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