Contents

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• 1 Introduction
• 2 Business Requirements
• 3 Steps
o 3.1 Payables Approval Process
o 3.2 General Ledger
 3.2.1 Review the Invoice on Hold Report
 3.2.2 Review the Payables Accounting Entries Report
 3.2.3 Review the Unaccounted Transactions Report
 3.2.4 Optionally Run a Month End Payment Batch
 3.2.5 Confirm all Payment Batches
 3.2.6 Optionally Run the Payments Registers
o 3.3 Reconcile Payments
o 3.4 Transfer All Approved Invoices and Payments
o 3.5 Review the Payables
 3.5.1 Payables Accounting Process Report
 3.5.2 The Posted Invoices Register
 3.5.3 The Posted Payments Register
o 3.6 Submit the Unaccounted Transactions
o 3.7 Close the Current Oracle Payables Period
o 3.8 Accrue Uninvoiced Receipts
o 3.9 Reconcile Oracle Payables Activity for the Period
 3.9.1 Run the Accounts Payables Trial Balance Report
o 3.10 Run Mass Additions Transfer to Oracle Assets
o 3.11 Open the Next Oracle Payables Period
o 3.12 Run Reports for Tax Reporting Purposes (Optional)
o 3.13 Run the Key Indicators Report (Optional)
 3.13.1 The Key Indicators Current Activity Report
 3.13.2 The Key Indicators State of the System Report

o 3.14 Purge Transactions(Optional)

Introduction
The procedures for performing period-end processing in Oracle Payables Release 11i.

Business Requirements
We must reconcile the accounts payable activity for the accounting period that is to be closed. The
following steps are taken in performing period-end processing for Oracle Payables. The posting level
for Oracle Payables must be determined, when planning period-end procedures. Where detail level
accounting transactions are required to be posted to the general ledger, there may be technical
constraints involved, relating to the physical data storage volume, and posting and report processing
speed degradation caused by the sheer volume of posted transactions. Functionally, however, detail
posting to the general ledger provides enhanced reporting opportunities in some cases.

Steps
1. Complete All Transactions for the Period Being Closed:
2. Keep on Running queries from Apatghealthcheck.sql which will tell you about Orphan
Records.
3. Ensure that all transactions have been entered for the period being closed.
4. Completing all transactions for Oracle Payables:
1. Complete Invoicing and Credits
2. Complete Prepayments
3. Complete Expense Reports
4. Complete Invoice Import

Note: If you import transactions from an external system, or you are using Internet Expenses or
Xpense Xpress, ensure you have imported all transactions, and reviewed all audit trails for
completeness.

Payables Approval Process

Run the Payables Approval Process(Invoice Validation Program in 11i) for All Invoices/Invoice
Batches.
The Payables Approval process is run to try to approve all unapproved invoices in the system, so that
they can be paid and posted to the general ledger. Invoice Validation Program will take care of all the
Validations.

General Ledger

Review and Resolve Amounts to Post to the General Ledger.

Review the Invoice on Hold Report

If there is any Hold on the Invoice it will not accounted. So we need to remove all the holds on the
invoices.
After Running Invoice Validation We need to run the Invoice on Hold report.
This report enables review of any holds currently applied to invoices that would prevent the payment
and/or posting of these invoices. The report details all invoices for which Oracle Payables cannot
select for posting and therefore cannot create journal entries. Where possible resolve any identified
holds which will prevent posting to the general ledger, and re-run the Payables Approval process to
approve these invoices.

Review the Payables Accounting Entries Report

This report enables review and analysis of accounting entries in the Payables subledger. You can
request the report for a specific run of the Payables Accounting Process or the Payables Transfer to
General Ledger program. Using the report parameters, you can produce a detailed or summary listing
of the accounting information you want to review.
The report also lists in detail any transactions that have been accounted with error and all entries that
could not be transferred to the general ledger interface. When a transaction is accounted with errors,
use the Update Accounting Entries window to update any invalid accounts.
Payables groups the report by set of books, journal category, and bank accounts. Data is then sorted
by accounting date, event type, supplier name, document number, and voucher number.

