Inventory - SLA- Gl Reconciliation Diagnostics


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Inventory - SLA- Gl Reconciliation Diagnostics Presenters: Suhas Basidoni , Amrish Kothari Date: 10-Oct-2012


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Inventory - SLA- Gl Reconciliation Diagnostics Presenters: Suhas Basidoni , Amrish Kothari Date: 10-Oct-2012


Inventory-SLA-GL Reconciliation

• Approach of Inventory–SLA-GL reconciliation for Discrete Manufacturing customers.

• This will be applicable for R12 customers using Standard

and/or Average Costing. • Suitable for Oracle seeded Account Derivation Rules

(ADR).

• The scripts mentioned are not applicable for Periodic Costing System (PAC).


Reconciliation Approach (Note 1447211.1)

• A. Transactions Costing

• B. Periodic /Regular Checks

• C. Sub-Ledger Accounting (SLA) Checks

• D. Reconciliation Diagnostics Scripts


Approach to Inventory Reconciliation • A. Transactions Costing.

1. All Material /WIP transactions should be costed. This is the primary step in the process of Inventory

Period close and ultimately in Reconciliation. If there are any errors in the respective tables or Cost worker errors those need to be resolved. To check for these errors, diagnostics scripts are available, Please refer to the Note 603657.1.

“Period Close Pending Transactions Report” also can be submitted for ascertaining the pending transactions.


Period Close Pending Transactions Report


2. Run Create Accounting-Cost Management program.

• After checking, all the transactions for the concerned Inventory period are costed, Create Accounting-Cost Management concurrent request should be run to transfer all the transactions to GL.

• This concurrent request should get successfully completed.

• For request parameters and the explanations for each of the parameters also the scripts associated, please refer to the Note 755943.1


Create Accounting-Cost Management

This Batch Name can be enquired in

GL- Inquiry - Journal screen


3. Close the Inventory Period

• Once Create Accounting-Cost Management concurrent

request is completed successfully, Inventory period should be closed. While closing the Inventory Period, a report will get triggered called as "Period Close Reconciliation Report".

• This report is used to create summarized transaction records. It displays the differences between accounted value and inventory in the Discrepancy column.


Pending Transactions


4. Check the Period Close Reconciliation Report

Following are key columns in Period Close Reconciliation Report:

• Accounted Value: The valuation when calculated using previous adjusted summarization data + distribution information from MTA table (Mtl_transaction_accounts).

• On-hand Value: The valuation when calculated using current values from MOQ - quantities and costs from MMT table (Mtl_material_transactions).

• Discrepancy: The difference between Account Value and On-hand Value.

Once the Period Close Reconciliation report completes normal, please check the report values and especially Discrepancy column. If there is a difference, this is the first indicator of mismatch in the Sub-ledger and Gl.

In R12, you can run the Period Close reconciliation report for the closed period as well.

For more discussions on the Period Close Reconciliation Report, Please

refer to the Note 295182.1.


Period Close Reconciliation Report

This should be always “0”


B. Periodic /Regular Checks

Check the Backdated Transactions.

• Timely closing of Inventory period will prevent the backdated transactions which will have its impact on Inventory valuation at the sub-ledger level as well as in the Gl. This is the primary factor which creates a difference in Sub-ledger and Gl.

• Pl refer to the Note 361597.1 for more discussion on Backdated transactions.


Periodic /Regular Checks

Check mismatch like MMT-MOQD and MMT-CQL

• There is mismatch in quantities in different sub-ledger tables like Mtl_material_transactions(MMT) and Mtl_On_Hand_Quantities(MOQ). This can also lead to sub-ledger level difference and discrepancy in Period close reconciliation report.

• For MMT-MOQ mismatch and the resolution thereof need to refer to the Note 279205.1

• In average costing Environment, there can be MMT-CQL mismatch, pl refer to the Note 378348.1 which provides txn.sql to identify MMT-CQL mismatch.


C. Sub-Ledger Accounting (SLA) Checks

Cost Management SLA pre-check required to be carried out at regular intervals.

Common Issues:

• Data with Negative Ledger_id in GL tables.

• Multiple posting issues. • In GL Deleted from SLA.

Please refer to the Note 883557.1 by Oracle SLA Team. This note explains diagnostics and Data fix to resolve the above mentioned issues.

Run Sub-ledger Period Close Exception Report. The Sub-ledger Period Close Exceptions Report lists all accounting events and journal

entries that fail period close validation. It is automatically submitted by General Ledger when closing a GL period if there are unprocessed accounting events or un-transferred journal entries.


Sub-ledger Period Close Exception Report


D. Reconciliation Diagnostics

Check following reports to Confirm the Reconciliation difference.

Inventory Reports: o Inventory Valuation Report o Transaction Historical Value Report o Material Account Distribution Report o Inventory Master Book Report

SLA Reports: o Journal Entries Report o Account Analysis Report

GL Reports: o Account Analysis Report- (132 Char) o General Ledger - (132 Char)


Batch Drilldown

From GL, drilldown using Batch Name provided in the Create Accounting Run.


Recon_Diag.sql (Note 1447211.1)

Recon_Diag.sql is built using analytical queries which helps in understanding the missing links between INV-SLA-GL data mismatches.

It requires 5 input parameters:

• Org Code -> The inventory organization for which reconciliation activity is going on.

• Reference Account -> The account code combination in question for which Gl and sub-ledger values are not matching.

• From Date -> The inventory period, or date in which value mismatch is there.

• To Date -> The inventory period, or date in which value mismatch is there.

• Ledger Id -> Enter the Ledger_Id of the default ledger. This can be obtained from the gl_ledgers table.


Output of script Recon_Diag.Sql • After running the Recon_Diag.sql, two text files will be created in users

default locations.

SLA_GL_RECON.Txt

This output will gather data from SLA and GL tables like Xla_Transaction_Entities, Xla_Ae_Headers and Xla_Ae_Lines and Gl_Je_Lines, Gl_Je_Batches and Gl_Import_References.

INV_SLA_RECON.Txt

This output will gather data from the Inventory tables like Mtl_Transaction_Accounts and Wip_Transaction_Accounts and SLA tables.

SLA_GL_RECON.txt INV_SLA_RECON.TXT


Interpretation of output (Recon_Diag.sql)

SLA_GL_RECON.txt

1. Data Mismatch in SLA and GL (Data Exists in SLA tables but not in GL) =============================================================

• Journal Posting did not happen or resulted in error • User Intervention in the SLA tables • Data corruption cases

2. Data Mismatch in GL and SLA (Data Exists in GL tables but not in SLA) =============================================================

• Inventory organizations using Periodic Average costing will not transfer the data through Create accounting.

• Manual GL Adjustments within General Ledger not coming through SLA mode.


INV_SLA_RECON.txt

1. Transactions mismatch bottom up approach (Exists in MTA but not in SLA tables) =============================================================== • Create Accounting did not run or resulted in error

2. Transactions mismatch bottom up approach (Exists in WTA but not in SLA tables) ===============================================================

• Create Accounting did not run or resulted in error

3. Transactions mismatch top down approach (Exists in SLA tables but not in MTA) ===============================================================

• This could be the rarest case as base sub-ledgers like Inventory do not have the data whereas SLA has data

4. Transactions mismatch top down approach (Exists in SLA tables but not in WTA) ===============================================================

• This could be the rarest case as base sub-ledgers like WIP do not have the data whereas SLA has data

Interpretation of output (Recon_Diag.sql)

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Inventory - SLA- Gl Reconciliation Diagnostics

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