R12 Steps In Reconciling GL Balance And AP And PO Reconciliation Balance (Doc ID 823043.1)

Last updated on APRIL 04, 2025

Applies to:

Oracle Payables - Version 12.0.0 and later
Oracle Inventory Management - Version 12.0.0 and later
Oracle Cost Management - Version 12.0.0 and later
Oracle Purchasing - Version 12.0 and later
Information in this document applies to any platform.
CSTCRACCRCV
Create Accounting -Receiving

CSTGLTRN
Transfer to GL concurrent program

CSTACRLR
Accrual Reconciliation Load Program

CSTACRSM
Summary Accrual Reconciliation Report

CSTACRAP
AP and PO Accrual Reconciliation Report

CSTACRMI
Miscellaneous Accrual Reconciliation Report

Purpose

This paper includes step by step direction on how to reconcile the AP and PO Reconciliation Report with Accrual Account balance in GL. Examples of different scenarios like Normal Monthly Reconciliation Process, Prior Period Accrual Reconciliation , Fresh Install and Upgrade issues (relating to Accrual Reconciliation) will be examined. GL Accounts that impact the Accrual Reconciliation Process and Patching Requirements to achieve the desired results will also highlighted.

This Paper is in addition to <Note 728871.1> How To Diagnose And Reconcile Inventory AP Accrual Transactions Using Reconciliation Reports

The new concept of doing reconciliation and writing off by balance of po distributions requires a mindset shift from the traditional 11i approach that is based on individual transactions. With this new concept, the GL date of individual transactions becomes less significant. The reconciliation unit has shifted from transaction_date (traditional approach) to po_distribution_id (new approach). This makes it easier to reconcile PO's at the lowest po denominator-the distributions.

The Primary focus of the Reconciliation Reports has shifted from reconciling aggregate balance of GL Accrual Accounts to analyzing and verifying distribution balances of the PO. If the distribution, the lowest po denominator is correct the aggregate figure will be correct. The Net Accrual balance in the AP and PO Reconciliation Report at any given time excluding Manual Journals in GL should equal the current Net Accrual balance in GL. Since the Report displays only the CURRENT net accrual balances of po distributions, 'AS OF DATE' the Balance will always reflect current Net balance of the po distributions and that explains why there is no Date Parameter in the Report.

The new Accrual philosophy requires you to reconcile and complete the Accrual Reconciliations monthly. Do not run the Load Program of the next Period unless the previous month reconciliation is completed .

Scope

Reconciliation of Accrual Reports and GL must be done monthly. Company Accountants and Financial Departments are charged with this responsibility. This documents will assist all employees who perform the task of accrual reconciliation with GL. It will also assist Oracle support Engineers who assist company employees to achieve this goal.