1. It’s month end, now comes the reconciliation crunch! Richard Byrom Oracle Applications Consultant http://www.richardbyrom.com

2. Agenda Presentation assumptions and objectives Why and how should we reconcile Setup issues Close procedures for each module, reconciliation results & two way drill down Additional Tips Conclusion Questions and Answers

3. Objectives This presentation emphasizes the importance of on a regular basis so as to ensure improved control over financial information To discuss different setup issues and that may impact your ability to reconcile. To outline the month end close process for each module and give practical examples of expected reconciliation results.

4. Objectives Manufacturing subledgers Financial subledgers Oracle General Ledger Payroll &Human Resources

5. Objectives

6. What should be reconciled? Control Accounts Inter Modular Movement Intercompany Accounts

7. What happens if we don’t reconcile properly? Potential data corruption not detected Sub modules may not be posted to the GL Multiple months may remain open for a variety of modules Repetitive errors may not be detected Posting of non standard journals to control accounts Open item system carries forward problems to next year.

8. 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. How should we reconcile? Establish your out of system procedures Ensure that all the standard functionality provided by the system is understood and used Make use of additional tools is necessary

10. Setup Issues – General Ledger Sequential numbering of documentation should be taken into consideration. Chart of accounts should be appropriately designed and have an appropriate groupings and sub grouping by using parent and child relationships. Document types and sub types need to be looked at

11. 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 that facilitates understanding of the various listings

12. Setup Issues – Sub Ledgers Transactional Data –Ensure that appropriate transaction types are created –Control A/C’s should appropriate filter the information through to General Ledger –Autoaccounting –Need to look at document numbering

13. Month end close steps 1.Pre-posting activities 2.Posting to supporting systems 3.Run verification Reports 4.Reconcile against interfacing systems 5.Close periods 6.Problem Solution 7.Two way drill

14. 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. Receivables Steps – GL Posting Posting to GL (AR) Interfaces > General Ledger

16. 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. Receivables Steps – Reconciliation Results

19. Reconciliation Problems If AR does not reconcile to the general ledger –Check that the reports have been run for the correct date/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 accounts in GL, not generated by AR. –Check for Invoices raised against the AR Control account

20. Receivables two way drill - Invoices

21. Receivables two way drill – Invoice Status

22. Receivables two way drill – Invoice Accounting

23. Receivables two way drill – Cash Receipts

24. Receivables two way drill

25. Receivables two way drill – Receipt History

26. Receivables two way drill-Miscellaneous Receipts

28. Receivables two way drill- GL to Invoice

29. Receivables two way drill – Drilldown effect

30. Payables Steps Pre-posting activities –Enter Employee Expense Reports –Enter Invoices –Run Invoices on Hold Report –Run Payables Approval –Check for Unapproved Invoices

31. Payables Steps – Transferring to GL Payables Steps – Create mass additions

32. 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. Payables Steps – Reconciliation Results Reconciliation can also be achieved using Tutor Business Form FOR0672

34. Reconciliation Problems If AP does not reconcile to GL –Check that the reports have been run for the correct 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 control account, not generated by Accounts Payable. –Check for Payments/Invoice Distributions made against the AP control account.

35. Payables two way drill – query an invoice

36. Payables two way drill – view accounting

37. 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. Fixed Assets Steps – GL Posting Run Journal Entries

39. Fixed Assets Steps – Reports & Period Close Verification Reports –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. Fixed Assets Results Alternative reconciliation using FOR0674 Tutor Business Form Printing of Reconciliation Report

41. 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. Cash Management Steps Post to GL –Ensure payables and receivables posting has taken place Verification Reports –Cash In Transit Report –Cleared Transactions Report –General Ledger Reconciliation –Transactions available for Reconciliation

43. Cash Management Results Check Receipts against Receivables Reports, Cash Account per GL and Cash Management Reports Check Payments against Payables Reports, Cash Account in GL and Cash Management Reports

44. Cash Management two way drill – Account Inquiry

45. Cash Management two way drill – Drilldown effect

46. 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

47. General Ledger Results Verification Reports –Journal Entry Report –Account analysis Report –Account Analysis – Sub Ledger Detail Report –Trial Balance – Detail Report –Run Financial Statement Generator – FSG’s Close Periods

48. Additional Tips – File Export To export the results of an online inquiry or onscreen view choose File > Export from the menu Save the file generated to your desired location Open the file from Microsoft Excel. Ensure that from the open dialogue box in Excel you specify files of type all *.* When the text import utility appears choose finish, you can now sort the file according to your personal requirements

49. Additional tips Cont.d – Tools>Copy File Use Tools > Copy file from the menu when you are in a report Save the file in web or text format to your desired location – preferably use text Import the file into Excel using the text import wizard as displayed – use the report column headers as your fixed width delimiters.

50. Additional tips cont.d - Tutor Use Oracle Tutor Business forms to give you reconciliation templates.

51. Conclusion Reconciliations are important in order to identify problem areas and rectify them on a timely basis. Procedures should be put in place to facilitate reconciliation as well as ensure that the organisation is making use of all possible tools. Setups have a significant impact on the ease of reconciliation.

52. A Q &

53. Speaker Information Name : Richard Byrom e-mail :richard@rpcdata.comrichard@rpcdata.com richard@richardbyrom.com Company : RPC Data Ltd Web Site: http://www.rpcdata.comhttp://www.rpcdata.com http://www.richardbyrom.com