close reconciliation

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SWAT Team TrainingR12 Period Close and Reconciliation

Joe Gum & Linda Wong, Financials Product Strategy

Agenda

• Process Changes & Dependencies • Close Process

• General• Payables• Receivables• Assets• Cash Management• General Ledger

• Intercompany Reconciliation• Q & A

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Process ChangeRelease 12

Process Change - Close

Transactions

Distributions

GL Balances

Transactions

Distributions

GL Journals

Balancing Lines

GL Balances

11i R12

SLA Journals

Product Period Close

Product Period Close

GL Journals

GL Balances

Balancing Lines

Close Dependencies

GL

FAAP

PO

PA

CE

AR

Inv

Balancing Lines

Process Change - Reconciliation

Transactions

Distributions

GL Journals

GL Balances

Transactions

Distributions

GL Journals

Balancing Lines

GL Balances

11i R12

SLA Journals

Transactional Reports

AccountingReports

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General StepsRelease 12

Close Process – General Steps

1. Complete Transactions

2. Create Accounting

3. Reconcile Transactions

4. Post to GL

5. Reconcile Accounting

6. Close Period

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PayablesRelease 12

Close Checklist - Payables

1. Complete Transactionsa. Invoices On Hold Report

2. Approve Invoices

3. Complete Payments

4. Reconcile Payments/Bank Statements

5. Resolve Potential Accounting Issues*a. Create Accounting

b. Journal Entries Report

c. Unaccounted Transactions Report

6. Post (GL) Payables Transactions*

Close Checklist - Payables

7. Review Accounting*a. Payables Accounting Process Report

b. Posted Invoices Register

c. Posted Payments Register

8. Unaccounted Transactions Sweep*

9. Close Payables Perioda. Subledger Period Close Exceptions Report*

10. Accrue Un-invoiced Receipts

11. Reconcile Payables Activity to GL*a. AP Trial Balance Report* (Account definition, Data Mgr Program)

b. Third Party Balances Report*

c. Account Analysis Report*

12. Mass Addition Transfer to Assets

New and Improved AP Trial Balance

• Multiple Formats, Group By Account & Supplier. Summary & Detail. Outputs in *.pdf, *.xml • Ability to rebuild the Trial Balance definition anytime• New columns on the report to highlight anomalies• Capture Accounting Class Code=LIABILITY only• Display invoices if payments are accounted prior to invoices in AP

Payment Status as of Date & Cancellation Payment Status as of Date & Cancellation Date can help catch anomalies, as shown Date can help catch anomalies, as shown

below. At a glance, you can catch any Fully below. At a glance, you can catch any Fully Paid/Cancelled invoice appearing in the Paid/Cancelled invoice appearing in the

reportreport

AP Reconciliation Issues

1. Transactions do not appear in Open Account Balances Listing report

2. Accounting does not appear in Account Analysis report

3. Cancelled invoices/payments result in errors in accounting and reports

4. Create accounting program errors

5. Transfer to GL program errors

Best Practices

1. Reconcile R11i and R12 AP Trial Balance for upgraded period.

2. Include all LIABILITY accounts in Open Account Balances Report Definition.

3. Explore the Control Account feature with Third Party Balances report.

4. Avoid reversing batches (or modifying Journals) in GL, if transferred by SLA.

5. Use Period Close Exception report prior to closing Periods in GL and reconciling to Account Analysis & Trial Balance reports.

6. Use only SLA or GL (not both) to create manual journal entries for subledger transaction corrections.

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ReceivablesRelease 12

Close Checklist – Receivables

1. Complete Transactions

2. Review Unapplied Receipts

4. Reconcile Receipts to Bank Statement

5. Change Period Status to Close Pending

6. Create Accounting

7. Review Unposted Items Report*

8. Reconcile Transaction Activity*a. Transaction Register

b. Sales Journals

c. Receipt Register

d. Receipt Journals Report

e. Journal Entries Report

Close Checklist - Receivables

9. Reconcile Outstanding Customer Balances*a. Aging Report (last period)

b. Transaction Register

c. Adjustments Register

d. Invoice Exceptions

e. Applied Receipts Register

f. Unapplied Receipts Register

g. Aging Report (this period)

