Reconcile Your Inventory to G/L Balances With Ease, From 1 to 1,000 Inventory Organizations!



Similar documents
Upgrade to R12 Now - Improvements in Cost Management. Presented by: Douglas Volz

How to Create Shipping Burdens for Oracle Cost Management, in Spite of Subledger Accounting!

Understanding Oracle Application s Multi-Org Structure

Subledger Accounting Reconciliation in R12

Founded in 1993 OSI has grown to become a leading technology consulting and services firm with over 450 professionals both from US and India

How to Use Oracle Account Generator for Project-Related Transactions

Oracle ERP Cloud Period Close Procedures O R A C L E W H I T E P A P E R J U N E

Oracle E-Business Suite - Release 12 Oracle General Ledger Technology Course Material April-2009

Dynamics GP 50 Tips in 50 Minutes

Collaborative SIG: SLA Accounting in R12: Procure to Pay Process

Inventory Costing in Microsoft

Microsoft Dynamics GP. Historical Inventory Trial Balance Report

Distribution Training Guide. D100 Inventory Management: Basic

Norming Asset Management. To make asset management easy and automatic with Sage Accpac ERP

Repairing Your Accounting System

Inventory Management Overview Document. for Sage 100 ERP

Objective: Business Case: Key Points: Business Group: Set of Books: Operating Unit: Inventory Organization: Costing Method: Disclaimer:

Integrating Custom Sub-Ledgers with EBS Using BI Applications Financial Analytics. 03/09/2012 Jamie Adams, Laxmi Vara Prasad Duvvuri AST Corporation

Project Tracking 2015

Oracle General Ledger Advanced Journal Entries Consolidations Process [ ] Describe, create and [ ] Explain Consolidations

Dynamics GP 50 More Tips in 50 Minutes

Release Notes Build 391

Sage MAS 500 Year-End Processing. Michael Schmitt, BKD December 2011

MICROSOFT DYNAMICS GP YEAR-END CLOSING PROCEDURES USERS GROUP MEETING

How Do I Get Financial Reports from the Cloud

OAUG Webinar Series Seminar #4

Course Code AR/BI3. Accounts Receivable Advanced

Dynamics GP Insights to Distribution: Inventory

Copyright 2014, Oracle and/or its affiliates. All rights reserved.

Oracle Apps Online Course - Smart Mind Online Training, Hyderabad. Oracle Apps Functional Online Training Course Content

EMAS EXECUTIVE MANAGEMENT ACCOUNTING SYSTEM Financial and Distribution application solutions PRODUCT OVERVIEW

for Sage 100 ERP Purchase Order Overview Document

Inventory Costing Repair and Restoration

NEWSTAR Training Guide. Banking, Consolidations and Tax Systems

Rochester Institute of Technology. Oracle Training: Advanced Financial Application Training

Dynamics GP Year End Closing Processes

Sage 300 ERP Tax Services User's Guide

Oracle Applications Global Accounting Engine User s Guide

Risk-Based Assessment of User Access Controls and Segregation of Duties for Companies Running Oracle Applications

QAD Enterprise Applications Enterprise Edition. Training Guide Introduction to Product Costing

Oracle Network Logistics

for Sage 100 ERP General Ledger Overview Document

Oracle Asset Tracking

How To Use A Bank Service On A Bank System

Year End Closing Procedures for Sage 100 ERP. Martin & Associates

Sage 300 ERP Bank Services User's Guide

Oracle Apps Functional Online Training

ORACLE CASH MANAGEMENT. Release 12 Features

Interplant Costing using Oracle Sourcing Rules with Oracle Supply Chain Cost Rollup in Oracle R12. OAUG Cost Management SIG February 17, 2015

NEXTGEN BUDGETARY ACCOUNTING TRAINING

PRMS Accounts Payable. Version 8.4. RMS/Present. Master Production Schedule. Material Requirements Plan. Soft Bill Maintenance.

