R12: Payables - Closing Period Process

Closing is the process of accounting for all transactions at the end of each period so all supporting information is transferred to the General Ledger. Subledgers cannot be closed if the required transactions in that period are not processed. Subledgers are E-Business Applications that post (transfer accounting records) to the General Ledger: for example, Payables, Receivables, Inventory, etc.

You should close a period when no one is entering any invoices or payments. 

In Payables you close the accounting period after you have completed accounting for transactions for the period and you have transferred the accounting entries to general ledger.

    To complete the close process in Payables:

1.      Validate all invoices.

2.      Confirm or cancel all incomplete payment batches (Payment Process Requests).

3.      If you use future dated payments, submit the Updated Matured future Dated Payment status Program. This will update the status of matured future dated payments to Negotiable so you can account for them.

4.      Resolve all unaccounted transactions. Submit the Create Accounting program to account for all unaccounted transactions. Review the Unaccounted transactions Report. Review any unaccounted transactions and correct data as necessary. Then resubmit the Create Accounting program to account for transactions you corrected. Or move any unresolved accounting transactions exceptions to another period (optional).

5.      Transfer invoices and payments to the General Ledger and resolve any problems you see on the output report.

6.      In the Control Payables Periods window, close the period in Payables.

7.      Reconcile Payables activity for the period. To perform reconciliation of payables activity, you will need the following reports:

i.                    Accounts Payable Trial Balance Report

ii.                  Posted Invoice Register

iii.                Posted Payment Register

8.      If you use oracle Purchasing, accrue uninvoiced receipts.

9.      If you use Oracle Assets, run the Mass Additions Create Program to transfer capital invoice line distributions from Oracle Payables to Oracle Assets.

10.   Post journal entries to general ledger and reconcile the trial balance to the General Ledger.

Therefore, you cannot close a period in Payables if any of the following conditions exists:

i.          Outstanding payment batches

ii          Future dated payments for which the Maturity Date is within the period but still have

            a status of issued.

iii.                Unaccounted transactions

iv.                Accounted transactions that have not been transferred to GL