Accounts Receivables Period Closing Process in Oracle Apps

1. Complete the manual invoices, credit memos & corrections for the period, to find the detail run “Incomplete Invoices Report”.
Action: Go to transaction Window and Complete the Transaction 
2. Complete and review the unapplied receipts. 
3. Reconcile the Receipts to bank statement activity (Remittance Activity) for the period 
4. Run the General Ledger Transfer Program. To transfer all transaction and receipts activities to GL.
5. This will be queried in the Journal Entry form with source as “Receivables” and posting status as “Unposted”. These Journal entries will be reviewed and Posted into the GL.
6. You can review the "Unposted Items Report" to determine if any exceptions have been encountered, that will need to be resolved, to ensure all accounting has been successful for all transactions.
7. Report used for reconciliation the customer outstanding Balances    
            A) Aging Report. 
            B) Transaction Register 
            C) Applied Receipts Register 
            D) Unapplied Receipts Register 

Opening/Closing of AR periods 
Navigation: Control --> Accounting  --> Open/Close Periods. 
1. Complete the Transfer to General Ledger from the Receivables for the period to be closed. 
2. Select the period to close. Select ‘Closed’ from list of values in the Period Status and save the record. Select the Next period to open. Click Open Next Period Button

General Ledger Period Closing Process in Oracle Apps

1. Ensure the Next Accounting Period Status is Set to Future Entry
2. Complete Oracle Sub-ledger Interfaces to Oracle General Ledger
3. Upload Journals from ADI (Applications Desktop Integrator) to Oracle General Ledger
4. Complete Non-Oracle Sub-ledger Interfaces to Oracle General Ledger (Optional)
5. Generate Reversal Journals (Optional)
6. Generate Recurring Journals (Optional)
7. Generate Mass Allocation Journals (Optional)
8. Review and Verify Journal Details of Unposted Journal Entries
9. Post All Journal Batches
10. Run General Ledger Trial Balances and Preliminary Financial Statement Generator Reports (FSGs)
11. Revalue Balances (Optional)
12. Translate Balances (Optional)
13. Consolidate Sets of Books (Optional)
14. Review and Correct Balances (Perform Reconciliations)
15. Enter Adjustments and / or Accruals and Post
16. Perform Final Adjustments
17. Close the Current Oracle General Ledger Period
18. Open the Next Oracle General Ledger Period
19. Run Financial Reports for the Closed Period
20. Run Reports for Tax Reporting Purposes (Optional)
21. Perform Encumbrance Year End Procedures (Optional)

Cash Management Period Closing Process in Oracle Apps

1. Load Bank Statements

2. Reconcile Bank Statements
3. Create Miscellaneous Transactions
4. Review AutoReconciliation Execution Report
5. Resolve Exceptions on the AutoReceonciliation Execution Report
6. Run Bank Statement Detail Report
7. Run Transactions Available for Reconcilaition Report
8. Resolve Un-reconciled Statement Lines
9. Run the GL Reconciliation Report
10. Run the Account Analysis Report for the General Ledger Cash Account
11. Review the Account Analysis Report
12. Correct any Invalid Entries to the General Ledger Cash Account (Optional)
13. Perform the Bank Reconciliation

Fixed Assets Period Closing Process in Oracle Apps

1. Complete All Transactions for the Period Being Closed
2. Assign All Assets to Distribution Lines
3. Run Calculate Gains and Losses (Optional)
4. Run Depreciation
5. Create Journal Entries
6. Rollback Depreciation and/or Rollback Journal Entries (Optional)
7. Create Deferred Depreciation Journal Entries (Optional)
8. Depreciation Projections(Optional)
9. Review and Post Journal Entries
10. Reconcile Oracle Assets to Oracle General Ledger Using Reports.
11. Run Responsibility Reports (Optional)
12. Archive and Purge Transactions (Optional)

