Daily Close and End of Day Reporting

Client Industry - Banking and Financial Institution

Summary - One of my banking clients had a business need to enhance end of day reporting by using a new "processing date" field, by preventing posting of future dated transactions, and storing daily balances to support end of day reporting requirements.

Standard Functionality Limitations - since Oracle General Ledger (GL) is a real-time system, the standard posting functionality will update the account balances of detail and summary accounts. When you post to an earlier effective date or open period, actual balances roll forward through the latest open period. If you post a journal entry into a prior year, Oracle GL adjusts your retained earnings balance for the effect on your income and expense accounts. End of day reporting is complicated with a single instance and server time stamp worldwide.

Business Case - Banks and Financial Institutions in US are regulated Corporations subject to daily, weekly, monthly, quarterly and annual report requirements as defined by the SEC, the Federal Reserve, and IRS. Additionally, the global branches and subsidiaries are subject to foreign regulatory agencies. These banks requires that the Oracle Financials Application's GL support the requirement that transaction processing be cut off based on an end of day and reporting generated as a result of that end of day. Currently, the standard functionality of Oracle GL does not support the concept of end of day. The Open/Close is controlled by Accounting Periods in months, not days.

Solution Overview: A custom solution was developed incorporating three types of changes that are required to support end of day processing requirements:
- Add Processing Date
- Store Daily Balances
- Prevent future dated transactions from affecting end of day balances