4

Financials Cloud
Journals to Period Close

Sreeni Devireddy
Director, Product Management
Safe harbor statement
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of September 2019 and Oracle undertakes no duty to update any statement in light of new
information or future events.

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Agenda

• Concepts
• Journal Entry to Period Close Flow
• Accounting Automation

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Concepts: Balances Cube

 Create Accounting process

 Post Subledger Journal Entries process
 Import Journals process

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Concepts: Balances Cube

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Concepts: Balances Cube
Dimension Description
• Consists of a set of defining business
entities called dimensions. Accounting Period Based upon the calendar of the ledger or ledger set.
Report on years, quarters, or periods.
• Created automatically when an accounting Used to select a ledger for reporting.
Ledger or Ledger Set
configuration is submitted for a ledger for
Charts of Accounts Segments from the charts of accounts, organized by
the combination of COA & Calendar Segments hierarchy.

• Stores your financial balances in a Scenario Indicates whether the balances are actual, allocated, or
multidimensional model to enable actual including allocated, budgeted, or forecast.

interactive financial reporting and analysis. Balance Amount Indicates whether the value is a debit or credit, and
whether it is for the beginning balance, period activity,
• Pre-aggregates your balances at every or ending balance.
possible point of summarization, ensuring Amount Type Indicates whether the amounts represent Base, Period,
Quarter, or Year to Date.
access to financial data and eliminating the
need for an external data warehouse. Currency Used to select the desired currency for the balances.
Currency Type Used to select the currency type of the balances.
• Automatically updated by the following Available options are Entered, Converted, or Total.
general ledger processes: posting, open
period, and translation.

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Journal to Close Process Flow

Transfer / Enter / Monitor Period Close

Open Period AutoPost
Import Journals Balances Process

Open Year /
Close Year Open Period Close Period
Period

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Journals

• Specify Ledger Options • Sequences (at Ledger and/or Legal Entity level)

• Journal Source & Category – Accounting Sequence (on posting or subledger journal creation)

• Mixed Currency & STAT Journals – Reporting Sequence (when period is closed)

• Intercompany Balancing To be defined separately for Reporting Currencies & Secondary Ledgers

• Entered Currency Balancing • AutoPost

• Account Groups

• Account Monitor

• Account Inspector

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Period Close

• Reconcile and close all Subledger Periods

• Perform Allocations
• Revalue Foreign Currency Balances
• Reconcile Clearing Accounts
• Translate Balances
• Consolidate Subsidiary Ledgers

Reference: Period Close Whitepaper

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Period Close

• Reconcile and close all Subledger Periods • Calculation Manager (Balances Cube)
• Perform Allocations • Source, Target & Basis

• Revalue Foreign Currency Balances • Use Cases

– Allocate expenses by department headcount (STAT)
• Reconcile Clearing Accounts – Bad Debt Allowances
– Intercompany Eliminations etc.,
• Translate Balances • Across Ledgers within a Ledger Set
• Consolidate Subsidiary Ledgers • Step Down Allocations

Self Study Content

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Period Close

Functional Currency
(USD)
• Reconcile and close all Subledger Periods
• Perform Allocations Journal Entry
in EUR on 01-Feb
• Revalue Foreign Currency Balances
• Reconcile Clearing Accounts
• Translate Balances Converted Amounts
As on 01-Feb

• Consolidate Subsidiary Ledgers

Revaluation
on 28-Feb

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 Period Close

• Reconcile and close all Subledger Periods Date Accounting

Class
Account Dr/
Cr
Amount Curr Reconciliation
Reference
02-Jan-2020 Liability 101-000-2005-000-000 Dr 500 USD
• Perform Allocations
02-Jan-2020 Cash Clearing 101-000-5005-000-000 Cr 500 USD 456987

• Revalue Foreign Currency Balances

Date Accounting Account Dr/ Amount Curr Reconciliation
• Reconcile Clearing Accounts Class Cr Reference
24-Jan-2020 Cash Clearing 101-000-5005-000-000 Dr 500 USD 456987

• Translate Balances 24-Jan-2020 Cash 101-000-5008-000-000 Cr 500 USD

• Consolidate Subsidiary Ledgers

• Automatic or Manual Reconciliation
• Clearing Account (5005) should be enabled for Reconciliation (Value Set > Value >
Reconcile = Yes)
• Ledger enabled for Reconciliation (Specify Ledger Options)
• Reconciliation Type (criteria, tolerance etc.,)

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Period Close

• Reconcile and close all Subledger Periods

Primary
• Perform Allocations Ledger
(EUR)
• Revalue Foreign Currency Balances
• Reconcile Clearing Accounts
• Translate Balances
• Consolidate Subsidiary Ledgers Balance Level
Reporting
Currency
(USD)

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Period Close

• Reporting Only Consolidations: If your subsidiaries and corporate

• Reconcile and close all Subledger Periods ledger share the same chart of accounts and calendar.

• Perform Allocations • Balance Transfer Consolidations: If your subsidiaries and corporate

ledger have either or both different charts of accounts and different
calendars.
• Revalue Foreign Currency Balances
• Financial Consolidation and Close Service : If there are complex
• Reconcile Clearing Accounts factors in your financial consolidation requirements such as:

• Translate Balances – Managing period close process, assigning tasks, scheduling and
workflow monitoring
• Consolidate Subsidiary Ledgers – Complex company structures, for example joint ventures,
minority interest holdings, or partially or fully owned
subsidiaries.

– Multiple heterogeneous systems including data sources that are

Reference not general ledger that are required to support nonfinancial or
industry-specific metrics, disclosures, and footnote schedules.

