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R12 Period Closing Process
Knowledge Resource
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2/28/2014
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Guhanadh Padarthy
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Contents
Did you ever wish that the vast information available in this Advisor, be made available in a
spreadsheet format? We heard you and came up with this new format of Period Close Advisor!
You can use this spreadsheet to create an Activity Log of your Period Close tasks. Assign ownership
of the activities/ tasks to specific persons. You can also use the log to record the sequence of Period_Close_Checkli
st_v1.4.xls
events as they happen, the time taken by the tasks as well as the status. You can easily
accommodate and track any custom processes/ reports that you may run as part of the Period
Close.
Project Accounting
How to use this Period Close Advisor:
Projects
This tab describes the processes and activities required for a successful period close in Oracle Projects Release R12.
Period end procedures for Oracle Projects have two main functions: changing the status of the current period to
"Closed" and activating all the processes and controls necessary to produce reports that accurately reflect the period
activity, while allowing minimum interruption of transaction processing.
Unlike other subledgers, Projects transactions are categorized not only by General Ledger (GL) periods, but also by a
specific set of Projects (PA) periods. The two sets of periods may be the same or different depending on your
configuration. Period close processes for Projects therefore involve both sets of periods.
There are a number of configuration options which determine how these periods relate to each other:
PA: Enable Enhanced Period Processing (profile option) - when enabled control of GL periods for Projects
occurs at the application level. When not enabled, control of GL Periods for Projects is maintained in the GL
Application.
Maintain Common PA and GL Periods (implementation option) - when enabled, PA and GL periods for Projects
must use the same calendar and period type, and period statuses are maintained together rather than
individually.
Calendar Name (implementation option) - defines the calendar for PA periods.
PA Period Type (implementation option) - defines the period type for PA periods
You should review the definition and usage information for each of these settings in the Oracle Projects Implementation
Guide and the Oracle Projects Fundamentals Guide to fully understand how these settings may affect your period close
processes.
Preparing for Period Close begins with thorough product training to establish proper application setup and usage. User
Guides, Product Information Centers, and other key documents are linked within this advisor and provide detailed
product information that should be reviewed.
Evaluating and maintaining current code levels is also essential to a successful period close. As a Best Practice, you
should always ensure you are on the latest code with recommended patches applied. This will help avoid known issues,
prevent potential data corruption and provide the latest features and functionality. Having a proactive patching plan and
periodic proactive patching process is the best way to stay current.
Ensure that all transactions have been entered for the period being closed.
As there are a number of maintenance activities that can affect the period close procedure, you should ensure that all
changes and updates in the following areas have been completed where required:
Implementation Maintenance
a) Employee assignment updates
b) Cost rate schedule changes
c) Organization labor costing rules
d) Standard costing burden schedule maintenance
e) Changes in Auto Accounting rules or lookup sets
Attention: You may need to implement workflow procedures, or use function and responsibility restrictions to prevent
access to these areas during the period close procedure.
It is recommended that the following maintenance processes be run in preparation for the period end:
a) Run PRC: Compile All Burden Schedule Revisions to ensure that all burden schedules have been compiled.
b) Run PRC: Add New Organization Compiled Burden Multipliers to ensure that any newly created organizations or
organizations added to your burdening hierarchies have been added to all affected burden schedules with
appropriate multipliers assigned.
c) If changes or additions were made to pre-existing resource lists, run PRC: Update Project Summary Amounts
After Resource List Change
Attention: The revenue generation process should not be run concurrently with the generation of invoices (PRC:
Generate Draft Invoices for any given project.
Tip: Some of the above processes may be run using PRC: Submit Interface Streamline Processes, which ensures that
processes and reports are run and completed in the correct order. If you use the Streamline process, the order of some
of the above steps may be changed or completed more succinctly.
Tip: Review the Receivables tab in this advisor for further details.
In Release 12, Subledger Accounting (SLA) architecture was implemented, creating a common repository of all your
accounting information to maintain a common link between General Ledger (GL) balances and underlying transactions
automatically, for internal and external audit purposes, and for ease of drilldown.
Create Accounting is the new process in Release 12 that creates the accounting in the subledger accounting tables and
offers flexibility in how you generate your accounting. Accounting can be created immediately online or run as a process
and can be generated 3 different ways:
1. Draft: The transactions accounted in draft mode can be included on accounting reports but cannot be transferred to
the General Ledger. This mode is for informational purposes only allowing you to review the accounting entries via
the output report or using the Subledger Accounting Inquiry screen prior to creating final entries.
2. Final: The transactions that have been accounted in Final Mode are accounted but not yet transferred to General
Ledger. When using Final mode, you have the option to transfer and post to General Ledger based on the settings of
the "Transfer to General Ledger" and "Post in GL" parameters.
3. Final Post: Transactions that have been accounted in Final Post are transferred to and posted in the General Ledger.
Frequency: Run these processes at regular intervals during the period rather than just at period end so issues can be
found and resolved during the period.
