In this Document

APPLIES TO:

ABSTRACT

HISTORY

Author: Jean-Francois Guerrini, Yann Delaporte
Create Date: 15-NOV-2010
Update Date: 22-DEC-2010

DETAILS

1. Order Management (OM):

These operations have to been done for every Operating Unit within the Ledger to close.

 1.1 Complete the sales orders:

• Ensure that all sales orders and returns are entered and up-to-date.
• Proceed with holds.
• Respond to workflow approval notifications.

 1.2 Import Sales Orders:

If used, launch the Sales Order Import Interface.

 1.3 Pre-billing Acceptance:

If used, run the Generate Pre-billing Acceptance Program for Pre-billing.

 1.4 Complete the shipping transactions:

Ensure that all picking and ship confirm transactions are entered / processed. And
launch the Inventory Trip Stop Interface. 

 1.5 Prepare the link with AR:

Check that the Workflow background engine runs regularly. If it doesn not, launch it with User Item Type = OM order Line, Process Deferred = Yes, and Process Time Out = No.

If necessary launch the AutoInvoice program to send invoices toward Receivables.

Check that there are not errors in the AutoInvoice interface. 

2. Receivables (AR):

These operations have to been done for every Operating Unit within the Ledger to close.

 2.1 Complete all Receivables transactions for the period being closed:

• Launch invoices import interface.
• Complete all transactions for Oracle Receivables.
• Complete Acceptances.
• Complete Invoicing, Credits and Adjustments.
• Complete Receipts and Reversals.
• Complete Invoice and Customer Import.
• Run the Revenue Recognition Program (optional but required if using Order Management-Shipping)

 2.2 Create accounting:

Run the "Submit Accounting" program.

• The end date has to be at least greater or equal to the end period date.
• Use Final Mode, and Post In General Ledger if you want to post to GL in the same time.
• Run this program before closing the Ledger period. Since it is impossible to post on a closed GL period.

 2.3 Transfer to GL:

If the Submit Accounting program has been launched in Final Mode without transferring to GL, we need to run Transfer Journal Entries to GL program to transfer to GL.

 2.4 Receivables Period management:

Steps to be followed:

• Check that the period in all the Operating Units within the Ledger to close can be closed.
• Close the AR period.
• Open the next AR period.

3. Purchasing (PO):

These operations have to been done for every Operating Unit within the Ledger to close.

 3.1 Complete all transactions for Oracle Purchasing:

• Approve or reject pending documents and notifications.
• Complete Requisitions, Purchase Orders and Releases.
• Complete Receipts and Returns transactions.

 3.2 Create accounting for Payables:

Run the "Create Accounting" program.

• The end date has to be at least greater or equal to the end period date.
• Use Final Mode, and Post In General Ledger if you want to post to GL in the same time.
• Run this program before closing the Ledger period. Since it is impossible to post on a closed GL period.

 3.3 Transfer to GL:

If the Create Accounting program has been launched in Final Mode without transferring to GL, we need to run Transfer Journal Entries to GL program to transfer to GL.

 3.4 Purchasing Period management:

This operation is mandatory only if the Accrue Expense Items flag is set to Period End, on the Accrual tabbed region of the Purchasing Options at the operating unit level.

Close the old PO period and open the next one.

4. Transactions control:

All the tasks described in this chapter have to be done in every Inventory Organization belonging to the Ledger for which we want to close the period.
At first, retrieve all the inventory organizations which belong to the ledger. 
Refer to Note 732156.1 This diagnostic test assists with checking that a ledger period is ready to close.

 4.1 Enter all transactions in eBS:

We have to enter all the transactions for Inventory, WIP, OSFM and EAM. Make sure that all the transactions are entered and completed in eBS.

Make sure that there are not any pending cycle count requests.

Make sure that the Transaction Manager is active. Otherwise launch it.
It's even mandatory if the the transactions are imported or if the profile option TP:INV Transaction Processing Mode = Background processing.

If the move transactions are imported or if the profile option TP:WIP Move Transactions = Background processing, make sure that the Move transaction manager is active. Otherwise launch it. 

If Shop Floor Management is used, make sure that the Lot move transaction manager is active. Otherwise launch it. 

Make sure that the Cost Manager is active. Otherwise launch it. 