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Period Close: Reporting Only Consolidation

InFusion Corp Ledger Set InFusion NA Ledger Set InFusion EMEA Ledger Set

InFusion US Ledger InFusion US Ledger InFusion US Ledger

Corp COA, Corp Cal, USD Corp COA, Corp Cal, USD Corp COA, Corp Cal, USD

InFusion CA Ledger InFusion CA RC InFusion CA RC

Corp COA, Corp Cal, CAD USD USD

InFusion UK Ledger InFusion UK RC InFusion UK RC

Corp COA, Corp Cal, GBP USD USD

InFusion GE Ledger InFusion GE RC InFusion GE RC

Corp COA, Corp Cal, EUR USD USD

InFusion Corp InFusion NA InFusion EMEA

Elimination Ledger Elimination Ledger Elimination Ledger

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Period Close: Balance Transfer (Secondary Ledger)
InFusion Corp Ledger Set

InFusion US Ledger InFusion US Ledger

Corp COA, Corp Cal, USD Corp COA, Corp Cal, USD • Create a chart of accounts mapping to map
subsidiaries account values to the corporate chart of
accounts.
InFusion CA SL InFusion CA Ledger
Corp COA, Corp Cal, USD CA COA, CA Cal, CAD
• Transfer Balances to Secondary Ledgers process for
balance level secondary ledgers
InFusion UK SL InFusion UK Ledger • Create eliminating entries using journal entries or the
Corp COA, Corp Cal, USD UK COA, UK Cal, GBP
Calculation Manager in the corporate elimination
ledger in ledger set
InFusion GE SL InFusion GE Ledger
Corp COA, Corp Cal, USD GE COA, GE Cal, EUR
• Generate a report on the consolidated balances net of
eliminations in the corporate ledger set

InFusion Corp
Elimination Ledger

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Period Close: Balance Transfer (Consolidation Ledger)
• Translate balances to the corporate currency for
ledgers not in the corporate currency.
InFusion US Ledger
Corp COA, Corp Cal, USD • Create a chart of accounts mapping to map
subsidiaries account values to the corporate
chart of accounts.
InFusion CA Ledger InFusion CA RC
CA COA, CA Cal, CAD USD
InFusion Corp • Transfer balances from the subsidiaries to the
Consolidation Ledger corporate consolidation ledger using the
Corp COA, Corp Cal, USD Transfer Ledger Balances process, which
InFusion UK Ledger InFusion UK RC transfers between any source and target ledger
UK COA, UK Cal, GBP USD pair

• Create eliminating entries using journal entries

InFusion GE Ledger InFusion GE RC or the Calculation Manager in the corporate
GE COA, GE Cal, EUR USD consolidation ledger.

• Generate a report on the consolidated balances

net of eliminations in the corporate
consolidation ledger.

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Closing Period

• Prevents the closure of a General Ledger accounting period if:

– The accounting period for a corresponding subledgers is still open

– Or, incomplete accounting entries or transactions exist for the period.

• Ensures an effective period close process by validating all transactions are complete and are not held up during
the close.

• You can exclude one or more of the following subledgers so the General Ledger period close process skips any
exceptions encountered within the context of the excluded subledgers (by updating
ORA_GL_INCLD_STRICT_PRD_CLOSE lookup) :
– Payables
– Receivables
– Revenue Management
– Project Foundation

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Open Period

AutoReverse

• Used for accruals, estimates, revaluations, closing entries,

errors, or temporary adjustments and reclassifications

• Set ‘Journal AutoReverse Criteria Set’

• Enable ‘Run AutoReverse after open period’

• ‘Synchronize Reversals Between Primary and Secondary

Ledgers’ only for manual reversals

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Close Year

• Create Income Statement Closing Journals

• Posts all of the income statement account (YTD) balances (income & expense) to one or more retained
earnings accounts.

• Create Balance Sheet Closing Journals

• Posts all asset, liability, and equity YTD balances to one or more closing accounts.

• Both processes automatically create a separate closing or retained earnings account, as applicable, for each balancing
segment value, Primary, Second and Third Balancing segments.

• If you use secondary ledgers or reporting currencies, you must define a conversion rule to prevent replication of your
year-end closing journals from your primary ledger.

• Run your closing journal processes directly in your reporting or secondary ledgers to ensure that the balances are
reduced to zero.

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Period Close Tools
• Close Status Monitor • Journals and Intercompany Transactions Infolet

• Subledger Outstanding Transactions Monitor • AP and AR Reconciliation Infolet

• Translation Status Monitor • Intercompany Transactions Infolet

• Intercompany Period Status • Open Subledger Infolet

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Accounting Automation Process

Reference: Replay
Documentation: Guide

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Best Practices
• Setup Data Migration
• Configuration Package
• Export and Import Specific Tasks
• Automate Export and Import of CSV Files
• Data Migration Considerations
• FBDI, ADFdi & REST API for Journal Creation
• Cube Maintenance after P2T
• GL Role Customizations
• Tips To Improve Performance For Main Fusion General Ledger Programs (Doc ID 1404390.1)

Customer Connect: General Ledger Data and Setup Migration Considerations

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General Ledger: New Features (19A – 20C)

• Prevent GL Period Closure when Open Subledgers Exist

• Reporting Web Studio
• Accounting Automation
• Allocation Rule Name as Reconciliation Reference
• Spreadsheet based Clearing Account Reconciliation
• Multiple Segment Tracking for Revaluation Gain / Loss (up to 5 segments including BSVs)
• Reverse Journal Batch

More features at Oracle Cloud Release Readiness

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