Oracle fusion Receivable module deals with customer transaction, receipt, and receivable activities .So before close period for receivable module in Oracle Cloud ERP, you need to reconcile all the transactions within AR as well as with General ledger module.
I will try to cover each and every steps required to reconcile and close the AR period.
Let me summarize the steps below.
Complete All Transactions for the Period
1.Complete Invoicing, credit memo, debit Memo
2.Complete all the receivable activities like adjustment and chargeback
3.Complete all the receipt and required receipt application
4.If you are importing Invoices from other source like Project accounting pls review and complete them. Make sure that no transaction is pending in interface
5.If you are importing customer payment through Lock Box, complete the Lock Box process
6.Complete the customer refund process if any
7.If you are imposing late charge for overdue customer ,then calculate and complete the late charge process. It is a option activity
8.Complete the revenue recognition process
Revenue Recognition
If you have created revenue scheduling, submit the Create Receivables Accounting process to initiate revenue recognition prior to creating accounting.
Reconcile Receipts to Bank Statement
You have to reconcile the customer payment received with bank statement for the period. The receipts details in AR which are remitted successfully need to match with the bank statement receipt link for bank reconciliation process.
Create Final Accounting and Transfer the Entries to GL
1.First create draft accounting and review and make any correction if required
2.Then submit the create accounting in final mode and set the -Transfer to General Ledger option as-Yes
3.Once the create accounting program is complete make sure that there is no unaccounted transaction pending to be accounted.
4.If you have run the accounting in final mode with the transfer to General Ledger option as-No, then the entries will not be moved to General Ledger. In this case run a separate program-Post Journal Entries to General Ledger process to transfer the entries to GL.
5.Review the Create Accounting output file for any error and take corrective steps.
Pending Close the AR Period
Onces accounitng entries are transfered to GL and posted ,you have to stop new transaction for this period.
Change the status of the current period as –Close Pending. When the status is close pending new transactions can’t be created .But you can account any existing transaction and transfer to GL.
Submit the Subledger Period Close Exception Report
This report generate the list of the accounting events and entries which failed period close validation. You can submit this report to review the exception and problematic transactions for the period and work on it .
Reconcile AR Balances to General Ledger
Before closing the AR period you need to ensure that ,the balance in AR are exactly matching the GL Balance. The Receivables to Ledger Reconciliation report help in reconciling the AR Balance to GL Balance
You can run this report after final accounting and transferring all entries to GL. Also resolve all the issues you found period close exception report before running this report to get the most relevant data .
Close the Receivables Period
Once Receivables is reconciled to GL , You can now set the accounting period to Closed using the Manage Accounting Periods task in the Receivables Balances work area.
This is the final step which confirms that all accounting entries are balanced and transferred to
the General Ledger.
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.
Important Note-When you have multiple business unit with same ledger ,all the BU will share the same period status. So you have to close all the business unit period at same time.
Open the Next Receivables Period
Open the next period in Receivables using the Manage Accounting Periods task. Start recording transactions for next period.
