General Ledger & Intercompany

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    Kim Puls
    Year-End Close
    Topic posted February 12, 2018 by Kim PulsSilver Medal: 2,000+ Points, last edited January 30, 2019, tagged Allocations, Assets, Budgetary control, Cash Management, Expenses, Financials, General Ledger, Payables, Period Close / Reconciliation, Receivables, Reports, Subledger Accounting 
    794 Views, 9 Comments
    Year-End Close
    How is year-end close different from month-end close?

    Our institution is new to R12 (went live 7/1/17) which means we haven't done a year-end close yet. We've been told that year-end is similar to month-end. We know we'll have to build new calendars...but our functional leads are questioning how balances roll forward and what they look like in the new year. Is the carryforward a separate line or is it lumped into the new year funding? What happens with unaccounted/POs that need to roll forward? And to top that all off we are upgrading to R13 in the next 6wks.

    Thanks - Kim



    • Linda Wong

      Have you implemented Budgetary Control or Encumbrance Accounting?

      • Kim Puls

        Yes per our manager of accounting.

        • Linda Wong

          In General Ledger, when you open the first period of the new fiscal year, the system will automatically take the year-to-date balance of revenue and expense accounts from the prior year and adjust the beginning balance of the Retained Earnings account as appropriate.  When you have Budgetary Control and Encumbrance Accounting implemented, there are carry forward programs you can run to carry forward the open purchase orders to the new year.  Please see this Support Note for more information:  Customer RecommendedOracle ERP Cloud Budgetary Control Carry Forward Release 10, Release 11 and Release 13 (Doc ID 2208855.1)

          If you run the carry forward program in Release 13, the budget that is carried forward in Budgetary Control will appear in a separate line in the new Review Budget Entries screen (not available in R12).


          • Kim Puls

            Thanks Linda!

          • Bill Taylor

            Linda, given what is mentioned above and RE flowing into the new year properly is there any need to run the Closing Income Statement process? Or is this just to add support from an audit perspective on what the 'roll' entry would look like by account?

            • Linda Wong

              No, there is no need to run the Closing Income Statement process.  That process is available for those who want the audit trail, or for those countries which mandate a journal entry showing the closing entries.

    • Becky Alvarez

      I don't know if this will help but there is a white paper called ERP Cloud Period Close Procedures on that discusses Month End vs Year End that may offer some insight.


      • Sreenivasa Eedara

        Hi Becky,


        The link that you have provided is taking us to site but nothing else. Can you please provide the right pointer ??




    • Kevin Johnson

      Hi Kim,

      We also went live 7/1/17 and we experienced what Linda has explained. We had no issues with RE or Balance sheet.

      For PO's you are able to run a job in Scheduled Process to accrue for received not invoiced PO's. All other PO's for us simply remained open.