Download - Oracle Recon Appsworld
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Its month end, now comes
the reconciliation crunch
Richard Byrom
Oracle Applications Consultant
Appsworld January 2004
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Agenda
Presentation assumptions and objectives
Why and how should we reconcile
Setup issues
Close procedures for each module, reconciliationresults & two way drill down
Additional Tips
Conclusion
Questions and Answers
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Objectives
This presentation emphasizes the importance ofon a regular basis so as to ensure improvedcontrol over financial information
To discuss different setup issues and that mayimpact your ability to reconcile.
To outline the month end close process for eachmodule and give practical examples of expected
reconciliation results.
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Objectives
Manufacturingsubledgers
FinancialsubledgersOracle
General Ledger
Payroll &HumanResources
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Objectives
GENERAL LEDGER
Transactions- Journals -
- Interfaces -Master Data
- Chart of Accounts! -- Sources & Categories -- Document Sequencing-
FIXED ASSETSTransactions
- Additions / Disposals -- Depreciation -
Master Data- Asset Categories -
ACCOUNTS PAYABLE
Transactions- Invoices / Memos -
- Payments -Master Data- Suppliers -
ACCOUNTS
RECEIVABLETransactions
- Invoices / Memos -- Receipts -Master Data
- Customers -
CASH MANAGEMENT
Transactions- Reconciled Payments -- Reconciled Receipts -
- Miscellaneous Transactions -Master Data
- Bank Accounts -
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What should be reconciled?
Control Accounts
Inter Modular Movement
Intercompany Accounts
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What happens if we dont reconcile properly?
Potential data corruption notdetected
Sub modules may not be postedto the GL
Multiple months may remain openfor a variety of modules
Repetitive errors may not bedetected
Posting of non standard journals
to control accounts Open item system carries forward
problems to next year.
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Why the problem with reconciliations
Inadequate training/inexperienced users
Lack of understanding of the system architecture
Trying to use old procedures for a new system
Bad Management
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How should we reconcile?
Establish your out of system procedures
Ensure that all the standard functionality providedby the system is understood and used
Make use of additional tools if necessary
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Setup Issues General Ledger
Sequential numbering of documentation shouldbe taken into consideration.
Chart of accounts should be appropriatelydesigned and have an appropriate groupings andsub grouping by using parent and child
relationships.
Document types and sub types need to be lookedat
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Setup Issues Sub Ledgers
Master Data Should be separated according to the different
groupings of debtors available per profile options
Customers should be given appropriate hierarchies
Customer numbering should done in such a way thatfacilitates understanding of the various listings
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Setup Issues Sub Ledgers
Transactional Data Ensure that appropriate transaction types are created
Control A/Cs should appropriate filter the information
through to General Ledger
Autoaccounting
Need to look at document numbering
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Month end close steps
1. Pre-posting activities
2. Posting to supporting systems
3. Run verification Reports
4. Reconcile against interfacing systems5. Close periods
6. Problem Solution
7. Two way drill
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Receivables Steps Pre-posting
Pre-posting activities
Enter Receipts
Enter Invoices
Record NSF checks Run Autoinvoice Interface
Print New Invoices
Run Incomplete Invoice Reports
Adjustment Approval Report
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Receivables Steps GL Posting
Posting to GL
(AR) Interfaces > General Ledger
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Receivables Steps Reports & Period Close
Verification Reports Sales Journal by GL Account*
Receipt Journal Report*
Journal Entries Report*
Transaction Register*
Adjustment Register Receipt Register Report*
Aged Trial Balance*
Invoice Exceptions Report
Applied Receipts Register Unapplied Receipts Register
Close Periods
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Receivables Steps Reconciliation Results
Jul-02
Beginning AR Trial Balance 94,890,824.48
+ Transaction Register 26,197,804.53
- Receipt Register -42,318,784.05
+/- Adjustment Reqister 0.00- Prepayments Remittance Report* 0.00
Ending AR Balance 78,769,844.96
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Receivables Steps Reconciliation Results
Description Amount Comments
Current Period End AR Aging Total 39,330,142.00 Extracted from AR Aging Report for Jul-02Prior Period End AR Aging Total 55,454,778.25 Extracted from AR Aging Report for Jun-02
Change in AR Balance -16,124,636.25 x
+ Invoices/Debit Memos 26,409,424.57 Extracted from AR Sales Journal Reports
- Credit Memos -211,620.04 Extracted from AR Sales Journal Reports
- Cash Receipts -42,318,784.05 Extracted from AR Receipt Journal Reports
- Write Offs 0.00Change in AR Balance -16,120,979.52 y
Debits Posted 26,763,035.64 Extracted from Trial Balance
Credits Posted -42,887,671.89 Extracted from Trial Balance
Change in AR Balance -16,124,636.25 x
x = y = z -3,656.73
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Reconciliation Problems
If AR does not reconcile to the general ledger Check that the reports have been run for the correctdate/period
Run GL Interface
Make sure all Journals are posted in the General
Ledger Re-Run both Trial Balance Reports
Check for journal entries in the AR Control accountsin GL, not generated by AR.
