Dependencies

1. Close Payables before closing Procurement to take into account the purchasing accruals at period
end to accrue expenses on un-invoiced receipts.

2. Close Payables before closing Inventory to ensure the un-invoiced accrual entry is accurate.

3. Close Payables before closing Fixed Assets to ensure invoices are completed and capital invoice
line distributions are transferred from Payables to Fixed Assets. If creating leases in Fixed Assets, all
leasing invoices must be interfaced to Payables and paid before closing Payables.

4. Close Payables before closing Projects to ensure invoices and expense reports are completed and
transferred to Projects.

5. Close Procurement before closing Inventory to allow miscellaneous transaction corrections in

Inventory.

6. Close Inventory before closing Projects so that Project-related inventory transactions are
completed and imported into Projects.

7. Transfer all relevant Project costs to Fixed Assets and transfer revenue to Receivables before
closing Fixed Assets and Receivables. 8. Close all subledger applications before closing General
Ledger.

Subledger Accounting

The Subledger Accounting (SLA) module consists of a centralized accounting engine and repository of
accounting entries for all Oracle Cloud subledger applications.

Subledger transaction distributions usually store account combinations that are considered to be
default accounts and should not be used to reconcile to General Ledger. SLA allows you to configure
accounting rules to change the accounts on the transaction distributions to something different from
the default accounting. Therefore, the accounting entries in SLA are the source of truth to be used
in reconciliation to General Ledger.

The Create Accounting process can be submitted from the Oracle Cloud subledger application work
areas or the Scheduled Processes window.

• The Create Accounting process can be submitted in two modes: Draft or Final. If submitted in Draft
mode, the accounting is not finalized and not transferred to General Ledger and can still be changed.
If submitted in Final mode, the accounting cannot be changed subsequently.

• SLA accounting entries are automatically posted to General Ledger if you submit the Create
Accounting process in Final mode with Post in General Ledger option set to Yes.

• If you submit the process in Final mode with Post in General Ledger option set to No, and Transfer
to General Ledger option set to Yes, then you need to manually post the journals in General Ledger
or schedule the AutoPost program.

• If you submit the process in Final mode with Transfer to General Ledger option set to No, then you
need to submit the Post Subledger Journal Entries process later to transfer the generated accounting
entries to General Ledger.
Cash Management period end process
1. Complete Daily Cash Management Activities

Complete bank account transfers for the day and send payment instructions to the bank. (This step is
performed outside of Cash Management.)

2. Load Bank Statements

Detailed information from each bank statement, including bank account information, deposits
received by the bank, and checks cleared needs to be entered into Cash Management. Bank
statements can be either manually entered or loaded electronically from information received
directly from your bank.

For organizations with high transaction volumes bank statements should be loaded and reconciled
on a daily basis.

3. Reconcile Bank Statements

Once detailed bank statement information has been loaded into Cash Management, the information
must be reconciled with the subledger transactions – Receivables cash receipts, Payables payments,
Payroll payments.

Cash Management provides two methods to perform reconciliation:

a) Automatic

Bank statement details are automatically matched and reconciled with subledger transactions.

b) Manual

This method requires a manual match of bank statement details with subledger transactions. The
manual reconciliation method can also be used to reconcile any bank statement details which could
not be reconciled automatically.

4. Review Autoreconcile Bank Statements Results and Resolve Exceptions

Once the Autoreconcile Bank Statement process has been completed, review the reconciliation
results in the Bank Statements and Reconciliation work area. The Bank Statement Reconciliation
region displays the lines that are reconciled, un-reconciled, and any exceptions.

Resolve exceptions from the Autoreconcile Bank Statements process by manually reconciling the
exceptions.

5. Create Bank Statement Transactions

The Bank Statement Transaction Creation process is used to create transactions from un-reconciled
bank statement lines. This process is often used to create transactions and account for first notice
items such as bank charges, fees, or interest. You must first submit the Autoreconcile Bank
Statement process and perform any manual reconciliation on a bank statement before running the
Bank Statement Transaction Creation process. This avoids creating external transaction from bank
statement lines that already have transactions recorded in the application.

