R12 Period-End Process Flow For Oracle Discrete Manufacturing - e-Business Suite [ID 1266644.

1]

Modified 30-JUN-2011 Type WHITE PAPER Status PUBLISHED

In this Document
Abstract
Document History
R12 Period-End Process Flow For Oracle Discrete Manufacturing - e-Business Suite
1. Order Management (OM):
2. Receivables (AR):
3. Purchasing (PO):
4. Transactions control:
5. Cost Management:
6. Inventory Open / Close period:
Summary
References

Applies to:

Oracle Cost Management - Version: 12.0.0 and later [Release: 12 and later ]
Oracle Work in Process - Version: 12.0.0 and later [Release: 12 and later]
Oracle Inventory Management - Version: 12.0.0 and later [Release: 12.0 and later]
Oracle Project Manufacturing - Version: 12.0.0 and later [Release: 12 and later]
Oracle Order Management - Version: 12.0.0 and later [Release: 12.0 and later]
Information in this document applies to any platform.

Abstract

This support document is intended to provide you with the useful and complete information related to the
Period Closure process in Release 12 e-Business Suite Discrete Manufacturing modules.

Out of pure Financials perspective, the manufacturing period closure process enforces the different
transactions to be all entered, validated and completed in a timely manner, all the costing to happen but
also to properly close the manufacturing periods. In EBS manufacturing both Inventory and Purchasing
modules do have periods to be managed.

The Inventory Periods are handled for Inventory type Organization and at this level. A well managed
inventory system has only one current opened period and ending a period implies several actions to be
done to get a true stock accuracy and avoid backdated transactions.

The Purchasing Periods are at Operating Unit level and their maintenance are crucial when accruals are
enabled.

The period close process outline is as follows :

 to complete all the transactions done in this period,
 to perform a summary of the inventory value transacted,

 to calculate the period ending subinventory values,

 to enable reconciliation process,

  to tranfer the cost to GL via SubLedger Accounting (SLA) and the close period is an important
part of this process.

In addition, the stock has also to be verified and true (legal standpoint), or this can be ensured only when
the previous periods are closed. The process includes the management of backdated transactions to
correct the figures plus the clean up any material transaction stuck in an interface for example.

The below document lists the actions in a logical order following the EBS modules installed.
The same actions are reflected in the check list (see attached document DMF_PeriodClose_CL) that can
be used as a basis and customized following the specific needs of any manufacturing organization.

The DMF_PeriodClose_CL check list (as an excel spreadsheet format) can be found in the Attachment
section at the bottom of this document.

Document History

Author: Jean-Francois Guerrini, Yann Delaporte

Create Date: 15-NOV-2010
Update Date: 22-DEC-2010

R12 Period-End Process Flow For Oracle Discrete Manufacturing - e-Business Suite

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.

Order Management > Orders, Returns > Import Orders > Orders Import Requests

1.3 Pre-billing Acceptance:

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

Order Management > Reports, Request > Run Requests: Generate pre-billing customer acceptance
program

1.4 Complete the shipping transactions:

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

Order Management > Reports, Request > Run Requests: Generate pre-billing customer acceptance
program

1.5 Prepare the link with AR:

1.5.1 Workflow background engine:

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.

Order Management > Reports, Request > Run Requests: Workflow Background Process

1.5.2 Invoice Interface / AutoInvoice:

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

Receivables > Interfaces > AutoInvoice: Autoinvoice Master Program

1.5.3 AutoInvoice Exceptions Report:

Check that there are not errors in the AutoInvoice interface.

Receivables > Control > AutoInvoice > Interface Exceptions

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.

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.

Receivables > Control > Requests > Submit Accounting

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.

Receivables > Control > Requests > Transfer Journal Entries 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.

Receivables > Control > Accounting> Open/Close Periods

Note: Where there are multiple operating units within the same ledger all operating
units must be ready to close at the same time. All of the operating units that share a
ledger also share the same period statuses. When you update the period statuses to
"Open" in one Operating Unit, that period is opened for all operating units within the
ledger.

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.
Payables > Other >Requests > Run > Create Accounting

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.

Payables > Other >Requests > Run > Transfer Journal Entries to GL

3.4 Purchasing Period management:

3.4 .1 Close the Payables period:

Payables > Accounting > Control Payables Periods

3.4.2 Run the Receipt Accruals - Period-End Report:

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.

Purchasing > Reports > Run > Receipt Accruals - Period-End

3.4.3 Manage PO periods:

Close the old PO period and open the next one.

Purchasing > Setup > Financials > Accounting > Control Purchasing Periods

3.4.4 Open next AP period:

Payable > Accounting > Control Payable Periods

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.
 4.1.1 Enter the pending cycle counts:

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

Inventory > Counting > Cycle Counting > Cycle Count Entries

4.1.2 Material transaction manager:

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.

