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Oracle Advisor Webcast

R12 ON LINE ACCRUALS: PRE-UPGRADE,POST-

UPGRADE,SETUP,DATAFLOW,PROCESS FLOW

Presenter :Joe Adjei and Mike Filakosky


Objectives

Review R12 pre-upgrade, upgrade and post-upgrade processes

Introduction to Online Accruals

Overview of the dataflow in the new Release 12 architecture

Comprehend processes involved with Processing Accrual Data

Know how to troubleshoot some of the common On Line Accrual

issues.

Present best practices recommended by Oracle


AGENDA

Overview

Pre-upgrade, Upgrade, PostUpgrade

Process Flow and Table Level data

Dataflow Demo of Online Accruals

Troubleshooting/Isolating Data Discrepancies

Best Practices recommended by Oracle

Documents help to understand and troubleshoot On Line

Accruals


AGENDA







Accruals


OVERVIEW

The two Accrual Methods used in Oracle are 'On Line Accrual' and 'Period End

Accrual'.

On Line Accrual also called Accrual at Time of Receipt - meaning the Accrual

Accounting is generated by the Receiving Transaction at the time of receipt.

On Line Accrual is used for accruing Inventory Destination transactions and

in a limited way Expense Destination Transactions where there is the need

to perpetually track stock movement.

Period End Accrual is the recommended method

for accruing Expense Destination Transactions.


Accounts used for On Line receipt Transactions

Note 824388.1 R12 Account Requirements For Inventory AP Accrual Reconciliation

It is imperative that each of the following Accounts used in Accrual reconciliation process must be separate.

INVENTORY AP ACCRUAL ACCOUNT

Navigation: Inventory Responsibility Setup/Organization/Parameters/Other Accounts

All Default INV AP Accrual Accounts and new Accrual Accounts must be added to Setup Accrual Accounts Form before

they can be used by R12 Load and Accrual Reports

EXPENSE ACCRUAL ACCOUNT

Navigation: Purchasing Responsibility Setup/Organization/Purchasing Options/Receipt Accounting

All Default Exp AP Accrual Accounts and new Accrual Accounts must be added to Setup Accrual Accounts Form before

they can be used by R12 Load and Accrual Reports

RECEIVING ACCOUNT Navigate to: Purchasing Responsibility: Setup Organization/Receiving Options/Select the Organization/Receiving Inventory

Account

INVOICE PRICE VARIANCE Navigate to: Inventory Responsibility Setup/Organization/Parameters/Other Accounts


Receiving Account is the same as Accrual A/C-Issues

#1 Critical Setup The Receiving Inventory Account is same as Inventory AP Accrual Account

This results in the following:

DR (Receiving Inventory Account ) which is the same as AP Accrual

CR AP Accrual

0 accounting is created because they cancel each other out.

Solution :

Immediately correct the Receiving and Clearing accounts setup in receiving parameter page.

Write off these AP balance and Inventory balance

Miscellaneous Accrual Reconciliation Report Contains AP Intercompany Transactions (Doc ID 1335776.1)


AGENDA

Overview






Accruals


PRE-UPGRADE-Write Off INVOICE TRANSACTINS AND DUPLICATE WRITE OFFS

Written Off Invoice Transactions appear in Accrual

Reconciliation Report 1496378.1

1. Run this identification script prior to upgrade.

2. If the identification script returns records then open

a Service Request with product support to request

a datafix

.

SELECT

pawo.write_off_id,pawo.write_off_code,

pawo.invoice_id,pawo.invoice_line_num,

part.invoice_id,part.invoice_line_num,

part.line_match_order,pawo.line_match_order

FROM po_accrual_write_offs_all pawo,

po_accrual_reconcile_temp_all part

WHERE part.invoice_id = pawo.invoice_id

AND part.invoice_line_num =

pawo.invoice_line_num

AND part.line_match_order IS NOT NULL

AND pawo.line_match_order IS NULL

AND part.org_id = pawo.org_id

AND part.accrual_account_id =

pawo.accrual_account_id

AND part.org_id = &Operating_unit_id;


PRE-UPGRADE-DUPLICATE WRITE OFFS Duplicate Write Off Transactions Exist in the PO_ACCRUAL_WRITE_OFFS_ALL Table 1481224.1

