Processing Close

This section provides an overview of the close process and discusses how to run the close process (GC_CLOSMGR).

Page Used to Process Closing Rules

Page Name	Definition Name	Navigation	Usage
Close Process run control	RUN_GC_CLOSE	select Global Consolidations, then select Process Consolidations, then select Run Other Processes, then select Close Processing, then select Close Process	Run the closing process.

Understanding the Closing Process

Use the Close Process run control to page to close the income statement account balances to retained earnings and roll forward balance sheet account balances. In order to use this feature, you must set up closing rules and rule sets, roll forward rules and rule sets, a close process group, and associate the close process group with the consolidation model.

See Understanding Close Process Rules.

When running the close process, you either run year-end or period-end processing. Trial balance-based consolidations use year-end processing, and financial statement-based consolidations use period-end processing.

When you enter the business unit and scenario on the run control page, an edit checks the consolidation model, consolidation ledger, and the ledger template to determine whether the business unit and scenario combination is a trial balance or financial statement based consolidation.

If the consolidation method is trial balance, the period input field is display-only, and the system selects a close process type of Year End Processing. In addition, the request type options are limited to Close/Roll Forward or Delete. The Delete request type enables you to clear out the previous run data and reset the close and roll forward amounts to zero.
If the consolidation method is Financial Statement, enter the fiscal year and period in which you want to perform the close processing. If the period selected is not the last period of the fiscal year (typically, period 12), then you may only select Roll Forward Only or Delete. If the period selected is the last period, then you may select Close/Roll Forward or Delete.

The closing process does not update flow amounts. You will have to enter the closing amounts on a manual flow template.

See The Global Consolidations red papers on My Oracle Support.

Here is an overview of the steps performed for each Consolidation Dimension value/Tree Node in the Close Process group when the closing process is run:

Resolves data from the consolidation CLED, based on the Close Process group for the consolidation model, the fiscal year, and the period that you specify in the run control, and Ledger Template associated with the consolidation Model.
If processing the Close Option, the system creates a target entry in the next fiscal year/accounting period based on the ChartField value sets andxource input option specified on the close rule.

For elimination entities in Financial Statement-based ledger, only non-system-generated entries are closed.
If processing the Roll Forward Option, the system rolls forward balances in the next accounting period based on the ChartField value sets and source input option specified on the roll forward rule.

For elimination entities in Financial Statement-based ledgers, only non-system generated entries are rolled forward.

The closing process creates ledger entries with following Global Consolidations source values:

Closing Entry

RollForward Entry

Elimination Reversal — Closing

Represents the reversal amounts booked to period one for elimination entity amounts closed during year-end close process. These entries are only created for the trial balance ledger format system-generated entries. Manual journal entries are not reversed.

Elimination Reversal — RollForward

Represents the reversal amounts booked to period one for elimination entity amounts rolled forward during the year-end close process. These entries are only created for the trial balance ledger format. Reversals are only performed for system-generated journals. Manual journal entries are not reversed.

After the close process has run, you can review the results on the Ledger Inquiry page.

To view the amounts closed to retained earnings or balances rolled forward for trial balance-based consolidations, specify the period of zero for the next fiscal year.
For financial statement-based consolidations, select the fiscal year and period in which the balances were rolled forward.

View this inquiry after the roll forward process has been run but before the next period is processed. You can also view these entries through the consolidation audit, and filter by the source process on the roll forward processing entries.

See Reviewing Ledger Balances.

See Auditing Consolidation Data.

Closing Processing and Elimination Business Units

If you want to roll forward manual journal entries that are recorded to elimination entities, be sure that the Include Elimination Entities check box is selected for each applicable close rule set.

For trial balance-format ledgers, both system-generated and manual journal entries will be rolled forward.

The trial balance roll forward engine closes and rolls forward the entries to the elimination entity to period zero with an auto reversal in period one for system-generated entries. Manual journal entries to the elimination entity are not reversed.
For financial statement-format ledgers, only manual journal entries booked to the elimination entity are rolled forward. System-generated entries are not rolled forward.

Manual journal entries are not reversed.

Close Process Run Control Page

Use the Close Process run control page (RUN_GC_CLOSE) to run the closing process.

Navigation

select Global Consolidations, then select Process Consolidations, then select Run Other Processes, then select Close Processing, then select Close Process

Image: Close Processing run control page

This example illustrates the fields and controls on the Close Processing run control page. You can find definitions for the fields and controls later on this page.

Unit, Scenario ID, Fiscal Year, and Period

Specify the common consolidation business unit, scenario ID, fiscal year, and accounting period to process.

Scenario Locking

Click to access the Scenario Locking page, on which you can prevent journals from being posted to the selected scenario or tree node.

Override Scenario's Tree Node

Select to use a different tree node than that specified on the consolidation model. In the Tree Node field, select a tree node if you use this option. The tree node that you specify must be at a lower hierarchical level of the tree than the node specified on the consolidation model.

Jobstream ID

Accept the default value, GC_CLOSMGR, to use the delivered jobstream ID.

Close Process Type

Select the close process type.

If the consolidation method is trial balance, the period input field is inactive and the system selects the close process type as Year End Processing. This field cannot be updated.

If the consolidation method is financial statement based, the period input field is active and the system selects the close process type Period End Processing. This field cannot be updated. The parameter options are the same as year-end processing with two exceptions.

First, you must specify the period that is to be rolled forward.
Then you must specify a request type. The request type options you can choose are: Close/Roll Forward, Roll Forward Only, or Delete.
- If you select a period other than the last period, then you can only select Roll Forward Only or Delete.
- If you select the last period, then you can select Close/Roll Forward or Delete.

Note: Financial statement consolidations do not have a period zero. When selecting period end processing with a period set to the last period, the system runs the close process to period one of the next fiscal year.

Close Request Type

Select the close request type.

When the request type option is Close/Roll Forward, the application engine posts the close amounts to the target account as a one-sided entry as well as posts the carry-forward balances to period zero of the next fiscal year.

If you need to undo the year-end or period-end process, the system provides you with two options. First, if you incorrectly ran the close process and need to reset the posted amounts to zero, then set the close request type to Delete. If you want to replace the amounts that have been posted, then rerun the run control. The application engine deletes the entries from the previous run and replaces the amounts to retained earnings and roll forward balances with the current posting.