How To Quickly Close Your Accounting Period In The Receivables Cloud Application

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In this session, we are going to talk about the accounting period close process for the Receivables application. You can close a receivables period after accounting entries are created for the transactions that belong to the period in question, and you have transferred the accounting entries to the general ledger.

Let's go through the list of closing activities.


First, you want to complete all transactions for the period being closed and recognize revenue. We are talking here about billing transactions as well as customer payments.

If you have invoices assigned to revenue scheduling rules, then you need to run the Recognize Revenue process. Proceed to Reconcile Receipts to Bank Statement Activity. In other words, you're going to be matching bank statement lines to customer payments that have been created in the Receivables application.


Let's go to the Accounts Receivables work area so that I can show you where you would set the period to close pending. So from the Home page, we want to select Receivables in the Application section and then go with the option Accounts Receivables. I'll click on the Tasks icon. Then select Manage Accounting Periods.

We can see here the application, the ledger that owns the accounting calendar, the current, prior, and next period. The legend here indicates what the meaning is for each of these icons. Let's talk about each one of these tasks in more detail.



Let's discuss completing all transactions for the period in question.

This means you need to complete invoicing, credits, and adjustments, complete receipts as well as rehearsals, if required, proceed to finalize invoices as well as customer import. This means you might need to run AutoInvoice one more time or a few more times to make sure that all billing activity is accounted for.


You also want to run the Lockbox process to create customer payments and apply them. Complete the processing of refunds and receipt write-offs if applicable.


If you have configured the Late Charges functionality, and this is enabled for your business unit and your customers, then you want to generate late charges. Let me make a quick correction here. I mentioned Customer Import earlier and then started talking about AutoInvoice.

Of course, you have to run auto invoice to make sure that you import all transactions coming from external systems. Customer Import refers to creating new customers, if applicable. And again, as I mentioned earlier, if there are invoices with revenue recognition rules, you want to run the Revenue Recognition process.



Let's talk about bank statement reconciliation. You can do this in Cash Management. Now there are two ways to perform bank statement reconciliation. You can do it manually using the user interface. So that means that you're going to be matching statement lines to customer payments without the help of an automated process. Now, normally, you do have to do manual matching, but this is typically for exceptions that are left after you run the Automatic Reconciliation process.

After you load the bank statement or create the bank statement in the user interface or using a spreadsheet template, what you want to do is proceed to run the AutoReconciliation process. Let's go to Cash Management real quick to take a look at where you would do this. So I'm going to click on Done here, go to the Navigator, Cash Management, and we want the Bank Statements and Reconciliation work area.

Notice here if I go to the Tasks icon, you can create a bank statement in this page. You can load and import bank statements if you receive bank statements electronically from your bank. And you can create bank statements in a spreadsheet template, as I mentioned. Notice here the link to run the AutoReconcillation process. There is a link here for manual reconciliation as well.