1. Run the below identification script.

SELECT po_distribution_id,

Decode(transaction_source_code,'PO',po_transaction_id, 'AP',invoice_id, 'INV',inv_transaction_id,-99)

invoice_id_po_trx_id,

Decode(transaction_source_code, 'AP', invoice_line_num, 1)invoice_num,

transaction_amount, transaction_quantity, transaction_source_code, org_id,

sum(decode(write_off_code, 'WRITE OFF', 1, 0)) write_off_cnt,

sum(decode(write_off_code, 'REVERSE WRITE OFF', 1, 0))rev_write_off_cnt, Count(1) diff

FROM po_accrual_Write_offs_all w

WHERE org_id =&Operating_unit_id

GROUP BY po_distribution_id,

Decode(po_transaction_id, NULL, invoice_id, po_transaction_id),

Decode(transaction_source_code,'PO',po_transaction_id, 'AP',invoice_id, 'INV',inv_transaction_id,-99),

Decode(transaction_source_code, 'AP', invoice_line_num, 1),

transaction_amount, transaction_quantity, transaction_source_code, org_id

HAVING ABS(sum(decode(write_off_code, 'WRITE OFF', 1, 0)) - sum(decode(write_off_code, 'REVERSE

WRITE OFF', 1, 0)))>1;

2. If the above identification script returns records then open a Service Request with product support to

request a datafix. Prior to upgrade


UPGRADE DATA Recommendation from Oracle Costing Dev:Full Historical Upgrade Data of Receiving and

Invoice required to be able to reconcile post upgrade and pre-upgrade Reconciliation

Reports and GL

When doing an Upgrade it is recommended that companies should carefully evaluate their

business requirements with regards to historical data before deciding how far back to keep

detailed accounting information. Release 12 SLA Upgrade will upgrade the transactions in

the accounting periods specified. (Only upgrades 6 months)

For further information Review the following Notes: Document ID:429105.1 Impact of R12 Design in PO Accounting Document ID:399362.1 Oracle Applications Release 12 Upgrade Sizing and Best Practices to evaluate the potential growth of your SLA tables

Document ID:604893.1 R12 FAQ for the SLA Upgrade: SLA Pre-Upgrade,Post-Upgrade,and Hot Patch


Post Upgrade Scripts: Validate Receiving and Invoice Upgrade

Post upgrade Receiving script

Run the following query to check if all the receipt accounting were successfully upgraded to R12. This

query should return 0 count.

SELECT rrsl.period_name,

Count(1)

FROM rcv_receiving_sub_ledger rrsl,

rcv_transactions rt,

org_organization_definitions ood

WHERE rt.organization_id = ood.organization_id(+)

AND ood.operating_unit = &&OU_ID

AND rt.transaction_id = rrsl.rcv_transaction_id

AND rrsl.actual_flag = 'A'

AND rrsl.code_combination_id = &accrual_account_id

AND NOT EXISTS (SELECT 1 FROM xla_distribution_links

WHERE application_id = 707

AND SOURCE_DISTRIBUTION_TYPE ='RCV_RECEIVING_SUB_LEDGER'

AND source_distribution_id_num_1 = rrsl.rcv_sub_ledger_id)

GROUP BY rrsl.period_name, code_combination_id;


Post Upgrade Scripts: Validation of invoice upgrade

Following script is from AP Development will help identify AP Invoices Missing Upgrade

SELECT /*+ parallel */

COUNT( DISTINCT ai.invoice_id )

FROM ap_invoices_all ai

, ap_invoice_distributions_all aid

WHERE ai.historical_flag = 'Y'

AND aid.invoice_id = ai.invoice_id

AND aid.historical_flag = 'Y'

AND NOT EXISTS

(SELECT 1

FROM xla_distribution_links xdl

WHERE xdl.source_distribution_id_num_1 = aid.invoice_distribution_id

AND xdl.source_distribution_type = 'AP_INV_DIST'

AND xdl.application_id = 200);


Post Upgrade Scripts Validation of invoice upgrade

Count of invoices which are incorrectly upgraded provided by AP team

SELECT /*+ parallel */ count(distinct aid.invoice_distribution_id ),

count(distinct aid.invoice_id)

FROM ap_invoice_distributions_all aid

, xla_distribution_links xdl

, xla_events xe

WHERE xdl.source_distribution_id_num_1 = aid.invoice_distribution_id

AND xdl.source_distribution_type = 'AP_INV_DIST'

AND xdl.application_id = 200

AND( aid.amount NVL( xdl.unrounded_entered_cr, xdl.unrounded_entered_dr )

OR NVL( aid.base_amount, aid.amount ) NVL( xdl.unrounded_accounted_cr, xdl.unrounded_accounted_dr ) )

AND aid.historical_flag = 'Y'

AND aid.accounting_event_id = xe.event_id

AND xe.application_id = 200

AND xe.upg_batch_id > 0;


