Inventory :Closing periods
1. All Material/WIP transactions should be costed.
This is the primary step in the process of Inventory Period close and ultimately in Reconciliation. If there are any errors in the respective tables or Cost worker errors those need to be resolved. To check for these errors, diagnostics scripts are available,
2. Create Accounting-Cost Management request.
After checking all the transactions for the concerned Inventory period are costed, Create Accounting-Cost Management concurrent request should be run to transfer all the transactions to GL.This concurrent request should get successfully completed.
3. Inventory Period should be closed.
Once Create Accounting-Cost Management concurrent request is completed successfully, Inventory period should be closed.
Run the Create Accounting-Cost Management concurrent request once more after closing the period to transfer any transactions generated at the time of closing the Inventory Period.
While closing the Inventory Period, a report will get triggered called as "Period Close Reconciliation Report".
This concurrent program and report is used to create summarized transaction records. It displays the differences between accounted value and inventory in the Discrepancy column.Following are key columns in Period Close Reconciliation Report:
Accounted Value: The valuation when calculated using previous adjusted summarization data + distribution information from MTA (Mtl_transaction_accounts).
On-hand Value: The valuation when calculated using current values from MOQ - quantities and costs from MMT. (Mtl_material_transactions).
Discrepancy: The difference between Account Value and On-hand Value.
Once the Period Close Reconciliation report completes normal, please check the report values and especially Discrepancy column. If there is a difference, this is the first indicator of mismatch in the Sub-ledger and Gl. In R12, you can run the Period Close reconciliation report for the closed period as well.
For more discussions on the Period Close Reconciliation Report,
-Period Close Reconciliation Report (CSTRPCRE)
4. Backdated Transactions.
Timely closing of Inventory period will prevent the backdated transactions which will have its impact on Inventory valuation at the sub-ledger level as well as in the Gl. This is the primary factor which creates a difference in Sub-ledger and Gl.
5. Mismatch like MMT-MOQD and MMT-CQL.
There is mismatch in quantities in different sub-ledger tables like Mtl_material_transactions (MMT) and Mtl_on_hand_quantities (MOQ). This can also lead to sub-ledger level difference and discrepancy in Period close reconciliation report.
6. No negative ledger Id's exists at the legal entity level.
This is the next level check in the SLA. If there are negative ledger id’s for the gl batches then these needs to be rectified and resolved.
7. Sub-ledger Period Close Exception Report.
From Cost Management SLA Responsibility, Sub-ledger period close exception report states the entities/events which are errored while transferring to Gl. This report is very handy so to know the first level check whether there are any transactions not transferred to Gl.
8. From General Ledger(GL) responsibility, Account Analysis Sub-Ledger report 180 Characters report will be useful to get the data for the account code combination.