Order Management Period Closing Process in Oracle Apps

Order Management
1. Complete All Transactions for the Period Being Closed
2. Ensure all Interfaces are Completed for the Period (Optional)
3. Review Open Orders and Check the Workflow Status
4. Review Held Orders
5. Review Discounts
6. Review Backorders
7. Review and Correct Order Exceptions
8. Reconcile to Inventory
9. Reconcile to Receivables (Optional)
10. Run Standard Period End Reports
Receivables
1. Complete All Transactions for the Period Being Closed
2. Reconcile Transaction Activity for the Period
3. Reconcile Outstanding Customer Balances
4. Review the Unapplied Receipts Register
5. Reconcile receipts.
6. Reconcile Receipts to Bank Statement Activity for the Period
7. Post to the General Ledger
8. Reconcile the General Ledger Transfer Process
9. Reconcile the Journal Import Process
10. Print Invoices
11. Print Statements (Optional)
12. Print Dunning (Reminder) Letters (Optional)
13. Close the Current Oracle Receivables Period
14. Reconcile Posted Journal Entries
15. Review Unposted Items Report
16. Open the Next Oracle Receivables Period
17. Run Reports for Tax Reporting Purposes (Optional)
18. Run Archive and Purge programs (Optional)

Purchasing Period Closing Process in Oracle Apps

Purchasing
1. Complete All Transactions for the Period Being Closed
2. Review the Current and Future Commitments (Optional)
3. Review the Outstanding and Overdue Purchase Orders (Optional)
4. Follow up Receipts-Check with Suppliers
5. Identify and Review Un-invoiced Receipts (Period End Accruals)
6. Follow Up Outstanding Invoices
7. Complete the Oracle Payables- Period End Process
8. Run Receipt Accruals - Period End Process
9. Reconcile Accounts - Perpetual Accruals
10. Perform Year End Encumbrance Processing. (Optional)
11. Close the Current Purchasing Period.
12. Open the Next Purchasing Period.
13. Run Standard Period End Reports (Optional)
Inventory/WIP
1. Complete All Transactions for the Period Being Closed.
2. Check Inventory and Work In Process Transaction Interfaces.
3. Check Oracle Order Management Transaction Process.
4. Review Inventory Transactions.
5. Balance the Perpetual Inventory.
6. Validate Work In Process Inventory.
7. Transfer Summary or Detail Transactions
Close the Current Oracle Payables and Oracle Purchasing Periods.
9. Close the Current Inventory Period
10. Open the Next Inventory Period
11. Run Standard Period End Reports (Optional)

Financial Statement Generator(FSG)

It is a reporting tool which is used to configure the financial report as per the organization requirement. It contains five components, they are
             1. Row Set.
             2. Column Set.
             3. Order Set.
             4. Content Set.
             5. Display Set. 
Note: Row set is mandatory Component whereas Column set, Order Set, Content set & Display Set are optional.
Row Set: It determines format & Content of rows in an FSG Report. When you define a row set, you can:
Step 1: Define Row Set. 
Navigation: Reports --> Define --> Row Set. 
You can define a new row set, or use FSG's AutoCopy feature to copy an existing row set, which you can then modify as needed.
Now, Let me illustrate Row set concept by creating a new row set.
Enter the Name and Description for your row set and Say "Define rows" as shown below

Enter a Line number for each row of your row set. The line number controls in which row which content should display. 

Assign accounts - to indicate which general ledger account balances you want to include in the row. You can assign an individual account or range of accounts to each row. Furthermore, you can specify which ledger or ledger set on which you wish to report.
Define calculations - to perform a variety of complex computations in your report. The calculations can refer to any previous rows in a report, including rows you choose not to display.
Specify formatting - to control page breaks, indentation, line spacing, and underline characters.
Secure row set definitions - to only allow specific row sets to be used, viewed, or modified by certain users.

