Identify the period-end balances of the following accounts in the General Ledger
a) Purchase Price Varianceb) Invoice Price Variance Accountc) AP Accrual Accountd) Inventory Account
Reconcile the balance of the Purchase Price Variance account using the Purchase Price Variance Report.
Manually remove the Invoice Price Variance amount from the AP Accrual Account using your General Ledger. Identify the Invoice Price Variances amount and Accrued Receipts amount in the AP Accrual Account.
Run the Invoice Price Variance Report for the current period. Identify the invoice price variance for all purchase orders charged to the Inventory AP Accrual Account and compare it with the balance of the Invoice Price Variance account in the General Ledger.
2. Analyze the balance of the AP accrual accounts
At any given time, Uninvoiced Receipts, Over-invoiced Receipts, or Errors (Invoices or inventory transactions charged to this Account by mistake) can account for the balance in the AP accrual account. You need to analyze the balance of the AP accrual accounts, distinguish accrued receipts from invoice price variances, and identify errors.
3. Run the Accrual Reconciliation Load Run program
This program is used to populate the accrual reconciliation table with all the necessary transaction data for you to perform the reconciliation process. The load program can be run for an operating unit incrementally. The program requires the two parameters from date and to date. These two dates represent the transaction dates that are used to fetch the transaction information from the transaction tables. All the affected purchase order (PO) distributions (in the case of AP/PO transactions and individual transactions in the case of miscellaneous transactions) transaction information are loaded into the accrual reconciliation tables.
4. Run the Summary Accrual Reconciliation report
Use this report to identify any differences between your Oracle Purchasing (PO) receipts and Oracle Payables (AP) invoices. This report shows which accounts have balances in them provides a partial breakdown of the balance source. You can see whether related AP and PO transactions and/or miscellaneous AP and Oracle Inventory transactions are contributing to the balance. Furthermore, the report shows the amount of write-offs already performed against the accrual account.
5. Run the AP and PO Accrual Reconciliation Report
This report provides a transactional breakdown of each accrual account with a net balance greater than zero in a summarized or full transaction details version. In summarized mode, for each accrual account, only the distribution information and PO, AP, WO (Write-Off) and Total Balances are displayed. For detailed mode, the individual transaction details for each distribution are also shown. You can also see the age of the distribution on this report. The report is first grouped by accrual account, then by aging bucket and then by purchase order distribution ID. Aging bucket is calculated depending on user specified value of Aging Period Days while submitting the report. Transactions are grouped according to their age into aging buckets. See: AP and PO Accrual Reconciliation Report.
6. Run the Miscellaneous Accrual Reconciliation Report
This report shows all the miscellaneous AP (not matched to PO or PO receipts) and Oracle Inventory transactions hitting accrual accounts. The report is first grouped by accrual account, then by each accrual code that hits the specific accrual account and then by purchase order distribution id.
After you have researched the reported accrual balances, you can use the AP and PO Accrual Write-Offs window to indicate which AP and PO transactions you wish to write off and remove from the AP and PO Accrual Reconciliation Report. You can use the Miscellaneous Accrual Write-Offs window to indicate which miscellaneous AP (not matched to PO) and Oracle Inventory transactions you wish to write off and remove from the Miscellaneous Accrual Reconciliation Report.
Attention: To complete the procedure you would review your write-offs using the View Write-Off Transactions window and then submit the Accrual Write Off Report. If any transactions were written off, run Create Accounting to create accounting entries in SLA for the write-off transactions.
7. Open the Next Oracle Purchasing Period
Open the next purchasing period in the Control Purchasing Periods window.
8. Manually remove the Invoice price Variance amount from the A/P Accrual
Account using your general ledger (prior release IPV only).
9. Close your accounts payable period corresponding to the purchasing period
for your receipts accrual entries. See: Controlling the Status of AP
Accounting Periods, Oracle Payables User's Guide
10. Perform period-end accruals steps for purchasing and one-time items.
11. Close the period in Purchasing, (You do not need to reverse any journal
entry batch in the following period).
12. Close your Inventory Period after review.
13. Close your General Ledger period after review.
