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Release 12 Period Close Process Flow For Oracle

To
Process Manufacturing (OPM) Financials (GMF)- e- Bottom
Business Suite (Doc ID 1237963.1)

In this Document

Abstract
History
Details
Organization (Warehouse in 11i) closure in an Oracle
Process Manufacturing (OPM) Organization
Period Close process Steps in an OPM Inventory Organization
Standard cost
Actual cost
Lot cost
1 Run Preliminary Inventory Close Period:
Please make sure to validate the journal entries created. Run
Subledger Period Close exception report to see if there are any
errors.Also note that nothing can be changed once the various
processes are run in Final mode and proceed further only after fixing
errors if any. Otherwise please log an SR with Oracle Support.

4 View and fix all the errors so far

Summary
References

Applies to:
Oracle Process Manufacturing Financials - Version 12.0.0 and later
Information in this document applies to any platform.
GMF period close process OPM Financials period close

Abstract
This support document is intended to provide you with the useful and logical 'step-
by-step' information related to the OPM Financials Period Close (GMF Month
end) process in the e-Business Suite Oracle Process Manufacturing (OPM)
module in Release 12.

History
Author: Jean-Francois Guerrini, Yann Delaporte
Create Date 15-NOV-2010
Update Date 18-OCT-2013

Details
Organization (Warehouse in 11i) closure in an Oracle
Process Manufacturing (OPM) Organization
In order to close an OPM Organization in EBS Release 12, the program GMF
Period Close Process for Process Organizations has to be used. Oracle
Inventory Close function should not be used to close a process enabled
organization.

This program generates the period balances data, which is used in Inventory
Valuation report. Moreover, it allows to manage the Preliminary Closed status,
depending on the Final Close parameter selected :

 If Final Close = No : it is a preliminary close, i.e. the period is closed to

transactions, but you may still reopen it to post transactions. And you can
run the GMF period close process again for the same period in order to
populate new balance.

 If Final Close = Yes: it is a definitive close, i.e. transactions may no longer

be posted for the period, and the period can not be opened again. GMF
period close process can not be run again.


Warning: Closing the period from the Inventory Accounting Periods form is not
recommended and the period is directly closed as Final and period balances data
is not generated in GMF. In OPM Financials it will affect the cost calculation and
OPM preprocessor. Please refer to the Note 468155.1 - How to perform
Preliminary Close For Process Inventory in Release 12.

OPM Financials > Reports > Standard > Run > GMF Period Close Process for
Process Organizations
Period Close process Steps in an OPM Inventory Organization

For OPM Organizations, the first steps of the period close process depend on the
costing method used. For more information please refer to the Oracle Process
Manufacturing Cost Management User's Guide (Part No. E13655-02).

Note(1) : In OPM, the costing processes are launched at the Legal Entity level
with the possibility to specify one or several OPM Organizations.

Note(2) : In the diagram below the process used for actions described as
'Inventory Close' is always the 'GMF Period Close Process for Process
Organizations'

Standard cost
1. Launch the Cost Rollup Process:

Run the Cost Rollup at period-end time to consolidate the standard costs of raw
materials into the product costs. This period in the cost calendar must be either
with an Open or Frozen status. If the period has the Closed status, it can not be
selected anymore.

OPM Financials > Standard Costs > Cost Rollup

Error(s) from this process can be checked in Action Menu > View Error Messages.
Make sure to fix these error messages if any.

2. Run Preliminary Inventory Close Period

Run the GMF Period Close Process for Process Organizations program with Final
Close = No. It is then a Preliminary Close period, i.e. the period is closed to
transactions, but may still be reopened.

OPM Financials > Reports > Standard > Run > GMF Period Close Process for
Process Org.
Please check the log files and see if there is any error. Make sure to fix these
error messages if any.

Actual cost
1. Run GMF Recreate Batch / Period Layers

If you have integration with LCM module, please run the Landed Cost Import
Process. Also if you have the expense allocation, please run the Cost allocation
process.

Run GMF Recreate Batch / Period Layers is recommended to be routinely run and
run before engaging the Actual Costing period close process in order to remove
potential data problems (for example where the details of a Batch have been
updated but these changes are not reflected in the Layer Cost tables). Also note
that this can not be run once the create accounting has been run in Final mode

OPM Financials > Reports > Standard > Run > GMF Recreate Batch / Period
Layers

Please check the log files and see if there is any error. Make sure to fix these
error messages if any.

2. Run Preliminary Inventory Close Period:

Run the GMF Period Close Process for Process Organizations program with Final
Close = No. It is then a preliminary close period, i.e. the period is closed to
transactions, but may still be reopened.

OPM Financials > Reports > Standard > Run > GMF Period Close Process for
Process Org.

Please check the log files and see if there is any error. Make sure to fix these
error messages if any.

If LCM is integrated with OPM with cost method as actual, run below requests
prior to running the Actual cost process

LCM Module
Landed Cost Integration Manager
Shipments Interface Import
Matches Interface Import
Submit Pending Shipments (after matches interface import completed)

OPM Financials

Landed Cost Adjustments Import Process

3. Run Actual Cost Process:

The period in the cost calendar must be in either Open or Frozen status to run the
Actual Cost Process. If the period has the status Closed it can not be selected
anymore.
OPM Financials > Actual Cost > Actual Cost Process

Error(s) from this process can be checked in Action Menu > View Error
Messages. Make sure to fix these error messages if any.