You can assign one of three display types to your account segments in an account assignment. You can override these display types with a content set.
E: (Expand) Expand the range and display all segment values, creating multiple rows from a single row definition. If you enter a parent segment value for your range, FSG displays all child values for that parent. Do not select summary reporting to display all the child values in your report. 
T: (Total) Total the range and display only a total balance for the segment values, limiting the number of rows that appear on your report. If you enter a parent segment value for your range, FSG totals all of the child values for that parent.
If you choose Total for the ledger segment and the ledger segment value is a ledger set, the FSG report totals the ledgers in the ledger set and displays rows for the totals without displaying the individual ledgers.
B: (Both) Expand and total the range and display all segment values and a total balance for the segment values. This option lets you display both detail rows and total rows. If you enter a parent segment value for your range, FSG totals all of the child values for that parent. Do not select summary reporting to display all the child values in your report.
If you choose Both for the ledger segment and the ledger segment is a ledger set or ledger, the FSG report displays both the expanded detail and total rows for the ledger set or ledger.



Save & Close window. Press Add new button to add new row as shown below.

Say Calculations

Save & Close window. Press on Add new button to add new row as shown below 

Press Add new button to add new row as shown below 

Click on Account Assignment and give Low and high Display details under this row.

Save & Close window. Press on Add New button to add new row as shown below 

Click on Calculations 

Save it and close. Enter new line number and line item description.

Click on Calculations, 

Save and close the window.

Step 2:  Define Column Set
It determines format & content of columns in an FSG Report.
Therefore, typical column sets include headings and subheadings, amount types, format masks, currency assignments, and calculation columns for totals.
Navigation: Reports --> Define --> Column Set. 
You can define a new column set, or you can use Pre-defined Column sets. Now i would like use one of the Pre-defined column Set as shown below. Here are some of the existing Column sets

Specify account balance types - to include in the column. For example, you can define a column with actual, budget, or encumbrance amounts.
Create Headings - for your columns. You can also create relative headings, which change depending on the period of interest specified when you run the report.
Define calculations - to perform a variety of complex computations in your report. The calculations can refer to any previous columns in the report, including rows you choose not to display.
Specify formatting - using format masks, which determine how numbers in your report are displayed.
Secure column set definitions - to only allow specific column sets to be used, viewed, or modified by certain users.
Note: Row line labels appear to the left of the first column in your report. Thus, you control the width of the row line items when you set the position of the first column in your column set.

Press down arrow to see next Column position created

Press down arrow to see next Column position created

Close window and Click on Build Column Set and enter how the Column Name should display as shown below

Step 3: Define Report.
A report is defined by specifying the report objects which is used to build the report.
Navigation: Report --> Define --> Report.Enter Report name and title that should display in the Financial report. Specify mandatory fields like Row set, column set, Report Title, Rounding Options and output Options.

Click on Run Report and enable required parameters and submit it.

After click on Submit button you can observe a Request ID generated as shown below

Query the request window, Ensure report completed normal 

and click on View Output

Order Set: It Determines data should display in what order in the report like ascending/descending Order.
Content Set: It is used to Generate reports for multiple departments in a single run.
Display Set: It determines what data should be displayed in the reports.

COGS in 11i Vs Deferred COGS in R12

Prior to this enhancement, the value of goods shipped from inventory were expensed to COGS upon ship confirm, despite the fact that revenue may not yet have been earned on that shipment. With this enhancement, the value of goods shipped from inventory will be put in a Deferred COGS account. As percentages of Revenue are recognized, a matching percentage of the value of goods shipped from inventory will be moved from the Deferred COGS account to the COGS account, thus synchronizing, the recognition of revenue and COGS in accordance with the recommendations of generally accepted accounting principles. 
Note: Deferred COGS is a mandatory concept to used in R12 Version.
Where do we enter this COGS and Defferred COGS Account
Oracle Purchasing Navigation: Setup --> Organisation --> Organisation.
Select your inventory Organisation and Go to Other Accounts tab
Then you can see COGS and Deffered COGS A/c

Note: In early version like 11i as Defferred COGS concept is not exist, The following is screenshot from 11i Version where you can't find Deferred COGS A/c.

