Oracle GL Period Closing Steps and Procedures

Oracle GL Period Closing Steps and Procedures In this Document, we talk about the Period Closing Steps and Procedures for Oracle General Ledger (Oracle GL). This is a much awaited document that deserved submission in this Website. You will find many resources online that talks about periods closing steps in Oracle GL but this one is most comprehensive and has step by step instructions on how exactly to go about the closing process while keeping in mind the dependencies with other non-financial modules (like Purchasing, Inventory, ect). This is a Step-By-Setp guide that you can follow for the end of period closing procedures in Oracle General Ledger:

Module
Inventory Closure
INV Perform General Ledger Transfer

Action

Reports

Dependencies

GL

Import the Inventory Batches to GL

GL

Post Inventory Batches

Material Account Distribution INV Run the report Summary

Account Analysis - (132 Char) for Material GL Run the report for 30104 Material account

Oracle GL Period Closing Steps and Procedures Use the Material Account Distribution Summary and the Account Analysis - (132 GL Char) to reconcile Material accounts

Review abnormal transactions in the expense section of the Material Account GL Distribution Summary such as transactions in the asset cost account

INV

Close the Period

Module
Payables Closure
AP

Action

Reports

Dependencies

Review all transaction to be transferred to GL

Payables Transfer to AP Transfer to GL, Run the report General Ledger

Payables Transfer to Mass Addition GL completed - FA AP Run the report Create Closure can start

CE can start GL Post AP transactions in GL reconciling

Accounts Payable Trial AP Run the report Balance

Account Analysis - (132 Char) for Trade Payables GL Run the report Account

Use the Accounts Payable Trial Balance and the Account Analysis - (132 Char) to GL reconcile the Trade Payables Account

Oracle GL Period Closing Steps and Procedures CE Reconciliation AP Run Payables Transfer to General Ledger for CE transactions completed

AP

Close Period

Purchasing Closure
Un-invoiced Receipt Report - This report is used to reconcile the Expense AP PO Run the report Accrual

Receipts Accruals PO Run the report Period-End Ensure AP is Closed

GL

Import the Purchasing batch to GL

GL

Post the Purchasing batch- Actual and Encumbrance

PO

Close Purchasing

GL

Reverse the above entries in the next period- Actual and Encumbrance

Receivables Closure
Daily transactions AR Run the General Ledger Interface completed

CE can start GL Post AR transactions in GL reconciling

AR

Run the Report

Journal Entries Report for

Oracle GL Period Closing Steps and Procedures Accounts Receivables account, Summary by account Yes

Account Analysis - (132 Char) for Accounts Receivables GL Generate the Report account

GL

Reconcile the Journal Entries Report with the Account Analysis - (132 Char)

CE Reconciliation AR Run the General Ledger Interface completed

AR

Close Period

Cash Management Closure

AR and AR entries CE Complete Reconciliation posted to GL

Fixed Asset Closure

FA Create GL Journals

GL

Post FA batches in GL

Cost Summary FA Run the Report Report

Oracle GL Period Closing Steps and Procedures CIP Summary FA Report

Cost Clearing Reconciliation FA Report

Reserve Summary FA Report

General Ledger - (132 Char) for the asset cost accounts, CIP accounts and asset clearing GL Run the Report accounts

Reconcile Cost Summary Report with General General Ledger - (132 Char)

Reconcile CIP Summary Report with General General Ledger - (132 Char)

Reconcile Reserve Summary Report with General General Ledger - (132 Char)

Use the Cost Clearing Reconciliation Report to review the clearing accounts in the General General Ledger - (132 Char) report

GL Closure
Run journal import to make sure that there are no entries pending in the GL GL interface table

GL

Ensure that all entries are posted, Actual, Encumbrance and Budget

GL

Ensure that all sub ledgers are reconciled and closed

Oracle GL Period Closing Steps and Procedures

Account Analysis Report Accrual Reconciliation GL/ PO Reconcile Inventory AP accrual account Report PO is closed

Receiving account distribution report to reconcile the entries w/ source PO GRP Reconciliation for Inventory account detail report to reconcile the entries w/ GL/ PO/ INV Reconcile Receiving (Goods in Transit) Account source INV PO and Inv closed

GL

Generate FSG Reports

GL

Close the period

GL

If year end, perform year end encumbrance processing