Oracle Receivables R12: AR to GL Reconciliation

Here is small brief on AR Reconciliation. At moment, we may not have good example on reconciliation but this will give your some brief on how this works.

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AR to GL Reconciliation Report

The AR to GL Reconciliation report compares the account balances in Oracle Receivables to those in Oracle General Ledger, and highlights journal sources where discrepancies might exist. This report simplifies the reconciliation process by comparing Receivables and General Ledger account balances in a single place.

Run the AR to GL Reconciliation report:

1.       After the Submit Accounting program in Receivables has completed, and

2.       You have reviewed the Unposted Items report to confirm that all journal entries have posted, and

3.       You have used the posting execution reports to confirm that the journal entries exported from Receivables match those posted in General Ledger.

The AR to GL Reconciliation report prints by ledger and organizes data first by company segment, then account type (assets, liabilities, income, and expense).

This report will show a difference between Receivables and GL account balances only if items did not successfully post to GL accounts. The Difference column indicates that the activity in Receivables compares to the journal source of Receivables in the general ledger. If the actual balance of a specific account is different in Receivables than in the general ledger, then the following columns highlight the type of journals that affect the account balances:

§  GL Source Manual: Manual journal entries made in the general ledger.

§  GL Subledgers Not AR: Journal entries posted to the general ledger from other subledgers, such as Oracle Payables or a legacy feeder system.

§  Unposted in GL: Unposted journals in the general ledger.

If manual journal entries exist in the general ledger, then you might need to reverse these journal entries if corrections were already made in Receivables.

If other subledgers post to these accounts, then you might need to make corrections in those subledgers, make manual corrections in the general ledger, or reconcile your other feeder systems separately.

After taking the required corrective actions, run the AR to GL Reconciliation report again to confirm that AR and GL accounts are now in balance.