December Camino Ramon, Suite 210 San Ramon, CA Voice: Fax: Website:

Year End Closing 2013 Procedures for Sage 100 ERP. Martin & Associates

Microsoft Dynamics GP. Inventory Control

1 - ACCOUNTS RECEIVABLE

Copyright 2011 Business Management Systems. Web Based ERP/CRM Software

M O N T H E N D / Q U A R T E R L Y / Y E A R E N D C H E C K L I S T S & P R O C E D U R E S ACCOUNTS RECEIVABLE ACCOUNTS PAYABLE

Epicor ERP Epicor ERP Accounts Payable Transaction Hierarchy

Accounts Payable User Manual

TIPS AND TRICKS for the CORE ACCOUNTING MODULES REMINDER:

IDEAS Property Clerk Enterprise Property Management Accounting Software. IDEAS Software

Receivables & Payables

Sage MAS 90 and 200 ERP

Understanding, Controlling, and Reconciling the Purchasing Accrual Account

How to Set Up and Manage a Perpetual Inventory System

Inform Upgrade Version New Features Improved Google Calendar Synchronization

Subcontract - BOM Method. User Guide

Amicus Small Firm Accounting: Migrating from Another Accounting System

Solar Eclipse Accounts Payable. Release 8.7.2

Sage 300 ERP General Ledger User's Guide

RFP# CONSULTING SERVICES FOR ORACLE E-BUSINESS SUITE R12 UPGRADE QUESTION AND ANSWER RFP Reference Question GSFA Response

Sage Product Update 4 Release Notes

AR326: Accounts Receivable - Funds Receipts. Instructor Led Training

Oracle SCM. Course duration: 45 Hrs Class duration: 1-1.5hrs

The End of Month Closing process cuts off all sub-journal postings for the month and should be performed at the conclusion of each month.

USA CANADA INDIA. R12.x Oracle E-Business Suite Essentials for Implementers

MYOB EXO BUSINESS WHITE PAPER

Accounts Payable System Administration Manual

Reporting Enhancements

Sage 300 ERP What's New

We recommend that you create seven binders: one each for each SAGE PRO module you own:

Welcome to the topic on purchasing items.

Oracle Process Manufacturing Inventory Management

INTUIT PROFESSIONAL EDUCATION. QuickBooks Files: Sharing, Managing, and Maintaining Data Integrity

Version 7.40 Customer Upgrade Guide. Sage ERP MAS 500

WMS SOFTWARE - TRAINING SCHEDULE

Enhancements in Inventory Management

Overview of Oracle Asset Management

PSFIN v9.2 Expenses Administrator Participant Guide

Best Practices for Inventory Control Using Dynamics GP

MANAGE. Inventory Costing. Microsoft Dynamics NAV 5.0. Technical White Paper

How To Understand The Business Benefits Of Anoram Subledger Accounting

Amicus Small Firm Accounting: Frequently Asked Questions

Month-end Close in a Non-profit Organization

The Requirements Compliance Matrix columns are defined as follows:

ACCRUAL ACCOUNTING WORKFLOW

Oracle EBS R12 Application Architecture - Different Models for Functional consultants

v7.5x Payables/Purchase Order Year-End Checklist

Accounts Payable. Cash Projections Reports - 3-tiered Pay on Dates show what is due in the next 30/60/90 days.

General Ledger and Fixed Assets January 12, 2011

Transcription:

Reconcile Your Inventory to G/L Balances With Ease, From 1 to 1,000 Inventory Organizations! Session ID#: 13946 Prepared by: Doug Volz Douglas Volz Consulting, Inc. REMINDER Check in on the COLLABORATE mobile app

Learning Points See examples for most commonly used Oracle reports for value and accounting distributions Understand how to reconcile inventory, WIP and receiving Resolve common reconciliation issues Learn how to use standard and custom tools for reconciliation Discuss ways to use hidden information to systematically reconcile your G/L to perpetual inventory balances.

Agenda Inventory Reconciliation General Reconciliation Principles Standard Reconciliation Steps Common Reconciliation Challenges Custom Solutions

Doug Volz Professional Summary Helping people use Oracle since 1990 30+ years industry, design and consulting experience, specializing in design, implementation and project delivery for Cost Management business solutions Specific areas of expertise: Profit in inventory Intercompany A/P accruals WIP analysis Multi org inventory reporting Inventory reconciliation Product Line & Margin analysis Cost Rollup and Update Presenter at Collaborate (OAUG) and UKOUG since 1996 Multi-national experience in twelve countries Qualification Summary Former co-designer for Oracle Cost Management +1 510 755 7050 doug@volzconsulting.com www.volzconsulting.com Lead the OAUG Cost Management Special Interest Group Cost Management industry experience Helping people using Oracle Applications since 1990 Copyright 2014 Douglas Volz Consulting, Inc.

