Payables & Cash Management

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    Lisa Poore
    "Soft Close" process in AP
    Topic posted February 7, 2019 by Lisa PooreBronze Medal: 1,250+ Points, tagged Financials, Payables, Period Close / Reconciliation 
    137 Views, 10 Comments
    Title:
    "Soft Close" process in AP
    Summary:
    Does anyone perform an AP soft close process that they can share?
    Content:

    Currently our disbursements department runs an AP soft close for both invoices and payments approximately 2 weeks before the actual end of the month.  This is done so that Corporate Accounting and the Allocations team have enough time to process allocations for external reporting purposes. 

     

    The process is very time consuming as they must run the “create accounting” process in draft mode for 4 ledgers in draft mode for invoices to determine any needed corrections.  They then run the same in Final mode.  They then do the same for the payments. Finally they run the Sweep process for 4 Business Units in a draft mode, make corrections and then run it in final mode for each BU.  We have discussed automating some of the process but the review of the errors is a large part and cannot be automated.

     

    Does anyone else perform a “soft close”?  If so, what steps do you do?  Are you able to automate any of this process?  Any information you can provide will be appreciated.

    Comment

     

    • Neelam Thakur

      Hi Lisa,

      Let me ask you this. Have you found any benefit in doing draft first and final?

      Not sure if this will help but we have scheduled Create Accounting to be run for AP for each of our ledgers every three hours. Also we never use Sweep except under extremely extenuating circumstances. You may also want to look at Accounting Automation, which was introduced in R13. It simplifies everything greatly. We haven't used it yet, but hope to in near future.

      Thanks,

      Neelam

      • Angelo Cretella

        Hi Neelam - Hope this message finds you well.  

         

        What is this "Accounting Automation" you mentioned?

        Thanks

        Angelo

        • Neelam Thakur

          Hi Angelo,

           

          Accounting Automation was introduced in R13. Here is an excerpt from the documentation:

           

          https://docs.oracle.com/en/cloud/saas/financials/19a/faigl/general-ledger-options.html#FAIGL2901914

          Accounting automation streamlines and automates end-to-end accounting and transaction processes, including daily rates import, accounting creation, journal import, and journal posting. Data flows through all of the required processing steps without user intervention. Users are notified of exceptions and provided with the information to help resolve them. Additional users can optionally be notified of errors generated during the transaction accounting process.

           

          Hope this helps!

          Neelam

      • Lisa Poore

        Thank you for your feedback.  What happens if there is an error in the process?  How are the necessary parties notified to make the corrections?  I'm assuming that once the corrections are made, they get picked up in the next run. 

        • Alan Rowland

          Lisa, the Subledger Period Close Exception Report will list any errors.

        • Neelam Thakur

          I believe that for Accounting automation, you can add individuals who will be notified in case of an error as well as those who will get the daily report.

    • Alan Rowland

      I've usually seen draft mode used during CRP/UAT and immediately after go-live until people trust the system.  Once it's been proved that everything is working satisfactorily then I don't see any value in running Draft mode except for new employees.  They won't be trained in Prod.

    • Mohan Gundepudi

      We too have scheduled the Create Accounting to be run for every 8 hours and it is yielding good results until now.

      It also helps to reduce heavy traffic during month end close.

       

      MG

    • Lisa Poore

      We have decided to run the Create Accounting process for invoices and payments on a regular basis through the "Scheduled Processes" tool.  We'll do it in final mode with the understanding that if there is an error, the entire run will error out, the report will be generated, the users can make the corrections and the records will automatically get picked up in the next scheduled run.  Assuming that is correct, my only question is does the report get "sent" to the users designated in the notification section?  Or do they simply get a notification and they must then go look it up in Scheduled Processes?  Thanks!