Blog | Jul 23, 2013

R12 Subledger Accounting - Smoother Financial Close

The SLA advantage:
Successfully running a global business requires addressing incongruous requirements, a challenge in itself. With time as the business grows the accounting needs of an organization increase manifold and become more complex in nature. Accounting operations have important objectives including evolving global accounting standards, new internal control legislation, a robust reporting system and meeting analytical requirements.

Oracle Subledger Accounting addresses these diverse requirements with a comprehensive solution - offering unmatched visibility into enterprise-wide accounting information with a single, global accounting repository. It enables us to:
• Lower costs with streamlined accounting processes
• Meet diverse global accounting requirements and maintain internal controls
• Access better information and provide better reporting

Period-End Close Dependencies:
Before we start the period-end process, we should know the dependencies between the various modules from period end close perspective. For instance, we have to close Oracle Payables before we close Oracle Inventory and Oracle Assets. We close Oracle Payables before we close Oracle Purchasing to account for purchasing accruals at period end. We have to close Oracle Cash Management before we close Oracle receivables, as bank reconciliation in cash management will create miscellaneous receipts in Oracle receivables and so forth. Finally, we close all the subledgers before we close the General Ledger.

 

 

 

 

 

 

 

 

 

 


 

Streamlined period-close process:
From an accounting operations perspective, closing the books at period end is always a high priority. However, accounting errors such as entries recorded to the wrong account, last-minute adjustments and reconciliation issues are common that slows down the process. Oracle SLA offers a wide variety of features to help expedite this process:
• Accurate Accounting
• Online Accounting
• Preview Accounting
• Streamlined Comprehensive Accounting

When we close a period in Release 12, we’re actually closing subledger accounting. The journals can then be posted to the general ledger to update the general ledger (GL) balances.


 

 

 

 

 

 

 

 

 

 


In almost all modules the period end process consists of 5-6 major activities as listed below:
• Completing Transactions
• Creating Accounting
• Reconcile Transactions
• Post to General Ledger
• Reconcile Accounting
• Close Period

To know how we have put an applications monitoring process in place that helps to identify the hidden period-end problems and allows us to be proactive in resolving them before the customer sees them, visit our following blog article:

http://www.tricoresolutions.com/resources/blog/applications-monitoring-creating-a-smoother-financial-close