Invenotry Period End Close Process

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Period End Processing for Inventory Organizations

Prepared By: Babasaheb Raut

Oracle Applications Functional Consultant- SCM & Mfg (Discrete & Process)

Oracle Inventory Accounting Period Close Process:-

Oracle provides Inventory Accounting Close for individual organization. The inventory

accounting period closure is explained in detail as follows-

Important:

Once the inventory accounting period is closed, it is Irreversible. So before closing the

inventory period, user has to ensure that all the transactions have been completed successfully. There

should not be any pending transactions as well as uncosted material transactions in inventory

material transaction interface.

Mandatory Steps:

1) Complete all the transactions for the period being closed.2) Check Oracle Inventory Transaction Interfaces3) Review Inventory Transactions4) Balance the perpetual inventory5) Transfer Summary or Detailed Transaction to GL6) Close the Inventory Period

1) Complete all the transactions for the period being closed:-Ensure that all material issue notes, purchase order receipts, and adjustments have been entered and

verify that no hard copy record exists or awaiting data entry into oracle system.

2) Check Oracle Inventory Transaction Interface:-Navigation: - Oracle Inventory Responsibility > Transactions > Transaction Open Interface


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Double click on Transaction Open InterfaceQuery screen for the Transaction Open Interface will be populated.


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Click on FIND button


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In the above screen user will be able to see the transactions which are errored out or which areun-processed.

Scroll to right.


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These transactions may have a specific reason for not being processed. User can check at thelast in the ERROR TAB


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Go to LOCATION tab-And check out the transaction details for which location it came-


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Inform the concern organization/department and process the transactions. If already processedthen DELETE the errored/unprocessed transactions from interface table.

2.1) Pending Material Transactions/Uncosted Material Transactions:-

Navigation: - Oracle Inventory > Accounting Close Cycle > Inventory Accounting Periods


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Double click on Inventory Accounting PeriodS


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We are checking for the ORGANIZATION- WJ1 (System will show all the pending transactionswhich are related to WJ1. If user wants to check the pending transactions for any another

organizations, user has to switch the organization through Change Organization

Click on PENDING button-

Check all the arrow marked fields. There should not be any number of transactions. It should bezero.

PENDING RECEIVING field is showing- 39 transactions.


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As in the above screen we are seeing 39 pending transactions, ask concernedorganization/department to process/review these transactions.

To see the Pending Transactions MOVE THE CURSOR in Pending Receiving field,

User will be able to see the OPEN button will get highlighted.

Click on OPEN button


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Review/process these transactions. Re-query the same form and review all the fields- It must be zero before proceeding to next

step.


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3) Review Inventory Transactions:-In this step review all the transactions for the period which you are going to close that have a

HIGH DOLLAR / SAUDI RIYAL VALUE or a HIGH TRANSACTION QUANTITY. Verify that correct

accounts have been charged. Correcting incorrect account charges before closing the period is

easier than writing manual journal entries to resolve them later.

User can take a distribution account summary/details report and review the same.

4) Balance the perpetual inventory:-The following reports can be run to help with these reviews-

Inventory Value ReportsUse the Inventory Value Report to show quantity, valuation, and detailed item information for

the sub-inventories specified.

Period Close Value Summary ReportUse the Period Close Value Summary to see summary balances for sub-inventories. If you run

this report for a closed accounting period, the report displays the sub-inventory values at the

end of that period. If you run the report for an open period, the report displays the sub-

inventory value at the point in time you run the report. You can see more sub-inventory balance

detail by running the Inventory Value Report, or the Elemental Inventory Value Report.

Material Account Distribution Detail ReportUse the Material Account Distribution Detail Report to view the accounts charged for inventory

transactions. Review inventory transaction values transferred to the general ledger by GL batch.

Material Account Distribution Summary ReportUse the Material Account Distribution Summary report to review inventory accounting activity.

If you detect unusual accounts or amounts, use the Material Account Distribution Detail report

to print the transaction in detail.

Use the Material Account Distribution Summary Report to verify inventory account activity

against inventory valuation increases or decreases for the accounting period. Finally, use this

report to reconcile an account across several periods


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5) Transfer Summary or Detail Transactions :-5.1) Create Accounting:-

Navigate: - Oracle Cost Management- SLA Responsibility > Change Organization

Click on CHANGEORGANIZATION


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Select the Organization for which user wants to run Create AccountingNavigate to : REQUEST


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Submit a New Request-


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Click on OK

Select Create Accounting-Cost Management-SLA responsibility Click on OK button.


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Select the parameters-Ledger- Unitrans Primary Ledger

Process Category-

End Date- Till which date user wants to run

Errors Only- No

Mode-

Final- If user wants to create journal entries

Draft-

Report- Detail

Transfer to GL-

YES-

NO-

Post in GL-

YES-

NO-

Include User Transaction Identifiers- NO


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Click on OK button


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Submit it.


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Note down the concurrent request number. Find the request, request should completes with the statusNormal


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Take the reports to review.

Since a period, once closed, cannot be reopened, running this process prior to closing the

period facilitates proofing of the interfaces transactions and any adjustments to the period

can be made via new inventory transactions as required.

Attention: Create accounting Process must be run for each Inventory Organization.

Attention: A closed period cannot be re-opened in any case.

View the General Ledger Transfer History to ensure that all transactions have been successfully

transferred to the General Ledger. Navigate to the General Ledger Transfer window and search

for all transfers with a status of Error.

6) Close the Inventory Period:-Navigate:- Oracle Inventory Responsibility > Accounting Close Cycle > Inventory Accounting

Periods


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Open the form Inventory Accounting Periods


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Select the organization for which user wants to close the period, click on OK button.


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Select the CORRECT PERIOD which user wants to close.

Click on the button Change Status

Select the radio buttonClosed (Irreversible)


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Press OK button.Once user press OK button system will pop up a warning message as below-

(Once user press OK button, system will CLOSE the selected inventory period & which is aIrreversible)

Press OK buttonSystem will submit a concurrent request.

View Find the request-


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Go to the Inventory Accounting Periods window-System will show the status of the period- CLOSED


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This ends the Inventory period end process.

Likewise user has to follow the process for every inventory organization.

Invenotry Period End Close Process

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