Oracle Recon Appsworld

8/2/2019 Oracle Recon Appsworld

1/53

Its month end, now comes

the reconciliation crunch

Richard Byrom

Oracle Applications Consultant

Appsworld January 2004


2/53

Agenda

Presentation assumptions and objectives

Why and how should we reconcile

Setup issues

Close procedures for each module, reconciliationresults & two way drill down

Additional Tips

Conclusion

Questions and Answers


3/53

Objectives

This presentation emphasizes the importance ofon a regular basis so as to ensure improvedcontrol over financial information

To discuss different setup issues and that mayimpact your ability to reconcile.

To outline the month end close process for eachmodule and give practical examples of expected

reconciliation results.


4/53

Objectives

Manufacturingsubledgers

FinancialsubledgersOracle

General Ledger

Payroll &HumanResources


5/53

Objectives

GENERAL LEDGER

Transactions- Journals -

- Interfaces -Master Data

- Chart of Accounts! -- Sources & Categories -- Document Sequencing-

FIXED ASSETSTransactions

- Additions / Disposals -- Depreciation -

Master Data- Asset Categories -

ACCOUNTS PAYABLE

Transactions- Invoices / Memos -

- Payments -Master Data- Suppliers -

ACCOUNTS

RECEIVABLETransactions

- Invoices / Memos -- Receipts -Master Data

- Customers -

CASH MANAGEMENT

Transactions- Reconciled Payments -- Reconciled Receipts -

- Miscellaneous Transactions -Master Data

- Bank Accounts -


6/53

What should be reconciled?

Control Accounts

Inter Modular Movement

Intercompany Accounts


7/53

What happens if we dont reconcile properly?

Potential data corruption notdetected

Sub modules may not be postedto the GL

Multiple months may remain openfor a variety of modules

Repetitive errors may not bedetected

Posting of non standard journals

to control accounts Open item system carries forward

problems to next year.


8/53

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


9/53

How should we reconcile?

Establish your out of system procedures

Ensure that all the standard functionality providedby the system is understood and used

Make use of additional tools if necessary


10/53

Setup Issues General Ledger

Sequential numbering of documentation shouldbe taken into consideration.

Chart of accounts should be appropriatelydesigned and have an appropriate groupings andsub grouping by using parent and child

relationships.

Document types and sub types need to be lookedat


11/53

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 thatfacilitates understanding of the various listings


12/53

Setup Issues Sub Ledgers

Transactional Data Ensure that appropriate transaction types are created

Control A/Cs should appropriate filter the information

through to General Ledger

Autoaccounting

Need to look at document numbering


13/53

Month end close steps

1. Pre-posting activities

2. Posting to supporting systems

3. Run verification Reports

4. Reconcile against interfacing systems5. Close periods

6. Problem Solution

7. Two way drill


14/53

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


15/53

Receivables Steps GL Posting

Posting to GL

(AR) Interfaces > General Ledger


16/53

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


17/53

Receivables Steps Reconciliation Results

Jul-02

Beginning AR Trial Balance 94,890,824.48

+ Transaction Register 26,197,804.53

- Receipt Register -42,318,784.05

+/- Adjustment Reqister 0.00- Prepayments Remittance Report* 0.00

Ending AR Balance 78,769,844.96


18/53

Receivables Steps Reconciliation Results

Description Amount Comments

Current Period End AR Aging Total 39,330,142.00 Extracted from AR Aging Report for Jul-02Prior Period End AR Aging Total 55,454,778.25 Extracted from AR Aging Report for Jun-02

Change in AR Balance -16,124,636.25 x

+ Invoices/Debit Memos 26,409,424.57 Extracted from AR Sales Journal Reports

- Credit Memos -211,620.04 Extracted from AR Sales Journal Reports

- Cash Receipts -42,318,784.05 Extracted from AR Receipt Journal Reports

- Write Offs 0.00Change in AR Balance -16,120,979.52 y

Debits Posted 26,763,035.64 Extracted from Trial Balance

Credits Posted -42,887,671.89 Extracted from Trial Balance

Change in AR Balance -16,124,636.25 x

x = y = z -3,656.73


19/53

Reconciliation Problems

If AR does not reconcile to the general ledger Check that the reports have been run for the correctdate/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 accountsin GL, not generated by AR.