Inventory > Setup > Transactions > Interface Managers

4.1.3 Move transaction manager:

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.

Inventory > Setup > Transactions > Interface Managers

4.1.4 Lot move transaction manager:

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

Inventory > Setup > Transactions > Interface Managers

4.1.5 Cost manager (mandatory):

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

Inventory > Setup > Transactions > Interface Managers

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.

Inventory > Accounting Close Cycle > Inventory Accounting Period

-> The Note 568012.1 - FAQ: Inventory Standard Datafixes - provides complete
references of the possible SQL scripts to resolve the issues mentioned below, mainly
when the option 'That can also be done with SQL' is mentioned.

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_TRANSACTIONS_INTERFACE 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.

Inventory > Transactions > Pending Transactions

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.

Inventory > Transactions > Material Transactions

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

Cost Responsibility > View Transactions > Pending Landed Cost Adjustments

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.

WIP > Resource Transactions > Pending Resource Transactions

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.

4.7.1 Import the WIP Lot Transactions

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

Shop Floor Management > Run Request > Import WIP Lot Transactions

4.7.2 (WSM) Pending Transactions Report

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.

4.8.1 Search delivery line with the status Shipped:

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.
Order Management > Shipping > Transactions

4.8.2 Run Interface Trip Stop SRS:

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.

Order Management > Shipping > Interface > Run

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.

Inventory > Transactions > Transaction Open Interface

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.

WIP > Move Transactions > Pending Move Transaction

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.

Purchasing > Receiving > Transactions Status Summary

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.

4.12.1 Run the Cost Collection Manager:

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.
Cost > Requests > Cost Collection Manager

4.12.2 Import transactions in Project:

Import Manufacturing costs in Projects

Inventory > Accounting Close Cycle > Project Cost Transfers

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.

5.1.1 Record Order Management Transactions (normally done by the Cost Manager).

Cost > COGS Recognition > Record Order Management Transactions

5.1.2 Collect Revenue Recognition information.

Cost > COGS Recognition > Collect Revenue Recognition information

5.1.3 Generate COGS Recognition events.

Costs> COGS Recognition > Generate COGS Recognition Events

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.

Cost > SLA > Create Accounting

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.

Cost > SLA > 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.

Inventory > Accounting Close Cycle > Inventory Accounting 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.

Inventory > Accounting Close Cycle > Inventory Accounting Period

- Transactions are no more possible in a closed period.

- In EBS, it is impossible to reopen a closed period through the application. But that
can be done by a data fix. See the Note 472631.1 Re-Open a Closed Inventory Accounting
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.

6.3.1 Hierarchy of Organizations:

Inventory > Setup > Organizations / Hierarchy

6.3.2 Open several periods:

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).

Cost > Request > Open Period Control

6.3.4 Close several periods:

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

Cost > Request > Close Period Control

Note: Of course, the Close Period Control program can only close the period in an
Inventory Organization, if all the periods before are already closed.

Note: The option Close if resolution recommended is used, if in an Inventory Organization there
are pending transactions for which a resolution is recommended (but not required). The default
value is No.

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

NOTE:110424.1 - FAQ: Unprocessed Transactions / Closing Inventory Accounting Period

NOTE:1213193.1 - OPM Financials (GMF) Trouble shooting Guide
NOTE:1237963.1 - Release 12 Inventory Period-End Process Flow For Oracle Process Manufacturing -
e-Business Suite
NOTE:1262392.1 - Manufacturing Period Close Product Information Center
NOTE:331074.1 - Period Close Enhancements Period Close Reconciliation
NOTE:378348.1 - Data Collection Scripts for Cost Management
NOTE:568012.1 - FAQ: Inventory Standard Datafixes
NOTE:732156.1 - R12.0.6+ : Oracle General Ledger Period Closing Setup Test

Attachments

Check List for Discrete Manufacturing Period End Process (51 KB)
Related

Products

Oracle E-Business Suite > Manufacturing > Discrete Manufacturing > Oracle Work in Process
Oracle E-Business Suite > Logistics > Logistics > Oracle Inventory Management

Oracle E-Business Suite > Manufacturing > Discrete Manufacturing > Oracle Project
Manufacturing

Oracle E-Business Suite > Order Management > Order Management > Oracle Order Management

Oracle E-Business Suite > Order Management > Order Management > Oracle Shipping Execution

Oracle E-Business Suite > Procurement > Procurement > Oracle Purchasing

Oracle E-Business Suite > Manufacturing > Discrete Manufacturing >

Oracle E-Business Suite > Manufacturing > Discrete Manufacturing > Oracle Cost Management

Keywords

ACCOUNTING PERIODS; CLOSE PERIOD; CLOSE PROCESS; COSTING; INVENTORY CLOSE;

MANUFACTURING; OPM; PERIOD END

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