Period closing isn’t just compliance; it’s ensuring financial hygiene, system readiness, and
audit resilience. Here’s a clean, actionable breakdown for Oracle Fusion consultants and end
users to execute period closing confidently.

Why Period Closing Matters

• Prevents unwanted transaction postings
• Ensures accurate reconciliations.
• Locks your data for audit and compliance.
• Enables smooth year-end rollovers.

Standard Closing Sequence

• Inventory → cannot reopen.
• AP / PO → AP first if AP-led; PO first if PO-led
• AR → Reopenable.
• Fixed Assets → Close only.
• Cash Management → No closing needed.
• General Ledger → Last to close, reopenable.

Types of Period Close

• Soft Close: No issues, seamless rollover.
• Hard Close: Pending issues, swept forward

Period Status in Oracle Fusion

• Open – Transactions can be entered and processed.
• Closed – No further transactions can be entered; the period can be reopened if required.
• Permanently Closed – Cannot reopen; final closure for audit integrity.
• Future Enterable – Period is open for future dated transactions.
• Never Opened – Period has not been opened yet

Module-wise Period Closing with Navigation

1. Accounts Payable (AP)

Closing AP period, ensuring all transactions are accounted and transferred to GL for period-end reconciliation.

AP Period Closing Steps in Oracle Fusion

1. Close the AP Period

• Navigation: Payables > Period Close > Manage Accounting Periods.
• Action: Change status from Open → Closed for the period after clearing all exceptions copy the submission process ID
  • Go to the schedule process and refresh, review the period close exception report to
• View the lists of exceptions preventing period closure, e.g., unvalidated invoices, unaccounted transactions.
• Solve the error and rerun the process until the status period closes the exception report is successful

1.1 Verify Unaccounted Transactions

• Verify the invoices, payments, and prepayments are accurately accounted for.
• Account for these transactions using: Payables > Invoices> Task > Create Accounting OR
• Navigator > Tools > Scheduled Processes> Payables Unaccounted Transaction and Sweep Report
• Refresh and review the execution report

1.2 Validate Invoices

• Navigate to:
  o Payables > Invoices > Manage Invoices > Validate. OR
  o Navigator > Tools > Scheduled Processes>Validate Payables Invoices
• Enter BU, Ledger, and submit the process to ensure all invoices are validated to avoid
  exceptions.
• View the log, identify invoices that failed validation, View validation errors (e.g., distribution issues, missing mandatory fields, invalid combinations), take corrective action before creating Accounting and period closing

1.3 Transfer to GL

• Navigation: Scheduled Processes > Transfer Journal Entries to General Ledger
• Ensures all accounted transactions move to GL.

2. Reconciliation Reports

A reconciliation process ensuring AP subledger balances match GL balances before
period close for accuracy and audit readiness.

Navigation: Scheduled Processes > Submit New Process > Prepare Payables to General Ledger
Reconciliation

Check:

• Navigation: Payables > Invoices > Payable to ledger reconciliation
• Allows you to reconcile AP subledger balances with GL balances directly within Payables.
• Identifies differences between subledger accounting entries and GL journal entries.
• Helps pinpoint untransformed, unposted, or manual adjustments affecting reconciliation.
• Solve the discrepancy from the Difference column through the link

2. Accounts Receivable (AR)

Ensure all AR transactions are completed, accounted, transferred to GL, and reconciled before
Closing the period for accurate financial reporting.

AR Period Closing Steps in Oracle Fusion

1. Complete Transactions
   Ensure all invoices, receipts, credit memos, and adjustments are completed and approved.
2. Validate and Create Accounting
   • Run Create Accounting to account for all unaccounted transactions:
     • Navigator > Receivables> Billing > Create Accountin
     • Confirm there are no unaccounted transactions.
3. Transfer to GL
   • If needed, run:
     • Transfer Journal Entries to GL (via Scheduled Processes)
     • Ensure journals are posted in GL.
4. Reconcile AR to GL
   • Navigation:- Scheduled Processes > Submit New Process > Prepare Receivable to General Ledger Reconciliation
   • Check by running: Receivables to Ledger Reconciliation, AR Trial Balance Report, Transaction and Receipt Registers
   • Ensure AR subledger balances match GL balances by viewing the log and solving the discrepancy
5. Close the AR Period
   • Navigation: Navigator > Receivables > Account Receivable > Manage Accounting Periods
   • Change the period status from Open to Closed after ensuring no pending issues.

3. Fixed Assets (FA)

1. Complete transactions:- Additions, retirements, transfers, adjustments.
2. Run Depreciation:-
   • Navigator > Fixed Assets > Depreciation > Submit Depreciation by clicking on Calculate Depreciation
   • Fix errors and rerun if needed.
3. Post to GL:-
   • Run Create Accounting → Transfer journals → Post in GL.
   • Check create accounting execution report under sechedule process and fix error if required
4. ️Reconcile FA to GL:-
   • Run FA to GL Reconciliation Report and confirm balances match.
5. Close FA Period:-
   • Navigator > Fixed Assets >Asset> Period Close > Change status to Closed.
6. Useful Reports:
   • Depreciation Run Report
   • Depreciation Projection Report
   • Asset Additions and Retirements Report
   • FA to GL Reconciliation Report
   • Cost Summary and Reserve Summary Reports
   • Asset addition report

4. Cash Management (CM)

• Navigation: Cash Management > Bank Statements > Reconciliation
• No formal period closed.
• Perform manual BRS reconciliation.
• Create Accounting > Transfer to GL.
• Reconcile cash accounts using Account Analysis Reports.

5. General Ledger (GL)

To ensure all subledger and manual journals are posted, reconciled, and reviewed before closing the
GL period for accurate financial reporting and compliance.

Step-by-Step GL Period Close Checklist

1. Complete Subledger Accounting and Transfers
   • Ensure AP, AR, FA, and other subledgers are closed and all journals are:
     • Accounted in subledgers.
     • Transferred to GL.
     • Posted in GL.
2. Review and Post Manual Journals
   • Navigator > General Accounting > Journals > Manage Journals
   • Check for:
     • Unposted manual journals.
     • Journal approval (if applicable).
     • Post all pending journals.
3. Run Trial Balance and Reconciliation Reports
   • Run:
     • Trial Balance Report for the ledger and period.
     • Account analysis reports to check balances.
     • Intercompany Reconciliation Report (if applicable).
4. Close the GL Period
   • Navigator > General Accounting > Period Close > Manage Accounting Period
   • Change the period status from open to closed

Conclusion

Period closing in Oracle Fusion is the backbone of financial integrity and operational
control. By following structured steps and leveraging Oracle’s diagnostic tools, you can
transition periods seamlessly while preparing your system for audits and accurate reporting.