3.

Closing period in GL

Before starting the discussion about period end closing in GL, You must understand the concept of Primary Ledger. Primary Ledger: A primary ledger is defined as a ledger where all your day-to-day transactions are performed or it can be regarded as a main and record keeping ledger. It is defined by four Cs: a. Chart of Accounts (COA): Chart of Accounts structure is defined based on business, reporting and statutory requirements. b. Accounting Calendar: Accounting Calendar defines an accounting year and the period it contains. c. Currency: Functional currency as well as other currencies can be selected that is used to transact business. d. Convention (Sub-ledger Accounting Method): Convention means accounting method which allows you to assign and manage specific accounting method for each ledger. Before closing the period in Oracle General Ledger, there is a list of activities which needs to be done. The list of activities is listed below: Ensure Next Period is Future Enterable or Open: Ensure the next accounting period status is set to Future Entry. In R12, Import journals to SLA (Sub Ledger Accounting) and then to GL and in 11i directly import to General Ledger. The procedure of importing journals to SLA or directly to GL is as follows: 1.) Upload journals from Web ADI (Application Desktop Integrator) to Oracle GL. 2.) Generate reversal journals. 3.) Generate recurring journals. 4.) Generate mass allocation journals.

5.) Review and verify journal details of un-posted journals. Post journal batches. Run and review journals reports. Run Revaluation : It adjusts asset or liability accounts that may be materially understated or overstated at the end of a period due to a significant fluctuation in the exchange rate between the time the transaction was entered and the end of the period Run Translation: 1) It restates an entire ledgers or balances from functional currency to foreign currency. 2) Translate actual and budget balances from functional to foreign currency for online inquiries, reports and consolidations. Consolidate Ledgers: Consolidation means merging the financial data of all subsidiary ledgers in one parent ledger (ledger is a replacement for sob in R12 with some additional features). It can also be defined as a period-end process of combining the financial results of separate subsidiaries with the parent organization to form a single, combined statement of financial results. Below are the following steps involved for consolidation: 1) Create subsidiary ledgers for all the countries where we operate our business in all currencies. 2) Create parent ledger with reporting currency of organization. 3) Translate all ledger balances to reporting currency. 4) Transfer all the balances from subsidiary ledgers to parent ledger with the help of mapping rules. Mapping rules are of two types: A. Segment Rule: These are used when the Chart of Accounts of subsidiary and parent set of books are same. B. Account Rules: These are used when the Chart of Accounts of subsidiary and parent set of books are different.

 Run Final Reports .Some of the reports are listed below: 1) Audit Trail Report: Provides a complete, detailed listing of the transactions that have taken place in each account for a specified time period. 2) Trial Balance Report: Provides a quick check of the balances in each account and verifies that debits equal credits. 3) Balance Sheet Report: Provides current data on the financial condition of the company. Accumulations to asset, liability, and equity accounts are included in this report. 4) Income Statement Report: Shows the relationship between the revenue generated and the expenses paid for a specified range of periods. 5) Revenue and Expense Report (FUND): Shows the relationship between the revenue generated and the expenses paid for a specified range of periods.