Oracle Cloud ERP Application period close process is conducted in a chronological fashion across modules Financials, Procurement, and Projects. The period close process has inherent dependencies among some of the modules. Oracle Cloud introduced some changes on the dependencies and ownership of these processes. This paper details the changes around period close processes.
Oracle Cloud Period Close Process Change
First change the Payables module continues to close first. There are no hard dependencies between Payables and Purchasing. In Purchasing there is no physical period to close. The Purchasing period end accrual process should be executed after closing Payables. The accrual process can be run multiple times and on each run delta transactions are processed.
Second, all Receiving and Inventory transactions are transferred from the Receiving and Inventory applications to the Cost Accounting application. You should run these process, “Transfer transaction from Receiving to Costing” and “Transfer transitions from Inventory to Costing”. These are executed through “Scheduled Processes” and they should be run daily.
Third change, note that there is no specific inventory period management in cloud Inventory. The change segregates operations from accounting the way it should be. Inventory transactions are financially recorded through Cost Management, and periods are managed through Costing. All Inventory Organizations/ Cost Organization/ Cost Books can be closed at once if they all belong to the same Cost Organization.
Costing maintains multiple dates for a transaction: a) transaction date b) costed date, and c) accounted date. The period-end validations helps you to ensure that all the relevant transactions from the various source systems are picked up and processed correctly. The cost cutoff date along with the period status ensures that backdates transactions are also not processed in closed periods.
Fourth, in the cloud you can mass close multiple periods in General Ledger, Payables, Receivables, Projects, and Costing. This can be a huge time saver, certainly at cut-over, but normally you should not have this situation after going live.
Re-Opening Closed Periods
Finally, new functionality introduced to re-open closed periods in the cloud. The following table shows the differences between EBS and Cloud.