Review the Unaccounted Transactions Report

This report enables review of all unaccounted invoice and payment transactions and see the reason
that Payables cannot account for a transaction. Payables sorts the report by transaction type (invoice
or payment), exception, supplier, transaction currency, and transaction number.
Run this report after you have run the Payables Accounting Process. The report will then show only
transactions that had problems that prevented accounting. You can then correct the problems and
resubmit the accounting process.
Note that this report does not include invoices that have no distributions.

Optionally Run a Month End Payment Batch

By running a month end payment batch, you may arrange a payment for as many due invoices as
possible.

Run Updated Mature Dated Future Payments Program to Change the status of the Payments to
Negotiable so that we can account these Payments.

Confirm all Payment Batches

Optionally run the Final Payment Register for the period that is to be closed, or finalise any
outstanding payment batches. Use the Payment Batches window to confirm any unconfirmed payment
batches.
Note: The Final Payments Register lists each payment created for a payment batch. Actual payments
can be compared against this register to verify that Oracle Payables has recorded payments correctly.
The report lists each payment in a payment batch, including setup and overflow payment documents,
in ascending order, by payment number.
Attention : Oracle Payables prevents the closing of a period in which all payment batches have not
been confirmed.

Optionally Run the Payments Registers

Optionally, run the Payment Register.

This report details payments printed in a particular accounting period. The report can be used to
review payment activity for each bank account used during the specified time period.
Warning: The report total only shows the net (less discounts and voids) payment amount, whereas the
Posted Payment Register total is the total payment amount, including discounts. If only verifying report
totals, these two reports would not balance. Therefore it is necessary to subtract the discounts taken
from the report total and then compare this calculated amount to the total displayed on the Payment
Register Report.

Reconcile Payments

Reconcile Payments to Bank Statement Activity for the Period.

(Refer to Period-End Procedures for Oracle Cash Management)
Attention: The Payables Accounting process must be re-run for any reconciliation accounting entries
generated to be Transferred to the General Ledger.

Transfer All Approved Invoices and Payments

Transfer All Approved Invoices and Payments to the General Ledger.

The Request Submit window facilitates the transfer of Oracle Payables accounting entries to the
General Ledger and creates unposted journal entries.
Oracle Payables creates detail or summary journal entries from the invoice and payment activity when
you post. The journal entries are posted in Oracle General Ledger to update account balances.
Submit the Payables Accounting Process to transfer approved invoice and payment accounting
entries to the Oracle General Ledger interface tables.

• Invoice journal entries, debit the expense or other account entered on an invoice distribution
line, and credit the liability account nominated on the invoice.
• Payment journal entries, debit the liability account and credit the cash account of the bank
account used to pay and invoice.

The Payables Accounting Process transfers data to the General Ledger interface tables, creating
journal entries for these invoice and payment transactions, if the option Submit Transfer to GL is set to
Yes in the Parameter window.
The Payables Accounting Process will initiate the General Ledger Journal Import process, if the option
Submit Journal Import is set to Yes in the Parameter window
Attention :The generated journal batch needs to be posted from within Oracle General Ledger. The
journal batch may be automatically posted in General Ledger if the Source of Payables has been
included in the Automatic Posting options established in General Ledger.

Review the Payables

Review the Payables to General Ledger Posting process After Completion.

The following reports can optionally be run to review the invoices and payments that were posted to
Oracle General Ledger, from Oracle Payables, for the period that is to be closed, i.e. the current
accounting period.

Payables Accounting Process Report

Payables Accounting Process Report Use this report to review accounting entries created by the
Payables Accounting Process. The report has two sections:

• Accounting Entries Audit Report. The audit report provides, in detail or summary, a listing of
accounting entries created by the accounting process.
• Accounting Entries Exception Report. The exception report lists in detail all accounting entries
that were created with an error status and a description of that error. The Entries Exception
Report is generated only when the accounting process encounters accounting entries that fail
validation.

