Use the following checklist as a guideline to perform year-end processing in Oracle General Ledger for your ledgers.
Note: If using Encumbrances, additional steps are required. See: Year End-Encumbrance Processing.
Set the status of the first accounting period in the new fiscal year to Future Entry.
Note: It is advisable not to open the first period of the new fiscal year until all of the year-end processing for the last period of the current year has completed.
(Optional) If your business rules require you to create reversing entries at the beginning of every period, generate and post accruals from the prior period now.
Transfer data from all of your subledgers and feeder systems to the GL_INTERFACE table.
Run the Journal Import process to populate the GL_JE_BATCHES, GL_JE_HEADERS, and the GL_JE_LINES tables. This can be done automatically from the subledger systems, or manually from Oracle General Ledger.
Note: If you allow suspense posting in your ledger, you can choose a Journal Import Run Option that will post any journal import errors to a suspense account. If you do not choose this run option, Journal Import will reject any source/group ID combination that contains account errors. See: Setting the Journal Import Run Options
Note: Posting from the sub-ledger systems transfers data to the general ledger interface and journal entry tables but does not update general ledger balances. You must run the posting process from General Ledger to update the GL_BALANCES table.
Review the Journal Import Execution Report to check the status of all imported journal entries. See: Importing Journals.
Delete any error journal entry batches. Determine the source(s) for these error batches, and retrieve the run ID from the Journal Import Execution Report.
if you encounter a small number of errors, make the necessary corrections in the GL_INTERFACE table using the Correct Journal Import Data window. Run Journal Import.
If you encounter a large number of errors, delete the Journal Import data from the GL_Interface table, correct the information in the feeder or subledger system and run Journal Import. See: Importing Journals
Close the period for each subledger. This prevents future subledger transactions from being posted to General Ledger in the same period.
Review the imported journal entries in Oracle General Ledger. You can review them online or in reports. Reviewing journal entries before posting minimizes the number of corrections and changes that need to be made after posting.
Below is a list of useful reports:
Journal Batch Summary Report
General Journals Reports
Journal Entry Reports
Journal Line Report
Journal Source Report
Journals Document Number Report (when document sequencing is used)
Unposted Journals Report.
Post the imported journal entries.
Perform reconciliations of subsidiary ledgers by reviewing and correcting balances. The following reports are useful to help you reconcile:
General Ledger Report
Posted Journals Report
Other Reports
Generate all recurring journals and step-down allocations.
(Optional) If you did not generate and post your prior period reversals at the beginning of this period, be sure to generate reversals now.
Note: Although it is customary to post reversing entries at the beginning of a new period, many companies will leave this step as a period-end procedure.
Revalue balances to update foreign currency journals to your ledger currency equivalents.
Post all journal entries, including: manual, recurring, step-down allocations, and reversals.
Note: Be sure to generate and post the step-down allocations in the correct order.
Review your posting results. The following reports are helpful:
Posting Execution Report
Error Journals Report
Update any unpostable journal entries and then post them again. Common reasons for unpostable batches include:
Control total violations
Posting to unopened periods
Unbalanced journal entries
Run General Ledger reports, such as the Trial Balance reports, Account Analysis reports, and Journal reports. It is recommended you create standard report sets that are run at the end of every period. This will help you maintain a consistent audit trail.
Translate balances to any defined currency if you need to report in foreign currencies.
Consolidate your subsidiary ledgers if you have multiple companies.
To consolidate entities sharing the same ledger, see: Accounting Operations Using a Single Ledger.
To consolidate entities using multiple ledgers, see:The Global Consolidation System.
If using a calendar with an adjusting period that represent the last day of the fiscal year, close the current period and open the adjusting period. See: Opening and Closing Accounting Periods.
Create and post adjusting entries and accruals in the adjusting period.
Run Trial Balance reports and other General Ledger Reports in the adjusting period after adjustments are made.
(Optional) If you are required to have an actual closing journal entry that shows the closing of your income statement accounts to retained earnings, submit the Create Income Statements Closing Journals program. This program creates an auditable closing journal entry. See: Income Statement Closing Journals.
(Optional) If you submitted the Create Income Statement Closing Journals program, post the closing journals to update account balances. Your income statement will reflect zero balances.
(Optional) If your local accounting rules require you to close your balance sheet, submit the Create Balance Sheet Closing Journals program. See: Balance Sheet Closing Journals.
Post the Balance Sheet Closing Journal by submitting the Create Balance Sheet Closing Journals program. Your balance sheet will now reflect zero balances.
Close the last period of the fiscal year using the Open and Close Periods window.
Note: If you need to track retained earnings as well as the CTA account with more detail, enable the Track by Secondary Segment option for your ledger. See: Secondary Tracking Segment.
Open the first period of the new fiscal year to launch a concurrent process to update account balances. Opening the first period of a new year automatically closes out your income statement and posts the difference to your retained earnings account specified for your ledger in the Accounting Setup Manager.
Note: If you have already run the Create Income Statement Closing Journals program, where the closing account specified was the retained earnings account, opening the new fiscal year has no further impact on retained earnings because the income statement accounts now have zero balances.
(Optional) Perform Year-End Encumbrance Procedures. See: Year-End Encumbrance Processing.
Run FSG reports for the last period of the year.
(Optional) If you closed your balance sheet at year-end, reverse the Balance Sheet Closing Journals or repopulate balances of your balance sheet accounts for the new year.
Enter eliminating journal entries.
Post eliminating journal entries.
Define a reporting hierarchy that consolidates all your companies.
Define financial statements with the reporting hierarchy.
Use the automatic intercompany eliminations to generate elimination sets. If your elimination entries require complex formula calculations, use recurring journal entry formulas to generate eliminating journal entries.
Use the Financial Statement Generator (FSG) to produce financial reports that show consolidated totals. Enter the eliminating entries to a separate company and build reports with a separate column for consolidating entries. See: Accounting Operations Using a Single Ledger.
Use the Global Consolidation System (GCS) to transfer data from subsidiaries into the consolidated parent.
From the parent ledger, post the consolidation journals for each subsidiary to update balances.
Use automatic intercompany eliminations to generate elimination sets. If your eliminating entries require complex formula calculations, use recurring journal entry formulas to generate eliminating journal entries.
Use the Financial Statement Generator (FSG) to create a consolidated report in the parent ledger. See: The Global Consolidation System.