Period End Close - General

Periods represent non-overlapping consecutive date ranges. Every Financials customer needs to successfully close the accounting books each period.
General Steps
Here are some guidelines, from a general perspective, how you can perform the close process for every subledger:
a) Complete transactions
b) Create accounting
c) Reconcile transactions
d) Post to General Ledger
e) Reconcile accounting
f) Close period

Step b), Create Accounting, is a new step in Release 12, as it is an SLA feature. The accounting can be created immediately online, or can be run as a process in the background e.g. as a batch job at a time that matches your business needs.
The important thing to note, is that the accounting is not the distribution on the transaction. The final accounting by SLA could result in different accounting entries being generated based on the accounting rules you have configured. Therefore, you need to ensure that all your accounting for your transactions is created before you post to General Ledger, in order to update the balances correctly.

In Release 11i, when you close your periods in each of the subledgers, Oracle General Ledger will automatically create the balancing lines for journals posted to General Ledger. This changes in Release 12 as subledger accounting creates the balancing lines at the time you account for the subledger transactions.

The subledger accounting journal represents your REAL accounting and the balancing lines are created as part of these subledger accounting journals. When you close a period in Release 12, you’re actually closing subledger accounting. The journals can then be posted to the general ledger to update the GL balances.

Period End Close Dependencies