Reconcilation Simplified with R12 Sub-ledger Accounting

Many accountants and bookkeepers are continuing to use spreadsheets outside of the system to reconcile items. R12 hopes to stop this emerging tread with R12 sub-ledger accounting (SLA).

Process and Approach

• All SLA data is stored in SLA and is imported into GL via GL transfer processes.
• Standard reports pull information based on the data in SLA data
• Upgrade maintains AP and AR accounting rules
• Invalid ccid's can be corrected using the 'alternate code combination' form

SLA Best Practices:

• Have a published timetable that communicates the month close schedule and the 'workdays' on which each process is to be completed.
• Run the create accounting process daily and review the exceptions report
• Determine who fixes what errors that are indentified in the period close exceptions report
• The GL group owns the process, but will need to communicate with the other areas.

Lessons Learned:

• All reconciling items should be documented
• Train the team to understand the steps required to perform the SLA close process
• Review the subledger exceptions report and identify who is responsibile for fixing the errors
• Adopt practices to maintain consistency across your subledgers
• Run create accounting to move data to SLA and immediately import the data to GL
  

Identify and Resolve Reconciliation Differences:

• Reconciliation is simplified in R12. More functionality and reports to help with reconciliation
• Subledger Journal Entry Inquiry. You can save the queries and export the data to Excel
  
• Journal Entries Report (All based on XML-based reports.)
• Third Party Balances Report (Supplier or Customer is associated with this report.)
• Open Account Balances Listing (can be defined by segment or accounting flexfield.)

Payables Reconciliation:

• Open Account Balances Listing report shows you the total outstanding balance for your suppliers
• The Third Party Balance Report shows the outstanding balance for customers
• SLA Account Inquiry form offers drill down to the invoice
  

Summary

• Increase data quality and accountability; improve reporting capabilities; reduce reconciliation efforts; streamline period close
  
• Centralized repository for subledger accounting entries; new subledger reports; exceptions reporting and subledger accounting inquiry; period close exceptions report
  
• Easy to analyze subledger data from a single place; faster identification of differences; lower risk of misstatements; enable staff to focus on other areas.

Obtain more information from search.oracle.com Search on....

• Subledger Reconciliation
• Period End Procedures
• Period Close

References: Oracle OpenWorld 2008 Session: Oracle E-Business Suite Improve Subledger Reconciliation for the Period End Close