Douglas Volz Consulting, Inc. Douglas Volz Consulting started in 2005 to provide: Cost Accounting Business & System Improvements Procure to Pay Business Improvements Project Management and Advisory Services Multi-Org, Global Cost Reporting Solutions Lots of free advice and conference papers: www.volzconsulting.com/resources.html www.volzconsulting.com/oaugcostsig.html Sample Project Experience: Helping people using Oracle Applications since 1990 Copyright 2014 Douglas Volz Consulting, Inc.

Solutions You Can Use http://oaug.org/education-events/cpd 2008 OAUG Collaborate & 2007 UKOUG: A/P Accruals How to Setup, Use and Balance Your A/P Accrual Accounts (or How to Manage the Accounts from Hades) 2009, 2013 & 2014: OAUG Collaborate & UKOUG: Cost Management & SLA 2009: Cost Accoun ng As You Want It EBS R12 Cost Accoun ng with SLA 2013: Subledger Accounting for Discrete Cost Accounting: Product Line Accounting Made Easy Through SLA (And Why Can t I Close My Books) 2014: How to Create Shipping Burdens for Oracle Cost Management, in Spite of Subledger Accounting 2010: OAUG Collaborate: Profit in Inventory Solutions & PJM Solutions Does Rel. 12 Solve Global Inter Company Issues for Multiple Ledgers, Profit in Inventory and COGS? Can We Actually Reconcile Project MFG to Inventory, WIP, Projects & G/L? What Was I Thinking? 2011 & 2014: OAUG Collaborate & UKOUG: Inventory Reconciliation 2011: 60 Inventory Orgs? 6 Ledgers? No Worries, Reconcile Your Inventory With Ease! 2014: Reconcile Your Inventory to G/L Balances With Ease, From 1 to 1,000 Inventory Organizations! 2012: OAUG Collaborate: Transaction Interfaces for Period Close Egads! How in the Dickens Do I Handle Those Month End Interfaces? (And Why Can t I Close My Books)

General Reconciliation Principles

Example Financial Structure to Reconcile Corporate Consolidated Ledger Corporate Consolidated Ledger (USD) Secondary Ledger Switzerland (CHE) European LSP s SLs Primary Ledger Korea (KRW) Asia-Pac LEs Swiss PL (USD) European PL (USD) USA PL (USD) Legal Entity Korea LE Asia-Pac LEs Swiss LE Other European LEs CORP LE Other LEs Operating Unit Korea OU Asia-Pac OUs Switzerland OU Other European OUs US OU Inventory Orgs Item Master (ZZZ) ORG Korea Asia-Pac Dist. Centers Swiss Dist. Center Switzerland Org Europe LSP Orgs Europe Dist. Centers US LSP Orgs US Dist. Centers

There Has to be an Easier Way!

General Reconciliation Principles Use the following formula: Prior cumulative balance + monthly accounting activity = month-end cumulative G/L balance Compare above formula to cumulative perpetual report balances If you do not balance, check for manual G/L journal entries and entries from other subledgers For Release 12, also check for pending or invalid Subledger entries

Standard Reconciliation Steps 1. Finish your transactions and clear your interface tables so that you can close the inventory accounting periods (see the Collaborate12 presentation Egads! How in the Dickens Do I Handle Those Month-End Interfaces? for more information.) 2. For each inventory organization close your inventory accounting periods 3. Schedule the month-end valuation reports to run with an "As Of Date" for the last day of the accounting period: a) Receiving Value Report (slides 17-25) b) All Inventories Value Report (has Receiving, Inventory and Intransit balances, slides 31-32) c) Inventory Value Report (by Subinventory or by Cost Group, slides 33-36) d) Intransit Value Report (slides 39-41) e) Transaction Historical Summary Report (slides 42-43) e) WIP Value Report (As of Date not required, by accounting period, slides 45-46) 4. After you close the inventory accounting periods run the transaction reports for each inventory organization using the date range for your inventory accounting period: a) Receiving Distribution Detail Report (slides 26-27) b) Material Account Distribution Summary Report (slides 29-30) c) WIP Account Summary Report (slide 47-48) d) R12 - Journal Entries Report Cost Management (slides 49-51) 5. Complete the attached Excel worksheet (slide 13), using your preliminary Trial Balance or other G/L source for your beginning G/L balances, the above distribution reports for the monthly activity by Journal Source and the Valuation Reports for your perpetual balances.

