Closing Process(Monhtly and Yearly)

7/30/2019 Closing Process(Monhtly and Yearly)

1/22

InterOffice Solution

Discussion


2/22

AGENDA

Intracompany Transaction Overview

Key Design and Guidelines

Process InterOffice Transactions

Accounts Payables Business Process

Requirements Mapping

Inter-Office Cash Transfer Budget Releases/Excess: NBA

Authority to Pay Transactions

ATP

Personal Services

ATP Maintenance and Other Operating Expenses

ATP Purchase of Fixed Assets


3/22

INTRACOMPANY TRANSACTION OVERVIEW

Intra Company balancing rules are used to create balancing lines

on journals between balancing segment values either within thesame legal entity.

Intra Company balancing rules are used when more than one

balancing segment value exists on a transaction or journal entry.

Journal in General Ledgercannot be posted when the debit and

credit amounts for each balancing segment value do not net to

zero.

These journals can be balanced automatically by setting up the

balancing rules and enabling the option to balance cross-entity

journals.


4/22

KEY DESIGN AND GUIDELINES

Create New Accounting Structure:

PPA_ACCTG_FF


5/22


Define the segments for the structure PPA_ACCTG_FF assign same value

set for company segment and the Intracompany segmentAssign Flexfield Qualifiers to all the segments including the Intercompany

Segment

Intracompany

Segment

Intracompany

Segment -

Qualifiers


6/22


Same Values for Value Sets: Operating Unit and

Intracompany Segment


7/22


Enable Intracompany Balancing


8/22


Create Rule for No Legal Entity


9/22

IMPACT OF INTRACOMPANY TO THE CURRENT COA

Current COA Structure

Company - OU RC - Account Project ID Future 1 Future 2

The current COA structure do not have segment for intracompany transactions, withthe existing setup intracompany transaction is not feasible.

Recommendation: A new COA structure to implement intracompany trasactions

Remove company segment and create intracompany segment

Pros:

Facilitate faster reconciliation of Due To/Fr accounts since InterCO entries areautomatically generated by the system. Chances of committing mistakes will beminimized

Receiving Office can easily check and follow-up for any impending cash transferfrom Issuing Office by simply looking at the balance of Cash in Transit account

Key Design and Guidelines


10/22

INTEROFFICE CASH TRANSFER -

BUDGET RELEASE AND EXCESS NBA

APTP 7.2

CreatePayment

Check

AP-Issuing Office

Oracle AP

APTP 7.1

Create Standard

Invoice and Validate

Intra Office

Cash Transfer Invoice

AP - Issuing Office

Oracle AP

APTP 7.4

Create

Miscellaneous

Receipts

AR Receiving Office

Oracle AR

APTP 7.3

Notification to

Receiving Officeof Cash Transfer

Automatic

Workflow

APTP 7.5

Subledger

Journals

Post to GL

Automatic

Oracle GL

APTP 7.6

Run

Trial Balance

Reports

GL Analyst

Oracle GL

* Manual for off-line

Notice of Budget

Allocation/Excess

NBA

Process Flow Diagram (Option 1)


11/22

PROCESS FLOW DIAGRAM (OPTION 2)

Interoffice Cash Transfer -

Budget Release and Excess NBA

Perform Bank to Bank

Transfer

CM-Issuing Office

Oracle CM

Create Accounting

Entry: Final Post

CM - Issuing Office

Oracle CM

Sample Entry:

Debit Credit

4100-Cash in Bank 50,000.00

1100-Cash in Bank 50,000.00

4100-Due To/From 50,000.00

1100-Due To/From 50,000.00

Accounts Issuing Office Receiving Office Corp Book

Cash in Bank (50,000.00) 50,000.00 0.00

Due to/From 50,000.00 (50,000.00) 0.00


12/22

AUTHORITY TO PAY PERSONAL SERVICES

(PAYMENT THROUGH INDIVIDUAL VOUCHER)

APTP 8.2

Create

Payment

Check

AP-Issuing Office

Oracle AP

APTP 8.1

Create Standard


Intra Office


AP - Issuing Office

Oracle AP

APTP 8.4

Create

Miscellaneous

Receipts

AR Receiving Office

Oracle AR

APTP 7.3

Notification to

Receiving Office

of Cash Transfer

Automatic

Workflow

APTP 8.5Create Standard


Intra Office


AP Receiving Office

Oracle GL

APTP 8.6

Create

Payment

Check

AP Receiving Office

Oracle GL



APTP 7.5

SubledgerJournals

Post to GL

Automatic

Oracle GL

APTP 7.6

Run

Trial Balance

Reports

Automatic

Oracle GL


13/22



Create Standard

Invoice Intra Office


AP Receiving Office

Oracle AP


Create Manual

Encumbrance

Entry and Post

GL

Issuing Office

Oracle GL

Perform

Bank to Bank

Transfer

CM

Issuing Office

Oracle CM

Perform

Create Account Entry

Final Post

CM Issuing Office

Oracle CM

Sample Entry:

Debit Credit

1100-Expense-4100 50,000.00

1100-Reserve for Encumbrance 50,000.00

Sample Entry:

Debit Credit

4100-Cash in Bank 50,000.00

1100-Cash in Bank 50,000.00

4100-Due to/From 50,000.00

1100-Due to/From 50,000.00

A

Sample Entry:

Debit Credit

1100-Expense 50,000.00

4100-Accounts Payable 50,000.00

1100-Due to/From 50,000.00

4100-Due to/From 50,000.00


14/22



Reverse Manual

Encumbrance Entry

GL

Receiving Office

Oracle GL


Validate and Create

Accounting

Entry Standard



AP

Issuing Office

Oracle AP

A

Sample Entry:

Debit Credit

1100-Expense 50,000.00


1100-Due to/From 50,000.00

4100-Due to/From 50,000.00

**IntraCO En try

1100-Expense 50,000.00


**Encumb rance Entry


1100-Expense 50,000.00

**Encumb rance Entry Reversal

Sample Entry: Debit Credit


1100-Expense-4100 50,000.00

B


15/22

Create

Payment Check/

Create Accounting

Entry (Final Post)

AP

Receiving Office

Oracle GL

Run

Trial Balance

Reports

Automatic

Oracle GL

B

Sample Entry:

Debit Credit


4100-Cash in Bank 50,000.00


Expense 50,000.00 0.00 50,000.00

Due to/From 0.00 0.00 0.00

Cash in Bank (50,000.00) (50,000.00)

Accounts Payable 0.00 0.00

Authority to Pay Personal Services

(Payment through Individual Voucher)



16/22


(PAYMENT THROUGH PAYROLL)

APTP 8.2

Create

Payment

Check

AP-Issuing Office

Oracle AP

APTP 8.1

APTP 8.1

Create Standard


Intra Office


AP - Issuing Office

Oracle AP

APTP 8.4

Create

Miscellaneous

Receipts

AR Receiving Office

Oracle AR

APTP 7.3

Notification to

Receiving Office

of Cash Transfer

Automatic

Workflow

APTP 8.5

Create Prepayment


Intra Office


AP Receiving Office

Oracle AP

APTP 8.6

Create

Payment

Check

AP Receiving Office

Oracle AP



APTP 8.7

Create Standard

Invoice (LIQ) and

Approve Intra Office


AP Receiving Office

Oracle AP

APTP 8.8

Prepayment

Application

AP Receiving Office

Oracle AP

A


17/22


APTP 7.6Run

Trial Balance

Reports

Automatic

Oracle GL

A

APTP 7.5Subledger

Journals

Post to GL

Automatic

Oracle GL

Authority to Pay Personal Services

(Payment through Payroll)


18/22

PROCESS FLOW DIAGRAM (OPTION 2)Authority to Pay Personal Services


Create Prepayment



AP Receiving Office

Oracle AP

Create Manual

Encumbrance

Entry and Post

GL

Issuing Office

Oracle GL

Perform

Bank to Bank

Transfer

CM

Issuing Office

Oracle CM

Perform

Create Account Entry

Final Post

CM Issuing Office

Oracle CM

Sample Entry:

Debit Credit

1100-Expense-4100 50,000.00


Sample Entry:

Debit Credit

4100-Cash in Bank 50,000.00

1100-Cash in Bank 50,000.00

4100-Due to/From 50,000.00

1100-Due to/From 50,000.00

A

Sample Entry:

Debit Credit

4100-Prepayment 50,000.004100-Accounts Payable 50,000.00


19/22



Reverse Manual

Encumbrance Entry

GL

Receiving Office

Oracle GL

Validate and Create

Accounting

Entry Prepayment



AP

Issuing Office

Oracle AP

A

Sample Entry:

Debit Credit

4100-Prepayment 50,000.00


Sample Entry: Debit Credit


1100-Expense-4100 50,000.00

B


20/22



Create

Payment Check/

Create Accounting

Entry (Final Post)

AP Receiving Office

Oracle GL

B

Sample Entry:

Debit Credit

4100-Accounts Payable 50,000.004100-Cash in Bank 50,000.00

Run

Trial Balance

Reports

Automatic

Oracle GL


Prepayment 50,000.00 0.00 50,000.00

Due to/From 50,000.00 (50,000.00) 0.00

Cash in Bank (50,000.00) (50,000.00)

Accounts Payable 0.00 0.00

B


21/22

AUTHORITY TO PAY MAINTENANCE AND

OTHER OPERATING EXPENSES)

APTP 8.2

Create

Payment

Check

AP-Issuing Office

Oracle AP

APTP 8.1

Create Standard


Intra Office


AP - Issuing Office

Oracle AP

APTP 8.4

Create

Miscellaneous

Receipts

AR Receiving Office

Oracle AR

APTP 7.3

Notification to

Receiving Office

of Cash Transfer

Automatic

Workflow

APTP 8.5Create Standard


Intra Office


AP Receiving Office

Oracle AP

APTP 8.6

Create

Payment

Check

AP Receiving Office

Oracle AP



APTP 7.5

SubledgerJournals

Post to GL

Automatic

Oracle GL

APTP 7.6

Run

Trial Balance

Reports

Automatic

Oracle GL


22/22

APTP 8.2

Create

Payment

Check

AP-Issuing Office

Oracle AP

APTP 8.1

Create Standard


Intra Office


AP - Issuing Office

Oracle AP

APTP 8.4

Create

Miscellaneous

Receipts

AR Receiving Office

Oracle AR

APTP 7.3

Notification to

Receiving Office

of Cash Transfer

Automatic

Workflow

APTP 8.5

Create invoice and Validate

Intra Office Cash Transfer

Invoice

(PO Matching)

AP Receiving Office

Oracle AP

APTP 8.6

Create

Payment

Check

AP Receiving Office

Oracle AP


Process Flow Diagram (Option 1 )

APTP 7.5

SubledgerJournals

Post to GL

Automatic

Oracle GL

APTP 7.6

Run

Trial Balance

Reports

Automatic

Oracle GL

Authority to Pay Purchase of Fixed Assets)

Documents

Closing Process(Monhtly and Yearly)