Accounting as per earlier version 11i.
At the time of shipping (Ship Confirmation) the accounting as follows:
         COGS A/c ..............................Dr.
                 To Inventory Valuation A/c..................Cr.
Accounting as per version Release 12 (R12):
At the time of shipping (Ship Confirmation) the accounting as follows:
         Deferred COGS A/c.................Dr.
                 To Inventory Valuation A/c..................Cr.
After AR invoice is generated, As percentages of Revenue are recognized, a matching percentage of the value of goods shipped from inventory will be moved from the Deferred COGS account to the COGS account as follows.
          COGS A/c...........................Dr.
                   To Deferred COGS A/c ......................Cr.
Record Order Management Transactions: Records new sales order transaction activity such as shipments and RMA returns in Oracle Order Management.
Run Collect Revenue Recognition Information program: This program will collect the change in revenue recognition percentage based on AR events within the user specified date range.

Navigation: Cost --> COGS Recognition --> Collect Revenue Recognition Information.

In Parameter, Give Start date and End date and submit it. 

Run Generate COGS Recognition Events: This program will create the COGS recognition transaction for each sales order line where there is a mismatch between the latest revenue recognition percentage and the current COGS recognition percentage. Here the system will credit the Deferred COGS accounting and transfer the relevant amount to COGS A/c. 

Navigation:  Cost --> COGS Recognition --> Generate COGS Recognition Events.
Here, the following accounting will be generated 
           COGS A/c...........................Dr.
                   To Deferred COGS A/c ......................Cr.

Ledger Set Concept in Oracle Apps

Ledger set is used to access multiple Ledgers information from single responsibility. Using Ledger set we can group only Ledgers which are having same Chart of Accounts and same Calendars.

Step 1: Define ledger sets
Navigation: Setup --> Financials --> Ledger Sets

Enter Name and Short name and all mandatory info and Save and Close this window.

Step 2: Assign Ledger set to responsibility

Navigation: System Administrator

Profile --> System

Choose responsibility

Profile Option: GL: Data Access Set

Choose Ledger set

If you assign both the profile options: GL Ledger Name & GL Data Access Set System will choose first Data Access set

Step 3: Enter Journal to test the functionality of ledger Set.

Navigation: Journal --> Enter

Enter new Journal

You can choose any Ledgers from here, which are assigned to Ledger set

Note: We have to assign GL: Data access set profile option and Ledger set to all the GL responsibilities, so that we can access all ledgers from any responsibility.

Definition Access Set Concept in Oracle Apps

It is an optional feature, for Security Purpose, which works at responsibility level .
It is used to provide "View","Use", "Modify" access to the various gl definitions.
For example: You can secure Calender, Mass Allocation Formula, FSG reports.. Etc. to allow users to modify, View and Use it.

Setup Step:
1. Create a Definition Access Set.
2. Assign it to one or more responsibilities to Definition Access Set.
3. "Enable Security" Check Box in Respective Form and click on "Assign access" and assign to definition access Set with the proper privileges (View, Use & Modify).

Let's see how to configure Definition Access Set
Step 1: Define Definition Access Set
Navigation: Set up --> Financials --> Definition Access sets --> Define.

Enter Name & Description to Definition Access set and Save it.

Step 2: Assign Definition Access set to Responsibility

Navigation:

Setup --> Financials --> Definition Access Sets --> Assign

Choose Responsibility: General ledger

Security Group: Standard

Choose Definition Access Sets

Automatic Privileges: Enable check boxes for: Use, View and Modify

Save and Close this window

Click on Ok Button and Ensure Program completed normal

Step 3: Enable Security for accounting Calendar

Navigation: Setup --> Financials --> Calendars --> Accounting

Query your accounting calendar

Select check box “Enable Security”

Click on “Assign Access” and Choose "Definition Access set"

Click on " OK" Button and Save it and following note will Appear

Decision window pop's Up, Now click on "Current" Button

Ensure the program completed normal.

Step 4: Query the accounting Calendar to Test the definition access set is working or not

Navigation: Setup --> Financials --> Calendars --> Accounting.

As we have given View, Use and Modify Privileges, you will be have all the right to view, use and modify the calendar data.

Query the definition access form to see the changes.