AP with GL Reconliation in Oracle

AP vs. GL Reconciliation

Before doing Reconciliation, we have to run the concurrent program “Transfer to General Ledger” where this programme will transfer data from AP to GL.

For this whenever we are doing setups in “Payable option” in payable module, one check box is there (payable invoice transfer GL) that check box we must enable after that in payable level, we run the report Payable transfer to GL.

“OR”

In GL responsibility import screen (Navigation:-GL Responsibility->journal->Import) we will import the data from payable to GL , If any pending payable transaction is in GL interface .

     Month End reconciliation between GL and AP is mandatory. If AP is interfaced to GL, verifying the balance between the two modules is usually done through comparing account balances of the liability account.

   To reconcile your accounts payable activity for 30-Nov-12, make the following calculation:

Sign	Particulars
Opg Bal	"Accounts Payable Trial Balance" as of 31-Oct-12
+	"Posted Invoice Register" for the period between 1-Nov-12 and 30-Nov-12
-	"Posted Payment Register" for the period between 1-Nov-12 and 30-Nov-12
=	"Accounts Payable Trial Balance" as of 30-Nov-12

    > If total is not matching you will need to find out the root cause of difference:
  E.g. Invalidated Invoice for the period
     > For the PTD activity check the "period Close Exception" if there are any invoices and payments which   are not transferred to GL.

 > If the current period does not reconcile, please complete the reconciliation process for all prior periods from the most recent to the earliest until you get to one that reconciles.

Reconciling AP to GL is accomplished with the use of the following reports.
“Posted Invoice Register”
“Posted Payment Register”
“Accounts Payable Trial Balance” (current and last period)

These reports ensure that your Trial Balance accurately reflects your accounts payable liability by matching the Posted invoices and payments with the AP liability account. You can also compare your AP liability accounts to GL by doing a query of the accounts in GL to identify the account or accounts out of balance. The trial balance total should be the same as your GL liability account.

If not:

Run the GL “Account Analysis” report for the liability account and for the date range in question. Look for transactions with a source other than Payables. This can quickly pinpoint any transactions incorrectly charged to the account. Make sure that you have not made manual
Journal entries to your liability account in General Ledger. When you identify the accounts you go back to AP and do a query on the account to find the invoices out of balance.
The last step is to create a journal entry in GL to balance the account or accounts that is out of balance.

Common Reasons for balance mismatch between AP & GL

  IIf the AP batch is still in the GL Interface, it will not be reflected in the GL reports and this will cause a difference between AP and GL.

  IIf you have deleted any AP batches or lines from AP batches out of the GL Interface, this will cause AP and GL to be out of balance

  IAny AP batches that are un posted in GL will cause a difference between AP and GL

  IYou performed a data fix in the past where you used the undo accounting script and swept a transaction forward from a closed period to re account it; this will cause an imbalance between AP and GL. The imbalance will be corrected in the period in which you made a GL adjustment to account for the fix.

  IAny correction you make during the journal import process will result in the line being changed in the general ledger, but not in AP

  IManual journal entries in the general ledger that involve an AP liability account will cause the AP Trial balance not to reconcile to the GL. These entries are not included in the AP sub ledger so they will not be reflected on the AP Trial Balance Report.
 

      IRun the "GL Account Analysis" report for the liability account and for the date range in question. Look for transactions with a source other than Payable. This can quickly pinpoint any transactions incorrectly charged to the account.

Customized Reports for reconciliation:

1) Supplier Ledger
2) Supplier Trial Balance
3) Supplier Advance (Pre payment) Register
4) Supplier Advance Adjustment (Pre payment) Register
5) Supplier Liability Report
6) Supplier Aging Report
7) AP Reconciliation Report

With the help of this new customized reports, we can reconcile AP and make 100% reconciliation in oracle payable R12

Sign	Particulars	Rs.
=	Supplier Trial Balance	100
=	Supplier Ledger	100
+	Supplier Liability Report	120
-	Supplier Advance Adjustment (Pre payment) Register	20
=	Supplier Aging Report	100
=	AP Reconciliation Report  Rs.100(GL(Rs.110) and SLA (Rs.100)	100

If GL SLA then displays all the information of rest of Transaction for Rs.10)

This reports are very accurate (100%) even we can fire with back dated also.

How is the as-of-date used in the “Accounts Payable Trial Balance” report?
A: The as-of-date is used to determine which invoices and payments should be included on the report.  Any invoices or payments with an accounting date AFTER the entered as-of-date will not be displayed on this report.