10. Post (GL) Receivables Transactions*

11. Print Invoices

12. Print Statements

13. Print Dunning

Close Checklist - Receivables

14. Reconcile Receivables Activity to GL*a. AR Reconciliation Report

b. AR-GL Reconciliation Report

c. Third Party Balances Report

d. Account Analysis Report

15. Close Receivables Period*a. Subledger Close Exceptions Report

b. Change Period Status to Closed

c. Open Next Period

16. Tax Reporting

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Fixed AssetsRelease 12

Close Checklist – Assets

1. Complete Transactionsa. Mass Additions

b. Manual Additions

c. Adjustments

d. Retirements

e. Transfers

f. Reinstatements

2. Assign All Assets to Distribution Lines

3. Calculate Gain/Loss

4. Run Depreciation*

5. Create Accounting*

6. Rollback Depreciation* for adjustments

7. Run Depreciation* to close the period

Close Checklist – Assets

8. Post (GL) Asset Transactions

9. Reconcile Assets & GL*a. Reserve Ledger Reports

1) General Ledger Reserve Report

2) Tax Ledger Reserve Report

3) Account Reconciliation Reserve Ledger Report

b. Balances Reports

1) Cost Detail/Summary

2) CIP Detail/Summary

3) Reserve Detail/Summary

4) Revaluation Detail/Summary

c. GL Reports

1) Journals – Posted/Unposted

2) Account Analysis

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Cash ManagementRelease 12

Close Checklist – Cash Management

1. Load & Reconcile Bank Statementsa. Auto-Reconciliation Execution Report

2. Resolve Exceptions

3. Create Miscellaneous Transactions*

4. Resolve Unreconciled Linesa. Bank Statement Detail Report

b. Transactions Available for Reconciliation Report

5. Reconcile to GL*a. GL Reconciliation Report

b. Account Analysis Report for Cash Account

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General LedgerRelease 12

Close Checklist – General Ledger (per Ledger)

1. Ensure Next Period is Future Enterable or Open

2. Import & Post SLA & Feeder Systems*a. Import Journals

1. Journal Import Execution Report

2. Delete Journals in Error

3. Correct via Correct Journal Import Data

4. Re-import

b. Post Journals

3. Post All Journals (after correcting posting errors)

4. Run and Review Journals Reports

5. Run Revaluation

6. Run Translation

7. Reconcile Intercompany*

8. Close GL Period*

9. Consolidate Ledgers*

10. Run Final Reports

Close Checklist – General Ledger (per Ledger)

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IntercompanyRelease 12

Intercompany Reconciliation

• Compare the balance of intercompany accounts for a pair of trading partners to see if they match

• Drill down to General Ledger Balances• Drill down to journals in GL, SLA and subledger

transactions (invoices, etc.)

For one period we can open and close by transaction types

Intercompany Periods

You can decide You can decide which period to which period to sweep all the sweep all the

open open transactions totransactions to

Intercompany Periods

This is the Receivables This is the Receivables Balance in Vision SwedenBalance in Vision Sweden

This is the Payables Balance This is the Payables Balance in Vision Norwayin Vision Norway

Intercompany Reconciliation Summary

Totals of the journals Totals of the journals posted in each of the legal posted in each of the legal entities grouped by source entities grouped by source

and categoryand category

The Payables balance in “Vision NO” is less than the The Payables balance in “Vision NO” is less than the Receivables balance in “Vision SE” indicating Payables Receivables balance in “Vision SE” indicating Payables

invoices have not been posted.invoices have not been posted.

Intercompany Reconciliation SummaryBy Source

Details of the journals in Vision Details of the journals in Vision SwedenSweden

Intercompany Reconciliation Journal Details

Other Resources

• R12 Period End Close Whitepaper

AQ&Q U E S T I O N SQ U E S T I O N S

A N S W E R SA N S W E R S