Period End Process for OPM Orgs

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Document 1237963.1

Release Release 12 Inventory Invent ory Period-E Period-E nd Process Pro cess Flow Flow For Fo r Oracle Process Manufacturi Manufacturing ng (OPM) Financials (GMF)- e-Business Suite (Doc ID 1237963.1) Modified: Oct 18, 2013

Type: WHITE PAPER

In this Document Abstract History Details Inventory period closure in an Oracle Process Manufacturing (OPM) Organization Close period process in an OPM Inventory Organization Standard cost Actual A ctual cost Lot cost All common costing costing methods methods further further steps Summary References

APPLIES TO: Oracle Process Manufacturing Manufacturing Financials - Version V ersion 12.0.0 and later Information in this document applies to any platform.

ABSTRACT ABST RACT This support support document document is intended to provide you with the useful and logical 'step-by-step' information related to the Inventory Period Period Closure process Closure process in the e-Business Suite S uite Oracle Process Manufacturing (OPM) (OPM) module in Release 12.

HISTORY HIST ORY Aut A uthor: hor: Jean-Francois Jean-Francois Guerrini, Yann Delaporte Create Create Date Date 15-NOV-2010 15-NOV-2010 Update Upda te Date Date 18-OCT-2013 18-OCT-2013

DETAILS Inve ntory pe riod closure in an Oracle Process M anufacturing (OPM) (OPM) Organization Organization In order to close a period in an a n OPM Organization Organization in EBS Release 12, the program GMF Period Close Process for Process Organizations has to be used. This program generates the period balances data, which is used in Invent Inventory ory Valuation report. Moreover, it allows to manage the Preliminary Closed status, depending depending on the Final Close parameter selected : If Final Close = No: it is a preliminary close, i.e. i. e. the period is closed to transactions, transactions, but you may still reopen it to post transactions.

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If Final Close = Yes: it is a definitive close, i.e. transactions may no longer be posted for the period, and the period can not be opened again. Warning: if you choose to close the period from the Inventory Accounting Periods form, the period is directly closed as Final and period balances data is not generated. Please refer to the - How to perform Preliminary Close For Process Inventory in Release 12.

OPM Financials > Reports > Standard > Run > GMF Period Close Process for Process Organizations

Close per iod process in an OPM Inve ntory Organization For OPM Organizations, the first steps of the period close process depend on the costing method used. For more information please refer to the Oracle Process Manufacturing Cost Management User's Guide (Part No. E13655-02). Note: in OPM, the costing processes are launched at the Legal Entity level with the possibility to specify one or several OPM Organizations.

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Standard cost

1. Launch the Cost Rollup Process: Run the Cost Rollup at period-end time to consolidate the standard costs of raw materials into the product costs. This period in the cost calendar must be either with an Open or Frozen status. If the period has the Closed status, it can not be selected anymore. Error(s) from this process can be checked in Action Menu > View Error Mes sages. OPM Financials > Standard Costs > Cost Rollup https://support.oracle.com/epmos/faces/DocumentDisplay?_adf.ctrl-state=1bfi3bptqn_315&id=1237963.1

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2. Run Preliminary Inventory Close Period Run the GMF Period Close Process for Process Organizations program with Final Close = No. It is then a Preliminary Close period, i.e. the period is closed to transactions, but may still be reopened. OPM Financials > Reports > Standard > Run > GMF Period Close Process for Process Org.

Actual cost

1. Run GMF Recreate Batch / Period Layers Run GMF Recreate Batch / Period Layers is recommended to be routinely run and run before engaging the Actual Costing period close process in order to remove potential data problems (for example where the details of a Batch have been updated but these changes are not reflected in the Layer Cost tables). OPM Financials > Reports > Standard > Run > GMF Recreate Batch / Period Layers

2. Run Preliminary Inventory Close Period: Run the GMF Period Close Process for Process Organizations program with Final Close = No. It is then a preliminary close period, i.e. the period is closed to transactions, but may still be reopened. OPM Financials > Reports > Standard > Run > GMF Period Close Process for Process Org.

