R12 Inventory Month End Period End Process

• Generally, We should open and close periods for each separate inventory organization independently. 

• Inventory and work in process transactions automatically create accounting entries. All accounting entries have transaction dates that belong in one accounting period. We can report and reconcile Our transaction activity to an accounting period and General Ledger. We can transfer summary or detail transactions to General Ledger. We can transfer these entries to General Ledger when We close the period or perform interim transfers.

• When We transfer to General Ledger, a general ledger (GL) batch ID and organization code are sent with the transferred entries. We can review and report the GL batch number in General Ledger and request Inventory and Work in Process reports by the same batch number. We can also view general ledger transfers in Inventory and drill down by GL batch ID into the inventory and WIP accounting distributions.

• The period close process permanently closes an open period. We can no longer charge transactions to a closed period. Once We close a period, it cannot be reopened. As a precaution, We can do a GL transfer without closing the period.

• If inventory organization’s parameter for Transfer to GL is None, accounting entries are not transferred to the General Ledger. 

 Oracle Inventory uses accounting periods to group material transactions and work in process transactions for accounting purposes. So normally these deatils are grouped for a month and the transaction details are posted to GL.

An automatic general ledger transfer is processed when We close an accounting period.

Pending transactions:

Before closing the inventory Period make sure all pending transactions are resolved. In pending transaction form we can see all pending transactions or while trying to close the period, automatically system will display all pending transaction information. In pending transactions we can find number of unprocessed material transactions, uncosted material transactions, and pending WIP costing transactions existing in this period. These must be resolved before the period is closed.

Resolution Recommended  on  pending receiving transactions,pending material transactions, and pending shop floor move transactions existing in this period.

Inventory Resp --> Transactions --> Pending Transactions 

Close a open/error status period :


Inventory Resp  --> Accounting Close Cycle --> Inventory Accounting Periods

Inventory Issues -Pending Transaction Issues

Issues 1 - Transaction Struck as pending for a perticular Period ( NOV - 14 ) and because of this we are unable to close NOV-14 Period.

Reason 1 - These are few interorg transfer orders From M1 to M2 org and initially we missed out standard cost of item in price and corresponding transactions got failed, So now we added Items to the price list, but the destination org M2 is closed for Nov-14 Period, so they failed again.

Solution - Change the transaction date to Dec 1 to push the transactions.

Issue 2 -  We have few uncosted transactions with following error in material transaction form.

CST_INVALID_ACCT_ALIAS  - The Account Alias Is Not Defined For This Org

Reason - Few account alias issue transactions having transaction_source_id as NULL in mtl_material_transactions Tables. To find the transaction details which are having transaction_source_id as NULL please user below Query.

SELECT TRANSACTION_ID, TRANSACTION_SOURCE_ID
FROM   MTL_MATERIAL_TRANSACTIONS
WHERE TRANSACTION_SOURCE_TYPE_ID = 6  --  Source Type = Account alias
AND ((TRANSACTION_SOURCE_ID IS NULL) OR (TRANSACTION_SOURCE_ID is not null
AND NOT EXISTS
(SELECT 1 FROM MTL_GENERIC_DISPOSITIONS
WHERE DISPOSITION_ID = TRANSACTION_SOURCE_ID)));

NOTE - The table MTL_GENERIC_DISPOSITIONS holds the list of account aliases

Solution - First test the solution in TEST Instance

1st Run the below script to to take back up.

CREATE TABLE TESTTABLE123 AS ( SELECT * FROM MTL_MATERIAL_TRANSACTIONS MMT
WHERE COSTED_FLAG IN ('N','E')
AND TRANSACTION_SOURCE_TYPE_ID = 6 
AND ORGANIZATION_ID =  999  -- Your Inventory Org ID
AND TRANSACTION_SOURCE_ID IS NULL);

2. Run the below update script.

UPDATE mtl_material_transactions mmt
SET transaction_source_id = (SELECT DISPOSITION_ID FROM MTL_GENERIC_DISPOSITIONS
                             WHERE organization_id = mmt.organization_id
                             AND   description = '&&alias_desc'),
costed_flag = 'N',
error_code = NULL,
error_explanation = NULL,
transaction_group_id = NULL,
last_updated_by  = -6352950
WHERE costed_flag in ('N','E')
AND transaction_source_type_id = 6  
AND organization_id =  &org_id  --  -- Your Inventory Org ID
AND transaction_source_id IS NULL
AND exists (SELECT DISPOSITION_ID FROM MTL_GENERIC_DISPOSITIONS
             WHERE organization_id = mmt.organization_id
               AND description = '&alias_desc');

PO To FA - Mass Additions Process

 Step -1 : Create an Item

1. Create an item and assign expense account in Purchasing tab. Here account ( 159 ) is an Asset/CIP Clearnce Acoount.
2. Assign Item to child orgs.

