Steps To Close Period in Oracle Payables

Controlling the Status of Payables Periods

Enter and account for transactions in open accounting periods. The period statuses available in Payables are Never Opened, Future, Open, Closed, and Permanently Closed. When you first define a period, Payables assigns a status of Never Opened to the period. Payable does not allow transaction processing in a period that has never been opened. After you change the status to Future or Open you cannot change it back to Never Opened.

Accounts payable periods are separate from your general ledger periods. For example, you can close your Q1 period in Payables before you close your Q1 period in General Ledger. For details on setting up general ledger periods.

To change the status of an accounting period

1. In the Control Payables Periods window update the Period Status to one of the following:

• Future: Payables allows invoice entry and accounting in a Future period. Payable does not allow payment entry or payment voiding in a Future period. Payables allows you to limit the number of Future periods based on the number you enter in the Future Periods field in the Financials Options window. After you change the status of a Future period to “Open”, you cannot change it back to Future.

• Open: You can record transactions and account for them in an Open period. You cannot open a period if it is an adjusting period. You define adjusting periods using the Define Calendar window. Adjusting periods can have overlapping dates.

• Closed: Payables does not allow transaction processing in a “Closed” period. You can reopen a “Closed” period if the corresponding general ledger and purchasing periods are also “Open”. You cannot close a period in which any of the following conditions exist:

• Outstanding payment batches.

• Future dated payments for which the Maturity Date is within the period but that still have a status of Issued.

• Unaccounted transactions.

• Accounted transactions that have not been transferred to general ledger.

• Permanently Closed: Payables does not allow transaction processing in a permanently closed period. You cannot reopen a Permanently Closed period.

2. Save your work.

Closing an Accounting Period

Close a Payables period after you have completed accounting for transactions for the period and you have transferred the accounting entries to general ledger.

You cannot close a period in Payables if any of the following conditions exist:

• Outstanding payment batches: Confirm or cancel all incomplete payment batches.

• Future dated payments for which the Maturity Date is within the period but that still have a status of Issued. Submit the Update Matured Future Payment Status Program.

• Unaccounted transactions: Submit the Create Accounting program to account for, or submit the Unaccounted Transaction Sweep to move any remaining unaccounted transactions from one period to another.

• Accounted transactions that have not been transferred to general ledger. Transfer accounting entries to General Ledger.

To complete the close process in Payables:

1. Validate all invoices.
2. Confirm or cancel all incomplete payment batches.
3. If you use future dated payments, submit the Update Matured Future Dated Payment Status Program. This will update the status of matured future dated to Negotiable so you can account for them.
4. Resolve all unaccounted transactions.

Submit the Create Accounting program to account for all unaccounted transactions.

Review the Unaccounted Transactions Report. Review any unaccounted transactions and correct data as necessary.

Then resubmit the Create Accounting program to account for transactions you corrected. Or move any unresolved accounting transaction exceptions to another period (optional).

5. Transfer invoices and payments to the General Ledger and resolve any problems you see on the output report.
6. In the Control Payables Periods window, close the period in Payables.
7. Reconcile Payables activity for the period.

• Accounts Payable Trial Balance Report (Current Period & Previous Period).

• Posted Invoice Register.

• Posted Payment Register.

8.  If you use Oracle Purchasing, accrue un-invoiced receipts.
9.  If you use Oracle Assets, run the Mass Additions Create Program transfer capital invoice line distributions from Oracle Payables to Oracle Assets.
10. Post journal entries to the general ledger and reconcile the trial balance to the General Ledger.

 CLOSE RESTRICTIONS:

COMBINED BASIS ACCOUNTING: If you use the combined basis accounting method, you must transfer invoices and payments to your accrual ledger and payments to your cash ledger before you can close an accounting period.