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R12 Period-End Process Flow For Oracle Discrete Manufacturing - e-Business Suite (Doc ID 1266644.1)
In this Document
Abstract
History
Details
1. Order Management (OM):
1.1 Complete the sales orders:
1.2 Import Sales Orders:
1.3 Pre-billing Acceptance:
1.4 Complete the shipping transactions:
1.5 Prepare the link with AR:
1.5.1 Workflow background engine:
1.5.2 Invoice Interface / AutoInvoice:
1.5.3 AutoInvoice Exceptions Report:
2. Receivables (AR):
2.1 Complete all Receivables transactions for the period being closed:
2.2 Create accounting:
2.3 Transfer to GL:
2.4 Receivables Period management:
3. Purchasing (PO):
3.1 Complete all transactions for Oracle Purchasing:
3.2 Create accounting for Payables:
3.3 Transfer to GL:
3.4 Purchasing Period management:
3.4 .1 Close the Payables period:
3.4.2 Run the Receipt Accruals - Period-End Report:
3.4.3 Manage PO periods:
3.4.4 Open next AP period:
4. Transactions control:
4.1 Enter all transactions in eBS:
4.1.1 Enter the pending cycle counts:
4.1.2 Material transaction manager:
4.1.3 Move transaction manager:
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APPLIES TO:
Oracle Shipping Execution - Version 12.0.0 and later
Oracle Purchasing - Version 12.0.0 and later
Oracle E-Business Suite > Manufacturing > Discrete Manufacturing
Oracle Cost Management - Version 12.0.0 and later
Oracle Work in Process - Version 12.0.0 and later
Information in this document applies to any platform.
***Checked for relevance 23-March-2013***
ABSTRACT
This support document is intended to provide you with the useful and complete information related to the Period Closure process in Release 12 e-Business Suite Discrete Manufacturing
modules.
Out of pure Financials perspective, the manufacturing period closure process enforces the different transactions to be all entered, validated and completed in a timely manner, all the
costing to happen but also to properly close the manufacturing periods. In EBS manufacturing both Inventory and Purchasing modules do have periods to be managed.
The Inventory Periods are handled for Inventory type Organization and at this level. A well managed inventory system has only one current opened period and ending a period implies
several actions to be done to get a true stock accuracy and avoid backdated transactions.
The Purchasing Periods are at Operating Unit level and their maintenance are crucial when accruals are enabled.
The period close process outline is as follows :
to
to
to
to
to
In addition, the stock has also to be verified and true (legal standpoint), or this can be ensured only when the previous periods are closed. The process includes the management of
backdated transactions to correct the figures plus the clean up any material transaction stuck in an interface for example.
The below document lists the actions in a logical order following the EBS modules installed.
The same actions are reflected in the check list (see attached document DMF_PeriodClose_CL) that can be used as a basis and customized following the specific needs of any
manufacturing organization.
The DMF_PeriodClose_CL check list (as an excel spreadsheet format) can be found in the Attachment section at the bottom of this document.
HISTORY
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DETAILS
1. Order Management (OM):
These operations have to been done for every Operating Unit within the Ledger to close.
Order Management > Orders, Returns > Import Orders > Orders Import Requests
Order Management > Reports, Request > Run Requests: Generate pre-billing customer acceptance program
Order Management > Shipping > Interfaces > Interface Trip Stop
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Order Management > Reports, Request > Run Requests: Workflow Background Process
2. Receivables (AR):
These operations have to been done for every Operating Unit within the Ledger to close.
2.1 Complete all Receivables transactions for the period being closed:
Launch invoices import interface.
Complete all transactions for Oracle Receivables.
Complete Acceptances.
Complete Invoicing, Credits and Adjustments.
Complete Receipts and Reversals.
Complete Invoice and Customer Import.
Run the Revenue Recognition Program (optional but required if using Order Management-Shipping)
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Note: Where there are multiple operating units within the same ledger all operating units must be ready to close at the same time. All of the
operating units that share a ledger also share the same period statuses. When you update the period statuses to "Open" in one Operating Unit,
that period is opened for all operating units within the ledger.
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3. Purchasing (PO):
These operations have to been done for every Operating Unit within the Ledger to close.
Payables > Other >Requests > Run > Transfer Journal Entries to GL
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Purchasing > Setup > Financials > Accounting > Control Purchasing Periods
4. Transactions control:
All the tasks described in this chapter have to be done in every Inventory Organization belonging to the Ledger for which we want to close the period.
At first, retrieve all the inventory organizations which belong to the ledger.
Refer to Note 732156.1 This diagnostic test assists with checking that a ledger period is ready to close.
Inventory > Counting > Cycle Counting > Cycle Count Entries
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number of transactions we have to check and if their resolution is required or only recommended to proceed. This operation has to be done in every inventory organization.
For this, the Note 1069492.1 Resolving Period Close Pending Transaction R12 provides a very useful guide on the treatment of pending or in error transactions.
-> The Note 568012.1- FAQ: Inventory Standard Datafixes - provides complete references of the possible SQL scripts to resolve the issues
mentioned below, mainly when the option 'That can also be done with SQL' is mentioned.
Resolution Required:
o
o
o
o
o
o
Unprocessed Material,
Uncosted Material/WSM,
Pending WIP Costing,
Pending WSM interface,
Pending LCM interface,
Unprocessed Shipping Transactions (Required by default).
Resolution Recommended:
o Pending Receiving,
o Pending Material,
o Pending Shop Floor Move.
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All the inventory transactions of the accounting period need to be entered or imported into the MTL_MATERIAL_TRANSACTIONS table . Then all the records in this table have to be
costed before proceeding the period close.
In the MTL_MATERIAL_TRANSACTIONS table not costed or in error records have the value "N" or "E" in the column COST_FLAG. For every record in the
MTL_MATERIAL_TRANSACTIONS table we need to have the value Null in the column COST_FLAG and records in MTL_TRANSACTION_ACCOUNTS table.
Main tables used for the work in process transactions:
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Cost Responsibility > View Transactions > Pending Landed Cost Adjustments
Shop Floor Management > Run Request > Import WIP Lot Transactions
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5. Cost Management:
This step is done at the Ledger level.
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If Order Management is used, the accounting entry for deferred COGS and COGS must be generated for the Ledger. These operations have to been done only at the Ledger level.
5.1.1 Record Order Management Transactions (normally done by the Cost Manager).
Note: The end date has to be greater or equal to the period end date.
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If the Create Accounting-Cost Management program has been launched in Final Mode without transferring to GL, we need to run the "Transfer Journal Entries to GL - Cost
Management" program to transfer to GL.
It is recommended to have only one period opened at the same time to avoid back dated transactions which can have a bad effect on average costing and reconciliation.
But it is possible at the beginning of month to have two periods open in the same time. Allowing inventory Transactions in the past is controlled by the profile option INV: Transaction
Date Validation. Possible values are:
Do not allow date in past period,
Provide warning when date in past period,
Allow date in any open period.
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Note: Of course, the Close Period Control program can only close the period in an Inventory Organization, if all the periods before are already
closed.
Note: The option Close if resolution recommended is used, if in an Inventory Organization there are pending transactions for which a resolution
is recommended (but not required). The default value is No.
SUMMARY
The manufacturing period closure process enforces the different transactions of Discrete Organizations to be all entered, validated and completed in a timely manner, all the costing to
happen but also to properly close the process manufacturing periods if Process Manufacturing is used.
REFERENCES
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