The Posted Invoices Register

This report is used to review invoices for which information has been posted to Oracle General Ledger
to create journal entries, and can be used to verify that the total invoice amount equals the total
invoice distribution amount. The report lists each Accounts Payable Liability Accounting Flexfield and
the invoices posted to the account.

The Posted Payments Register

This report is used to review the payments posted to Oracle General Ledger during a particular
accounting period, and can be used to review the payment activity for each bank account used during
that period.

Submit the Unaccounted Transactions

Submit the Unaccounted Transactions Sweep Program.

The Unaccounted Transactions Sweep Program transfers unaccounted transactions from one
accounting period to another. Because you cannot close a Payables period that has unaccounted
transactions in it, if your accounting practices permit it, you might want to use this program to change
the accounting date of the transactions to the next open period. For example, you have invoices for
which you cannot resolve holds before the close, and your accounting practices allow you to change
invoice distribution GL dates. Submit the program to change invoice distribution GL dates to the first
day of the next open period so you can close the current period.
The Unaccounted Transactions Sweep Program will not roll forward accounted transactions, or
accounted transactions with error. To create successful accounting entries for accounted transactions
with error, correct any accounting errors and resubmit the Payables Accounting Process.
The program transfers unaccounted transactions to the period you specify by updating the GL dates to
the first day of the new period. You can then close the accounting period from which Payables moved
the invoices and payments.
In the Control Payables Periods window if you try to close a period and unaccounted transactions
exist, then Payables opens a window. From the window you can submit the Unaccounted
Transactions Sweep Program or you can submit a report to review accounting transactions that would
be swept by the program. When you submit the Unaccounted Transactions Sweep Program, Payables
automatically produces the Unaccounted Transactions Sweep Report to identify transactions that were
redated and identify any transactions that need updating. If you submit the report in preliminary sweep
mode the Unaccounted Transactions Sweep Review report shows which transactions will be redated if
you submit the Unaccounted Transactions Sweep Program.

Close the Current Oracle Payables Period

Close the accounting period by using the Control Payables Periods window to set the Period Status to
Closed.

Accrue Uninvoiced Receipts

(Refer to Period-End Procedures for Oracle Purchasing)

Reconcile Oracle Payables Activity for the Period

Run the Accounts Payables Trial Balance Report

This report is used to facilitate reconciliation of the total accounts payable liabilities in Oracle
Payables, with the Oracle General Ledger Creditors Control Account, for a specific accounting period.
This report lists, and sub-totals, by vendor, all unpaid and partially paid invoices for which Oracle
Payables created journal entries (i.e. posted invoices). These invoices represent the outstanding
accounts payable liability for the organisation.
To obtain the most up-to-date trial balance for a given period, journal entries should be posted for the
invoice and payment activity for the period, prior to running the report.
For reconciliation of Oracle Payables and Oracle General Ledger when posting is only performed at
period end, the following reconciliation method can be used:
To the previous periods Accounts Payables Trial Balance, add the current period’s posted invoices
(total amount from the Posted Invoices Register) , and subtract the current period’s posted payments
(total cash plus discounts taken, from the Posted Payments Register) . The calculated amount should
equal the balance for the current period’s Accounts Payables Trial Balance.
Attention: However, when posting to the general ledger from Oracle Payables is performed multiple
times throughout each accounting period, the Posted Invoices Register and Posted Payments
Register reports must be run after each posting run, for reconciliation of Oracle Payables liabilities with
Oracle General Ledger’s Creditor Control.

