Account Receivables to General Ledger Reconciliation


Overview

This KBA will assist Financial Information System (FIS) users and demonstrate how to reconcile or observe reconciliation process between the Accounts Receivable sub-ledger and the General Ledger in Oracle Financial Cloud (OFC)

Critical Concepts

  1. Departmental Preparers need these Oracle Roles
  2. Oracle and Concur Role Requests Form
  3. In case of any issues running the reports, please submit a ticket

Steps to Take

 Run the Prepare Receivables to General Ledger Reconciliation Process

1. Open Web Browser, navigate to OFC Home Page
2. Enter User Name and Password, click Login
3. Select Tools, select Scheduled Processes
4. Select Schedule New Process

5. In the Schedule New Process dialog box, in the Name field, enter Prepare Receivables to General Ledger Reconciliation, click the drop down arrow

a. Click Search hyperlink at bottom of list

 
 

b. In the Search and Select: Name dialog box
c. In Name, enter Prepare Receivables to General Ledger Reconciliation, click Search
d. Select the row and then click OK, twice

 
 

6. In Process Details dialog box:

a. Check the box, Notify me when this process ends

b. Request Name enter a name, with these parameters, e.g. AR_TO_GL_initials_date

c. Ledger, select UCSD

d. Accounting Period select desired Accounting Period, e.g. Dec-19

e. Business Unit is optional

 

7. Click Submit in upper right
8. In the Confirmation dialog box, click OK
9. Click the Refresh icon, until all Process and Sub-process lines display as Status: Succeeded 

 

Return to Receivables work area to view Receivables to Ledger Reconciliation Report

1. From the Scheduled Process work area, click Home icon in the top right of the page
2. Click on Receivables and select Accounts Receivable
3. On the right Tasks menu, scroll down, in Accounting select Receivables to Ledger Reconciliation

4. When the Receivables to Ledger Reconciliation report displays, select the Ledger and Request Name, name created in Step #6, from the Schedule New Process above

 
 

5. To interpret the Report: Amounts are only for the Accounting Period selected

a. Receivables Amount: contains the balances for Transactions; Invoices, Adjustments, Payments, etc. generated in the Receivables sub ledger work area
b. Accounting Amount: contains balances for Transactions; Invoices, Adjustments, Payments, etc. that have been posted from the Receivables sub ledger to the General Ledger
c. Difference: is the variance between what has been generated/recorded in the Receivables subledger but has not been posted to the General Ledger

6. Click on any of the listed numbers in the Difference (USD) column of the report to review details of Transactions causing the discrepancy and to derive potential reasons for the difference

a. Why hasn't an Invoice/Adjustment/Payment been posted to the General Ledger?
b. Is the Transaction pending approval e.g. Refund or Adjustment?
c. Is the Distribution invalid?

7. Next Steps: Work to correct discrepancies and Post to Ledger

Helpful Tips:

  • Reconciliation may be performed at various intervals throughout a period; daily, weekly, bi-weekly but are necessary/required prior to Month End Close
  • Resolving discrepancies may require collaboration with users across the Organization, so communication sooner rather than later is best practice
  • Transactions that are not posted to the General Ledger prior to Month End Close may be brought forward into the next Accounting Period
 

If you still have questions or need additional assistance, please submit a ticket