Check for Invoices raised against the AR Controlaccount
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Receivables two way drill - Invoices
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Receivables two way drill Invoice Status
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Receivables two way drill Invoice Accounting
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Receivables two way drill Cash Receipts
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Receivables two way drill
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Receivables two way drill Receipt History
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Receivables two way drill-Miscellaneous Receipts
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Receivables two way drill-Miscellaneous Receipts
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Receivables two way drill- GL to Invoice
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Receivables two way drill Drilldown effect
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Payables Steps
Pre-posting activities
Enter Employee Expense Reports
Enter Invoices
Run Invoices on Hold Report Run Payables Approval
Check for Unapproved Invoices
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Payables Steps Transferring to GL
Payables Steps Create mass additions
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Payables Steps Reports & Period Close
Verification Reports
Accounts Payable Trial Balance*
Posted Invoice Register*
Posted Payment Register*
Expense Distribution Report
Invoice Aging Report* Posting Hold Report
Invoice Register*
Close Periods
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Payables Steps Reconciliation Results
Reconciliation can also be achieved using Tutor Business FormFOR0672
Description Amount
(Previous Month) Accounts Payable Trial Balance -27,428,898.13
+ (Current Month) Posted Invoice Register 7,778,812.99
- (Current Month) Posted Payment Register -5,779,945.70
(Current Month) Accounts Payable Trial Balance -25,430,030.84
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Reconciliation Problems
If AP does not reconcile to GL Check that the reports have been run for thecorrect date/period.
Run GL Post in Accounts Payable.
Post all payables generated batches in the
General Ledger Re-Run both Trial Balance reports
Check for Journal Entries in the AP controlaccount, not generated by Accounts Payable.
Check for Payments/Invoice Distributions madeagainst the AP control account.
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Payables two way drill query an invoice
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Payables two way drill view accounting
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Fixed Assets Steps
Pre-posting activities Prepare Mass Additions
Post Mass Additions
Delete Mass Additions
Prepare Manual Additions
Retire Assets
Adjust Assets
Capitalize CIP Assets
Run Depreciation
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Fixed Assets Steps GL Posting
Run Journal Entries
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Fixed Assets Steps Reports & Period Close
Verification Reports
Cost Detail Report* CIP Detail Report
Asset Addition Report
Cost Adjustment Report
Asset Retirements Report Asset Reclassification Reconciliation Report
Asset Transfer Reconciliation Report
CIP Capitalization Report
CIP Assets Report
Unposted Mass Additions Report
Close Periods
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Fixed Assets Results
Alternative reconciliation using FOR0674 Tutor
Business Form Printing of Reconciliation Report
Description Cost NBV
Previous Months Ending Balance 120,951,159.11 96,421,655.44+ Asset Additions 658,900.00 658,900.00
+ (-) Adjustments 0.00
- Depreciation Charge -450,506.21
- Retirements 0.00
+ Capitalizations 0.00
+ (-) Reclassifications 0.00
+ (-) Transfers 0.00
Current Months Ending Balance 121,610,059.11 96,630,049.23
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Cash Management Steps
Pre-posting activities Capture/Interface Bank Statements
Automatically reconcile statements
Manually reconcile amounts not cleared
Check all statements are fully reconciled Bank Statement Detail Report
Online checks
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Cash Management Steps
Post to GL Ensure payables and receivables posting has
taken place
Verification Reports
Cash In Transit Report Cleared Transactions Report*
General Ledger Reconciliation
Transactions available for Reconciliation
C h M R l
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Cash Management Results
Check Receipts against Receivables Reports,Cash Account per GL and Cash ManagementReports
Check Payments against Payables Reports, Cash
Account in GL and Cash Management Reports
Cash Management two way drill Account Inquiry
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Cash Management two way drill Account Inquiry
Cash Management two way drill Drilldown effect
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Cash Management two way drill Drilldown effect
G l L d St
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General Ledger Steps
Pre-posting activities Reconcile interfaces from feeder systems
Enter Manual Journal Entries
Reverse Entries
Run Journal Import
Generate Recurring Journal Entries
Generate Mass allocations
Post Journal Entries
General Ledger Results
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General Ledger Results
Verification Reports Journal Entry Report
Account analysis Report*
Account Analysis Sub Ledger Detail Report
Trial Balance Detail Report* Run Financial Statement GeneratorFSGs
Close Periods
Additional Tips File Export
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Additional Tips File Export
To export the results of an online inquiry or
onscreen view choose File > Export from themenu
Save the file generated to your desiredlocation
Open the file from Microsoft Excel. Ensurethat from the open dialogue box in Excel youspecify files of type all *.*
When the text import utility appears choose
finish, you can now sort the file according toyour personal requirements
Additional tips Cont.d Tools>Copy File
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Additional tips Cont.d Tools>Copy File
Use Tools > Copy file from the menu when youare in a report
Save the file in web or text format to your desiredlocation preferably use text
Import the file into Excel using the text importwizard as displayed use the report columnheaders as your fixed width delimiters.
Additional tips cont d Tutor
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Additional tips cont.d - Tutor
Use Oracle Tutor Business forms to give youreconciliation templates.
Conclusion
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Conclusion
Reconciliations are important in orderto identify problem areas and rectifythem on a timely basis.
Procedures should be put in place tofacilitate reconciliation as well asensure that the organisation is making
use of all possible tools. Setups as well as inquiry and
reporting tools have a significantimpact on the ease of reconciliation.
Please come and see my next presentation: Take the pain out of Public Sector Budgeting
implementation Setups Thursday January 29th,2004 at 03:30 PM in room 20D.
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Speaker Information
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Speaker Information
Name : Richard Byrome-mail : [email protected]
Company : RPC Data Ltd
Web Site : http://www.rpcdata.com
http://www.richardbyrom.com
mailto:[email protected]:[email protected]://www.rpcdata.com/http://www.richardbyrom.com/http://www.richardbyrom.com/http://www.rpcdata.com/mailto:[email protected]:[email protected]