Common G/L to Perpetual Out-of-Balances 1. Look for offset accounts (see slides 59-61) 2. Look for manual journal entries or subledgers booked to incorrect accounts (see slides 64-65) 3. From your inventory period close submissions, review the Period Close Reconciliation Report output files and see if you have any system-related out-of-balances (see slides 37-38). These are the most common reasons but there are many more. See the section called Common Reconciliation Challenges.

Sample Reconciliation Worksheet

More Reconciliation Principles Ignore minor rounding differences: When the unit cost precision is higher than the currency decimal precision, you may have minor rounding differences between the valuation reports and cumulative accounting totals Release 12: All Inventory and Receiving Value Reports have an As of Date Release 11i: Set the Cost Cut-Off Date and run the Inventory Value Report with Include unvalued transactions set to No. Release 12: Make sure you run Create Accounting after all inventory orgs are closed and after all A/R invoicing is done

How to Reconciliation

How to Balance the Receiving Valuation Accounts Use the Receiving Valuation Reports to get the month-end balances Use the Receiving Account Distribution Report for monthly increases to the Receiving Valuation Account Use the Material Distribution Summary Report for monthly (INV) decreases to the Receiving Valuation Account For Release 12 use the Journal Entries Cost Management Report Material Acct Material Acct Distribution Report Receiving Acct Distribution Report Receiving Value Report

Receiving Value Report Standard Report Menu

Receiving Value Report (XML 12.1 & 12.2) You can only find the XML Reports on the Requests menu!

Receiving Value Report

Receiving Value Report R12 Format Options

Receiving Value Report R12 Format Options Excel XML output FO not useful HTML tags and body PDF great to send to auditors RTF readable by MS Word

Receiving Value Report R12 Delivery Options

Receiving Value Report R12 Delivery Options Printer Email Fax FTP

Receiving Value Report Detail Excel Format The Excel formatting was touched up

Receiving Value Report Summary Text Format

Receiving Account Distribution Report

Receiving Account Distribution Report Text Format

How to Balance the Inventory Valuation Accounts Use the Inventory Valuation Reports to get the month-end balances for both your subinventories and (R12) intransit Or, use the Period Close Reconciliation Report Also use the Period Close Value Summary Report You can also use the Transaction Historical Summary Report Transaction Historical Summary Report Standard Costing Transaction Historical Summary Report Average Costing For monthly totals use the Material Distribution Summary Report For Release 12 use the Journal Entries Cost Management Report Material Acct Material Acct Distribution Report G/L JE Lines Report Inventory Value Reports

Material Account Distribution Summary

Material Account Distribution Summary Text Format

All Inventories Value Report

All Inventories Value Report Text Format

Inventory Value Report Summary

Inventory Value Report Summary Text Format Valuation Accounts are no longer displayed in R12

Inventory Value Report Detail

Inventory Value Report Detail Text Format Valuation Accounts are no longer displayed in R12

Period Close Reconciliation Report Runs automatically when you close the inventory accounting period Can also run separately using Cost Mgmt => Reports => Value

Period Close Reconciliation Report Run for one inventory organization at a time

How to Balance the Intransit Valuation Accounts Use the Intransit Valuation Reports to get the month-end balances Choose Yes for the option Only Display Inventory You Own For Release 12 the Inventory Value Report also shows intransit balances Use the Material Distribution Summary Report for monthly totals For Release 12 use the Journal Entries Cost Management Report Material Acct Distribution Report Inventory Value Reports

Intransit Value Report

Intransit Value Report Summary Text Format

Transaction Historical Summary Report Useful as a roll forward schedule Don t duplicate Source Types

