. Perform reconciliations of ledgers by reviewing and correcting balances.The following

reports are useful to help with the reconciliation:

 Account Analysis with Payables Detail

 Account Analysis with Subledger Detail
 Account Analysis with Subledger Detail II
 General Ledger Report
 Posted Journals Report
 Journals Report with Subledger Detail
 Accrual Reconciliation Report
 Other Reports

12. Generate all recurring journals.

13. (Optional) If you did not generate and post your prior period reversals at the beginning of this
period, be sure to generate reversals now.

14. Running the revaluation process to get revalue balances to update foreign currency journals
to the functional currency equivalents.

15. Then the posting all journal wheather its is manual, recurring, step-down allocations, and
reversals.
16. Review your posting results. The following reports are helpful:

 Posting Execution Report

 Error Journals Report

17. Update any unpostable journal entries and then post them again. Common reasons for
unpostable batches include:

 Control total violations

 Posting to unopened periods
 Unbalanced journal entries

All errors in the journal entry batches must be corrected and resubmitted for posting.

18. Run General Ledger reports, such as the Trial Balance reports, Account Analysis reports, and
Journal reports.

19. Consolidate the other sets of books if you instance is having multiple Operating units.

20. If using a calendar with an adjusting period that represent the last day of the fiscal year, close
the current period and open the adjusting period.

21. Create and post adjusting entries and accruals in the adjusting period.

22. Run Trial Balance reports and other General Ledger Reports in the adjusting period after
adjustments are made.

23. Post the Balance Sheet Closing Journal by submitting the Create Balance Sheet Closing
Journals program, once this is done balance sheet will now reflect zero balances which is same
as mention above.

24. Close the last period of the fiscal year using the period window.

25. Open the first period of the new fiscal year to launch a concurrent process to update account
balances. Opening the first period of a new year automatically closes our your income statement
and posts the difference to your retained earnings account specified in the Set of Books form.

26. Run FSG reports for the last period of the year

-------------------------------

PERIOD CLOSE - AR
As requested by some of reader , Here are steps and checklist for R12 AR Month End Close and
Reconciliation.

1. Complete All Transactions for the Period Being Closed

2. Complete and review your unapplied receipts

3. Reconcile Receipts to Bank Statement Activity for the Period

4. Change period status to Close Pending

Navigate ..Control>Accounting>Open/Close Periods

Donot get confused with various status of periods:

 Closed: Journal entry, posting, and transaction entry are not allowed unless the
accounting period is reopened. Receivables verifies that there are no unposted items
in this period. Receivables does not let you close a period that contains unposted
items.
 Close Pending: Similar to Closed, but does not validate for Unposted items. Journal
entry, posting, and transaction entry are not allowed unless the accounting period is
reopened.
 Future: This period is not yet open, but you can enter transactions in this period.
However, you cannot post in this period until you open it.
 Not Opened: This period has never been opened and journal entry and posting are
not allowed.
 Open: Journal entry and posting are allowed.

5.Create accounting

Due to the introduction of the Subledger Accounting Architecture in Release 12 this step is new,
as it enables you to create accounting for your completed transactions, which will be feed into
General Ledger.Check it out old Notes (here, here, here )for SLA Process.

6.Review Unposted Items Report

You can review the Unposted Items Report to determine if any exceptions have been
encountered, that will need to be resolved, to ensure all accounting has been successful for all
transactions.

7.Reconcile Transaction Activity for the Period (Transaction & Receipt)

 Run Journal Entries Report

Transaction Register Total for Postable Items = Sales Journal by GL Account for the Receivable
Account Type (Total DR–Total CR)
  Receipt Register
 Receipt Journals Report

In theory this step is unchanged between Release 11i and Release 12. It’s just important to note
that you should not be trying to reconcile distributions on transactions to account balances, as
these are not necessarily the final accounting for these transactions.

1.Check that Receivables Receipts Balance by running the Receipt Journal report and the Receipt
Register for the same GL Date range.

2. Use the Receipt Journal to View information about Receipts that appear in your Journal
Entries report. Use the Receipt Register to Review a list of receipts for the date range that you
specify. The total of the Receipt Journal should equal the total of all receipts in the Receipt
Register. These reports display information about both Invoice–Related and Miscellaneous
Receipts.

8.Reconcile outstanding customer balances

 Aging Report (last period)

 Transaction Register
 Adjustments Register
 Invoice Exceptions
 Applied Receipts Register
 Unapplied Receipts Register
 Aging Report (this period)

Most of these reports haven’t changed between Release 11i and Release 12, except that they look
at the SLA tables instead of the AR tables.

If you are coming from 11i to R12, you should note that there is change in Aging Repots(Aging -
7 Buckets ) Behaviour .

Few High Points of Changes are:[Adpoted User Guide]

 In Release11i, the Aging Reports pull the data directly from the
ar_payment_schedules_all table while in Release 12 the data is pulled from the SLA
tables after when Create Accounting is run.
 In release 11i, all the transactions used to appear on all the Aging Reports.
o The transactions are classified into three sections, namely:
1. Those transactions, which were accounted for in GL through the GL interface
program.
2. Those transactions, for which accounting could not be generated because they
were created with the flag “Post to GL” as un-checked.
3. Those transactions, which were created with transaction type having the flag
“Post to GL” as checked but were however, not interfaced to GL.
9.Post Receivables transactions in General Ledger

10.Reconciling AR and GL Balances

The following is a list of the Critical Reports required for Reconciliation between AR and GL

 Journal Entries Report (AR)

 Sales Journal by GL Account Report (AR)
 Receipt Journal Report (AR)
 Account Analysis Subledger Detail-180 Char (GL)
 Third Party Balance Report (New to R12)
 AR Reconciliation Report (AR)

The Total Activity in a period is calculated as follows:

Transaction Register for the Period

(-) Applied Receipts Register for the Period
(-) Un-Applied Receipts Register for the Period
(+) Adjustments Register for the Period
(-) Invoice Exceptions for the Period
(+) Rounding Differences for the Period
(+) Credit Memo gain/loss for the Period

11.Close AR Period

 Subledger Close Exception Period

From Receivables Responsibilities.

Navigate to Control --> Requests --> Run
Subledger Period Close Exceptions Report

 Change Period status to Closed

 Open next Period

Thats all about R12 Month End Close and Reconciliation of AR