Considerations For Payables to Ledger Reconciliation Report

Use the Payables to Ledger Reconciliation report to facilitate the reconciliation of payables data to the general ledger. The interactive reporting capability of the Payables to Ledger Reconciliation report provides both summarized and detailed reconciling data for review.

The summary shows payables and accounting beginning and ending balances, summarized activity for the period, and how the activity was accounted. You can drill down on any amount in the summary Difference column to see the Differences Detail report for that item. The Differences Detail report displays the real-time details that make up the summary balance and indicates potential causes for differences between actual and reconciling amounts.

This report can only be run for the Primary ledger and for non-adjustment periods.

To view the report, you must select a ledger and request name, which is the name from the Prepare Payables to General Ledger Reconciliation process.

Note: For a more efficient reconciliation, don't allow general ledger sources other than Oracle Fusion Payables to post to Payables accounts.

Consider these points when using the Payables to Ledger Reconciliation report.

Differences Between Transactional and Accounted Amounts
Differences Between Summary and Detail Amounts
Differences Between the Reconciliation Report and Other Payables Reports
Differences Due to Rounding
Variances Due to Transactions not Validated

Differences Between Transactional and Accounted Amounts

Ideally the payables transactional amounts and the accounted amounts on the report summary should be the same. The Payables Begin Balance accounting amount should agree with the Payables Trial Balance report for the last day of the previous period. The Payables End Balance accounting amount should agree with the Payables Trial Balance report for the last day of the period being reconciled.

Any differences that you find require further investigation and correction. Common reasons for differences between transactional amounts and accounted amounts include:

Transactions that aren't accounted.
Transactions with subledger accounts that fall outside the account range of the report.
Transaction amounts that don't agree with the subledger journal line amounts.
Journals posted to the subledger or general ledger that didn't come from Payables.
Subledger journals that aren't transferred or posted to general ledger.

After finding and correcting discrepancies, you must rerun the Prepare Payables to General Ledger Reconciliation process and review the reconciliation report summary.

Note: The report summary may contain variance amounts if the Payables Begin Balance plus the period activity differ from the Payables End Balance. This applies to both the Payables Amount and the Accounting Amount. If after reviewing the data the variance can't be explained, contact the help desk.

Differences Between Summary and Detail Amounts

The Non-Payables Begin Balance on the report summary is that portion of the general ledger liability account beginning balance that didn't originate from Payables transactions. You can drill down from the beginning balance amount to the general ledger journal lines. The accounting date for the journal lines falls within the current fiscal year, but prior to the period for the reconciliation report.

The source for these journal lines is typically not Payables. However, you may see manual subledger journal entries with the Payables source entered directly in the subledger, but not necessarily linked to a Payables transaction. Most of these entries represent adjustments.

Manual subledger journals created during the current reconciling period display on the report summary in the Other Accounting amount. These journals become part of the Non-Payables Begin Balance amount in subsequent periods. Manual general ledger journals that may affect payables accounts and are created directly in the general ledger display in the Non-Payables Activity amount.

Summary amounts might not reflect totals on detail pages for one of the following reasons:

Data was modified after the Prepare Payables to General Ledger Reconciliation process was run for a given accounting period. For example, transactions or accounting was created between the time the process was run and the moment you drill down from summary to detail.

Note: Discrepancies might still exist if accounting activities occur in the subledger or general ledger after the Prepare Payables to General Ledger Reconciliation process is run. Oracle recommends that you perform these accounting activities prior to closing the Payables period and running the preparation process.

Tip: To limit discrepancies between the summary and detail reports, set the Payables accounting period status to Closed or Permanently Closed.

Security rules in your setup may restrict you from viewing data from certain business units or segment values. Oracle recommends that appropriate security be given to users for all business units and accounting flexfield segment values that each user is responsible for reconciling.
If you're downloading a large amount of data and plan to perform a number of data manipulations, use the CSV format. If you're downloading data for reference purposes only, use the Excel format.

Differences Between the Reconciliation Report and Other Payables Reports

Data on the Payables to Ledger Reconciliation report might differ from the following Payables reports:

Payables Aging Report, Payables Invoice Register, Payables Payment Register: You can't exclude intercompany transactions from the aging report or the registers. If you run the reconciliation report and exclude intercompany transactions, or show only intercompany transactions, then the reports display incompatible data.
Payables Aging Report: The reconciliation report displays payables balances for the first and last date of a period. You can run the aging report for the current date only.

Differences Due to Rounding

Fully paid invoices could have rounding differences. The sum of the entered amounts for the invoice distributions and the sum of the entered amounts for the invoice payment might not match.

The total accounted amounts of the invoice and payment liabilities for a fully paid invoice always match. Rounding differences between the original invoice liability amount and the sum of the payment liabilities are automatically written off. The write-off occurs when the final payment, or prepayment application, is accounted.

However, because the payables amounts are taken from the invoice distributions and invoice payments, rounding differences can appear on the report summary. These differences are included in the Payment Variance amount in the Payables Amount column on the report summary.

Variances Due to Transactions not Validated

On the report summary, the Payables Begin Balance and Payables End Balance amounts include validated transactions only. Unvalidated transactions are included in the Payables Variance amount. For the Invoice Approval and Invoice Account Coding in-application notifications, use the 'Edit Distributions' option in the Actions menu to edit the distributions.

Note: Unvalidated transactions are transactions that are incomplete or that have validation issues, such as invalid accounts or amount variances that must be corrected.

For example, if the current period has 200 USD of unvalidated invoice transactions, the report displays the following:

Payables Begin Balance = 10,000 USD
Invoices = 1,200 USD
Payables Variance = 200 USD
Payables End Balance = 11,000 USD

Note: The Invoices Detail report includes unvalidated transactions, so you can review the report to identify the unvalidated and unaccounted transactions.