Transaction Value Historical Summary Report Text Format

How to Balance the WIP Valuation Accounts Use the WIP Value Report to get the month-end balances (No cut-off issues) Choose the option to include closed jobs Use the WIP Account Summary and Material Distribution Summary Reports for monthly totals For Release 12 use the Journal Entries Cost Management Report Material Acct Distribution Report WIP Account WIP Account Summary Report WIP Value Report

WIP Value Report

WIP Value Report Text Format

WIP Account Summary Report

WIP Account Summary Report Text Format

R12: Journal Entries Report Cost Management Process Category: Inventory Receiving Work in Process Manual / Third Party Merge

R12: Journal Entries Report Cost Management

R12: Journal Entries Report Cost Management Similar to Accounting Line Type

R12: Drill-Down From the General Ledger You cannot see the organization code on the G/L journal entry batch name unless you customize your SLA rules (your JE journal descriptions) or use separate company/account segment by inventory organization You can drill down from your G/L to the Subledger Accounting Entries to the material, receiving and WIP transactions You can run the Subledger Journal Entries, Account Balances or Account Analysis Reports (with setup and perhaps bug patches required)

List of Month-End Close Reports Material Distribution Detail/Summary Reports WIP Account Detail/Summary Reports Receiving Account Distribution Report Purchase Price Variance Report Invoice Price Variance Report Discrete Job Value Repetitive Value Report Expense Job Value Report Margin Analysis Report (Margin Analysis Load, then report)

List of Month-End Close Reports (Cont d) Inventory Value Reports (by Subinventory or by Cost Group) Elemental Inventory Value Reports (by Subinventory or by Cost Group) Intransit Value Report All Inventories Value Reports (by Subinventory or by Cost Group) Receiving Value Report Receiving Value by Destination Report (disabled in R12 unable to view the perpetual expense balances by offset account) WIP Value Report Period Close Value Summary Period Close Reconciliation Reports

Common Reconciliation Challenges

Common Reconciliation Challenges Report cut-off issues at month-end or running multiple periods at a time Account alias or miscellaneous inventory transactions using same accounts Disabling a code combination during the month Subledger miscoding Manual G/L journal entries

Common Reconciliation Challenges Back-dated transactions from external system feeds Delivering goods to a closed work order Sharing System Accounts Wrong initial subinventory summary balances Initial legacy GL balances to do not match Oracle perpetual Misleading timestamp inquiry parameters Out of Balance Item Costs

Account Alias / Misc. Inventory Transactions Using Wrong Accts. Check for miscellaneous inventory transactions, where the offset account is the same as the subinventory or organization valuation account Account Alias Issue Example DR Inventory Account (from the Account Alias) CR Inventory Account Inventory Acct Line Type 10 Account 10 Inv valuation Use the Material Distribution Inquiry to find these, query for entries that hit your subinventory valuation accounts (Std) or organization valuation accounts (Avg), where the Accounting Line Type is Account

Account Alias / Misc. Inventory Transactions Using Wrong Accts. Enter the inventory account you want to search Enter Source Type Account alias and Accounting Type Account

Find Incorrect Inventory Offset Transactions Custom Material Account Summary Report Example: Filter for the inventory accounts you want to search Filter for Accounting Line Type Account

Account Alias / Misc. Inventory Transactions Using Wrong Accounts Corrective action: Reverse the miscellaneous transaction (assuming the Standard or Average costs have not changed) and replay the transaction with a correct offset account. Or enter a manual journal entry to balance your G/L to inventory perpetual

Disabling a Code Combination During the Month If you disable a code combination during the month, AND it has been used in Inventory or WIP subledger: Release 11i: it will not come over to the GL Interface. For other subledgers it will fail in journal Import (Payables, others) Release 12: will fail in Create Accounting You can find this by: Release 12: run the Subledger Period Close Exceptions Report Corrective action for Release 11i: For Inventory or WIP, manual journal entry to book the difference For other subledgers, fix in the GL interface (it will be an unbalanced entry). Corrective action for Release 12: Fix using correction screens as available or re-enable the code combination

Sub ledger Miscoding Miscoded Purchase Orders cause permanent differences once the corresponding line item is received Departments such as Accounts Payable and Accounts Receivable intermittently reference inventory accounts during coding, causing reconciliation differences You must not code any Receivable or Payable entries to a system account System accounts include your Inventory Accounts, A/P Accrual Accounts (Inventory and Expense), Intransit, Inter-org Clearing Accounts or Receiving Inventory Account Corrective actions: Reverse subledger entry if possible, or correct via manual GL entry.

