PUR, InV Reconciliation With GL

PURCHASING AND INVENTORY RECONCILIATION WITH GL
What is Reconciliation?
An accounting process used to compare two sets of records to ensure the figures are in
agreement and are accurate. Oracle E-Business suite, provides following set of reports to reconcile
transactions of Purchasing, Inventory with General Ledger.
LIST OF RECONCILIATION REPORTS FOR PURCHASING AND INVENTORY

1. PURCHASING
1.1. Run Create Accounting Receiving
1.2. Run create Accounting Cost Management
1.3. Run Accrual Reconciliation Load Run Program
1.4. Run un-invoiced receipt Report
1.5. Run overshipment Report
1.6. Run Summary Accrual Reconciliation Report
1.7. Run PO and AP Accrual Reconciliation Report
1.8. Run Miscellaneous Accrual Reconciliation Report
1.9. Run Account Analysis Report form GL
2. INVENTORY
2.1. Run Create Accounting Receiving
2.2. Run create Accounting Cost Management
2.3. Run Material Transaction Distribution summary/Detail Report
2.4. Run Account Analysis Report from GL.
Document Prepared by: Rashita Pitafi

Date: 20- MAR-2014
Page 1

RECONCILIATION OF PURCHASING SUBLEDGER WITH GENERAL LEDGER:
Ensure all Receiving transactions for the current period are completed and the Create
Accounting -Receiving with Transfer to GL and Post to GL completed.
Ensure all AP Transactions for the current Period are completed and that Create Accounting
from Invoicing with Transfer to GL and Post to GL complete.
o
o
Run Create Accounting Receiving

Run create Accounting Cost Management
For Expense AP Accrual Account:

Step # 1: Use the Select Accrual Accounts window to verify or define all the accrual accounts
to be used when loading accrual data.
Select Accrual accounts (AP Inventory Accrual Account and Expense Accrual Account)
for all the operating units (SOUTH, NORTH and CENTRAL).
Navigation: Purchasing Super user > Accounting > Accrual Write Offs > Set Accrual
Accounts:
Note: AP inventory accrual account from organization parameters of organizations:

Inventory Responsibility > Organization Parameters
Date: 20- MAR-2014
Page 2
And Expense AP Accrual Account from Purchasing Responsibility > Purchasing Options
Step # 2: Run Accrual Reconciliation Load Run Program.
Run this program for all Operating units.

If it is first time reconciliation then do not enter from date, only enter TO date.

Date: 20- MAR-2014
Page 3
Step # 3: Run un-invoiced receipt Report:
This report shows all receipts that are yet to be invoiced.

Date: 20- MAR-2014
Page 4
It means there are no uninvoiced receipts to process.

Step # 4: Run overshipment Report
This report shows differences in purchase order and receipts quantity.

Date: 20- MAR-2014
Page 5
Step # 5: Run Summary Accrual Reconciliation Report
This Report is used to analyze the balance of the Accounts Payable (AP) accrual accounts. You
can accrue both expense and inventory purchases as you receive them.

Date: 20- MAR-2014
Page 6

Step # 6: Run PO and AP Accrual Reconciliation Report
The purpose of this report is to show all Oracle Payables (AP) and Oracle Purchasing (PO)
transactions where the AP transactions are matched to PO (could be receipt as well).
Step # 7: Run Miscellaneous Accrual Reconciliation Report
The purpose of this report is to show all inventory and AP (not matched to PO) transactions
that have hit the accrual accounts. This report is run in conjunction with the Summary Accrual
Reconciliation Report as part of your period end accrual reconciliation process.

Date: 20- MAR-2014
Page 7

Date: 20- MAR-2014
Page 8

Step # 8: Run Account Analysis Report from GL / View Journal Balances from Inquiry Accounts
window:
As you can see that Total Balance of Expense AP Accrual Account is equal in Subledger (view summary
Report) and General Ledger (Account Analysis Report)

Date: 20- MAR-2014
Page 9
For Inventory AP Accrual Account:
Repeat all the steps from 1 to 8 and set AP inventory Accrual account in Set accrual account form.
Total Balance of General Ledger for a period = sum of total balance of Inventory AP Accrual Account
defined in all organizations.

