1 Reply Latest reply on Jun 30, 2015 6:33 PM by Vanha.L-Oracle

    Purchasing and Payables periods



      i have maybe a very basic question. my understanding is that during the period close process, the payables period is closed first before the purchasing period. And so the accruals(uninvoiced receipts) are recorded etc. So what is the business reason, the payables period is closed before purchasing period?

      Also when is the inventory period closed before purchasing ? what is the business sequence ?


        • 1. Re: Purchasing and Payables periods

          To account for accrual balance, Purchasing period end activity requires that Payables period must be closed. This is to ensure that all invoice activities belonging in the period are finalized to have correct receipt accrual result. In fact, one cannot call the Receipt Acrual - Period End concurrent process in Purchasing for a period unless Payables has been closed for that period.


          Inventory and Purchasing period do not have dependencies in the order of closing, though it is most common that inventory period is closed after purchasing.


          There is a good advisor available in EBS that discuss and advise best practice for period close in the following note:


          Period Close Advisor: E-Business Suite (EBS) (Doc ID 335.1)


          Hope this helps.