Run Mass Additions Transfer to Oracle Assets

After you have completed all Payables transaction entry, and confirmed all invoice holds, and carry
forwards, submit the Mass Additions Create progam to transfer capital invoice line distributions from
Oracle Payables to Oracle Assets.
For foreign currency assets, Payables sends the invoice distribution amount in the converted
functional currency. The mass addition line appears in Oracle Assets with the functional currency
amount. Oracle Assets creates journal entries for the functional currency amount, so you must clear
the foreign currency amount in your general ledger manually.
After you create mass additions, you can review them in the Prepare Mass Additions window in Oracle
Assets.
It is recommended to do a final Mass Additions Create after the period close to ensure that all
Payables invoices are 1) included in the correct period; and 2) any additional invoicing will become
part of the next periods invoice and asset processing period.
Suggestion: If the volume of transactions in Accounts Payable requiring Assets update is large, you
should consider running the Mass Additions Create process on a more regular basis.

Open the Next Oracle Payables Period

Open the next accounting period by using the Control Payables Periods window to set the Period
Status to Open.

Run Reports for Tax Reporting Purposes (Optional)

A variety of standard reports can be used to provide tax information which is required to be reported to
the relevant Tax Authority, including withholding tax.
The Financial Tax Register can be used to view the output from the Tax Reporting Ledger using
Reports Exchange and Application Desktop Integrator (ADI). Using these products you can change
the layout of the report, publish the report in different formats, and export the data to a tab delimited or
HTML file.
The Tax Reporting Ledger consists of accounting information created in Oracle Receivables, Oracle
Payables, and Oracle General Ledger. The Financial Tax Register uses this data to generate Tax
Register reports using the Rxi reporting tool.
The following tax registers are available:

• Tax Register
• Interim Tax Register
 • Nonrecoverable Tax Register

The following summary levels are available within each Tax Register:

• Transaction Header
• Transaction Line
• Accounting Line

Run the Key Indicators Report (Optional)

This report enables review of the Accounts Payables department’s productivity. This statistical
information can be useful for cash flow analysis and forecasting purposes, when combined with similar
information from Oracle Accounts Receivables. The Key Indicators Report generates the following two
reports:

The Key Indicators Current Activity Report

Use the Key Indicators Report to review your accounts payable department's productivity. The Key
Indicators Report provides current activity indicators that compare current period activity with prior
period activity in three major areas: suppliers, invoices, and payments. Payables further breaks down
each category into basic items, exception items, and updates. The report provides the number of
transactions for each indicator (such as number of automatic payments printed during a period) and
amount values where applicable to the Key Indicator (such as total value of automatic payments
written during a period).

The Key Indicators State of the System Report

The Key Indicators State-of-the-System Report provides a period-end view of Payables, as well as
average values. For example, the Key Indicators State-of-the-System Report includes:-.
Suppliers:

• Suppliers. Number of suppliers.

• Sites. Number of supplier sites.
• Average sites per supplier. Payables divides the number of sites by the number of suppliers.

Invoices:

• Invoices. Number of invoices.

• Distribution lines. Number of invoice distributions.
• Average lines per invoice. Payables divides the number of invoices by the number of
distributions.
• Scheduled payments. Number of scheduled payments based on payment terms and manual
adjustments in the Scheduled Payments window of the Invoice Workbench.
• Average payments per invoice. Payables divides the number of invoices by the number of
scheduled payments.

Payments:

• Checks. Number of payments (both manual and computer generated) created and recorded in
Payables.
 • Invoice payments. Number of invoice payments made by Payables. A payment document can
pay multiple invoices.
• Average invoices per payment. Payables divides the number of payment documents by the
number of invoice payments.

Matching Holds:

• Matching holds. The number of matching holds in Payables.

• Average matching holds per invoice on matching hold. Payables divides the number of
matching holds by the number of invoices on matching hold.

Purge Transactions(Optional)

You can delete Oracle Payables or Oracle Purchasing records that you no longer need to access on-
line to free up space in your database. You can purge invoices, purchase orders, suppliers, and
related records such as invoice payments and purchase receipts.
Warning: After a record is purged, it is no longer queryable, and the record will no longer appear on
standard reports. However, the system maintains summary information of deleted records to prevent
you from entering duplicate invoices or purchase orders.
Suggestion: You should create a special responsibility for purging information from Oracle Payables
and Oracle Purchasing and assign this responsibility only to the person responsible for purging
information from your database.

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