 4.2 Check the pending or in error transactions:

Use the Inventory Accounting Period form to track the pending or in errored transactions. Select the period and use the Pending button. The form shows by type of transactions, the number of transactions we have to check and if their resolution is required or only recommended to proceed. This operation has to be done in every inventory organization.

For this, the Note 1069492.1 Resolving Period Close Pending Transaction R12 provides a very useful guide on the treatment of pending or in error transactions.

Resolution Required:

o Unprocessed Material,
o Uncosted Material/WSM,
o Pending WIP Costing,
o Pending WSM interface,
o Pending LCM interface,
o Unprocessed Shipping Transactions (Required by default).

Resolution Recommended:

o Pending Receiving,
o Pending Material,
o Pending Shop Floor Move.

Main tables used for the material transactions process:




All the inventory transactions of the accounting period need to be entered or imported into the MTL_MATERIAL_TRANSACTIONS table . Then all the records in this table have to be costed before proceeding the period close.

In the MTL_MATERIAL_TRANSACTIONS table not costed or in error records have the value "N" or "E" in the column COST_FLAG. For every record in the MTL_MATERIAL_TRANSACTIONS table we need to have the value Null in the column COST_FLAG and records in MTL_TRANSACTION_ACCOUNTS table.

Main tables used for the work in process transactions:

 4.3 Unprocessed Material (resolution required):

Unprocessed material transactions records are found in the MTL_MATERIAL_TRANSACTIONS_TEMP table. An inventory period can not be closed if these records are not completed, their resolution is mandatory. 
The details of the transactions (with or without errors meaning) can be checked and resubmitted through the Pending Transactions form. That can also be done with SQL. 

 4.4 Uncosted material transactions (resolution required):

Uncosted or in error material transactions records are found in the MTL_MATERIAL_TRANSACTIONS table (value "N" or "E" in the column COST_FLAG). Closing the period in this situation is not allowed because all the inventory transactions have to be costed in the accounting period corresponding to their transaction's date. 
The details of transactions and related error(s) can be viewed and resubmitted through the Material Transactions form. That can also be done with SQL. 

 4.5 Pending LCM Interface Transactions (resolution required):

To resolve pending Landed Cost Management (LCM) transactions we need to determine and fix what is preventing a record from being processed through the CST_LC_ADJ_INTERFACE table.
The details of transactions can be viewed and resubmitted through the Pending Landed Cost Adjustment form 

4.6 Pending WIP Costing transactions (resolution required):

Unprocessed resources transactions are present in the WIP_COST_TXN_INTERFACE table. These records may be in error or not costed, but they all need to be processed to be able to close the period. These transactions can be viewed and resubmitted with the Pending Resource Transactions form. That can also be done with SQL. 

 4.7 Pending WSM interface (resolution required):

In Shop Floor Management the WSM_SPLIT_MERGE_TXN_INTERFACE table is used for lots merges and lots splits. Unprocessed or errored records in this table need to be fixed to be able to close the period. The errors have to be corrected before to resubmit the Import Wip Lot Transactions processor.

It will automatically pick up all the erred and pending transactions.

Transactions that erred out while running the "Import WIP Lot Transactions" are found within the WSM_INTERFACE_ERRORS table. 
These erred transactions need to be re-submitted by a technical person at this time : refer to Doc ID 801794.1 - Manufacturing Transaction Diagnostics - FUNCTIONAL USER SQL INVESTIGATION and REPAIR.

  4.8 Unprocessed Shipping Transactions (by default, resolution required):

It indicates the Shipping Delivery Details of Sales Order Lines being in Shipped status but not yet interfaced in the WSH_DELIVERY_DETAILS table. 
These delivery detail records are not yet interfaced with Order Management and/or Inventory, the main impact is that the corresponding sales order issue did not happen, i.e the stock has not been decreased yet.

To solve this issue, open the Shipping Transactions form, choose the option delivery lines and do a query with the line status Shipped. Note the Trip Stop number under the Path by Stop Tab. 

For every trip stop number we found, we have to run the Interface Trip Stop SRS which does include the Order Management Interface-SRS first then the Inventory Interface-SRS, or these two concurrent requests in sequence.

 4.9 Pending material transactions for this period (resolution recommended):

It indicates we have unprocessed or in error material transaction(s) in the MTL_TRANSACTIONS_INTERFACE table. The Inventory accounting period can be closed even if these records are not processed, but these transactions will never be costed in the future because they have a transaction date within a closed period. 
These transactions can be viewed and resubmitted with the Transaction Open Interface form. That can also be done with SQL. 