Manual GL Journal Entries Manual General Ledger journal entries become an automatic reconciliation item Typically you only write reversing entries to correct the balances at month-end, but in the new month you should perform the transaction in the respective subledger Corrective actions: Include as a reconciling item on your G/L to inventory reconciliation If applicable, reverse next month and replace with the required detailed material or WIP transactions

Back-dated Transactions from External Systems Sources of backdated transactions include: Late inventory period closes External system feeds Corrective actions: Release 11i: Enter a manual reversing journal entry Release 12: Rerun the respective Inventory Value Report

Delivering Goods to a Closed Work Order Oracle provides us with the ability to receive Outside Processing (OSP) vendor receipts to closed work orders Release 12 patches to stop this (as of Feb-2011): ER 2308832 to not allow closing of job if there are open POs/Requisition. Bug patch 9791544 which will not allow job to be closed if there are open Receipts which are not delivered. This causes a permanent difference as the corresponding work order is not charged and the costs are not reflected within the perpetual records (WIP balances) And you can have receiving transactions stuck in your Open Receiving Interface which you cannot clear (the job is closed) Corrective actions: Reopen the work order and make corrections Can only do if the inventory period is not closed If you cannot reopen the work order: delete the transaction from the Open Receiving Interface and manually accrue the WIP job charge into the G/L Log an Oracle Service Request to delete / correct your invalid receiving balance

Sharing System Accounts Sharing System Accounts: Expense and Inventory Accrual Accounts Receiving Valuation Accounts Organization Level Accounts (Average, FIFO, LIFO Costing) Subinventory Accounts (Standard Costing) Cost Group Accounts (Project Mfg, WMS) WIP Accounting Classes Inventory Account Aliases Order Types and COGS User-defined Subledger Accounting Rules Corrective actions: Typically back-end SQL*PLUS fixes for Organization, Subinventory, WIP or Cost Group account changes Most other changes can be done via the forms or setup screens Note: Oracle Support advice may be too conservative (new orgs, new subinventories, issue all goods out, close all work orders, etc.)

Initial Legacy GL balances to do not Match Oracle Perpetual You went live with Oracle and: You never reconciled G/L to Perpetual on your prior system If your initial onhand quantity conversion was wrong and never corrected You never reconciled your G/L to Perpetual post GoLive Corrective actions: All Releases: Correct your perpetual balances using inventory material transactions Correct your G/L balances with manual journal entries

Misleading Inquiry Parameters Oracle uses Between for selecting transactions on the material distributions inquiry, as opposed to Greater than or equal to : Why enter 01 Jan 2011 00:00:00? Shouldn t this be 31 Dec 2010 23:59:59?

Out-of-Balance Item Costs (Standard Costing) You went live with Oracle and your item costs do not balance (poor item conversion or custom programs): Cost Details = Cost Summary True by cost element, level type (previous, this) or in total When you run a Cost Mass Edit it automatically corrects the Summary Cost table to equal the sum of the Cost Details If Cost Details do not equal Cost Summary the Standard Cost Update does not fail and your item costs will be corrupt If not equal, the (Qty X Unit Costs) not equal to accounting entries

Out-of-Balance Item Costs What Happens? G/L does not equal the perpetual movement The sum of the material quantity movement (Quantity X Standard Costs) may not equal the material accounting movement (especially for PO Receipts and WIP Completions) Cannot do a WIP roll-forward with confidence. The sum of the increases and decreases to WIP Balances will not agree to the addition of the monthly WIP transactions with the prior cumulative balances. The Discrete Job Value Report will not tie to the WIP Job Balances, or even to itself Elemental Inventory Value Reports may not equal Inventory Value Reports

