AP users run the AP/GL transfer process by operating unit, which initiates Journal Import for purchase invoice and payment journals. AP also runs the PO module Receipt Accrual Period End process to accrue uninvoiced expense receipts and runs Journal Import to import journals into GL. AP users then post all their journals in GL and reverse the prior month accrual. AP users reconcile the AP module and balance to GL with reports including the AP Trial Balance, Posted Invoice Register, Expense Distribution Detail, Posted Payment Register, Payment Register, Void Register, and Uninvoiced Receipts Report. Cost Accounting users are responsible for generating journals for both the Purchasing and Inventory modules. They ensure no transactions remain in the interface tables before starting the period end process. In Purchasing, recording an inventory receipt generates a journal entry line for GL. Cost Accounting runs Journal Import weekly to import receipt entries into GL and posts journals in GL. Cost Accounting transfers from Inventory to GL weekly by inventory organization, which generates WIP and Inventory journals. They run Journal Import to import journals into GL and post them in GL. Cost Accounting users reconcile the Purchasing and Inventory modules and balance to GL with reports including the Accrual Reconciliation Report, Receiving Account Distribution Report, Receiving Valuation Reports, Inventory Value Reports, Material Account Distribution Summary and Detail Reports, Period Close Summary, Transaction Balance Historical Summary, WIP Value Reports, and WIP Account Distribution Summary Report. AR users run the AR/GL transfer process by operating unit, which initiates Journal Import for sales invoice, credit memo, adjustment, receipt, and other journals. AR users then post their journals in GL. AR users reconcile the AR module and balance to GL with reports including the Aged Trial Balance, Transaction Register, Sales Journal, Adjustment Register, Applied and Unapplied Receipts Registers, Deposited Cash, Receipt Register, Reversed Receipts, and Journal Entries Report. Order Entry has no period end close processes, however, we ensure that shipments for the period are complete and interfaces run to Inventory and AR before closing those modules. GL users complete the close with additional journals, allocations, reconciliations, and reports. In some cases the complete effect of a transaction is recorded by more than one module and reconciliation cannot be completed until all modules close. For example, full accounting for inventory receipts is generated by three modules and inventory shipments by two modules as shown in Exhibit 3. General Ledger AP PO INV AR Receipts Invoices/Payments Material/WIP Invoices/Receipts
Copyright © 1999 Margaret Coleman and Melanie J Bock Conclusions Plan for your project team to conduct a hands-on test in Oracle Applications to model your business process early in your implementation. This will help your project team to learn setup and processing options and the accounting
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