Steps
Oracle Inventory and
Oracle Cost Management provides the required features to effect the necessary
period-end procedures to:
§
Reconcile the inventory and work in process costs and values.
§
Transfer inventory and manufacturing costs to the General
Ledger.
§
Transfer summary or detail accounting information to the general
ledger.
§
Independently open and close periods for each inventory organization.
§
Perform interim transfers to the General Ledger without closing
the period.
§
Maintain the same set of periods and fiscal calendar as for the
General Ledger.
Attention: For
period-end adjustment purposes, it may be appropriate to hold more than one
period open per inventory organisation at the same time, although at other
times, having only one period open at a time ensures that transactions are
correctly dated and posted to the correct accounting period.
Procedures
The following steps are
taken in performing period-end processing for Oracle Inventory:
COMPLETE
ALL TRANSACTIONS FOR THE PERIOD BEING CLOSED
§
Ensure that all issues, receipts, and adjustments have been
entered and verify that no hard copy records exist or are awaiting data entry,
e.g. packing slips in receiving.
§
Optional Report – Cycle Count Report
This report will
highlight any unconfirmed ad-hoc Stocktakes.
CHECK
INVENTORY AND WORK IN PROCESS TRANSACTION INTERFACES
Check the Interface
Managers window to ensure that there are no background or concurrent programs
unprocessed.
Check all three
selections, Transactions Interface, Internal Transactions, and Demand
Interface, and fix any rejected transactions.
The interface managers
that need to be run are as follows:
§
Material Transaction Manager
§
Material Cost Transaction
§
Move Transaction Manager
§
Resource Cost Transaction Manager
§
Check the Reservation Managers window
§
Demand Reservation Manager
CHECK
ORACLE ORDER MANAGEMENT TRANSACTION PROCESSES
Ensure all sales order
(Pick Release) issues through Oracle Order Management have been completed and
transferred successfully to Oracle Inventory.
Attention: If orders
have not been released, they do not have to be completed.
REVIEW
INVENTORY TRANSACTIONS
Before closing a period,
review all of the transactions for the period that have a high dollar value
and/or a high transaction quantity. Verify that the correct accounts have been
charged. Correcting incorrect account charges before closing the period is
easier than writing manual journal entries to resolve them later.
BALANCE
THE PERPETUAL INVENTORY
Check that the perpetual
inventory value up to the end of the period being closed matches the value
reported in the General Ledger. This balancing is usually effected
automatically, but one of the following three sources may create a problem:
§
Other inventory journal entries
Journal entries from
products other than Oracle Inventory, that update the inventory accounts.
§
Charges to improper accounts
For example, material
issued from a sub-inventory to a miscellaneous account, but one of the
sub-inventory accounts was used as that miscellaneous account.
§
Transactions after period end reports
This occurs when the
period-end inventory valuation reports are submitted before all transactions
for the period have been completed.
Use the Historical
Inventory Balance Report to obtain period valuation information before the
extra transactions.
The following reports
can be run to help with these reviews:
§
Inventory Value Report
Use the Inventory Value
Report to show quantity, valuation, and detailed item information for the
sub-inventories specified.
§
Period Close Value Summary Report
Use the Period Close
Value Summary to see summary balances for sub-inventories. If you run this
report for a closed accounting period, the report displays the sub-inventory
values at the end of that period. If you run the report for an open period, the
report displays the sub-inventory value at the point in time you run the
report. You can see more sub-inventory balance detail by running the Inventory
Value Report, or the Elemental Inventory Value Report.
§
Material Account Distribution Detail Report
Use the Material Account
Distribution Detail Report to view the accounts charged for inventory
transactions. Review inventory transaction values transferred to the general
ledger by GL batch.
§
Material Account Distribution Summary Report
Use the Material Account
Distribution Summary report to review inventory accounting activity. If you
detect unusual accounts or amounts, use the Material Account Distribution
Detail report to print the transaction in detail.
Use the Material Account
Distribution Summary Report to verify inventory account activity against
inventory valuation increases or decreases for the accounting period. Finally,
use this report to reconcile an account across several periods.
