AP to GL Reconciliation in Oracle Fusion

 AP to GL Reconciliation in Oracle Fusion

  

A Functional, End-to-End Business User Perspective.

🎯Purpose of the Process:
Ensure that all supplier-related transactions recorded in AP are:
🔸Correctly accounted for in the AP Subledger.
🔸Fully transferred & posted to the GL.
🔸Reconcilable at period end.
🔸Free from posting gaps, timing issues, or manual override risks.

Step1️⃣
Configure AP Accounting & Integration Setup
Functional Control Foundation
👉Review:
🔸Payables Options
🔸Subledger Accounting (SLA) setup
🔸Liability, Expense, Tax, Accrual accounts
👉Validate:
🔹AP liability accounts correctly mapped to GL.
🔹Chart of Accounts consistency.
🔹Accounting rules reflect business reality.

Step2️⃣
Create & Validate AP Transactions
Business_User Activities
👉Create AP transactions via:
🔸Standard Invoices (Manual or Import).
🔸Credit Memos & Debit Memos.
🔸Payments & Refunds.
🔸Adjustments (as required).
👉Ensure:
🔹Correct supplier & invoice type.
🔹Accurate distributions.
🔹Proper tax handling.
✔ Validation before accounting.
✔ No workaround without justification.

Step3️⃣
Account AP Transactions (Create Accounting)
AP → Accounting Bridge
💻Run Create Accounting – Payables
👉Confirm:
🔸Status = Final.
🔸No accounting errors.
🔸Correct accounting date.
👉Review:
🔹Subledger journals.
🔹Liability & expense postings.
⚠️ Key Control Points
Invoice Date ≠ Accounting Date ≠ GL Period (unless controlled).
✅Verify Subledger Period is open & aligned with GL Period.

Step4️⃣
Transfer & Post Journals to GL
Integration Checkpoint
🔸Transfer AP journals to GL.
🔸Post journals.
👉Verify:
🔹Balanced journals.
🔹Correct liability control accounts.
🔹No unposted or rejected batches.
📌Any unposted journal = reconciliation break.

Step5️⃣
Perform AP to GL Reconciliation.
Core Reconciliation Activity.
👉Compare:
🔸AP Subledger balance.
🔸Payables Trial Balance.
🔸GL AP Control (Liability) account.
🔸GL Trial Balance.
👉Use:
🔹AP to GL Reconciliation Report.
🔹Payables Trial Balance.
🔹Subledger vs GL balance reports.
🔍Investigate common differences:
🔖Unaccounted invoices.
🔖Timing differences.
🔖Prepayments & application issues.
🔖Manual GL journals posted to AP accounts.
🔖Period misalignment.
🔖Cancelled or reversed transactions.

Step6️⃣
Resolve Differences & Close Period
Business Ownership
🔸Clear pending AP transactions.
🔸Re-run accounting if required.
🔸Align periods between AP & GL.
🔸Document reconciliation & explanations.
🔸Obtain review & sign-off.
✅Clean AP liability balance.
✅Reliable financial statements.