Payables Period Close Process

 

Period/Month end process of Accounts Payable

 

Only client side key user’s do period close. We only provide support.

 

Support: we have Normal Support à Proactive Support à Period Closing Support 24x7

Ways of Closing Period

We have two ways of closing periods.

1.     Soft Close: No issues during month/period & moving to next period.

2.     Hard Close: We have issue and moving to next period. We can sweep issue to next period.

 

Note:

·       Issues in period close are SEV1 issues

·       In last week of period oracle provides

Ø  Health Check (Complete data as on day/month/period)

Ø  Diagnostics Run – In order to check health/issues in Production Instance.

·       Run the script in production instance provided by oracle and submit report to client side key user.

·       Inventory team will do period closure. Open stock, closing stock and run related programs.

·       We need to prepare period closing process in a document each module wise to the client.

·       Year starting we need to check whether calendar is there, period open.

·       We can never override first ever open period.

Status

·       Opened

·       Future

·       Closed

·       Permanently Closed – This enables only when period is closed

 

Report to be run

1.     Run “Validate Payable invoice” program

à To validate all open/outstanding invoices

à In real time client will run this report.

à This program can run daily or monthly

à Check the result if you get any hold invoices then run the another report

2.     Run “Payables matching holds report”

à This program runs at BU level

à To identify all hold and discrepancies

à Need to review output

à We can have only count of invoices which are on hold

3.     Run “Payable unaccounted transactions report”

Identify invoices to be accounted, review and to be fixed for invoices and payments, user will fix. We can suggest running this report daily, so that it will easy at the period end.

4.     Re Run “Validate Payable Invoice” program

à There shouldn’t be any pending data

5.     Run “Create Accounting” Program

6.     Run “Mass Additions create” program – To transfer assets to FA

7.     Run “Payables Posted Payment Register” – (posted invoices in GL, Optional, but we should suggest)

8.     *Run “AP Trial Balance” Report

9.     *Run “Period Close Exceptions Report (XML)” – if any exceptions run SR

10.  *Run “Sub-Ledger Period Close Exceptions Report”.

Period close

In EBS: Only AP Manager

In Fusion: GL and AP team will do this

à Go to tools

à Click on General accounting

à Choose the Period close

à Go to month which you want to close and close

à If there are any pending transaction we should not close

Ex: We have 5 invoices it have issues in accounting means partial accounting like that. If client want to close then it will go to hard close. Then this 5 invoices should be sweeping from Apr -19 to May -19. Then 5 invoices GL dates will change means date will change as 1-May-19. But here we have to know these transaction have to + or – to APTB EX: we have 50 invoices with the amount of 900000 rs (Unpaid invoices which is accounted and transferred to GL) and I havev1 invoice with 100000 rs (It is validated and accounted but it is stuck up and entry will not transferred to GL)

            So we should write like add the 100000 to 900000 because this is invoice, If we have payment invoice with 50000 this we can record in the xl sheet 900000 – 50000. Total amount is 900000+100000-50000 = 950000 this should be in next month APTB balance

à Then open the next period and run the report “Payables unaccounted transactions and sweep report

 

Reconciliation between AP à GL

 

 

 

 

We will do reconciliation always for liability account only

Last Month TB outstanding + Present month Payable Posted Invoice Register – Present month Payables Posted Payment Register = APTB outstanding >>> APTB o/s should be transferred to GL & posted à Compare with GL TB à of Liability Account.

Example: 10 Cr + 5 Cr – 7Cr = 8 Cr.

·       Go to control payable periods and close a period if we get “exceptions error message” it is HARD CLOSE. Review period close exception report à Click on Exception à Review.

·       Sweep: To transfer outstanding balances to next periods.

·       If we sweep the transactions – GL data will be changed to next month date – Raise SR and get the fix based on Invoice ID & Payment ID.

Note: Follow Create Accounting à Transfer to GL à Run APTB report.

·       Run APTB – Parameters: OU & Payables. If we want report daily select GL & do it.

Ø  Click on Output to review – code combination derived from financial options.

Ø  Switch to GL query with Un-posted – to check for un-posted journals.

·       Before running GLTB we need to check all the JE to be posted. There should be no outstanding balances. Fill GLTB parameters – click on output & compare TB balances of AP to GL

 

 

 

 

AP to GL reconciliation process

 

Code Combination	APTB Amount	GLTB Amount
Liability Account - 21001	1855025	1855025
Liability Account - 21001	1855025	1023138.53

·       If GLTB is less than APTB balance – check un-posted JE à Post all JE à Run TB.

Ø  If no outstanding JE request technical team to check if data is present in interface tables.

Ø  Journal à Import à Run (Source: Payables)

Ø  If above process doesn’t work raise SR.?

·       If GLTB is greater than APTB – check if AP has pending data.

Ø  Check un-posted JE in GL (Manual)

Ø  Run “Account Analysis Report” we can know impact. Parameters: Type: Source Item; Order By: Source Item à Run

Ø  Reason could be manually entered JE

Ø  Click on output – note the other sub-ledger entries amount.

Note:

·       To restrict manual journal entry we use “Third Party Control” account as ‘YES’ for liability account.

·       AP team will inform to PO team about period closure. As we have expense item at purchasing option level we will close AP first.

·       If any report is not available in Schedule process we have to tell the Tech Department to develop ORBI report or BI (Business Interface) report

Payables Report

 

We have 3 work benches in AP, and these three will control the AP

1.     Supplier workbench

2.     Invoice workbench

3.     Payment workbench

1.     Supplier Balance aging report

2.     Supplier open balance letter

3.     Supplier Payment history

4.     Payable invoice aging report

5.     Payable payment Register

If any report is not available in the schedule process will talk to Tech team and develop OTBI report