Closing the Receivables period is as simple as closing the Payables period. Some may even say it’s simpler. The following steps are best practice for performing this monthly process:
- Open the new Receivables period.
- Run the Create Accounting process. This ensures that everything that is outstanding is accounted for and ready to close out. Be sure to run this process from the Receivables work area to ensure that all Receivables subprocesses are kicked off as well including the Revenue Recognition process.
- Review the Outstanding Subledger Transactions section on the Period Close dashboard. This will tell you anything that is still unaccounted for, what’s accounted for but not transferred to the ledger, and anything that has errors or is in draft mode. The beauty of this tool is that you can drill into the transactions that are listed here so you can reconcile/investigate as needed.
- Run the Create Accounting process again, but make sure to run it from the Receivables work area.
- Run the Receivables to Ledger Reconciliation report. This is very helpful in drilling into issues that you may not have been able to resolve from the Period Close work area. It allows you to drill into the differences balance and determine where the issues lie.
- Once all the outstanding issues have been resolved, you can now close the period. Luckily, there is no sweep process to run for Receivables like there is for Payables.
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Oracle provides several other reports that can be ran to determine variances as well, such as the Trial Balance Report, Adjustment Register, Transaction Register, etc. If you want to stay on top of any Receivables issues throughout the month, you can always run these reports to ensure business processes are running smoothly.
Running through the close process for Fixed Assets will come next, so check back soon for the tips on closing that subledger…