Once the bank statements are imported and reconciled, submit the Bank Statement Transaction
Creation process. This process scans the bank statement for specific codes, as defined in the Bank
Statement Transaction Creation Rules, and creates external transactions, which can be reconciled
and then accounted.

6. Resolve Un-reconciled Statement Lines

Resolve any un-reconciled statement lines by manually reconciling the statement lines to the
available transactions.

7. Create Accounting and Post to General Ledger

Create journal entries for external transactions by submitting Create Accounting process. The
process creates and optionally transfers and posts journal entries to General Ledger. If you do not
transfer the journals to General Ledger immediately, you can later submit the Post Subledger Journal
Entries process.

8. Submit Cash to General Ledger Reconciliation Report

Use this report to reconcile the General Ledger cash account to a bank statement balance.

This report lists the bank account balance and the General Ledger cash account balance. It also lists
the un-reconciled bank transactions and journals (from different sources) that help resolve the
discrepancy between the balances.

Warning: To ensure that this report is accurate, you must first perform these tasks:

 Reconcile all bank statements in Cash Management.

 Transfer accounting entries for transactions in Payables and Receivables to General Ledger, and
post journals in General Ledger

9. Submit Bank Statement Report

This report shows statement and transaction information for a specific bank account statement,
including bank statement header information, statement line detail, and reconciliation status.

10. Submit General Ledger and Subledger Account Analysis Report

Submit and review the General Ledger and Subledger Account Analysis Report for the General
Ledger Cash Account. Review the General Ledger and Subledger Account Analysis Report to ensure
that only bank account related transactions have been posted to the General Ledger Cash Account
by checking the journal source of the transactions. Valid sources include Payables, Receivables,
Payroll, external transactions from Cash Management, and perhaps transactions interfaced from
non-Oracle Cloud applications (if applicable) . Journals entered directly in General Ledger will have a
journal source of Manual, AutoCopy, or Spreadsheet.

11. Correct any Invalid Entries to the General Ledger Cash Account (Optional)

Reverse or amend any journals incorrectly posted to the General Ledger Cash Account, which were
highlighted during the review of the General Ledger and Subledger Account Analysis Report.

To prevent invalid journal entries to the General Ledger Cash Account, review your Subledger
Accounting rules or enable journal approval for spreadsheet or manually entered journals.

Payables
Payables to Ledger Reconciliation Report

The Payables to Ledger Reconciliation report reconciles the open liability balance in Payables to the
accounts payable balance in General Ledger, and highlights any discrepancies. Note other activity
and account balances such as expense, discounts, freight, tax, etc. are not covered by this report.

The interactive reporting capability of the reconciliation report provides summarized and detailed
reconciling data. The Summary report allows you to see payables and accounting beginning and
ending balances, plus summarized activity for the period and how it was accounted. Submit this
report from the Tasks pane of the Payables Invoices work area or Payments work area after the
Prepare Payables to General Ledger Reconciliation process is complete.

The Summary Report has three columns:

• Payables Amount column represents Payables activity. Drill down reports represent the
individual Registers for transactional activity by type of activity

• Accounting Amount column represents the accounting journals. Drill down reports represent the
individual Journal Reports for accounting activity by type of activity

• Difference column represents the differences between activity recorded in payables and the
accounting generated for that activity.

1. Complete and Approve All Transactions and Payment Files

Ensure that all transactions are completed for the period you are closing.

• Complete all invoices

• Resolve holds on invoices.

• Validate invoices.

• Complete all payment files and payment process requests.

• Submit the Payables Invoice Register and the Payables Payment Register reports to obtain details
about invoices and payments.

• Submit the Update Matured Bills Payable Status process to update the status of matured bills
payable from issued to negotiable.

• Submit the Apply Missing Conversion Rates process to apply missing rates to foreign currency
invoices.

2. Reconcile Payments to Bank Statement Activity

Refer to the Cash Management chapter. Ensure that payments are cleared if you account for
payments at clearing.

3. Create Accounting and Transfer to General Ledger

5. Submit the Unaccounted Transactions Sweep Process

Submit the Payables Unaccounted Transactions Sweep process to transfer unaccounted transactions
from one accounting period to another. If your accounting practices permit it, use this process to
change the accounting date of the transactions to the next open period.