 4.10 Pending Shop Floor Move (resolution recommended):

Unprocessed or in error move transactions are found in the WIP_MOVE_TXN_INTERFACE table. 
These transactions can be viewed and resubmitted with the Pending Move Transactions form form. That can also be done with SQL. 

 4.11 Pending Receiving Transactions (resolution recommended):

Unprocessed or in error receiving transactions in the RCV_TRANSACTIONS_INTERFACE table. 
These transactions can be viewed and resubmitted with the Transaction Status Summary form. That can also be done with SQL. 

 4.12 Project Manufacturing - Cost Collector:

This step is required is Project Manufacturing is used and if the inventory organization is enabled for projects. Its goal is to collect all the manufacturing costs related to a project and to transfer them to the different projects. 

That can be done from Project Manufacturing or from the Costing responsibility. The Cost Collection Manager populates the Transaction Import Interface Table of Oracle Projects.

Import Manufacturing costs in Projects 

5. Cost Management:

This step is done at the Ledger level.

 5.1 Cost Of Goods Sold:

If Order Management is used, the accounting entry for deferred COGS and COGS must be generated for the Ledger. These operations have to been done only at the Ledger level.

Note: The end date has to be greater or equal to the period end date.

 5.2 Create accounting:

Run the "Create Accounting-Cost Management" program.

• The end date has to be at least greater or equal to the end period date.
• Use Final Mode, and Post In General Ledger if you want to post to GL in the same time.
• Run this program before closing the Ledger period. Since it is impossible to post on a closed GL period.

 5.3 Transfer to GL:

If the Create Accounting-Cost Management program has been launched in Final Mode without transferring to GL, we need to run the "Transfer Journal Entries to GL - Cost Management" program to transfer to GL.

6. Inventory Open / Close period:

Summarization:
In 11.5.10, some enhancements have been done in the summarization process. Please refer to the
Note 331074.1: 11.5.10 Period Close Enhancements.
The result is that only CST_PERIOD_CLOSE_SUMMARY table stores all the summarized data. In this table information is provided by sub-inventory and cost group. 

The profile option CST: Period Summary does manage the following two options:

• Automatic: the close period process does the summarization and closes the period with the status Closed and the button Value at close is available
• Manual; the close period process does not the summarization and closes the period with the status Closed not summarized and the button Value at close is not available We need to run the Period Close Reconciliation Report to do the summarization and pass the period at the status Closed.

Please notice that the summarization is not mandatory.

 6.1 Open the next period:

We have to open the next Inventory period in every Inventory Organization.

• Select the period you want to open (status of Future),
• Choose the Change Status button,
• Choose the OK button to open the period.

It is recommended to have only one period opened at the same time to avoid back dated transactions which can have a bad effect on average costing and reconciliation.
But it is possible at the beginning of month to have two periods open in the same time. Allowing inventory Transactions in the past is controlled by the profile option INV: Transaction Date Validation. Possible values are:

• Do not allow date in past period,
• Provide warning when date in past period,
• Allow date in any open period.

 6.2 Close the period:

To be able to close a period, it can not have pending or in error transactions for which the resolution is required. An Inventory period needs to be closed in every Inventory Organization. The operations to close an Inventory period are:

• Select the period you want to close.
• Choose Pending, if you want to be sure if all the transactions were proceeded.
• Choose the status Closed (irreversible).
• Choose the OK button to open the period.

 6.3 Open or Close several periods in the same time:

If the Ledger encloses a big number of Inventory Organizations, it can be convenient to open or to close them in the same operation. For this, it is possible to create a hierarchy of Organizations which groups all the Inventory Organizations which have to be open or close in the same time.

To open periods within a hierarchy of Organizations, launch the report Open Period Control, then choose a hierarchy and the number of periods to open (generally only one).

To close periods within a hierarchy of Organizations, launch the report Close Period Control, then choose a hierarchy and the period to close. 
Close if resolution recommended

SUMMARY

The manufacturing period closure process enforces the different transactions of Discrete Organizations to be all entered, validated and completed in a timely manner, all the costing to happen but also to properly close the process manufacturing periods if Process Manufacturing is used.

REFERENCES