Please note this feature is only visible and usable in R12.1.2 and later.
You have two choices at close period of the year end:
A. Let the open new period close down all the income statement accounts and put the results in the retained earnings in the same way it has always done. This also rolls the balance sheet accounts into the first period of the new year like it does any other period.
B. Create a journal showing the movement of the income statement accounts into retained earnings or an account of your choice. You can also create a journal for the balance sheet accounts showing what will be used as opening balances next year. This is to fulfill a legal requirement in some countries notably France.
If you choose B then the option in the 'Net Closing Balance Journal' choice in the Accounting Setup Manager OA page comes into effect. This will close the balances either as a net figure to the closing journal (when ticked) or as Cr and Dr figure to the closing journal (by default).
Functionality before this fix closes the account by posting the debit sum in the credit and vice versa.
The Net closing flag was introduced in response to bug 7675261 to allow users to choose between closing balances by journalling out both the Dr and the Cr balance or just the net balance on a code combination.
The patch introduced the 'Net Closing Balance Journal' check box in the Accounting Setup Manager OA page. It also adds NET_CLOSING_BAL_FLAG to the GL_LEDGERS and GL_LEDGERS_V
This also impacts the following Close Process:
Create Balance Sheet Closing Journals program
Create Income Statement Closing Journals program.
Added validations for Net Closing Balance Journal check box in Accounting Setup Manager for each ledger
This feature was added in the following patch 8265487:R12.GL.A and unpublished R12.GL.B.delta.2 - Bug 8516733 - Note even though its added in GL.A the feature can only be used in 12.1.2 and later and the checkbox will not be visible before that time.
In unpublished bug 9693032, we have fixed the issue where the newly introduced check boxes information is not coming up in the review page. This was added to a completely different issue that made visible the Synchronize Reversals between Primary and Secondary Ledger under Journal Processing.
This patch is available in Patch 9776694 R12.GL.B and GL.A
GLASFlowLedgerReviewCO.java
GL_ASF_LEDGER_REVIEW_PG.xml
1. Select the GL Superuser Responsibility .
2. select Accounting Setup manager
3. Create Ledger
4. Set up Accounting Setup manager for the ledger
5. Check or leave Unchecked the Net Closing Balance check box depending on the user requirement
6. Run the Close Process: Create Income Statement Closing Journals program.
7. The Close Process: Create Income Statement Closing Journals program creates a journal balancing all income statement account balances to Retained earnings account/income offset account.
8. Post the above journal.
9. Run Close Process: Create Balance Sheet Closing Journals
program
10. Validate if accounting entries have been produced correctly.
Credit: http://oracleeze.blogspot.se/2013/02/r12-what-is-use-of-net-closing-balance.html
You have two choices at close period of the year end:
A. Let the open new period close down all the income statement accounts and put the results in the retained earnings in the same way it has always done. This also rolls the balance sheet accounts into the first period of the new year like it does any other period.
B. Create a journal showing the movement of the income statement accounts into retained earnings or an account of your choice. You can also create a journal for the balance sheet accounts showing what will be used as opening balances next year. This is to fulfill a legal requirement in some countries notably France.
If you choose B then the option in the 'Net Closing Balance Journal' choice in the Accounting Setup Manager OA page comes into effect. This will close the balances either as a net figure to the closing journal (when ticked) or as Cr and Dr figure to the closing journal (by default).
Functionality before this fix closes the account by posting the debit sum in the credit and vice versa.
The Net closing flag was introduced in response to bug 7675261 to allow users to choose between closing balances by journalling out both the Dr and the Cr balance or just the net balance on a code combination.
The patch introduced the 'Net Closing Balance Journal' check box in the Accounting Setup Manager OA page. It also adds NET_CLOSING_BAL_FLAG to the GL_LEDGERS and GL_LEDGERS_V
This also impacts the following Close Process:
Create Balance Sheet Closing Journals program
Create Income Statement Closing Journals program.
Added validations for Net Closing Balance Journal check box in Accounting Setup Manager for each ledger
This feature was added in the following patch 8265487:R12.GL.A and unpublished R12.GL.B.delta.2 - Bug 8516733 - Note even though its added in GL.A the feature can only be used in 12.1.2 and later and the checkbox will not be visible before that time.
In unpublished bug 9693032, we have fixed the issue where the newly introduced check boxes information is not coming up in the review page. This was added to a completely different issue that made visible the Synchronize Reversals between Primary and Secondary Ledger under Journal Processing.
This patch is available in Patch 9776694 R12.GL.B and GL.A
GLASFlowLedgerReviewCO.java
GL_ASF_LEDGER_REVIEW_PG.xml
1. Select the GL Superuser Responsibility .
2. select Accounting Setup manager
3. Create Ledger
4. Set up Accounting Setup manager for the ledger
5. Check or leave Unchecked the Net Closing Balance check box depending on the user requirement
6. Run the Close Process: Create Income Statement Closing Journals program.
7. The Close Process: Create Income Statement Closing Journals program creates a journal balancing all income statement account balances to Retained earnings account/income offset account.
8. Post the above journal.
9. Run Close Process: Create Balance Sheet Closing Journals
program
10. Validate if accounting entries have been produced correctly.
Credit: http://oracleeze.blogspot.se/2013/02/r12-what-is-use-of-net-closing-balance.html
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