Out-of-Balance Item Costs (Standard Costing) Corrective actions: 1) Copy Frozen costs into a new cost type called DATAFIX, item costs, resources, overheads, resource/overhead associations 2) Run a Cost Mass Edit to edit the Material Costs across all basis types and subelements, changing the value by.00001. Doing this will cause the Cost Mass Edit to set the Summary Item Costs = Detailed Item Costs 3) Run the Pending Standard Cost Adjustment Reports. Note that the WIP Standard Cost Adjustment Report may not work correctly 4) Stop all transactions by stopping the Cost Processor for Inventory and WIP (or set the Cost Cut-Off Date in the Inventory Parameters for the offending inventory orgs) 5) Run before Inventory Value, WIP Value, All Inventory Value Reports 6) Do the Standard Cost Update 7) Run after Inventory Value, WIP Value, All Inventory Value Reports 8) Compare the before and after valuation reports against the inventory and WIP standard cost adjustments and make manual journals as needed to true up the amounts 9) Start the Inventory and WIP Cost Processors (or remove the Cost Cut-Off Date) 10) And for all WIP jobs that are currently open, when they are closed manually calculate the amount of WIP Variance that is in error and make a manual journal correction.

R12 Reconciliation Improvements and Challenges

R12 Improvements Period Close Diagnostics Forms Drilldown Using the same Inventory Accounting Periods form you can drilldown to associated forms to view the problem transactions New workflow to notify of failing transactions Period Close Pending Transactions Report Report the transactions holding up the inventory accounting period But only by inventory organization, not across all organizations

Reconciliation Improvements in R12 The following reports can now be run with an As-of Date: Inventory Value Report By Subinventory Inventory Value Report By Cost Group Elemental Inventory Value Report By Subinventory Elemental Inventory Value Report By Cost Group All Inventories Value Report All Inventories Value Report By Cost Group Intransit Value Report Receiving Value Report

Reconciliation Challenges in R12 Subledger Accounting and Inventory Reconciliation Which accounts represent inventory and WIP valuation? Harder to reconcile manually with no valuation accounts on the Inventory Value or Receiving Value Reports If accrue expenses at time of receipt Receiving Value by Destination Account Report is disabled Release 12 dropped the valuation accounts on most inventory reports

R12 Material and WIP Distribution Inquiries and Reports Release 12 material and WIP distribution inquiries & reports do not reflect the SLA results SLA Journal Reports do not show operational information Release 12 always records the material accounting and WIP accounting entries by cost element rendering these inquiries and reports more difficult to use Release 12 forces Standard Costing to record WIP & Material entries by Cost Element (you had a choice in R10 11i)

Basic Table Structure for SLA Enter Transaction(s) Accounting Processor Module Specific Transaction Accounting Tables One Common Accounting Subledger Table Transaction Accounting Tables SLA Accounting Tables XLA_EVENTS G/L Tables GL_LEDGERS Receiving Material WIP Create Accounting XLA_AE_HEADERS XLA_AE_LINES GL_ INTERFACE GL_JE_BATCHES GL_JE_HEADERS XLA_DISTRIBUTION _LINKS GL_JE_LINES

Custom Reconciliation Solutions

Custom Solutions for Multiple Organizations Common Custom Reports and Desired Enhancements Multi-Org Material Account Summary Report Multi-Org Receiving Account Summary Report Multi-Org WIP Account Summary Report Multi-Org All Inventories Value Report Multi-Org Inventory Value Report Multi-Org Receiving Value Report Multi-Org Expense Receiving Value Report Multi-Org WIP Value Report Multi-Org Period Close Variances Report Multi-Org G/L to Inventory Reconciliation Report

Desired Enhancement: Multi-Org Period Close Variances Report From the CST_PERIOD_CLOSE_SUMMARY table SQL code available in the white paper You can also use this information to get your month end perpetual quantities and values for intransit and subinventories

Desired Enhancement: G/L to Inventory Reconciliation Report Just think how much time this would save

Sample G/L to Inventory Reconciliation Script Automatically Compares: G/L to Inventory Perpetual (sum G/L JE Lines vs. Period Close Summary) G/L to Intransit Perpetual (sum G/L JE Lines vs. Period Close Summary) G/L to WIP Period-End Balances (sum G/L JE Lines vs. WIP Period Balances) Caveats: Only considers Discrete Costing, not OPM Uses a MFG lookup code to select the desired accounts Needs to be tailored to your chart of accounts Sample version does not handle Receiving (no snapshot) Sample version assumes same accounts across cost elements