3. Run Actual Cost Process: The period in the cost calendar must be in either Open or Frozen status to run the Actual Cost Process. If the period has the status Closed it can not be selected anymore. Error(s) from this process can be checked in Action Menu > View Error Mes sages. OPM Financials > Actual Cost > Actual Cost Process

Lot cost

1. Run Preliminary Inventory Close Period: Run the GMF Period Close Process for Process Organizations program with Final Close = No. It is then a Preliminary Close period, i.e. the period is closed to transactions, but may still be reopened. OPM Financials > Reports > Standard > Run > GMF Period Close Process for Process Org.


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2. Run Lot Cost Process: The period in the cost calendar must be in either Open or Frozen status. If the period has the status Closed it can not be selected. Error(s) from this process can be checked in Action Menu > View Error Mes sages. OPM Financials > Lot Cost > Lot Cost Process

3. Run Lot Cost Process in Final mode: After cost calculations, once costs are verified and correct, the Lot Cost process can be ran in final mode. This updates all inventory transactions to be marked as lot costed. Once processed in final mode the Lot Costs can no more be changed. Error(s) from this process can be checked in Action Menu > View Error Mes sages.

OPM Financials > Lot Cost > Lot Cost Process

All common costing methods furthe r ste ps 1. Run Preliminary Cost Update Process: Launch the Cost Update process. At this stage, it is still recommended to avoid the Final Update option. This to allow to be able to review and change component costs if necessary, and also to run another cost update. OPM Financials > Cost Update

2. Run OPM Accounting Preprocessor: The OPM Accounting Preprocessor creates the events in SLA tables. Please notice that if Order Management is used, it is advised to record the Order Management transactions, then to run the Collect Revenue Recognition Information concurrent program followed by the generation of the COGS Recognition Events. Refer to - R12 Period-End Process Flow For Oracle Discrete Manufacturing - e-Business Suite in section 5.1 Cost Management: - 5.1 Cost Of Goods Sold - for the same. OPM Financials > Reports > Standard > Run > OPM Accounting Pre-Processor

3. Run SLA Create Accounting Process in Draft mode: Run the Create Accounting program in Draft Mode. The Draft Mode allows accounting distributions to be amended in SLA (if required).


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OPM Financials > Reports > Standard > Run > Create Accounting

4. Review Journal Entries: As soon as all accounting entries are correct, this step can be skipped. OPM Financials > Cost Update Menu: Action > View Error Message

5. Run Final Inventory Close Process: Run the GMF Period Close Process for Process Organizations program with Final Close = Yes. T he period will then be definitively closed to any transaction and it will be impossible to reopen it. OPM Financials > Reports > Standard > Run > GMF Period Close Process for Process Organizations

6. Run Final Cost Update Process: Launch the Cost Update process. Specify that the update is final (by ticking the Final Update check box); this locks the raw material costs for the specified period. The period in the cost calendar will be at the status Frozen. You can then export these costs to the proper General Ledger accounts. OPM Financials > Cost Update

7. Run OPM Accounting Preprocessor OPM Accounting Preprocessor creates events in SLA tables. OPM Financials > Reports > Standard > Run > OPM Accounting Pre-Processor

8. Create Accounting and Export to GL Run the Create Accounting program in Final Mode. When choosing the Final Mode, there is also the option to directly Post to General Ledger. With the 'Post in General Ledger' option= Yes, the Create Accounting process will transfer to General Ledger the only Journals created during that particular run. Thus, if 'Post in General Ledger' option = No, then the concurrent request 'Transfer to GL' needs to be ran to transfer the SLA journals to General Ledger in previous Create Accounting runs. OPM Financials > Reports > Standard > Run > Create Accounting


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SUMMARY The manufacturing period closure process enforces the different transactions to be all entered, validated and completed in a timely manner, all the costing to happen but also to properly close the process manufacturing periods.

REFERENCES NOTE:110424.1 - FAQ: Unprocessed Transactions / Closing Inventory Accounting Period NOTE:1213193.1 - OPM Financials (GMF) Troubleshooting Guide NOTE:1266644.1 - R12 Period-End Process Flow For Oracle Discrete Manufacturing - e-Business Suite NOTE:1069492.1 - Resolving Period Close Pending Transaction R12


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