6. Close the Current Payables Period

Close the current Payables period and review the Payables Period Close Exceptions report to view
accounting events and journal entries that fail period close validation. It is automatically submitted
when closing a Payables period if there are unprocessed accounting events or un-transferred journal
entries. The period can be re-opened if needed.

7. Open the Next Payables Period

8. Reconcile Payables Activity for the Period

Reconcile Payables activity using the following reports. With the exception of the first one, these
reports are submitted in the Scheduled Processes window. The Payables to Ledger Reconciliation
report is described in more detail below.

• Payables to Ledger Reconciliation report - Lists the transactions and journals posted to the General
Ledger for open payables balances to facilitate the reconciliation of accounting and transactional
data recorded in Payables, Subledger Accounting, and General Ledger.

• Payables Trial Balance report - Lists and subtotals by supplier and liability account all unpaid and
partially paid invoices.

• Payables Posted Invoice Register - Lists accounting lines for invoices that have been transferred to
the general ledger.

• Payables Posted Payment Register - Lists accounting lines for payments that have been transferred
to the general ledger.

• Journal Entries Report

- Lists detailed information about subledger and general ledger journal entries, including
transactions that have been accounted with error or not transferred to General Ledger.

Use this report after you have submitted the Create Accounting process in Payables and have
resolved any accounting issues or items noted in the Payables Period Close Exceptions Report.

Description of Payables to Ledger Reconciliation Report:

How to use the Payables to Ledger Reconciliation Report:

The reconciliation report is comprised of two parts - the Prepare Payables to General Ledger
Reconciliation process and the report.

Prepare Payables to General Ledger Reconciliation Process

The extract process, Prepare Payables to General Ledger Reconciliation, is used to select data for the
Summary section of the Reconciliation Report. This must be submitted in the Schedule Processes
window prior to viewing the report. Required parameters:

9. Review Payables Invoice Aging Report

After Payables is reconciled to your satisfaction, submit the Payables Invoice Aging Report in the
Scheduled Processes window. This report shows the current total outstanding accounts payable
balance by aging buckets as of the date and time the report was executed. You cannot submit this
report for a date in the past, so save a copy of the report at the end of every period for historical
reporting purposes.

10. Submit Payables Invoice Register and the Payables Payment Register

If you haven’t already, submit the Payables Invoice Register and the Payables Payment Register
reports for the period to save a record of invoices and payments.

11. Accrue Un-invoiced Receipts

Refer to the Supply Chain Management chapter, Managing Period End in Receipt Accounting section.

12. Submit Mass Additions Transfer to Fixed Assets

After you have completed all Payables transaction entries, and confirmed all invoice holds, and carry
forwards, submit the Create Mass Additions process to transfer capital invoice line distributions from
Payables to Fixed Assets.

For foreign currency assets, Payables sends the invoice distribution amount in the converted
functional currency. The mass addition line appears in Fixed Assets with the functional currency
amount.

After you create mass additions, you can review them in the Pending Source Lines region in the
Additions work area or Assets Accounting Dashboard.

It is recommended to execute a final Create Mass Additions process after the period close to ensure
that all Payables invoices are:

• Included in the correct period and

• Any additional invoicing will become part of the next periods invoice and asset processing period.

Suggestion: If the volume of transactions in Payables requiring Fixed Assets update is large, you
should consider running the Create Mass Additions process on a more regular basis.

14. Review Third Party Balances Report (Optional)

Submit and review the Third Party Balances report from the Scheduled Processes window.

This report is only available if you use third party control accounts. This report is used to display
balance and account activity information for Suppliers and Customers. It retrieves the following
information:

15. Submit General Ledger and Subledger Account Analysis Report

Receivables period end process

1. Complete All Transactions for the Period Being Closed

Ensure that all transactions have been entered for the period being closed:

• Complete Invoicing• Complete Receipts and Reversals

• Complete Invoice and Customer Import

• Complete Lock Box Processing

2. Recognize Revenue

If revenue schedules are created, submit the Create Receivables Accounting process to initiate
revenue recognition prior to creating accounting.

