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Cradle to Grave: Reconciling General Ledger to Payables to Projects

Oracle Open World October 24, 2006

Agenda

Introduction The Meaning of Reconcile Overview Oracle Project Accounting Suite Reconciliation via Standard Reports Reconciliation via Discoverer

Thomas Simkiss, CPA, J.D.

CPA in New Jersey Member of the PA, NJ, and American Bar Association Over 10 years industry and consulting experience using the Oracle Applications Managing Partner with BizTech
Director of the Financial Applications Practice Director of IT SOX Compliance Practice

Kate Snarponis
2 years implementing Oracle Projects and assisting clients with using the applications to control project costs more efficiently 5 years designing project management solutions for Engineering & Construction clients of a project management software company

BizTech
BizTech is a regional IT services firm focusing on applied technology solutions for mid-market companies. Oracle Certified Advantage Partner Named to the 2006 Philly 100 Fastest Growing Private Companies

The Meaning of Reconcile

reconcile Pronunciation: 're-k&n-"sI(-&)l Function: verb Inflected Form(s): -ciled; -ciling Etymology: Middle English, from Anglo-French or Latin; AngloFrench reconciler, from Latin reconciliare, from re- + conciliare to conciliate transitive verb
1 a : to restore to friendship or harmony <reconciled the factions> b : SETTLE, RESOLVE <reconcile differences> 2 : to make consistent or congruous <reconcile an ideal with reality> 3 : to cause to submit to or accept something unpleasant <was reconciled to hardship>

4 a : to check (a financial account) against another for accuracy b : to account for

intransitive verb : to become reconciled Merriam-Webster On-line Dictionary

Projects Suite
Project Costing Project Billing Project Resource Management Project Management Project Collaboration Project Contracts Project Portfolio Analysis Project Foundation Daily Business Intelligence for Projects

Reconciliation via Standard Reports

GL

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Payables

Supplier Costs/Exp Reports Adjustments & Expenses from external system

Projects

Payables and General Ledger

First Things First!
Confirm that all supplier costs are interfaced to G/L in that period Compare opening/closing Trial Balances

All supplier costs are project-related

This provides the most seamless reconciliation among the 3 applications All supplier costs interfaced to GL (source=Payables) should equal supplier costs interfaced to PA (audit report)

Projects and Payables

GL

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Payables

Supplier Costs/Exp Reports Adjustments & Expenses from external system

Projects

What to Reconcile
Query using Expenditure Inquiry
GL Date Transaction Source=Oracle Payables Supplier Invoices or Oracle Payables Expense Reports

What to Reconcile
Query Results

What to Reconcile

What to Reconcile

Projects and General Ledger

GL

rd eca Tim

Co sts

s&

All

e ag Us sts Co

Payables

Supplier Costs/Exp Reports Adjustments & Expenses from external system

Projects

What to Reconcile
Query using Expenditure Inquiry
GL Date Transaction Source=Oracle Time and Labor or Expenditure Type Class=Timecards For Usages, Expenditure Type Class=Usages

What to Reconcile

What to Reconcile
Query Results

What to Reconcile

Projects and General Ledger

GL

rd eca Tim

Co sts

s&

All

e ag Us sts Co

Payables

Supplier Costs/Exp Reports Adjustments & Expenses from external system

Projects

Reconciliation via Discoverer

Oracle Discoverer
What is it? Oracle AS Discoverer provides an integrated business intelligence solution comprising a set of intuitive ad-hoc query, reporting, analysis, and Web-publishing tools. Components End User Layer (EUL) Administration Edition User Edition (Desktop, Plus, Viewer)

Why Use Discoverer?

What if AP / PA / GL dont agree? What if all transactions arent associated with projects? If on 11.5.9 analysis by GL Period separate from PA Period is difficult to do If on 11.5.10 GL Period analysis is possible, but time consuming by expenditure type / project Easy analysis via Discoverer tool or use of spreadsheets

How to use Discoverer?

Two key steps
Install Discoverer Version used to prepare this paper 9.0.4 Follow Metalink Note: 257798.1 Configure Discoverer

Configure Discoverer
Create Lists of Values Create Required Joins Grant Required Access

Create Lists of Values

List of Values is simply a Select Distinct against the EUL Object
Time to retrieve a list of values is a function on how large the object is from which the LOV is generated

Generate LOVs from Dimension Tables, not Fact Tables

Dimension Tables Fact Tables

Create Lists of Values (Cont)

HINT
Create a Custom Folder for COA Segment Values
SELECT A.FLEX_VALUE, B.DESCRIPTION FROM FND_FLEX_VALUES A, FND_FLEX_VALUES_TL B WHERE A.FLEX_VALUE_ID = B.FLEX_VALUE_ID AND A.FLEX_VALUE_SET_ID =:YOUR_FLEX_VALUE_SET_ID

Other Configurations
Create Required Joins
GL Accounts. Account Id PA Cost Distributions.DR Account ID

Create Alternative Sort on GL and PA Periods

Default functionality will have Period Names sort by Period Number (If Jan is period 1, all Jan will be grouped together) Change the sort such that periods are sorted by Period Start Date

Projects and General Ledger

GL

rd eca Tim

Co sts

s&

All

e ag Us sts Co

Payables

Supplier Costs/Exp Reports Adjustments & Expenses from external system

Projects

Discoverer Reports
Three queries required for GL Reconciliation AP PA

GL Balances by Journal Source, Category, and Account AP Invoice Distributions by Projects Relation Project Cost Distributions by GL Account

GL Balances by Journal Source, Category, and Account

AP Invoice Distributions by Projects Relation

Project Cost Distributions by GL Account

Using the Discoverer Reports

Values to Analyze

GL Balances
Purchase Invoices PTD Net $13,197,652.04

AP Inv Dist
Total Invoice Distributions $13,197,652.04

PA Cost Dist

Transferred to Projects $7,561,954.64 Projects Total Debits $263,485.69

Total Supplier Invoices $7,561,954.64 Total Misc Transaction $263,485.69

Things to Consider
Account / Cost Center Level Reconciliation
Start with the high level subledger rec first AP GL, AP PA, PA GL Then review accounts and cost centers

Why may there be a variance?

Not everything runs through Projects Cost Distribution Errors
Additions or ending of cost centers or accounts in PA but not yet generated or cost distributed

Period Errors
Transactions entered in a current GL Period but Future PA period (or vice versa)

Processes not run

In Closing
What do we mean by Reconcile? When to use the Standard Reports? Why use Discoverer?

Q&A

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