Setup>Calendar>Accounting>AP Accounting Periods
GL Periods are determined by the Calendar attached to GL Set of Books. Each period represents one Accounting Period in a financial year. Each such period controls whether any transaction can be entered in the period or not. The said periods appear in all sub- ledgers, and the period can have an individual status in each subledger.
Various Statuses are - Never Opened, Future, Open, Closed, and Permanently Closed.
Never Opened: Before opening a period, the status of the period stands ‘Never opened’. No transaction can be entered in such period.
Future: Payables allows invoice entry and accounting in a Future period. However, you cannot transfer accounting entries to general ledger if the accounting date is in a future period.
Open: All transaction such as entering Invoices, Payments voiding payments, canceling Invoices can be done.
Closed: The status of the period after closing stands as Closed. No transaction can be entered in a closed period.
Permanently Closed: No transactions can be entered, and the status cannot be changed again to open, to enter any transactions in future. The status of the periods should me made permanently closed once the Annual accounts are audited and closed.
Note: Control of AP Periods is Set of Books Specific. Head Office operating unit will be responsible for controlling AP Periods.
Accounting Period cannot be closed if any of the following conditions exists:
- If transactions are accounted in AP and have not been transferred to general ledger.
- If there are any Unconfirmed Payment Batches.
Ensure that all the Invoices entered in the period to be closed are approved. Invoice Register report will be used to identify all the unapproved transactions.
- Confirm all the Payment Batches.
- Submit the “Payable Accounting Process” to account all Unaccounted transactions.
- Head Office Operating Unit will receive communication from the London Operating unit that all the transaction for the period are accounted, transferred to General Ledger and other period end activities completed. On receipt of the information, the following activities will have to be performed.
- In the Control Payables Periods window, change the status of the period to Closed and save the transactions. If there are any unaccounted transactions in the period, the following message will appear:
Click OK and click on the Sweep button and the following window appears.
Click on Review and the system will automatically spawn the concurrent program “Unaccounted Transactions Report”. Review the output of the report in the Find Request window to identify all the transactions that will be sweeped. Take corrective actions to account any of the listed transactions. This report lists down transactions at set of book level i.e. for the two payable operating units.
Click on Sweep button in the Control Payables Window and the above screen again appears. Now click on Sweep to sweep the transactions. Enter the period to which the transactions need to be sweeped and click on submit. The system automatically spawns a concurrent program “Unaccounted Transactions Report” and list out the transactions that are swept.
- Change the status of the period to Closed in “Control Payable Periods Window” and save the transaction.
On closing the AP Period, “Receipt Accrual – Period End- Process” will have to be initiated in Oracle Purchasing to create accrual accounting entries for un-invoiced receipts for expense distributions. This process will create accrual journal entries automatically and mark them for reversal.
Accrual Write Off
In case of inventory items, an accrual account will always be credited on receipt of goods. On entering an invoice and matching to PO, the accrual account will get cleared. However, there could be instances where balances will be pending in Accrual Account for various reasons like supplier invoiced for less quantity etc.
The amount in accrual account needs to be written-off on a periodic basis.
Steps to Perform Accrual Write Off
- The standard “Uninvoiced Receipts Report” will have to be generated to identify the balances in accrual account.
- Select Accrual write-offs from the menu (Fig 5.3.1). This menu is available to only limited users. Enter search criteria in the Find Write-Off Transactions window to find the transactions you want to write off.
- Enter the Source: AP - Payables, INV - Inventory, PO - Purchasing, WIP - Work in Progress.
- You can optionally enter the following additional search criteria: Account combination, Item number, item Description, PO Number, Document Order Line, Document Number, Document Line, Destination Type, Quantity, and a date range. You can also restrict the search to include written off transactions and transactions matched to a purchase order.
- Choose Find to initiate the search and display the results in the Write-Off Transactions region.
- Select the transactions that you want to write off. Enter a Write Off Date that is in the same accounting period as the journal entry you will prepare to write off selected transactions.
- Transactions that you selected to write off in this window will no longer appear on the Accrual Reconciliation Report.
- Submit the Accrual Write Off Report.
- Using the Accrual Write Off Report as support, prepare a manual journal entry for the transactions you wish to write off.