3. Reconcile Receipts to Bank Statement Activity for the Period

Refer to the Cash Management chapter.

4. Create Accounting and Transfer to General Ledger

Create accounting for invoices and receipts and transfer to General Ledger.

5. Pending Close the Current Receivables Period

Change the status of the Receivables period you are trying to close to Close Pending using the
Manage Accounting Periods task in the Receivables Balances work area. This prevents new
transactions from being entered during the reconciliation process. When the period is in Close
Pending status, existing activity can be accounted and transferred to the General Ledger. The period
can be reopened if needed.

6. Open the Next Receivables Period

Open the next period in Receivables using the Manage Accounting Periods task in the Receivables
Balances work area to allow recording business as usual.

7. Review Subledger Period Close Exception Report

Submit and review the Subledger Period Close Exceptions report to view accounting events and
journal entries that failed period close validation.

9. Reconcile Receivables Balances to General Ledger

The Receivables to Ledger Reconciliation report reconciles the open receivables balance in
Receivables to the accounts receivable balance in General Ledger, and highlights any discrepancies.
Note other activity and account balances such as revenue, discounts, freight, tax, etc. are not
covered by this report.

Use this report after you have submitted the Create Accounting process in Receivables and have
resolved any accounting issues or items noted in the Subledger Period Close Exceptions report.
.

• Presents the beginning and ending receivables balances and all activity for the period, matching
the receivables aging.

How to use the Receivables to Ledger Reconciliation Report:

The reconciliation report is comprised of two parts - the Prepare Receivables to General Ledger
Reconciliation process and the Report.

Prepare Receivables to General Ledger Reconciliation Process

The extract process, Prepare Receivables to General Ledger Reconciliation, is used to select data for
the Summary section of the Reconciliation Report. This must be submitted in the Schedule Processes
window prior to viewing the report. Required parameters:

Receivables to Ledger Reconciliation Report

The interactive reporting capability of the reconciliation report provides summarized and detailed
reconciling data. The Summary report allows you to see receivables and accounting beginning and
ending balances, plus summarized activity for the period and how it was accounted. Submit this
report from the Tasks pane of the Receivables Balances work area after the Prepare Receivables to
General Ledger Reconciliation process is complete.

• Accounting Amount column represents the accounting journals. Drill down reports represent the
individual Journal Reports for accounting activity by type of activity

• Difference column represents the differences between activity recorded in receivables and the
accounting generated for that activity. Drill down reports represent differences between
transactional data and accounting data by specific activity, such as, invoices, adjustments and

The Difference column of the Reconciliation Summary report provides suggestions for the cause of
out-of-balance conditions:

• Final accounting is not available for this transaction - Requires you to create final accounting. This
includes items that have never been accounted and those that are accounted in Draft mode.
• Account is outside report range – Applies to Receivables transactions with SLA journal entries with
accounts that are excluded from Reconciliation report’s account range. Check if the transaction is
recorded to the correct account. This error might also occur if the financial category attribute has
not been assigned to the natural account segment value.

10. Review Receivables Aging By General Ledger Account Report

The Receivables Aging By General Ledger Account report shows the total customer outstanding
balance by aging buckets to group invoices by the number of days an item is overdue, such as
Current, 1-30 days late, 31-60 days late, 61-90 days late, etc. This information is important because
it gives a complete picture of the customer debt and potential ability to collect the outstanding
amounts. Typically, the older the invoice – the longer is it outstanding – the less likely it will be
collected.

11. Review Third Party Balances Report (Optional)

Submit and review the Third Party Balances Report from the Scheduled Processes window.

This report is only available if you use third party control accounts. This report is used to display
balance and account activity information for Suppliers and Customers. It retrieves the following
information:

The balances in this report can be compared with the General Ledger balances for the same control
accounts to reconcile.

12. Close Receivables Period

After Receivables is reconciled to your satisfaction, set the accounting period to Closed using the
Manage Accounting Periods task in the Receivables Balances work area. This step initiates
validation that confirms all accounting entries are balanced and transferred to the General Ledger.
The Generate Diagnostic Report is automatically generated for any issues encountered and the hard
close will be prevented.