Lot cost

1 Run Preliminary Inventory Close Period:

Run the GMF Period Close Process for Process Organizations program with Final
Close = No. It is then a Preliminary Close period, i.e. the period is closed to
transactions, but may still be reopened.

OPM Financials > Reports > Standard > Run > GMF Period Close Process for
Process Org.

Please check the log files and see if there is any error. Make sure to fix these
error messages if any.

2. Run Lot Cost Process:

If LCM is integrated with OPM with cost method as Lot, run below requests prior
to running the Lot cost process

LCM Module
Landed Cost Integration Manager
Shipments Interface Import
Matches Interface Import
Submit Pending Shipments (after matches interface import completed)
OPM Financial

Landed Cost Adjustments Import Process

The period in the cost calendar must be in either Open or Frozen status. If the
period has the status Closed it can not be selected.
OPM Financials > Lot Cost > Lot Cost Process

Please check the log files and see if there is any error. Make sure to fix these
error messages if any.

3. Run Lot Cost Process in Final mode:

After cost calculations, once costs are verified and correct, the Lot Cost process
can be ran in final mode. This updates all inventory transactions to be marked as
lot costed.
Once processed in final mode the Lot Costs can no more be changed.

Error(s) from this process can be checked in Action Menu > View Error Messages.

OPM Financials > Lot Cost > Lot Cost Process

Please check the log files and see if there is any error. Since it is the final mode
no changes can be done.

All common costing methods further steps

1 Run Preliminary Cost Update Process:

Launch the Cost Update process in Draft mode. At this stage, it is still
recommended to avoid the Final Update option. This to allow to be able to review
and change component costs if necessary, and also to run another cost update.

OPM Financials > Cost Update

Error(s) from this process can be checked in Action Menu > View Error
Messages.
2 Run OPM Accounting Preprocessor:

The OPM Accounting Preprocessor creates the events in SLA tables.

Please note that if Order Management is used, below requests needs to be run
prior to running the OPM Accounting preprocessor

OPM Financials

Record Order Management Transactions

Collect Revenue Recognition information
Generate COGS Recognition Events

OPM Financials > Reports > Standard > Run > OPM Accounting Pre-Processor
Error(s) from this process can be checked in Action
Menu > View Error Messages.

3 Run SLA Create Accounting Process in

Draft mode:
Run the Create Accounting program in Draft Mode. The Draft Mode allows
accounting distributions to be amended in SLA (if required).

OPM Financials > Reports > Standard > Run > Create Accounting

Please make sure to validate the journal entries created. Run Subledger Period
Close exception report to see if there are any errors.Also note that nothing can
be changed once the various processes are run in Final mode and proceed
further only after fixing errors if any. Otherwise please log an SR with Oracle
Support.

4 View and fix all the errors so far

Review and fix all the errors. Once the process is run in final mode no changes
can be performed.

5 Run Final Inventory Close Process:

Run the GMF Period Close Process for Process Organizations program with Final
Close = Yes. The period will then be definitively closed to any transaction and it
will be impossible to reopen it.
OPM Financials > Reports > Standard > Run > GMF Period Close Process for
Process Organizations

6 Run Final Cost Update Process:

Launch the Cost Update process. Specify that the update is final (by ticking the
Final Update check box); this locks the raw material costs for the specified period.
The period in the cost calendar will be at the status Frozen. Also the formula
status gets changed to frozen.

OPM Financials > Cost Update

7 Run OPM Accounting Preprocessor

OPM Accounting Preprocessor creates events in SLA tables.

OPM Financials > Reports > Standard > Run > OPM Accounting Pre-Processor

8 Create Accounting and Export to GL

Please note that once create accounting is run in FINAL mode, no changes are
allowed and only change that can be done is GL Cost adjustment !!. Hence make
sure everything is correct before the create accounting is run in Final mode. Also
once the create accounting is run FINAL mode, it can not be reverted.

Run the Create Accounting program in Final Mode. When choosing the Final
Mode, there is also the option to directly Post to General Ledger.

With the 'Post in General Ledger' option= Yes, the Create Accounting process will
transfer to General Ledger the only Journals created during that particular run.

Thus, if 'Post in General Ledger' option = No, then the concurrent request 'Transfer
to GL' needs to be ran to transfer the SLA journals to General Ledger in previous
Create Accounting runs.

OPM Financials > Reports > Standard > Run > Create Accounting

Summary
The manufacturing period closure process enforces the different transactions to be all
entered, validated and completed in a timely manner, all the costing to happen but also to
properly close the process manufacturing periods.
References
NOTE:1213193.1 - OPM Financials (GMF) Process Manufacturing Financials
Troubleshooting Guide
NOTE:1069492.1 - Resolving Period Close Pending Transaction R12
NOTE:110424.1 - FAQ: Unprocessed Transactions / Closing Inventory Accounting Period
NOTE:1266644.1 - R12 Period-End Process Flow For Oracle Discrete Manufacturing - e-
Business Suite