Step - 2 : Create Purchase order and receive the item



 


Mass Additions Create Program Overview

The Mass Additions Create Program is submitted from an Accounts Payable (AP) responsibility. The purpose of the program is to interface the costs of purchased items that meet the criteria to become an asset. It also interfaces adjustments to the invoice cost and discounts taken when the invoice is paid for assets that have already been interfaced.

Types of Assets:

There are three types of assets:

•    capitalized
•    construction-in-process (CIP)
•    expensed

Which type of asset an invoice distribution becomes depends on the natural account segment and the asset category configuration. Any invoice distribution that is charged to an expense account is eligible to be transferred to Fixed Assets (FA) as an expense type asset if the “Track as Asset” option is selected on the distribution line. These expenses are not depreciated in FA, but they are reported as an expense. Capitalized assets will start to depreciate based on the depreciation method rules and the date placed in service. CIP assets do not depreciate until the asset is capitalized and placed into service in FA after they have been transferred.

FA Setups:

1.    Define the account type of an account

Responsibility: General Ledger
Navigation: General Ledger --> Setup --> Flexfields --> Key --> Values

Define the segment qualifier “Account Type” as either Asset or Expense.

2.    Define the asset clearing and CIP clearing accounts for an asset book

Navigation: Fixed Assets -->  Setup --> Asset System --> Categories

For the mass additions process, only the natural account segment is evaluated. We can use the same natural account with different company or cost centers, and they will still be selected as an asset. In R12, We can now specify the Asset Book at the invoice distribution level so We ensure the distribution is transferred to the correct asset book.

In the screen shot above, the third segment is the natural account segment, so account 1570 and 1590 are the two natural account segments that the Mass Additions Create Process will use to transfer costs from Payables to the OPS CORP book.

3.    Enter an invoice and ensure the track as asset flag is selected

Navigation : Payables -- > Invoices --> Entry --> Invoices

Note: In the distributions screen, the Track as Asset field is not displayed by default. It is automatically checked for all asset type accounts and cannot be unchecked. To set the flag for expense type assets, go to the Folder --> Show Field option and select to display the Track as Asset field. And Enter Asset Clearance Account at Distribution Level.

 

Click on Action Button to Do Validation, Create Accounting and To Make Payment by selecting "Pay in Full"

4. Mass Addition Program

Mass Addition Program is used to transfer the Asset purchases information to the Assets
module for further process. Before running mass Addition Program make sure Invoice and payment information transferred to GL.

Run Request Set "Mass Additions Create" From Payables Super User Responsibility.

5. Go to FA Super user Responsibility > Mass Addition > Prepare Mass Addition > Search With Invoice Number.

Click on Open and change Queue = POST and Save.

6. Run "Post Mass Additions".

Go to FA Super user Responsibility > Mass Addition > Post Mass Additions.

Now, Go to Asset Work Bench and search with Invoice Number. New Asset got Created.

How To Cancel Prepayment Invoice

To cancel an Unapplied prepayment:

1.    Void Payment associated with prepayment.
    Got To Payables Responsibility > Payments > Entry > Payments > Query with Payment Number > Actions1 (B) > Check Void Check Box > Ok (B)
2.    Cancel Prepayment Invoice.
    Got To Payables Responsibility > Invoices > Entry > Invoices > Query with Prepayment Invoice Number > Actions1 (B) > Check Cancel Invoices Check Box > Ok (B)
   
3.    Ran Create Accounting Program.


To cancel an Fully Applied prepayment:

1.  Fully Unapply the Prepayment
    Got To Payables Responsibility > Invoices > Entry > Invoices > Query with Prepayment Invoice Number > Actions1 (B) > Use Apply/Unapply Prepayment Check Box
   
2.    Void Payment associated with prepayment.
3.    Cancel Prepayment Invoice.
4.    Ran Create Accounting Program.