POST UPGRADE Concurrent program

Cost Management Development suggests for post upgrade

data use New concurrent program from Document ID:980112.1

The concurrent program can be used to post upgrade missing

Inventory/Payables/Receiving data


AGENDA

Overview






Accruals


11i Receipt Accounting


R12 Introduction of SLA Architecture


R12 Inventory transaction Flow


On Line Accruals Flow Encumbrance Environment


R12 Expense Destination Accrue On Receipt


Create Accounting - Receiving


SLA TO GL


Comparison R12 and R11 Reconciliation Reports


R12 reconciliation Process


Load Program and Reconciliation Reports


AGENDA

Overview






Accruals


Demonstration Data Flow (Inventory)

Receiving Inventory Account has been setup in the Receiving Options

for the corresponding Ship To Inventory Organization used on the PO.

Purchasing Setup/Organizations/Receiving Options



AP Accrual Account entered on the Inventory Organization Parameters. Inventory Setup/Organizations/Parameters Other Accounts



Accrual Accounts have been selected for use in the Accrual Reconciliation Process.

Purchasing Accounting/Accrual Write Offs/Select Accrual Accounts



Purchase Order is created and approved having a destination of inventory Accrue at time of receipt. Accrual Account is pulled from the corresponding ship to inventory organization parameters.



10 were Ordered and there is a non-recoverable tax of $.86 whereas a quantity of 5 was received which leaves $.43 non-recoverable tax which is part of the accrual.



Partial Receipt is conducted for quantity of 5. Direct Delivery is used

resulting in both the receive and deliver being completed.



Records are inserted into the RCV_RECEIVING_SUB_LEDGER table.

Entry is present for the Credit - AP Accrual Account from the Inv Org Parameters Entry is present for the Debit - Receiving Inventory Account from the Receiving Options

At this point no data has been created in the subledger accounting tables. Ex.. XLA_AE_HEADERS, XLA_AE_LINES, etc

Quantity of 5 Received at 1$ = $5 then tax at $.86 (for 10) or $.43 (for 5) = $5.43



Using Cost Management SLA Create Accounting is engaged for the Process Category of Receiving. RCV_RECEIVING_SUB_LEDGER entries will be used to generate SLA data in the XLA_ tables Newly created XLA_ data may be considered for Transfer to GL based on Create Accounting Params



Multiple requests are spawned from the Create Accounting process

Accounting Program creates the Subledger Accounting Data entries (XLA) Journal Import processes SLA Data entries to the General Ledger



Utilizing the above sql data is confirmed in the XLA based tables. GL_TRANSFER_STATUS_CODE = Y These data are moved to the GL ACCOUNTING_STATUS_CODE = F Accounting Status Code is Final ACCOUNTING_STATUS_CODE is important for determining why data may have not been

transferred to the General Ledger

Entity is seen as RCV_RECEIVING_SUB_LEDGER

xla_ae_headers.accounting_entry_status_code

I Invalid R - Related Entity in Error

N Incomplete D - Draft mode

F - Final mode

xla_ae_headers.gl_transfer_status_code

Y - Entries have been successfully transferred to GL

N - Entries are not transferred to GL

NT - Entries are not eligible to be transferred to GL



Using Cost Management SLA Create Accounting is engaged for the process category of Inventory. This ensures that second portion of the receipt the Delivery is also moved into the SLA and onto GL.



SQL can be used to confirm the transactions were created in the SLA.

The Debit reversal against the Receiving Inventory account is completed Note the source distribution type is MTL_TRANSACTION_ACCOUNTS GL_TRANSFER_STATUS_CODE is Y



Cost Management SLA /Inquiry/Accounting Events Used to view the Subledger Accounting Data from the Application


Demonstration: Data Flow (Inventory) Inv Valuation - Material

01-000-1410-0000-000

Organization Parameters

Receiving Inventory

01-210-1620-0000-000

Receiving Options

Inventory AP Accrual

01-000-2210-0000-000


Liability

01-000-2210-0000-000

Debit

Credit

Debit

Credit

Debit

Credit

Receive RCV_RECEIVING_SUB_LEDGER Moved to SLA using Create Accounting - Receiving

Deliver MTL_TRANSACTION_ACCOUNTS Moved to SLA using Create Accounting - Inventory

Match AP_INVOICE_DISTRIBUTIONS_ALL Moved to SLA using Create Accounting - Payables


Demonstration Data Flow (Expense)

Purchase Order Expense Destination Accruing at time of receipt.



