AR to GL reconciliation in oracle apps r12

AR to GL reconciliation in oracle apps r12

AR and GL reconciliation in oracle apps means to reconcile the Ar receivable accounts with GL. AR receivables accounts help us to determines the actual amount pending from our customers. It also helps us to determines the amount we must receive from the market. For any organization, this information is very critical, and it helps them to build the strategies based on these figures.

The need of AR to GL reconciliation in oracle apps to ensure the right figures/amount which we must yet receive from our customers or market. The process of AR to GL reconciliation in oracle apps, gives us the accurate receivable amount and minimizes the chances of any miscalculation in the final GL receivable account. We go generate the Organization balance sheets from GL and we take the balances of receivables accounts from the GL itself so ar to gl reconciliation in Oracle apps plays an very important role to do the auditing in the final receivable account balances.

Steps to Perform the AR to GL reconciliation in Oracle Apps

We need to find out the Customer As on date Outstanding balances in AR.

We need to find out the Un applied receipt which are still not applied against the   customer Invoices in AR

We need to find out the Un-Identified receipts in AR.

 In GL, we need to take the Balance from AR Receivable GL accounts.

 In GL, we need to take the Balance from AR Unapplied GL Accounts.

Formula of AR to GL reconciliation in oracle apps.

For AR Final Reconciliation Amount: Customer AS on Date Outstanding balance – (Customer Un-applied Receipts + Un-Identified Receipts)

For GL Final Reconciliation Amount: Balance from AR Receivable GL accounts – Balance from AR Unapplied GL Accounts.

For the Reconciliation AR Final Reconciliation Amount should be match with the GL Final Reconciliation Amount.

Reports need to be run for AR to GL reconciliation in oracle apps r12

1.     In AR we need to run the AR Aging Report , This report will give us the complete details of Customer as on date Out Standing Balances and the customer Un applied Receipts Registers.

2.     In GL , We can run the GL account analysis report for AR receivable GL accounts and for AR un applied Gl accounts.

If both Aging Report Total(Customer Open AR Invoices – Customer Un applied Receipts) and the GL account analysis report total(Balance from AR Receivable GL accounts – Balance from AR Unapplied GL Accounts) matched then it means AR and GL reconciliation completed.

If not matched , Then it might be the issue of Manual Entry in the GL itself . To find the Manual Entry for for AR receivable GL accounts and for AR un applied Gl accounts , we need to run the GL account analysis report with source ‘Manual’.

Find out the actual Debtors Amount in the AR to GL reconciliation in oracle apps.