Reconciliation Process Subledger

to GL Oracle Fusion
Application

Wilson Karmawan
Agenda
1 Receipt Accrual, Reconciliation, Clearing

2 Cash Management
3 Fixed Assets

4 Receivables

5 Payables

6 References
 Receipt Accrual, Reconciliation,
Clearing
• Receipt Accounting recognizes the liability to the supplier, and creates accruals for
receipts destined for inventory or expense. For consigned purchases, the supplier
accrual is booked upon change of ownership.
• When goods are received and delivered to inventory or expense destinations, the
receipt accounting application creates accrued liability balances for the estimated cost
of purchase order receipts. The application creates accruals for:
1. Inventory destination receipts, which are always accrued on receipt
2. Expense destination receipts, which are accrued on receipt, or at period end if
the supplier invoice has not yet been processed
 Receipt Accrual, Reconciliation,
Clearing
• Example Case of Receipt Accrual Reconciliation and Clearing :
Case 1: Assume that the purchase order receipt is for 100 units at $5 each; the
application creates a credit to the accrued liability account in the amount of $500. When
the corresponding invoice arrives from the supplier, it reflects 100 units at $6 each; the
application debits the accrued liability account in the amount of $600. The difference of
$100 automatically clears and flows to inventory valuation.
Case 2: Assume that the quantity received is 99.4, and the quantity on the
supplier invoice is 100. The processor does not always know if that is the final invoice or if
more invoices are pending for the uninvoiced quantity. If small variations are normal, you
can set up rules to automatically clear small variations, while large variations are verified
manually. If there is a predefined rule for the treatment of such a discrepancy, the
application automatically clears the difference to inventory valuation. However if no such
rule exists, then you must clear it manually.
 Receipt Accrual, Reconciliation,
Clearing
• Define accrual clearing rules to clear accrual balances automatically. Accrual balances
are often of unknown origin and unpredictable. With accrual clearing rules you can
specify when accrual balances should be cleared and written off. The Clear Receipt
Accrual process scans for applicable rules on the transactions, and clears the balances
when rule criteria are met.
• There are two options :
– Set up rules to automatically clear the difference of small variations to inventory
valuation
– Manually verify large variations in the absence of rules
 Receipt Accrual, Reconciliation,
Clearing
• Sequence for Receipt Accounting Processes :
1. Incoming transactions :
o Transfer Transactions from Receiving to Receipt Accounting process. Interfaces receipt transactions.
o Transfer Costs from Payables to Cost Management process. Interfaces accounts payable transactions.
2. Receipt Accounting :
o Receipt Accounting Distribution process.
o Clear Receipt Accrual Balances process. Executes only if you have predened accrual clearing rules.
Marks purchase orders for automatic clearing.
o Receipt Accounting Distribution process. Creates distributions for cleared accrual balances.
3. Subledger Accounting
o Create Accounting Process.
 Receipt Accrual, Reconciliation,
Clearing
• Sequence for Receipt Accounting Processes :
4. Reconciliation and Reporting
o Match Receipt Accruals process. Matches purchase order receipt accruals with invoices from the
payables application. Perform at period close or as needed for internal reporting and reconciliation.
Note: You can also perform this step before running the subledger accounting process to
know the approximate accrual amount for reconciliation.
o Audit Receipt Accrual Clearing Balances process. Audit the General Ledger accounted accrual balances.

• Receipt Accounting Closing Procedure :