Records inserted into RCV_RECEIVING_SUB_LEDGER at time of Receipt Entries created for both Receive and Deliver (4 entries)

Previously with Inventory only Receive was created (2 entries) Deliver was done by Inventory MTL_TRANSACTION_ACCOUNTS

This differs from Period End as with Period End the entries are not created until running the Receipt Accrual Period End concurrent process



Create Accounting with process category of Receiving is submitted Results in data entries created in the Subledger Accounting XLA tables The Subledger Accounting may be moved to the General Ledger if GL Transfer is Yes Note: Create Accounting Inventory is not necessary as was with Inventory - as no records were created in the MTL inventory tables.



SQL can be used to confirm the transactions were created.

Note that all four entries were created in the Subledger Only Create Accounting Receiving is required



Cost Management SLA /Inquiry/Accounting Events Used to view the Subledger Accounting Data from the Application


Demonstration: Data Flow (Expense) Charge Account

01-000-2200-0000-000


Receiving Inventory

01-210-1620-0000-000

Receiving Options

AP Expense Accrual

01-000-2220-0000-000

Purchasing Options

Liability

01-000-2210-0000-000

Debit

Credit

Debit

Credit

Debit

Credit

Receive RCV_RECEIVING_SUB_LEDGER Moved to SLA using Create Accounting - Receiving

Deliver RCV_RECEIVING_SUB_LEDGER Moved to SLA using Create Accounting - Receiving

Match AP_INVOICE_DISTRIBUTIONS_ALL Moved to SLA using Create Accounting - Payables


Accrual Reconciliation

The Accrual Reconciliation Load Run is used to populate the following key tables: CST_RECONCILIATION_BUILD, CST_AP_PO_RECONCILIATION,

CST_RECONCILIATION_SUMMARY, CST_MISC_RECONCILIATION

This data is then used by the various reconciliation reports NOTE: The Date To should always be the final date of the Month-Period being reconciled.


Accrual Reconcilation

The Accrual Reconciliation Summary Report offers a very high level view of the accrual amounts

for the given accounts. More in depth details are then found in the AP and PO Reconciliation Report and the Miscellaneous Accrual Reconciliation Report.



The AP and PO Reconciliation Report is recommended for more detailed Analysis of the various

accruals which have taken place. Above is purchase order received not yet invoiced



Example - Purchase Orders Billed but not yet received.



Pricing Differences in this case quantity billed is .01 less than the Purchasing Amount. Release 11 offered parameters for tolerances however these are not available in Release 12.


AGENDA

Overview






Accruals


Accrual Reconciliation - GL

Product Transaction Entity

Purchasing Receive RCV_RECEIVING_SUB_LEDGER

Inventory Deliver MTL_TRANSACTION_ACCOUNTS

Inventory Shop Floor WIP_TRANSACTION_ACCOUNTS

Review Data in core table Ex. RCV_RECEIVING_SUB_LEDGER Compare Transaction Data to data residing in the SLA tables Compare SLA data to what is present in GL

Focus on issues which may be present.

Create Accounting did not create entries in the SLA? Entries exist in SLA but GL_TRANSFER_STATUS is N? Why? Why were some transactions not transferred.



Locate the LEDGER_ID and CODE_COMBINATION_ID values for

The Ledger and Accrual Accounts which are having the discrepancy



Confirm the current data picture for the RCV_RECEIVING_SUB_LEDGER



Confirm the data is equal between RCV_RECEIVING_SUB_LEDGER

And the XLA Subledger Accounting tables. The amounts are

Matching in the first two columns.



Confirm the data has been processed from RCV_RECEIVING_SUB_LEDGER Into the Subledger Accounting

tables XLA. This script would show data that is Present in the RCV_RECEIVING_SUB_LEDGER tables but is not yet existing in SLA XLA schema. This would mean Create Accounting is not picking up the data.



Review the XLA data to confirm if the records were moved to the GL

Focus on the GL_TRANSFER_STATUS_CODE and also the ACCOUNTING_ENTRY_STATUS_CODE

If certain records are not moved to the GL investigate further to to find out as to why they were not moved to the GL

Consider running the Transfer Journal Entries to GL in Cost Management view the Journal Import concurrent output to see if discrepancies are noted



Review the data which exists in the GL for the Accrual Account/Period in question

The amount here should be matching up to the SLA data where the XLA data is having The GL_TRANSFER_STATUS as Y.



The following sql can be used to review if there are any manual GL entries

created. These can impact the reconciliation balances.



If the XLA data has been transferred the GL_TRANSFER_STATUS is Y the following script can be used to confirm that the entry does in fact exist in the GL.



