Good day Hassan Mir, kindly advise on how books are closed for the end of the year where GL, AP, and AR modules are configured and implemented. I want to know the steps to close the books and collapse everything into Retained earning account. I also want to know what reports are available within R12 that one can run to show performance for the year.

Thanks a lot.

Oracle automatically closes your revenue and expense account as of 31-DEC-12. This happens on the fly. You dont have to run any process as such.
Lets say you have following balancees as of end of DEC-12:
ASSET1 $100
EXPENSE1 $10
EXPENSE2 $20
REVENUE1 $40
RETAINED EARNINGS $100

When you open JAN-13 you will note that opening balances for JAN will be as follows:

ASSET1 $100
EXPENSE1 $0
EXPENSE2 $0
REVENUE1 $0
RETAINED EARNINGS $110

Note that even if you do a back dated journal entry in DEC-12 touching expense and revenue accounts, Oracle will automatically maintain the right opening balances as of JAN-13.

You can run standard trial balance reports to view the PTD and YTD balances. You can also run your FSG trial balances if you have created these in your system.

Thanks so very much. Your response is well appreciated.

Hi Hasan,

A follow up question on the same topic. If you have a need where you need to close your books every period and get the retained earnings etc - is
there a process that you can run to do that. Thanks,

Arun

Would i need to close all prior periods for the year prior to opening Jan-13 for what you detail here to occur? Also, what would happen to the balance sheet statement with respect to the entries and owners equity?

Thanks

You dont need to close all prior periods before opening JAN-13. Expense and revneue are automatically closed into Retained Earnings on the fly as of 01-JAN.
However keep in mind that keeping all periods opened is not a good practice. A period must be closed before opening a new one, specially true for public companies. However there are no system restrictions as such.

I did not get your question about balance sheet statement.
Here is what appears in the balance sheet:
Assets
Liabilities
Retained Earnings.

Here is what appears in Income Statement:
Revenue
Expense

The affect on balance sheet is that new retained earning would appear as of 01-Jan-13 which has now absorbed expense and revenue balances.

The affect on income statement is that revenue and expense accounts appear as zero of 01-Jan-13.

Dear Admin/Expert Members of Forum,
Regarding the Year end closing,if we are following the Financial Year i.e from 01-Apr to 31-Mar then where we have to do the setting so that on fly the balance of revenue and expenditure closes on 31 Mar instead of 31 Dec

Thanks and Regards

You define in your calendar, the start of the next year. This is how Oracle knows when your year is ending. No other settings are required.