Considerations for Setting Up for Payables to General Ledger Reconciliation

Periodically you reconcile the transactions in your accounts payable application, both before and after you post to the general ledger. The Payables to General Ledger Reconciliation preparation process and report help simplify reconciliation and reduce the amount of manual reconciling activity required.

The automated activities in the reconciliation process function according to your Oracle Fusion Financials setup. A review of some of these setups can help improve the overall reconciliation process.

Consider these points when setting up the Oracle Fusion Payables to general ledger reconciliation.

• Reconciling by Business Unit or Ledger

• Assigning the Financial Category

• Setting the Reconciliation Data Purge Frequency Profile Option

• Configuring User Security

Reconciling by Business Unit or Ledger

If you implicitly map primary balancing segment values to business units, you can reconcile based on business unit. Reconciling by business unit allows employees from different business units to balance their respective accounting activity.

If you don't implicitly map primary balancing segment values to business units, you must reconcile based on ledger. In this case, you must have access to all business units associated with the ledger to perform a thorough reconciliation. You must also reconcile by ledger if you centralize payment processing using the service provider model.

Assigning the Financial Category

You must assign the financial category of Accounts Payable to all your liability natural account values. You perform this task on the Manage Values page for the value set associated with the natural account segment of your chart of accounts.

Note: To include bills payable, intercompany, and tax authority liability accounts on the reconciliation report, you can also assign them the Accounts Payable category.

After you assign the category, you can leave the Account parameter blank when you run the Prepare Payables to General Ledger Reconciliation process. The process includes all accounts that have a financial category of Accounts Payable in the ledger. Or you can enter specific natural account values to limit the report to reconciling only a subset of the payables accounts in the ledger.

Note: You must assign the category to a natural account in your chart of accounts to see information about the Payables to Ledger Reconciliation report.

Note: The Business Unit filter works with the Payables column and the Account filter works with the Accounting column of the Payables dashboard.

Setting the Reconciliation Data Purge Frequency Profile Option

Use the Reconciliation Data Purge Frequency profile option to specify the number of days to keep reconciliation data. You might want to keep the data for comparison purposes.

When you run the Prepare Payables to General Ledger Reconciliation process, the process refers to the value of the Reconciliation Data Purge Frequency profile option. Any reconciliation data requests older than the number of days specified in the profile option are purged from the tables.

For example, you set the profile to 30 days and submit the preparation process on January 1. If you submit the process again on January 29, the data isn't purged. However, the data is purged if you submit the process on February 1.

Configuring User Security

Typically General Ledger users are secured by data access sets. Data access sets use primary balancing segment values to secure access to ledgers, ledger sets, and portions of ledgers. Payables users are secured by business units.

For the Payables to Ledger Reconciliation report:

• General Ledger users can see general ledger data for the balancing segment values in their data access set. General Ledger users can also see the Payables or Oracle Fusion Subledger Accounting data for all business units linked to the ledger.

• Payables users can see the Payables and Subledger Accounting data for business units in their security definition. Payables users can also see general ledger data for all balancing segment values in the ledger.

The data roles for the General Ledger or Payables job roles can affect the reconciliation report. If data roles grant access to specific business units for General Ledger users or specific data access sets for Payables users, the report only includes:

• For General Ledger users, the Payables or Subledger Accounting data for those business units in the ledger to which the user has access.

• For Payables users, general ledger data for those balancing segment values included in the data access set to which the user has access.

If business units and balancing segment values are implicitly mapped, the report should work properly. Users can filter the report for the balancing segment values that are mapped to the business units to which they've access.

If business units and balancing segment values aren't intentionally or implicitly mapped, the Payables to Ledger Reconciliation report could display the following unintended results:

• For General Ledger users, the report includes general ledger data for all balancing segment values in the data access set. Payables and Subledger Accounting data is limited to the business units to which a user is granted access.

• For Payables users, one possible outcome is that the report doesn't include any general ledger data. Another outcome is that the report includes general ledger data that isn't properly mapped to the Payables or Subledger Accounting data for the business unit.

You can resolve this issue. Remove the access granted to specific business units for the General Ledger job roles, and the specific data access sets for the Payables job roles.