How to Process Transactions During Period-End Close

Oracle General Ledger,

Oracle Payables,
Oracle Receivables
Oracle Inventory,
Oracle Order Management,
Oracle Purchasing
Oracle Projects,
Oracle R12.

To efficiently and effectively perform a period-end close in Oracle, you need to know the
flow of transactions and journal entries from each module. To ensure all the
transactions are processed and accounted for in the General Ledger, you will need to
perform the following processes in order. The list below encompasses the most
common modules (AR, PO, AP, Inventory, WIP, FA, Cost Mgt, Cash Mgt, Order Mgt,
Shipping)

The 1st process to complete is the Inventory Purchase Order and Receiving process.
This will ensure all the inventory receipts can flow to RMA’s, inventory, Payables, and
WIP.

Completing Purchase Order and Receipt Processes

1. Interface all purchase orders and receipts from external systems

2. Cost all receipts in Inventory

After you complete the above steps, you can now create accounting in AR and Cash
Management for the Cash Management related transactions
3. Process accounting for receipt activities to the GL

The 2nd process to complete is the Order and RMA process. This will ensure all the
shipments flow to inventory and invoices flow to AR.

Completing Order and RMA Process

1. Import or enter all other orders and RMA’s into Order Management

2. Process and interface all internal requisitions to Order Management. Process all
receipts from RMA’s

3. Process all shipments and returns

4. Interface all shipping transactions to Inventory

5. Interface all invoices and credit memos to AR

6. Cost all shipping and RMA transactions in Inventory

After you complete the above steps, you can now create accounting in AR and Cost
Management for the Order related transactions

7. Process accounting for invoices and credit memos to the GL

8. Process accounting for shipments and returns to the GL

The 3rd process to complete is the Cash Management process. This will ensure all the
miscellaneous transactions flow to AR.
 Completing Cash Management Process
1. Interface bank information and external payment to Cash Management

2. Interface all miscellaneous receipts to AR

After you complete the above steps, you can now create accounting in AR and Cash
Management for the Cash Management related transactions

3. Process accounting for miscellaneous receipts to the GL

4. Process accounting for Cash Management Activities to the GL

The 4th process to complete is the external supplier invoice Payables process. This will
ensure all supplier invoices flow to Projects and Fixed Assets. If you are using average
costing, it also ensures that invoice price variances are interfaced to Cost Management.

Note: If you have configured intercompany projects or are using inter-project billing,
you will need to wait until Projects is closed before you can close Payables.
 Completing Payables Process
1. Interface invoices from external systems

2. Interface IPV to Cost Management. You can only interface IPV to Cost
Management if you use average costing

3. Interface all project related invoices

4. Interface all fixed asset invoices

After you complete the above steps, you can now create accounting in Payables for the
Payables related transactions

5. Process accounting for receipt activities to the GL

The 5th process to complete is the Purchasing Period-End Accrual process. This will
ensure an accurate accrual of expense related purchases.
 Completing the Purchasing Period-End Accrual Process
1. Verify all supplier invoices are matched to expense purchase orders

After you complete the above steps, you can now create accounting in AR and Cash
Management for the Cash Management related transactions

2. Process accounting for receipt activities to the GL

The 6th process to complete is the Inventory and Manufacturing processes. This will
ensure inventory and manufacturing transactions flow to Cost Management and
Projects.

Completing Inventory and WIP Processes

1. Interface all transactions to Inventory and WIP from external systems

2. Process all Inventory and WIP transactions

3. Interface inventory and WIP (Project Manufacturing only) to Projects

4. Cost all inventory and WIP transactions

5. Interface cost adjustments and item cost updates from external systems

After you complete the above steps, you can now create accounting in Cost Management
for the inventory and manufacturing transactions

6. Process accounting for inventory and manufacturing activities to the GL

The 7th process to complete is the Projects process. This will ensure project cost and
revenue flows to General Ledger, project invoices flow to AR, and asset lines flow to FA.
If you have configured intercompany projects or are using inter-project billing, you will
need to flow these invoices to Payables.
 Completing Projects Process
1. Interface all expenditures from external systems

2. Interface transactions from Inventory and WIP

3. Interface receipts for Purchasing

4. Interface vendor invoices from Payables

5. Interface Project invoices to AR

6. Interface intercompany and inter-project invoices to Payables

7. Interface inter-project invoice from Payables

8. Interface asset lines to FA

After you complete the above steps, you can now create accounting in AR and Cash
Management for the Cash Management related transactions

9. Process accounting for project activities to the GL

10. Process accounting for project-related receivables activities to the GL

11. Process accounting for project-related asset activities to the GL

The 8th process to complete is the Receivables process. This will ensure AR invoice and
cash receipts flow to General Ledger.
 Completing Receivables Process
1. Interface all invoices and cash receipts from external systems

2. Interface invoices and credit memos from Order Management

3. Interface invoices and credit memos from Projects

4. Enter all invoices and receipts

After you complete the above steps, you can now create accounting in AR and Cash
Management for the Cash Management related transactions

5. Process accounting for receivables activities to the GL

The 9th and last process to complete is Asset process. This will ensure asset
transactions and depreciation flows to the General Ledger.

Completing Asset Process

1. Interface all asset lines from Projects
2. Interface all asset lines from external systems

3. Interface all asset lines from Payables

After you complete the above steps, you can now create accounting in AR and Cash
Management for the Cash Management related transactions

4. Process accounting for asset activities to the GL