Payables & Cash Management

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Topic

    Vikash Sethi
    Multi-Period Accounting
    Topic posted August 12, 2019 by Vikash SethiSilver Medal: 2,000+ Points 
    64 Views, 8 Comments
    Title:
    Multi-Period Accounting
    Summary:
    Prepaid Automation through Multi-Period Accounting
    Content:

    Currently the business is doing Prepaid Expense Journal creation and reconciliation in excel and then upload GL Journals. through ADFDi. But now we are planning to use Multi-Period Accounting in Payables module. Question is about 500 lines of existing prepaids (In-Flight)- prepaids) which is available in excel whose period range from 3 months to next 4 years, how to convert them to Oracle.

    There are few options we thought:-

    1. Create Recurring Journals in GL for these existing prepaids

    2. Create a dummy invoice in AP and make dummy payment and then Multi-period accounting will generate from Payables itself.

    3. Use Account Reconciliation Cloud Service (Not sure if it can help us or not??)

    If you have any experience working on it, please share you experience or thoughts

    Thanks,

    Vikash

    Comment

     

    • Praveen T

      Hi Vikash,

      Please find enclosed my  complete solution approach. Please do let me know your thoughts.

      Let us assume that you have a prepaid expenses balance of 1,00,000 ( multiple lines ) in GL.

      Action Points

      Craete a '0' amount invoice in AP

      • Line 1 Dr  Expenses ( Each line to capture accural account and start date & end date)
      • Line 2 Dr Expenses
      • ----
      • ------
      • Line 501 Cr Prepaid Expenses

      Net entry of the above invoice

      • Dr Prepaid expenses ( multiple lines)      1,00,000
      • Cr Prepaid Expenes ( Negative line .This will nullify the balance in GL) 1,00,000
      • Cr Vendor Liability  -0

      You make the zero payment of this invoice so that invoice is closed.

      System is going to generate mutiperiod entries based on the start dates and end dates captured in AP line.

      Regards

      Praveen

       

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      • Thomas Paul

        Hi Praveen,

        This is a great workaround. Have you used this?

        I will try this out.

        Thanks.

        Thomas

        • Praveen T
          Hi Thomas, I have not used it. I have just put in my thought process on this requirement. Regards, Praveen
    • Lori Culp

      HI Vikash,

      I don't think RJE's are available in cloud yet, like EBS had.   We're going to have the same issue, so thanks for raising this.

      Lori

    • Sridhar Tumati

      Hi Vikash,

      Create the formula allocation and run Generate general ledger Allocations.

      Regards,

      Sridhar