The Close Period process also checks for incomplete invoices and adjustments pending approval. You
may want to complete, delete or update the accounting date of incomplete invoices depending on
company policy. However, this is not required and will not prevent you from closing the period.

13. Review General Ledger and Subledger Account Analysis Report

Submit and review the General Ledger and Subledger Account Analysis Report for any account that
you are trying to reconcile (i.e. revenue, freight, discounts, tax, etc.) to ensure that only appropriate
transactions have been posted to the General Ledger account by checking the journal source of the
transactions.

Note: To avoid duplication with subledger journal entries, General Ledger journal entries imported
from SLA are not included in the report
 Fusion Application Features-
 Oracle Fusion Financials introduced Configurable Dashboards. These Configurable Dash
Boards consolidate information from a variety of sources, actively monitor process.
 It means all this information is displayed on the single page, users no longer need to
perform time-wasted searches, access multiple transaction pages or run multiple reports to
understand their priorities.
 For example the Payable’s Manger Dashboard. A payable Manager typically has to run
multiple reports or queries and access multiple screens to resolve problems.
 Oracle Fusion Payables provides a Payable Manager Dashboard that tracks status of
supplier invoices , such as invoices requiring approval, invoices on hold, suppliers on hold, and
more all from a consolidated page,
 Now the Payable Manager can takes the action directly from the Dashboard to resolve
issues.
 Embedded analytics provides the key pieces of information that every role needs in order
to best complete or manage a business process, and delivers that information directly to
transactional applications.
 The interactive dashboard helps to manage business execution across processes, roles,
and organizations against corporate objectives and strategy. Users should be able to drill down
further into the underlying detail transactions to investigate problem areas.
 The post button will now implement one-step posting. When you press the post button, it
will execute all necessary actions to post the batch. Once all of the necessary steps are done, it
will then submit posting for the batch.

Define and Maintain Intercompany Processing Rules in Fusion Application

This article will helps to understand basics of defining and maintaining Intercompany processing rules.
Readers will also get to know details of other activities which needs to be configured to generate
Intercompany Transactions in Oracle Fusion General Ledger for Intercompany Balancing and
Intercompany Activities.
Below are the activities for Fusion Financials Common Module, Intercompany.
1. Review Intercompany Balancing Rules and Ledger Balancing Options
2. Review journals balanced with different intercompany balancing rules and ledger
balancing options
3. Submit and review reconciliation reports
Let’s now move step by steps for Preliminary Setups which are needed for Intercompany-
1. Go to - Define and Maintain Intercompany Processing Rules.
2. Select Go to Task for Manage Intercompany Balancing Rules.
3. Select From Ledger: Apps2Fusion Primary Ledger.
4. Click Search.

5. In the Search Results region, select the Primary Segment Rules tab.
6. Click the Create icon to create a new rule with the following details:
 Source – Other
Category – Other
Transaction Type – None
From Ledger – Apps2Fusion Primary Ledger
To Ledger – Apps2Fusion Primary Ledger
From Legal Entity – Apps2Fusion LE
To Legal Entity – leave blank
From Primary Segment Value – 03
To Primary Segment Value – All Other
Receivables Account – 01-11002-1010-12335
Payables Account      – 01-12355-0000-12342
Start Date – 01/01/2013
End Date – Null
7. Click Save and Close, You will get a Confirmation message 
8. Click the Chart of Accounts Rules tab and verify the following rule exists.
Chart of Accounts Rule details-
Source – Other
Category – Other
Transaction Type – None
Chart of Accounts – Apps2fusion structure instance
Receivables Account – 03-12256-1010-12342
Payables Account – 03-14423-1010-11111
Start Date – 01/01/2013
End Date – Null
9. Click Save and Close
10. Go to Setup and Maintenance > Search for Manage Journal Sources and uncheck Journal
Approval as shown below-

Click the View icon in the Receivables Account column and the Payables Account column to view the
description of the segment values.
10. Select Go to Task for Manage Ledger Balancing Options & define your your ledger.
11. View Search Results region. Review the rules.
1.