It’s month end, now comes the reconciliation crunch

1. It’s month end, now comes the reconciliation crunch Richard Byrom Oracle Applications Consultant Appsworld January 2004

2. Agenda • Presentation assumptions and objectives • Why and how should we reconcile • Setup issues • Close procedures for each module, reconciliation results & two way drill down • Additional Tips • Conclusion • Questions and Answers

3. Objectives • This presentation emphasizes the importance of on a regular basis so as to ensure improved control over financial information • To discuss different setup issues and that may impact your ability to reconcile. • To outline the month end close process for each module and give practical examples of expected reconciliation results.

4. Manufacturing subledgers Financial subledgers Objectives Payroll &Human Resources OracleGeneral Ledger

5. Objectives

6. What should be reconciled? • Control Accounts • Inter Modular Movement • Intercompany Accounts

7. What happens if we don’t reconcile properly? • Potential data corruption not detected • Sub modules may not be posted to the GL • Multiple months may remain open for a variety of modules • Repetitive errors may not be detected • Posting of non standard journals to control accounts • Open item system carries forward problems to next year.

8. Why the problem with reconciliations • Inadequate training/inexperienced users • Lack of understanding of the system architecture • Trying to use old procedures for a new system • Bad Management

9. How should we reconcile? • Establish your out of system procedures • Ensure that all the standard functionality provided by the system is understood and used • Make use of additional tools if necessary

10. Setup Issues – General Ledger • Sequential numbering of documentation should be taken into consideration. • Chart of accounts should be appropriately designed and have an appropriate groupings and sub grouping by using parent and child relationships. • Document types and sub types need to be looked at

11. Setup Issues – Sub Ledgers • Master Data • Should be separated according to the different groupings of debtors available per profile options • Customers should be given appropriate hierarchies • Customer numbering should done in such a way that facilitates understanding of the various listings

12. Setup Issues – Sub Ledgers • Transactional Data • Ensure that appropriate transaction types are created • Control A/C’s should appropriate filter the information through to General Ledger • Autoaccounting • Need to look at document numbering

13. Month end close steps • Pre-posting activities • Posting to supporting systems • Run verification Reports • Reconcile against interfacing systems • Close periods • Problem Solution • Two way drill

14. Receivables Steps – Pre-posting • Pre-posting activities • Enter Receipts • Enter Invoices • Record NSF checks • Run Autoinvoice Interface • Print New Invoices • Run Incomplete Invoice Reports • Adjustment Approval Report

15. Receivables Steps – GL Posting • Posting to GL (AR) Interfaces > General Ledger

16. Receivables Steps – Reports & Period Close • Verification Reports • Sales Journal by GL Account* • Receipt Journal Report* • Journal Entries Report* • Transaction Register* • Adjustment Register • Receipt Register Report* • Aged Trial Balance* • Invoice Exceptions Report • Applied Receipts Register • Unapplied Receipts Register • Close Periods

17. Receivables Steps – Reconciliation Results

18. Receivables Steps – Reconciliation Results

19. Reconciliation Problems • If AR does not reconcile to the general ledger • Check that the reports have been run for the correct date/period • Run GL Interface • Make sure all Journals are posted in the General Ledger • Re-Run both Trial Balance Reports • Check for journal entries in the AR Control accounts in GL, not generated by AR. • Check for Invoices raised against the AR Control account

20. Receivables two way drill - Invoices

21. Receivables two way drill – Invoice Status

22. Receivables two way drill – Invoice Accounting

23. Receivables two way drill – Cash Receipts

24. Receivables two way drill

25. Receivables two way drill – Receipt History

26. Receivables two way drill-Miscellaneous Receipts

27. Receivables two way drill-Miscellaneous Receipts

28. Receivables two way drill- GL to Invoice

29. Receivables two way drill – Drilldown effect

30. Payables Steps • Pre-posting activities • Enter Employee Expense Reports • Enter Invoices • Run Invoices on Hold Report • Run Payables Approval • Check for Unapproved Invoices

31. Payables Steps – Transferring to GL Payables Steps – Create mass additions

32. Payables Steps – Reports & Period Close • Verification Reports • Accounts Payable Trial Balance* • Posted Invoice Register* • Posted Payment Register* • Expense Distribution Report • Invoice Aging Report* • Posting Hold Report • Invoice Register* • Close Periods

33. Payables Steps – Reconciliation Results • Reconciliation can also be achieved using Tutor Business Form FOR0672

34. Reconciliation Problems • If AP does not reconcile to GL • Check that the reports have been run for the correct date/period. • Run GL Post in Accounts Payable. • Post all payables generated batches in the General Ledger • Re-Run both Trial Balance reports • Check for Journal Entries in the AP control account, not generated by Accounts Payable. • Check for Payments/Invoice Distributions made against the AP control account.

35. Payables two way drill – query an invoice

36. Payables two way drill – view accounting

37. Fixed Assets Steps • Pre-posting activities • Prepare Mass Additions • Post Mass Additions • Delete Mass Additions • Prepare Manual Additions • Retire Assets • Adjust Assets • Capitalize CIP Assets • Run Depreciation

38. Fixed Assets Steps – GL Posting • Run Journal Entries

39. Fixed Assets Steps – Reports & Period Close • Verification Reports • Cost Detail Report* • CIP Detail Report • Asset Addition Report • Cost Adjustment Report • Asset Retirements Report • Asset Reclassification Reconciliation Report • Asset Transfer Reconciliation Report • CIP Capitalization Report • CIP Assets Report • Unposted Mass Additions Report • Close Periods

40. Fixed Assets Results • Alternative reconciliation using FOR0674 Tutor Business Form • Printing of Reconciliation Report

41. Cash Management Steps • Pre-posting activities • Capture/Interface Bank Statements • Automatically reconcile statements • Manually reconcile amounts not cleared • Check all statements are fully reconciled • Bank Statement Detail Report • Online checks

42. Cash Management Steps • Post to GL • Ensure payables and receivables posting has taken place • Verification Reports • Cash In Transit Report • Cleared Transactions Report* • General Ledger Reconciliation • Transactions available for Reconciliation

43. Cash Management Results • Check Receipts against Receivables Reports, Cash Account per GL and Cash Management Reports • Check Payments against Payables Reports, Cash Account in GL and Cash Management Reports

44. Cash Management two way drill – Account Inquiry

45. Cash Management two way drill – Drilldown effect

46. General Ledger Steps • Pre-posting activities • Reconcile interfaces from feeder systems • Enter Manual Journal Entries • Reverse Entries • Run Journal Import • Generate Recurring Journal Entries • Generate Mass allocations • Post Journal Entries

47. General Ledger Results • Verification Reports • Journal Entry Report • Account analysis Report* • Account Analysis – Sub Ledger Detail Report • Trial Balance – Detail Report* • Run Financial Statement Generator – FSG’s • Close Periods

48. Additional Tips – File Export • To export the results of an online inquiry or onscreen view choose File > Export from the menu • Save the file generated to your desired location • Open the file from Microsoft Excel. Ensure that from the open dialogue box in Excel you specify files of type all *.* • When the text import utility appears choose finish, you can now sort the file according to your personal requirements

49. Additional tips Cont.d – Tools>Copy File • Use Tools > Copy file from the menu when you are in a report • Save the file in web or text format to your desired location – preferably use text • Import the file into Excel using the text import wizard as displayed – use the report column headers as your fixed width delimiters.

50. Additional tips cont.d - Tutor • Use Oracle Tutor Business forms to give you reconciliation templates.