Defining Closing Rules

Closing Rules - Closing Options Page

CLOSE_DEFN1

Identify the type of closing (interim or year end), closing scope, and other closing options.

Closing Rules - Net Income/Retained Earnings Page

CLOSE_DEFN2

Identify the P/L ChartField value sets and the retained earnings ChartFields for the closing.

Closing Rules - Journal Options Page

CLOSE_JOURNAL

Define journal options for system-generated journals created during the close. Also, specify whether to create journal entries for year end close.

Closing Rules - Roll-Forward Options

CLOSE_DEFN3

For year end close only, identify whether to roll forward accounts with zero balances. Also, indicate whether to roll forward none, some, or all of the profit and loss accounts. (Normally only balance sheet accounts are rolled forward.)

(copy)

Click the Copy icon to copy the current version to a new closing rule. The system displays a Copy Rule window where you enter a new name for the closing rule. When you change the name and click the OK button, the system displays a message that the current closing rule is copied to a new closing rule.

(rename)

Click the Rename icon to rename this version of the closing rule.

(delete)

Click the Delete icon to delete this version of the closing rule.

Create Closing Group

Click to access the Closing Process Group page to create or modify closing process groups, which include one or more closing rules for processing.

See Defining Closing Process Groups.

Description

Enter a brief description of the closing rule to appear on pages and reports.

Ledger Template

Select the ledger template associated with the ledger to be closed.

The system uses this template to determine which ChartFields to list in the selection fields for the closing rule. Only the ChartFields defined for the selected ledger template can be included in the closing rules.

When you select a ledger group on the Close Request page, the ledger group must be associated with the ledger template entered here.

Scope

For interim closings only, enter the scope of the interim close. Values are:

Incremental Current Period: Includes current period balance (from period start date to the end of period date).

Incremental Year to Date: Used for daily close, includes transactions that you have posted since the last closing process, up to the as of date entered on the Close Request page. The closing process marks the journals that it processes as Closed, and the journals are not processed in future runs.

Incremental Year to Curr Period (incremental year to current period): Includes transactions starting with period 1 (that is, period 1 through the end of the current period).

Target Currency Option

For interim closings, identify which base currency is used for the closing journal entries and offsets. Values are:

Base currency of Prim Ledger (base currency of primary ledger): Uses the base currency of the primary ledger in the ledger group (as entered on the Detail Ledger Group page). The ledger group is automatically entered on the Close Request page.

Business Unit Base Currency: Uses the base currency of the business unit.

Retain currency: Uses the source transactions' currency.

Specify Target Currency: Uses the currency that you specify in the Target Currency field.

To retain the offset entry in the original currency, select the Currency Code ChartField on the Journal Options page, and select Retain Value.

Target Currency

If you select Specify Target Currency in the Target Currency Option field, enter the currency for the system-generated closing journals. Be sure that it is a base currency for one of the ledgers in the ledger group that you select on the Close Request page.

Be careful when you enter a target currency. Because you have not yet identified the ledger group that is processed for the closing, the system cannot validate that the currency is valid for the ledger group.

Adj Periods Included (adjustment periods included)

Select the adjustment period that the system closes in the interim closing. Click the Add button to close additional adjustment periods. (Adjustment periods are defined on the Defining Detail Calendars page.)

Year End Closing Options

Click to access the year end close options. The link is available only for year end closings.

Reversal Entry Chartfields

Click this link to access the Year End Reversal Entry Chartfields window and select the ChartFields that you want to retain reversal entry values. This option can improve processing performance.

Close by

You can perform year end close on either the Account ChartField or the Alternate Account ChartField.

In addition, you can define a year end closing rule on the Alternate Account) only. In this case, no Account ChartField is required for retained earnings, P/L ChartField value sets, or roll-forward ChartField value sets. Closing populates the Account ChartField with the default values for the particular Alternate Account ChartField. However, you can enter an Account ChartField to accompany the Alternate Account ChartField if you want.

To perform a year end close by Alternate Account ChartField only, select ALTACCT in the Close by field.

In the close sequence, you typically perform a currency translation from the local ledger to a reporting ledger. You then close and report the local ledger by Alternate Account ChartField. You can then close and report the translated reporting ledger by the Account ChartField.

Set Default Retained Earnings

Select to use the default retained earnings that you also define on the Closing Options page.

If not selected, you must use the Net Income/Retained Earnings page to define all accounts to be closed. If you do not select this check box, no default retained earnings account exists for P/L accounts that may have inadvertently been omitted on the Net Income/Retained Earnings page.

When you use the balance sheet indicator option at the installation level, this option is set to Off, and it is display-only.