MFG Lookup Code for Inventory Reconciliation Set up your Manufacturing Lookup Code:

G/L to Inventory Reconciliation Data Flow Period End Cost Snapshot Tables LEGEND Costing & WIP tables General Ledger tables CST_PERIOD_CLOSE_SUMMARY WIP_PERIOD_BALANCES General Ledger Tables GL_LEDGERS GL_BALANCES GL_JE_HEADERS GL_JE_LINES GL_CODE_COMBINATIONS Compare Balances by Full Account (CCID) Report Output

G/L to Inventory Reconciliation Report From the CST_PERIOD_CLOSE_SUMMARY table To get sample SQL, send email to doug@volzconsulting.com This report is in use at multiple Release 11i and 12 clients

Useful Custom Reports for Inventory Reconciliation Custom Multi-Org Valuation Reports * Expense Receiving Value Report ICP Inventory & Intransit Value Report ** ICP Inventory Value Change Report ** Receiving Value Report Intransit Value Report Inventory Out-of-Balance Report Onhand Lot Value Status Report Custom Account Distribution Reports Material Account Summary Report Receiving Account Summary Report WIP Account Summary Report * See Appendix for report samples ** ICP stands for Inter-Company Profit in Inventory, also known as PII or Profit in Inventory Using the solutions from the Collaborate 10 presentation Does Rel. 12 Solve Global Inter- Company Issues for Multiple Ledgers, Profit in Inventory and COGS?, many companies are able to track their profit in inventory with great success

Summary Using the standard Oracle reports to reconcile inventory is ok with a small number of inventory organizations But even with a small number of inventory orgs using the Custom Inventory Reconciliation Report can save time And having custom multi-org valuation and accounting distribution reports can also save significant time, up to a 50% efficiency improvement

Appendix Custom Report Samples Custom Multi-Org Valuation Reports Expense Receiving Value Report ICP Inventory & Intransit Value Report ICP Inventory Value Change Report Receiving Value Report Intransit Value Report Inventory Out-of-Balance Report Onhand Lot Value Status Report Custom Account Distribution Reports Material Account Summary Report Receiving Account Summary Report WIP Account Summary Report

Appendix Sample Multi-Org Reports Receiving Value for Expenses Custom Expense Receiving Value Report Use when you accrue expenses at time of receipt These are undelivered expenses which should not be in the Asset Receiving account at month end

Appendix Sample Multi-Org Reports Multi-Org Inventory Value Reporting Custom ICP/PII Inventory & Intransit Value Report Across all of your inventory organizations Use this report for the month end perpetual values and to reconcile overall ICP/PII movement at month end

Appendix Sample Multi-Org Reports See Your Change in Inventory Value Custom ICP/PII Inventory Value Change Report Use this to reconcile overall ICP/PII movement at month end

Appendix Sample Multi-Org Reports See Receiving Value with More Information Custom Receiving Value Report Shows OSP and Inventory in Intransit. Current version is a real time report; a prototype rollback version is also available.

Appendix Sample Multi-Org Reports Custom Inventory Out Of Balance Report Uses the Stored Month End Snapshot Used to find differences between your cumulative accounting entries and your perpetual balances

Appendix Sample Multi-Org Reports See Onhand Inventory Value by Lot Number Custom Onhand Lot Value Report Shows inventory value with lot numbers. Current version is a real time report; a prototype rollback version is also available.

Appendix Sample Multi-Org Reports Custom Account Distribution Reports Custom Receiving Account Summary Report Custom Material Account Summary Report Custom WIP Account Summary Report

Any Questions? Doug Volz doug@volzconsulting.com www. volzconsulting.com +1 510 755 7050 OAUG/OpenWorld/UKOUG Conference Papers: http://www.volzconsulting.com/resources.html OAUG Oracle Cost Management SIG Minutes: http://www.volzconsulting.com/oaugcostsig.html

Please complete the session evaluation We appreciate your feedback and insight You may complete the session evaluation either on paper or online via the mobile app