Date: 20- MAR-2014
Page 10

GL ACCOUNT BALANCE
-6170
=
=

Date: 20- MAR-2014
SBL_SOUTH_OU + SBL_NORTH_OU +SBL_CENTRAL_OU

(-200) + ( 5970)
Page 11

RECONCILING INVENTORY TRANSACTIONS WITH GL
Period Navigation Inventory Responsibility > Accounting Close Cycle > Inventory Accounting Periods
In reconciliation of inventory, compare material distribution report with account analysis report of GL.
Select Period and Enter Pending Button to unprocessed, un-costed and remaining shipping transactions
in inventory.
There are no material transactions in Inventory are available in Jan-14 period therefore, Material
transactions in period Feb-14 will be used for the inventory portion of this document.
2.1
2.2
Run Create Accounting Receiving

Run create Accounting Cost Management
Material Transaction Distribution Form:
Positive value shows Debit in account

Negative value shows Credit in account

Date: 20- MAR-2014
Page 12
Make sure Cost manager is active
OR
2.3 Run Material Transaction Distribution Summary Report:
The sum of net activity of all regions must be equal to the GL balance for the account
According to the reports given below:
For SOUTH REGION:
Net Activity (Debit Credit)
=
15226.47
For NORTH REGION:
=
230
For CENTRAL REGION:
=
800
Total:
=
16256.47

Date: 20- MAR-2014
Page 13

Date: 20- MAR-2014
Page 14
2.4 Run Account Analysis Report from GL/ Open Account inquiry window:
Responsibility > General Ledger > Inquiry > Accounts
GL Total =
17006.47

Date: 20- MAR-2014
Page 15

Date: 20- MAR-2014
Page 16

PUR, InV Reconciliation With GL

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PURCHASING AND INVENTORY RECONCILIATION WITH GL

LIST OF RECONCILIATION REPORTS FOR PURCHASING AND INVENTORY

Document Prepared by: Rashita Pitafi

PURCHASING AND INVENTORY RECONCILIATION WITH GL

Run Create Accounting Receiving

For Expense AP Accrual Account:

to be used when loading accrual data.

Note: AP inventory accrual account from organization parameters of organizations:

PURCHASING AND INVENTORY RECONCILIATION WITH GL

Step # 2: Run Accrual Reconciliation Load Run Program.

Run this program for all Operating units.

Document Prepared by: Rashita Pitafi

PURCHASING AND INVENTORY RECONCILIATION WITH GL

Step # 3: Run un-invoiced receipt Report:

This report shows all receipts that are yet to be invoiced.

Document Prepared by: Rashita Pitafi

PURCHASING AND INVENTORY RECONCILIATION WITH GL

It means there are no uninvoiced receipts to process.

This report shows differences in purchase order and receipts quantity.

Document Prepared by: Rashita Pitafi

PURCHASING AND INVENTORY RECONCILIATION WITH GL

Step # 5: Run Summary Accrual Reconciliation Report

Document Prepared by: Rashita Pitafi

PURCHASING AND INVENTORY RECONCILIATION WITH GL

Step # 7: Run Miscellaneous Accrual Reconciliation Report

Document Prepared by: Rashita Pitafi

PURCHASING AND INVENTORY RECONCILIATION WITH GL

Document Prepared by: Rashita Pitafi

PURCHASING AND INVENTORY RECONCILIATION WITH GL

Document Prepared by: Rashita Pitafi

PURCHASING AND INVENTORY RECONCILIATION WITH GL

For Inventory AP Accrual Account:

Document Prepared by: Rashita Pitafi

PURCHASING AND INVENTORY RECONCILIATION WITH GL

Document Prepared by: Rashita Pitafi

SBL_SOUTH_OU + SBL_NORTH_OU +SBL_CENTRAL_OU

PURCHASING AND INVENTORY RECONCILIATION WITH GL

Run Create Accounting Receiving

Material Transaction Distribution Form:

Positive value shows Debit in account

Document Prepared by: Rashita Pitafi

PURCHASING AND INVENTORY RECONCILIATION WITH GL

Make sure Cost manager is active

Document Prepared by: Rashita Pitafi

PURCHASING AND INVENTORY RECONCILIATION WITH GL

Document Prepared by: Rashita Pitafi

PURCHASING AND INVENTORY RECONCILIATION WITH GL

Document Prepared by: Rashita Pitafi

PURCHASING AND INVENTORY RECONCILIATION WITH GL

Document Prepared by: Rashita Pitafi

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