Example GL not being transferred Transfer to General Ledger Receiving Cost Management SLA Always Review the Journal Import concurrent request log/output


Accrual Reconciliation Write Off

Earlier was an example Billed but not yet Received this will now be written off. Write Offs are written into CST_WRITE_OFF and CST_WRITE_OFF_DETAILS Create Accounting Cost Management should be run to process the data into the SLA this is done from the Cost Management SLA Responsibiltiy


Accrual Reconciliation Write Off

Upon running the Create Accounting in Cost Management, the XLA data is

created and potentially transferred to the GL (If GL Transfer Option is Yes)

It is imperative to again run the Accrual Reconciliation Load Run in order for the new data to be reflected in the AP and PO Reconciliation Report

Special Attention is recommended on the To Date parameter in the Load Run


Accrual Reconciliation - Performance

Performance setbacks have been noted in two major areas:

Create Accounting Receiving Actions in the following note are recommended Note 1552592.1 Create Accounting Receiving Is Too Slow

- This note covers recommended patches and also maintenance steps

Accrual Reconciliation Load Run Actions in the following note are recommended Note 1490578.1 Accrual Reconciliation Load Run Has Slow Performance

- This note covers recommended patches and other maintenance steps


AGENDA

Overview






Accruals


Best Practices Recommended by oracle It is highly encouraged that the reconciliation process is completed and all discrepancies are

Analyzed prior to engaging the Load Program for the next period.

When giving the date parameters for the Accrual Reconciliation Load program it is suggested that the To Date should be the last day of the period that is being reconciled. This is recommended as the AP and PO

Reconciliation Report does not have date parameters therefore its imperative the data is managed via the Load program.

It has been commonly found that installing the latest patches for Inventory Accruals can resolve many

issues. Therefore we would recommend making sure you have the latest fixes installed and tested before

spending effort analyzing an issue in depth. From Release 12 onwards, standard patches will be released as

part of Release Packs (RUP) only. As such, check the following note for details on the latest RUP patch

released .. For the latest Release 12 Update Packs (RUP) please refer to Note 222339.1

Prior to upgrade Oracle recommends latest patches be in place in the instance upgraded from and instance

upgraded to. Reconciliation should be attempted in the From Instance and any discrepancies between GL

and Reconciliation Reports be noted. Release 11 latest patches are located in Note 427771.1.


AGENDA

Overview







Documentation Master Note For Oracle EBS Procurement Suite - Encumbrance And Accrual Accounting [ID 1138043.1]

Document ID:429105.1 Impact of R12 Design in PO Accounting

Document ID:399362.1 Oracle Applications Release 12 Upgrade Sizing and Best Practices to evaluate the potential growth of

your SLA tables

Document ID:604893.1 R12 FAQ for the SLA Upgrade: SLA Pre-Upgrade,Post-Upgrade,and Hot Patch

For the latest Release 12 Update Packs (RUP) please refer to Note 222339.1

Document ID:579836.1 Create Accounting Process

Document ID:824388.1 - R12 Account Requirements For Inventory Accrual Reconciliation

Document ID:1113712.1 - R12 FAQ Accounting for On Line and Period End Accruals

Document ID:1107953.1 - R12 Accrual Balance Mismatch Between Accrual Reconciliation Report and GL Troubleshooting

Document ID:1117353.1 - Discrepancies with Accrual Reconciliation Report Troubleshooting

Document ID:1126025.1 - R12: Discrepancies With Accrual Reconciliation Report For Consigned Items Troubleshooting.

FAQ R12 Essentials Of Accrual Accounting [ID 827125.1]


Notes/Articles to Considered:

R12 How To Diagnose Issues with Period End Accruals [ID 603971.1]

Impact of R12 Design in Procure To Pay Accounting Flow [ID 429105.1]

R12 FAQ: Accrual Accounting - On Line Accruals and Period End Accruals [ID 1113712.1]

R12 Account Requirements For Inventory Accrual Reconciliation [ID 824388.1]

R12: Discrepancies With Period End Accruals - Troubleshooting [ID 1279848.1]

R12 Receipt Accrual Period end process - Duplicate accrual reversal entries created [ID 873399.1]

List Of Code Fixes - Uninvoiced Receipts Report (URR) & Receipt Accrual Period End Process [ID

1145884.1]


Summary

Overview Online Accruals

Upgrade, Pre-Upgrade Considerations

Table Level Data Flow

Demonstration Data Flow

Troubleshooting Accruals

Recommended Best Practices

Available notes and resources

What we covered today


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