Create Jrnl by RE Group (create journal by retained earnings group)

Select to have year end close create separate journals for each P/L ChartField value set group and retained earnings pair; that is, one journal for one ChartField value group number. For example, to have a separate journal for each department, you might enter DEPTID in the ChartField value set criteria, as well as in the retained earnings ChartFields on the Net Income/Retained Earnings page and then select this option.

Close the G/L Open Periods (close the general ledger open periods)

Select to close all open general ledger periods for the business-unit-and-ledger-group combination for the year being closed. This prevents any additional journals from being entered for the year that is being closed.

Close Adjustment Periods

Select to close all open adjustment periods for the business-unit-and-ledger-group combination and year being closed.

Store P/L Reversal Entries (store profit and loss reversal entries)

Select to store P/L offsets in period 999 (where the closing entries for all accounts are stored).

If you select this option, the system inserts ledger rows for the entries made to period 999 to close revenue and expense accounts. You can access these amounts using the General Ledger inquiry pages.

If this option is not selected, offsets are not stored in period 999. If you select period 999 for reports, the ledger will be out of balance.

Initialize DR/CR with Net Bal (initialize debit/credit with net balance)

Select to begin the year with net balances of debits and credits, instead of carrying forward separate balances for debits and credits.

This option is available only if you have enabled separate debits/credits (DR/CR) on the database. When separate DR/CR is enabled, the period 999 entries for profit and loss accounts offset not only the net ending balances, but also the debit and credit ending balances. This option enables you to begin the year with net balances of debits/credits, instead of carrying forward separate balances for debits and credits

If selected, the debit or credit balances are initialized with the net period zero balance. If the net balance is positive, this amount is placed in the DR column for period 0; if the net balance is negative, this amount is placed in the CR column for period 0.

If not selected, the system moves the ending debit balance and ending credit balance forward to become the beginning balances of the following year. The DR column in period 0 is the sum of DR through the previous year. The CR column in period 0 is the sum of CR through the previous year.

Close DR/CR with Net Balance

Select this option if you are using the separate debit credit modification and want to net the separated debit and credit amounts during year end closing for the equity—profit and loss accounts before posting a single net amount to period 999.

Close To Multiple Ret Earnings (close to multiple retained earnings)

Select to close to multiple retained earnings accounts.

If deselected (year end closings only), the system uses the default account for retained earnings defined on the Closing Options page. All P/L accounts will close to the default retained earnings account.

This option is required when the Book Code option, the Balance Sheet option, or the Off-Balance Sheet option is selected at installation.

Closing Offset Options

Use for interim close only. Options are:

• Autofill Offset From First Row: Copies from the offset defined in the first row down to any offsets that are not yet populated.

• Fill Individual Offset: Verifies whether an offset is entered for every ChartField group.

• Retain All CF Value for Offset (retain all ChartField values for offset): Closes to the same date and same detail account as the source transaction. If not selected, specify the ChartField and value for the offset using the fields in the Offset ChartFields group box. If you select this option, no audit trail exists.

  Note: This option is available for interim closings only.

Retain Earnings

Define the mapping of P/L accounts to retained earnings accounts.

ChartField Value Group Number

Each ChartField Value Group comprises a group of P/L ChartField value sets to close to a single retained earnings account. To close to multiple retained earnings, click the Add button to create additional ChartField value groups.

Profit/Loss

Identify the P/L accounts (source accounts) to be closed.

ChartField Value Set

Select the ChartField value set for the P/L accounts to be closed. If there are other P/L ChartField value sets that close to the same retained earnings account, click the Add button and select the appropriate ChartField value set.

The system uses the values in these ChartField value sets to identify the P/L accounts that close to the retained earnings account that you enter in the Retained Earnings group box.

For best system performance, select ChartField value sets that have the same ChartField combinations. For example, if you select ChartField value sets 1, 2, and 3, and ChartField value set 1 includes the Department ChartField and the Project ChartField, then the other ChartField value sets should also include Department and Project. If they included different ChartFields (for example Product and Project), then processing the close may take longer and be less efficient.

Update/New

Click to access the Setup ChartField Value Sets page, where you can create or update a ChartField value set to use as P/L ChartField value set.

Retained Earnings

Identify the retained earnings account (target account) to which the P/L accounts are closed.

ChartField

Select a ChartField. The default is the Account ChartField, which is the required ChartField, unless you have changed the name of the Account ChartField. (If you have modified your ChartFields, be sure to change the Account field on the Ledger Template – Field Definitions page.)

