Oracle Cloud Payables Tutorials: Payables Close Period Process

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/ @a_step_by_step2023
In this topic, we are going to take a look at the Payables Period Close process.
Once the transactions for a particular period have been completed or they have been recorded,
then it is the time for you to consider the closure of the Payables period.
there are some activities that you must perform before you will go ahead with closure of the period in the Payables application.
So the first activity is to ensure that you have completed and approved all the invoices and the payment files. So what does that mean?
Whatever invoices that you have recorded, they must be validated. If there are any holds, they must be resolved.
And then you must validate those invoices again.
Apart from that, if the approvals were enabled for your invoices, you must ensure that the invoices have been approved.
Then you must also ensure that you have completed all the payment files.
If there is any payment request that is pending because of some error or because of some issues,
you must either terminate that request or you must resolve the issues and complete that payment request because if you don't do that,
you will not be allowed to close your period.
Once all the invoices have been validated, they have been approved, all the payment files have been successfully processed,
then your next activity is to reconcile the payment to the bank statement activity.
So whatever bank statements you have imported for a particular period,
you must ensure that the bank statement lines have been reconciled with the payment that you have recorded in the Payments application.
Then the next activity is to transfer all approved invoices and payments to the general ledger. So actually,
you are not transferring the invoices and payments to the GL application.
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[@ivansantamaria8974]

Thanks for the explanation, Mohammed. I have a mismatch of the amounts in the summary and the detail for the Non-Payables concept from the Payables to Ledger Reconciliation Report. Any idea what might be causing that? Thanks.

[@A_Step_by_Step2023]

Points to note when setting up for Oracle Fusion Payables to General Ledger reconciliation: • Reconciling by Business Unit or Ledger If you implicitly map primary balancing segment values to your business units, you can reconcile based on business unit. This allows employees from different business units to balance their respective accounting activity. If you do not implicitly map primary balancing segment values to business units, you must reconcile based on ledger. In this case, you will need access to all business units associated with the ledger to perform a thorough reconciliation. • Assigning a Financial Category You must assign a Financial Category of Accounts payable to all your liability natural account values. This is a required setup step for Payables to General Ledger Reconciliation. You perform this task on the Manage Values page for the value set associated with the natural account segment of your chart of accounts. To include bills payable, intercompany, and tax authority liability accounts in the Payables to General Ledger Reconciliation report, assign them the Accounts payable category as well. If the Financial Category of Accounts payable is not assigned to any natural account in your chart of accounts, the Payables to General Ledger Reconciliation report will not select any data. Once you assign the category, you can leave the Account parameter blank when you run the extract to include all accounts that have the Financial Category of Accounts Payable in the ledger. You can alternatively enter specific natural account values to limit the report to reconcile only a subset of the payables accounts in the ledger. • Setting the Reconciliation Data Purge Frequency Profile Option Reconciliation data purge frequency profile option to indicate the number of days that reconciliation extract data is kept in the tables. Every time you run the extract program, it refers to the value of the Reconciliation data purge frequency profile option. If there are any reconciliation data extract requests in the table older than the number of days specified in the profile option, these requests are purged. • Configuring User Security General Ledger users are secured by a data access set, and Payables users by business unit security. General Ledger users can see general ledger data for the balancing segment values in their data access set, as well as the Payables or Subledger Accounting data for all business units linked to the ledger. Payables users can see the Payables or Subledger Accounting data for business units in their security definition, as well as general ledger data for all balancing segment values in the ledger. -------------------------------------------------------------------------- Reconciliation program picks up the amount from invoice distributions; only those distributions are considered whose accounting date falls within reconciliation period which - 1) For begin balance - accounting_date 2) For end balance - accounting_date < period end date + 1 3) For Invoices - accounting date between period start date and period end date Also, begin balance and end balance will NOT consider invoices that have active holds on them. =>Two dates are used in calculation of Payables amount balances - accounting date (which may be in prior period) and hold date (which is system date when this hold is applied). In case of prior period invoices the system date (and hold date) is current date. So if reconciliation will be submit for prior period - these invoices with holds will be included in the calculation of Payables amount ending balance. But in current period they will be excluded from calculation of current period ending balance (because hold is in current period) and they are shown in Payables variance cell.