ERP & Softwares

Typical Account Payable period close process in Oracle EBS 12

ActivitiesPrerequisiteSystem processingOutputGeneric business rule
Check for period close exceptionsAll transactions for the period have been entered and the period has to be closed.All transactions which prevents the period from closing are listed in the period close exception report.Period Close Exception ReportGenerally the period close exception report is run to identify invalidated before closing the period in sub ledgers.
Validate all invoicesPeriod close exception report shows invalidated invoicesAll invalidated transactions need to be validated / approved.All transactions are validatedNone
Create AccountingUnaccounted transactions exist in PayablesAccounting entries generated for all transactions in PayablesAccounting entriesAccounting entries are balanced.
Transfer Payments / Invoices to GLPayments made in the system have not been transferred to GLPayments transferred to GLUnposted transaction in GLAll payments till time of running these requests would be transferred to GL in respective periods.
Request Period Close ReportsReports require to reconcile vendor balancesReports generated by systemReportsThese reports are standard reports. More reports can be included as required
Reconcile Open InvoicesPeriod closure activities are complete and transactions have been transferred to GLReconcile unpaid open invoices posted to the AP Liability Account using the AP Trial Balance Report and Posted Invoice and Payment Registers. Verify that:
Prior Month AP Trial Balance
plus (+)        current posted invoices (from Posted Invoice Register)
minus (-)      current posted payments (from Posted Payments Register)
equals (=)  Current Month AP Trial Balance
equals (=) AP Liability Account Balance (from Account Inquiry in GL)
Note: Run General Ledger Account Analysis Reports for each AP Liability account to review a listing of detail transactions posted to each Bank Account for reference during reconciliation.
Reconciled AP trial balanceNone
Reconcile PaymentsPeriod closure activists are complete and transactions have been transferred to GLVerify that the Prepayment Status Report equals the Prepayment account balances.
Verify that Payments Register balance equals Posted Payment Register balance.
Verify that Void Payment Register entries are accounted for on the Posted Payment Register, and have a 0.00 amount.Payment Register
equals (=)  Posted Payment Register
equals (=) Cash Account Period-to-Date Activity Reconcile Cash Accounts using the Posted Payment Register.
Verify that:
GL Cash Account period activity
minus   (-) AR Receipts Debits
minus   (-) Payroll Journal Debits
minus   (-) Misc. Transactions (i.e. wire transfers)
minus   (-) Other GL Journal Activity
equals (=)  Posted Payment Register
Note: Run General Ledger Account Analysis Reports for each Bank account to review a listing of detail transactions posted to each Bank Account for reference during reconciliation.
Reconciled PaymentsNone
Close Current PeriodNotification to close period received from branch financePeriod closedPeriod closedIf problems closing AP, run the Invoice Sweep process
Notify GL User of AP period closureNoneNotify GL Accountant that Payable Close is complete.NotifiedNone
Open Next Period on last day of monthIt is the last working day of the monthNext period opened for Payable transactionsPeriod openedNone

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