You can select additional ChartFields, such as Department or Product. Click the Add button to add ChartFields.

Retain Value

Select to retain the ChartField value from the original journal entry.

If the check box is deselected, you must specify a value in ChartField Value field.

This option in not available for the Account ChartField.

ChartField Value

Select the specific retained earnings account. This option is required for the Account ChartField.

If you perform interim closes using an offset to retained earnings, you must use the offset account as the target retained earnings for the year end close.

For other ChartFields, if you have not selected Retain Value check box, enter a specific ChartField value here.

Offset ChartFields

For interim closings only, identify the ChartField and ChartField value for the offset to the retained earnings entries.

If the Retain all CF Value for Offset check box is selected, the following fields should be left blank.

ChartField

For interim closings only, this can be only the Account ChartField, or it can be a combination of ChartFields (for example, Department and Account.) If the Retain all CF Value for Offset check box is deselected, Account is required and must be the first ChartField entered.

Select a ChartField for a contra-equity offset. To offset to a combination of ChartFields, click the Add button to select additional ChartFields.

Retain Value

Select to retain the ChartField value from the original journal entry.

If the check box is deselected, specify a value in the ChartField Value field.

ChartField Value

If you do not select the Retain Value check box, enter a specific ChartField value here.

Journal ID Mask

Enter a prefix for naming closing journals. Journals are identified by a 10-character alphanumeric ID. The system automatically appends the prefix that you specify here to the journal IDs. For example, if you specify the journal ID mask as YEC, the year end closing journal IDs might be YEC0001, YEC0002, and so on.

Alternatively, the value NEXT causes the system to assign the next available journal ID number automatically, without including the mask. (This option makes it more difficult to identify the closing journals.)

Reserve a unique mask value for closing to ensure that no other process creates identical journal IDs.

Source

Enter a code to identify the origin of the journal entries that are created.

Closing Doc Type (closing document type)

If you use the Document Sequencing feature, select a predefined closing document type for the closing journals. The Document Sequencing feature requires that you identify a document type for all created journal entries.

Description

Enter a description of the journals that are created (for example, Daily Close Journals).

Closing Journal Date Option

Values are:

Retain Transaction Date: Sets the output journal date to equal the original transaction date.

Use Process Date: Sets the output journal date to equal the process date of the closing process run.

Create Journal Entries

Select to create journal entries for year end close transactions only. Interim close always creates journal entries.

Edit Journal(s)

For interim close only, select to have the journals automatically undergo the edit process.

If you do not select this option, the closing process designates the journals as No Status - Needs to be Edited.

Budget Check Journal(s)

For interim closings only, select to have the journals automatically checked against the Commitment Control budget for the business unit and account.

To select this option, you must have the Commitment Control feature enabled for the ledger group, and you must have selected the Edit Journal(s) option.

Post Journal(s)

For interim closing only, select to have the journals automatically posted to the ledger.

To select this option, you must have selected the Edit Journal(s) option and the Budget Check Journal(s) option if the Commitment Control feature is enabled for the ledger.

Do Not Roll Forward Zero Bal (do not roll forward zero balances)

Prevents the system from creating balance-forward amounts (period 0) for accounts with a zero ending balance.

P/L to Roll Forward to Next Yr (profit and loss to roll forward to next year)

Normally, only balance sheet accounts are rolled forward, and their balance forward amounts stored in period 0. Options are:

• Do Not Roll Forward: Do not roll forward any amounts from prior year accounts with the Balance Forward field on the Account Type page set to the value Not Carry Forward.

• Partial RollForward 1 Year: For selected ChartField Value Sets, closing rolls forward the amounts from the first period through 998 of the year being closed to period 0 of the new year.

• Partial RollForward Cumulative: For selected ChartField Value Sets, closing rolls forward amounts from periods 0, and periods 1 through 998 of the year being closed to period 0 of the new year.

• Roll Forward All 1 Year: Closing rolls forward all account with the Balance Forward field equal to Not Carry Forward balances from period 1 through 998 for the year being closed to period 0 of the new year.

• Roll Forward All Cumulative: Closing rolls forward all accounts with the Balance Forward field equal to Not Carry Forward balances for period 0, and 1 through 998 for the year being closed to period 0 of the new year.

Roll Forward Profit/Loss

If you elect to roll forward in the P/L to Roll Forward to Next Yr field, select the ChartField value set for the P/L accounts that you want to roll forward. To roll forward more than one ChartField value set, click the Add button and select additional ChartField value sets.

Update/New

Click to access the Setup ChartField Value Sets page, where you can create or update a ChartField value set to use as the roll-forward P/L ChartField value set.