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Hi Folks,

I have following doubts in Opening balances concept.

1. How we will finalise Opening balances in GL.

2. What are other Subledger modules should have opeining balances.

3. How we will finalise Subledger opeining balances.

4. how we will map SL balances in GL, i.e we may upload same balances in GL some times in such case what is the solution.


Regards
Anjan

Hi Anjan,

1. How we will finalise Opening balances in GL.

>> By preparing Trial Balance one will arrive at the opening balances.

2. What are other Subledger modules should have opeining balances.

>> It is not a rule that every subledger must carry an opening balance, however most of the cases it will happen so.... few examples are, invoices in payables that are not yet paid , or transactions in receivables for which no receipt is made. Instead of stating these as opening balances , we term it as open transactions .....which will be imported using appropriate data migration methods...

3. How we will finalise Subledger opeining balances.

>> Again, by preparing trial balances, for suppliers - suppliers balances can be arrived from Accounts payable Trial Balance / Open AP Account balances listing, for customers - customer balances can be arrived from aging reports.....

4. how we will map SL balances in GL, i.e we may upload same balances in GL some times in such case what is the solution.

>> The trial balance in GL must match with the Trial balance of the subledger always ....for example,
the net activity of the accounts payable module is captured in Accounts payable liability account, therefore total of liability account as per AP must match with GL, same way for Receivables module, the receivables account as per AR must match with GL.....

Hope i have clarified to some extent.....

Moderator....

There is supplier A and on cut off date he has following data,

1- Invoice 1000
2- Payment 1000
3- Invoice 1000
4- Payment 500
----------------------
Balance 500

Now there are two options,

1- Enter Invoice 3 and Payment 4 in Oracle...
2- Create invoice of balance amount...

Hi Karthikeyan,


Thanks for your reply,


I have some more queries in this concept.

1. What are the possible subledger modules can have opening balances

2. If it is upgradation from 11i to R12 how we will take asset opening balances for CIP and Other assets.

3. If it is new implementation means what are the things we should consider while taking opening balances for all Financial modules


Regards
Anjan

Karthikeyan and Admin have already given a comprehensive answer. I will add few more.

1. There is nothing called "Opening Balance" for the subledger modules except Inventory. Opening balance is applicable only to the General Ledger and Inventory. For the General Ledger, the account balance at the opening/closing of a period is the opening balance. In inventory, the stock balances is called opening balance.

2. The subledger will have the "Incomplete" (meaning the cycle is not completed) transactions which needs to be brought to oracle application so that the user will continue to use those transactions after Go-Live. These transactions are called "Open Transactions". For example, unpaid AP invoice in legacy system which will be brought to AP Invoice screen in oracle apps (only the unpaid amount-Not the invoice amount). Whatever transactions you feel is "Incomplete" in the legacy system and you want to continue the same in oracle apps, you should bring those transactions.
Generally, I don't prefer to bring the unreconciled payments into oracle apps (Plan in such a way that less payments are made in the previous week of Go-Live)
Make sure that
a. Debtors balance and Creditors balance given as per the subledger modules comply with GL trial balance.
b. Inventory value in the subledger (given from the inventory opening balance with value) tally with balance of the inventory accounts in the GL trial balance. This will always be a problem in most of the implementations.

3. In rare cases, if the client insists on the history transactions, then we have to bring all the transactions (from the cut-off date) from the legacy system to apps.

Finally answering to the specific questions,

What are the possible subledger modules can have opening balances
Ans: It depends on the modules implemented and what kinds of transactions you want to bring. Examples could be Payables, Receivables, Assets, Inventory, etc

If it is upgradation from 11i to R12 how we will take asset opening balances for CIP and Other assets
Ans: If you need opening balances of asset and CIP accounts, the answer is trial balance.

If it is new implementation means what are the things we should consider while taking opening balances for all Financial modules
Ans: I think I have covered this earlier in this post.

Cheers,
Saravanan TG

Hi Saravanan,

Thanks For your detail explanation


i have some more doubts in my implementation

we are implementing

1. Finance GL, AP, AR, CM and FA
2. SCM PO,INV, OM
3. Projects Costing and Billing


so what are the balances and open transactions i need to upload

could you please tell me bit detail


thanks & Regards
Anjan

I think I have already given in detail in my previous post. The transactions needs to be uploaded should be decided by Consultant in consultation with the Client. In General, the following open transactions and opening balances are brought to apps.

1. Open Transactions need to be uploaded for AP (Open Invoices), AR (Open Invoices), OM (Open Sales Orders), PO (Open Purchase Orders).

2. Opening balances for Stocks in Inventory

3. Account Balances in GL.

Cheers,
Saravanan TG