Accounting can be generated in either Draft or Final mode. In Draft mode you are able to review the accounting entries
via the output report or using the Subledger Accounting Inquiry screen prior to creating final entries. When using Final
mode, you have the option to interface and import the entries to General Ledger at the same time. If you do not choose
to import the entries to GL, you can do so subsequently by running PRC: Transfer Journal Entries to GL. In either case you
have the option to post the batch in GL, or leave it unposted.
This process should be run in Final mode for all Process Categories, and accounting should be transferred to the General
Ledger.
Document: See the following article for a full detailed description of this process and its requirements and pre-requisites
in R12: 866310.1 PAXCPGAL & PAXCPCAL - What Are The Steps to Generate Asset Lines and Interface Them to Oracle
Fixed Assets?
In Release 12, there is no reason to reconcile distributions on transactions to GL, but you can still reconcile transaction
reports to accounting reports. The new accounting reports in Release 12 now also contain more comprehensive
information - not just on balances but also on suppliers, customers and transactions.
Note: When you do account balance reconciliation, you should ignore distributions in Release 12, especially if you have
altered your subledger accounting rules.
Tip: If you have different periods in Projects, you may want to consider using one of the alternate General Ledger period
conventions, such as a 5-4-4 period split. This will enable you to more easily align Projects with General Ledger for
reconciliation purposes.
1. Run Final Project Costing and Revenue Management Reports
Run the entire following project costing management reports:
a) MGT: Revenue, Cost Budgets by Resources (Project Level)
b) MGT: Task - Revenue, Cost, Budgets by Resources
c) MGT: Revenue, Cost, Budgets by Work Breakdown Structure
d) MGT: Employee Activity Report
e) MGT: Invoice Review
f) MGT: Unbilled Receivables Aging
g) MGT: Agreement Status by Customer
When you attempt to update the period status to Closed for one ledger, the system checks for unposted transactions in
all operating units within the ledger. If there are unposted transactions in any of the operating units, you will need to
resolve the unposted transactions for those operating units before you can close the period for that ledger. See the
referenced documents and diagnostics within this advisor to troubleshoot these types of issues.
Attention: Closing is always executed at a ledger level and not at operating unit. You can only execute close from the
responsibility which has access to all operating units within a ledger.
Note: In Release 11i, GL automatically created the balancing lines for journals posted to GL when you closed your
periods in each of the subledgers. In Release 12, subledger accounting creates the balancing lines at the time you
account for the subledger transactions. The subledger accounting journal represents the actual accounting and the
balancing lines are created as part of these subledger accounting journals.
Attention: Review these reports and the output generated by the Create Accounting and Transfer to GL processes for
any errors. Make all indicated corrections and re-run the reports until there are no exceptions.
Document: See the following article for a full detailed description of the exception reports, their use, and handling of
exceptions in the PA and GL period close processes: 1336233.1 Period Close Procedures And Exceptions in Oracle
Projects Release 12
2. Sweep Transaction Accounting Events (Optional)
PA and GL periods in Projects can be closed once all transactions have successfully generated accounting events,
however, to close the period in General Ledger, it is required that accounting events be accounted and processed
through to GL. If you have accounting events that are preventing you from closing your period in GL, you can opt to
sweep these events into the next open period by running PRC: Sweep Transaction Accounting Events. The Subledger
Period Close Exceptions Report lists all events that fail period close validation.
Attention: Sweep cannot be undone! However, the process can be run in "Review" mode prior to running it in "Update"
mode.
Attention: Swept transactions are not posted to General Ledger, the GL dates are changed to the first day of the next
open period so they can be accounted, transferred and posted in that next open period. Promptly resolve issues with
swept transactions to keep your accounting current.
Note: Before running the sweep program, you will need to open the next accounting period, see step 4 below.
Note: If you sweep revenue transactions, and you use Project Status Inquiry, Project Performance Reporting, or Oracle
Daily Business Intelligence for Projects, then you must run the appropriate refresh or update processes so that reporting
tool accurately reports the GL period.
3. Change the Current Oracle Projects Period Status from Open to Pending Close
Pending Close is an interim status, which allows you to interface and adjust transactions in the period but does not allow
transaction entry. This process needs to be performed for each operating unit defined.
5. Change the Current Oracle Projects Period Status from Pending Close to Closed
When changing the status to Closed, the system checks to see if any unprocessed items exist in the period. If
unprocessed items exist, the change of status is not allowed. In some cases the system will provide a warning, but still
allow the period to be closed (for example, if there are items that have not yet been interfaced from Purchasing or
Payables). You should re-run the period close exception reports if necessary to identify any unprocessed items. This
process needs to be performed for each operating unit defined.
Document: 1336233.1 Period Close Procedures And Exceptions in Oracle Projects Release 12. See the "Period Close
Validation" section of this document for details on what conditions will produce an error or a warning during PA and GL
period close in Projects.
Attention: Only one period can be designated as the current reporting period for Project Status Inquiry.
Note: The current reporting period does not have to be an open period.
For projects using Project Performance Reporting, you should submit PRC: Update Project and Resource Base Summaries
and then PRC: Update Project Performance Data (or if there are a large number of projects to be updated, run PRC:
Launch Update Project Performance Data).
Attention: Do not run PRC: Update Project Summary Amounts After Resource List Change during the closing or post-
closing processes.