Vendor Accruals Automation using Oracle Technology

Vendor Accruals Automation is implemented to automate the payable accrual process for vendors in Enterprise Resource Planning (for example: Oracle E-Business Suite (EBS)) by having a user interface to enter and submit the accruals. The entire manual process of accruals is automated, so that each user role can login to the application and complete the accrual process, based on the requirement. It enables seamless interaction between different departments and is able to reduce period close time, drastically. The Vendor Accruals Automation is a role-based application, where a particular role user is able to see data, based on the actions taken by their subordinate.

Accrual Automation Oracle Solution — Enabling Accrual System

The Accrual Automation Oracle solution is a digital based system that interfaces with multiple Oracle modules like Oracle Purchasing, Projects etc. to enable accurate capturing of accruals, and enables automatic journal creation. It enables a highly automated workflow, streamlining accruals hand-offs between multiple departments like Financial Planning & Analysis (FP&A), Business Owners and General Ledger (GL) users. It completely, integrates workflow between multiple Oracle modules to manage the services accruals process and there is the advantage of automated workflows to transform a spreadsheet based process to a fully efficient workflow based process. The solution enables smooth interactions between different departments as it is a web based system which is highly usable.

Key Features

There are some key features which form an integral part of the Vendor Accrual Automation Solution.

Open Purchase Order (PO) Accrual Dashboard

The open PO Accrual dashboard will have all the open PO lines for that month. This dashboard is accessible to all the role users. The user is able to add attachments, comments and can delegate lines to the same role user.

Open Purchase Requisition (PR) Accrual Dashboard

The open PR accrual dashboard will have all the open PR lines for that month. The dashboard is accessible to all the role users. Similar to open PO, the user should be able to add attachments, comments and can delegate lines to the same role user.

Open PO/PR Status Dashboard

Open PO/PR status dashboard will give information about all the pending lines with the user subordinate, with respect to each entity. For FP&A, the pending lines will show with respect to requestor and the count with each requestor. For GL, it will be entity wise pending count with FP&A.

Aged Open PO Accrual Dashboard

Aged open PO dashboard is a repository of PO lines that are open for more than 90 days. This dashboard will be read only and the user will not be able to take any action on these lines.

Closed PO Accrual Dashboard

Closed PO dashboard will give all the PO lines that are closed between the GL periods. This dashboard will give information about all the closed PO’s irrespective of whether a PO is gone through the process of certification in the dashboard.

Accrual Report

Accrual report will give the information about all the PO/PR lines that have are completed the certification process. This accrual report includes the manual accrual lines. The report includes the timestamp of each role certification.

On Hold Report

On hold report will give the information about all the PO/PR lines that are certified by FP&A with zero accrual amounts. This report will be a repository to show all the PO/PR lines for which there is no JE creation, as the journal entries will not get created for the lines that are certified with zero accrual amounts.

Accrual at a Glance

Accrual at a glance view is for audit purpose where only the GL manager and auditor role users will have access to these pages. This feature provides information about the pending number of lines and pending accrual amount with each role. This page will also, have information about the lines that are posted to Oracle, on Hold lines and error out lines.

System Admin

System admin dashboard, as the name suggests, will be accessible for the system administrators, where the admin can control the access given to each user. The system admin can add other users as system admins; they can add other users as auditors.

Whitepaper Coming Soon…

The accrual solution is a centralized and collaborative platform. It brings together people, data and critical tools into the same system. Accrual Automation solution improves reconciliation, streamlines accrual processes and thus, produces more-accurate financial statements.

Stay tuned for a Whitepaper, “How to Reduce Oracle EBS Month End Accruals Process Time using Automated Dashboard”. In the paper, we will delve deeper to provide more knowledge about the Vendor Accrual System and give meticulous details about the Accrual Solution (architecture, benefits, and recommended features). The solution unites the many data elements that are required to fully capture daily information. The paper, also, explains how officers and line-of-business managers can transform vendor accrual processes through automation.


Akshay Aithal

Programmer Analyst & Oracle Technology Expert, RapidValue