https://www.youtube.com/embed/05PttL5JzUY?rel=0&autoplay=1
 Cash Management
• Cash Management Reconciliation :
1. Complete all pending or outstanding transaction such as :
- Bank Statement
- Bank Account Transfer
- External Cash Transaction
- Manual Reconciliation
2. Reconcile the statements. Reconciliation can be done either through submitting
Autoreconciliation process or through Manual Reconciliation process.
3. Run Create Accounting Program
 Cash Management
• Cash Management Reconciliation :
4. Submit and review the Cash to General Ledger Reconciliation report to determine
if anymore unreconciled transactions exist, then resolve as needed. Run this
report from the Bank Statements and Reconciliation work area to capture all
subprocesses. You can also submit several other reports that can help locate and
resolve additional cash reconciling issues that may occur
5. Correct any invalid entries that were created during this closing process. Reverse
or edit any journal entries that have been transferred and/or posted to the ledger
accidentally (if needed).
6. Ensure that all transaction already reconciled.
 Fixed Asset
• Fixed Asset Reconciliation :
1. Complete all pending or outstanding transaction such as :
- Mass Addition
- Manual Addition
- Transfer Asset
- Adjustment / Retire
2. Submit depreciation and run create accounting program
3. Review subledger period close exception report
4. Reconcile Fixed Asset Balances to General Ledger
 Fixed Asset
• Fixed Asset Reconciliation :
4. Reconcile Fixed Asset Balances to General Ledger
Report Type Report Name Remark
Depreciation Report Journal Entry Reserve Ledger For Depreciation Account

Balance Report Cost Detail and Cost Summary Reports For Account Cost

Balance Report CIP Detail and CIP Summary Reports For Account Cost

Balance Report Reserve Detail and Reserve Summary Reports For Account Accumulated Depreciation

Transaction Report Asset Additions Report For Asset Addition

Transaction Report Asset Cost Adjustment Report For Asset Cost Adjustment
Transaction Report Asset Category Change Report For Asset Change Category
Transaction Report Asset Transfers Report For Asset Transfer
Transaction Report Asset Retirements Report For Asset Retirement
Transaction Report Cost Clearing Reconciliation Report For Cost Clearing Reconciliation
Transaction Report Asset Lease Expense Report For Lease Asset

5. Close Period
 Receivables
• Prior action reconcile Receivables subledger :
 Complete month-end activities such as importing billing information, applying
receipts and approving adjustments.
 Run Create Receivables Accounting for the period to final account activity and post
to the general ledger.
 Set the Receivables period status to Close Pending.
Note :
- Ensure limit access accounting period before run the Extract Reconciliation
Data from Receivables to General Ledger program.
- Reopen the period if adjusting entries need to be added. You must ensure
that the subsequent accounting period is open, in order that business operations
continue during the reconciliation process.
 Receivables
• Receivables Reconciliation Process :
1. Prepares the data and creates the data into the Interim tables
Run the Prepare Receivables to General Ledger Reconciliation program to
select data for the Summary section of the Receivables to General Ledger
Reconciliation Report.
Schedule (ESS) Name: Prepare Receivables to General Ledger Reconciliation
Description: Prepares transaction and accounting information for
reconciling Oracle Fusion Receivables to Oracle Fusion General Ledger
Receivables
 Receivables
• Receivables Reconciliation Process :
2. Run Receivable to General Ledger Reconciliation Report
This is the actual report that shows the reconciliation details based on the
data that was prepared in the step 1.
It presents the beginning and ending receivables balances and all activity for the
period, matching the receivables aging.
It increases visibility to information by drilling down to supporting journal and
transaction details, rather than navigating to multiple screens or generating multiple
printed reports.
Receivables
Receivables
 Payables
• Prior action reconcile payables subledger :
 Ensure to complete all pending transaction (Invoices & Payment)
 Validate invoices transaction
 Create Accounting for payables subledger application
 Set the Receivables period status to Close Pending.
Note :
- Reopen the period if adjusting entries need to be added. You must ensure
that the subsequent accounting period is open, in order that business operations
continue during the reconciliation process.
 Payables
• Payables reconciliation process :
1. Run Payables Period Close Exception Report
Identify invoices that still not validate and unaccounted
 Payables
• Payables reconciliation process :
2. Run Payables Trial Balance
Generate trial balance to see total payables trial balances
 Payables
• Payables reconciliation process :
3. Run Payables Posted Invoice Register
Generate report total payables posted invoices register
 Payables
• Payables reconciliation process :
4. Run Payables Posted Payment Register
Generate report total payables posted payment register
 Payables
• Payables reconciliation process :
5. Prepare Payables to General Ledger Reconciliation
Prepares transaction and accounting information payables to General
Ledger.
 Payables
• Payables reconciliation process :
6. Run Payables to Ledger Reconciliation Summary Report
Summary report for payable ledger reconciliation report.