Check for Invoices raised against the AR Controlaccount


20/53

Receivables two way drill - Invoices


21/53

Receivables two way drill Invoice Status


22/53

Receivables two way drill Invoice Accounting


23/53

Receivables two way drill Cash Receipts


24/53

Receivables two way drill


25/53

Receivables two way drill Receipt History


26/53

Receivables two way drill-Miscellaneous Receipts


27/53

Receivables two way drill-Miscellaneous Receipts


28/53

Receivables two way drill- GL to Invoice


29/53

Receivables two way drill Drilldown effect


30/53

Payables Steps

Pre-posting activities

Enter Employee Expense Reports

Enter Invoices

Run Invoices on Hold Report Run Payables Approval

Check for Unapproved Invoices


31/53

Payables Steps Transferring to GL

Payables Steps Create mass additions


32/53

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


33/53

Payables Steps Reconciliation Results

Reconciliation can also be achieved using Tutor Business FormFOR0672

Description Amount

(Previous Month) Accounts Payable Trial Balance -27,428,898.13

+ (Current Month) Posted Invoice Register 7,778,812.99

- (Current Month) Posted Payment Register -5,779,945.70

(Current Month) Accounts Payable Trial Balance -25,430,030.84


34/53

Reconciliation Problems

If AP does not reconcile to GL Check that the reports have been run for thecorrect 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 controlaccount, not generated by Accounts Payable.

Check for Payments/Invoice Distributions madeagainst the AP control account.


35/53

Payables two way drill query an invoice


36/53

Payables two way drill view accounting


37/53

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


38/53

Fixed Assets Steps GL Posting

Run Journal Entries


39/53

Fixed Assets Steps Reports & Period Close


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


40/53

Fixed Assets Results

Alternative reconciliation using FOR0674 Tutor

Business Form Printing of Reconciliation Report

Description Cost NBV

Previous Months Ending Balance 120,951,159.11 96,421,655.44+ Asset Additions 658,900.00 658,900.00

+ (-) Adjustments 0.00

- Depreciation Charge -450,506.21

- Retirements 0.00

+ Capitalizations 0.00

+ (-) Reclassifications 0.00

+ (-) Transfers 0.00

Current Months Ending Balance 121,610,059.11 96,630,049.23


41/53

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


42/53

Cash Management Steps

Post to GL Ensure payables and receivables posting has

taken place


Cash In Transit Report Cleared Transactions Report*

General Ledger Reconciliation

Transactions available for Reconciliation

C h M R l


43/53

Cash Management Results

Check Receipts against Receivables Reports,Cash Account per GL and Cash ManagementReports

Check Payments against Payables Reports, Cash

Account in GL and Cash Management Reports

Cash Management two way drill Account Inquiry


44/53

Cash Management two way drill Account Inquiry

Cash Management two way drill Drilldown effect


45/53

Cash Management two way drill Drilldown effect

G l L d St


46/53

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

General Ledger Results


47/53

General Ledger Results

Verification Reports Journal Entry Report

Account analysis Report*

Account Analysis Sub Ledger Detail Report

Trial Balance Detail Report* Run Financial Statement GeneratorFSGs

Close Periods

Additional Tips File Export


48/53

Additional Tips File Export

To export the results of an online inquiry or

onscreen view choose File > Export from themenu

Save the file generated to your desiredlocation

Open the file from Microsoft Excel. Ensurethat from the open dialogue box in Excel youspecify files of type all *.*

When the text import utility appears choose

finish, you can now sort the file according toyour personal requirements

Additional tips Cont.d Tools>Copy File


49/53

Additional tips Cont.d Tools>Copy File

Use Tools > Copy file from the menu when youare in a report

Save the file in web or text format to your desiredlocation preferably use text

Import the file into Excel using the text importwizard as displayed use the report columnheaders as your fixed width delimiters.

Additional tips cont d Tutor


50/53

Additional tips cont.d - Tutor

Use Oracle Tutor Business forms to give youreconciliation templates.

Conclusion


51/53

Conclusion

Reconciliations are important in orderto identify problem areas and rectifythem on a timely basis.

Procedures should be put in place tofacilitate reconciliation as well asensure that the organisation is making

use of all possible tools. Setups as well as inquiry and

reporting tools have a significantimpact on the ease of reconciliation.

Please come and see my next presentation: Take the pain out of Public Sector Budgeting

implementation Setups Thursday January 29th,2004 at 03:30 PM in room 20D.


52/53

Speaker Information


53/53

Speaker Information

Name : Richard Byrome-mail : [email protected]

[email protected]

Company : RPC Data Ltd

Web Site : http://www.rpcdata.com

http://www.richardbyrom.com
mailto:[email protected]:[email protected]://www.rpcdata.com/http://www.richardbyrom.com/http://www.richardbyrom.com/http://www.rpcdata.com/mailto:[email protected]:[email protected]

Oracle Recon Appsworld

Documents

Transcript of Oracle Recon Appsworld