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Understanding End-of-Day Processing

Understanding End-of-Day Processing

Concept

When you perform end-of-day processing, the system creates:

• Accounts receivable (AR) invoice records.

• General ledger (GL) entries for inventory, cost of goods sold, revenue, and AR accounts.

• Inventory balances for on-hand quantities.

• Daily activity reports.

• Interim sales reports.

 

If you do not update customer sales on a daily basis, the following information might not be accurate:

• Inventory balances for on-hand quantities.

• Amounts posted to the sales, inventory, cost of goods sold, tax, and freight accounts.

• Amounts posted to the AR ledger.

• Reports for interim sales.

Procedure

In this topic, you will learn the sales update process and how to review and post batch information to the general ledger.

Step Action
This diagram illustrates the sales order process, with end-of-day sales update process as the final step. After printing invoices, perform end-of-day processing by running the Sales Update program (R42800).

For the system to update sales, orders must contain the appropriate next status such as 620 (update sales).

During the sales update process, the system advances the order to the next status: 999 (complete – ready to purge).

Step Action
Run the R42800 program daily to maintain the most accurate sales information. You can run the R42800 program in proof or final mode.
In proof mode, the system:

• Does not update status codes or tables.

• Does not perform edits duplicate records.

• Enables you to print and review journal entries, review and correct errors, and, depending on processing option settings, review the Sales Journal.

In final mode, the system:

•Updates status codes and tables.

• Performs edits, such as checking for duplicate records, against the GL, AR, and accounts payable (AP) functional servers.

• Enables you to print and review journal entries, review and correct errors, and, depending on processing option settings, review the Sales Journal.

Because of the number of transactions that the system creates during the sales update process, run the R42800 program in proof mode first to detect and correct any errors before you run the program in final mode.

Step Action
When you run the R42800 program, the system updates tables in these JD Edwards EnterpriseOne systems:

• Sales Order Management (system 42)

• Inventory Management (system 41)

• General Accounting (system 09)

• Accounts Receivable (system 03B)

• Advanced Pricing (system 45)

Depending on how you set processing options, the system updates:

• Status codes according to the order activity rules.

For example, the system updates all order detail lines with a status of 620 to a closed status of 999.

• The Sales Order Header table (F4201) and the Sales Order Header History table (F42019).

• The Sales Order Detail File table (F4211) and the Sales Order History File table (F42119).

• Commission information in the Sales Commission table (F42005).

The system also summarizes cost of goods sold (COGS) and sales by item in the Sales Summary History table (F4229).
Depending on how you set processing options, the system updates:

• On-hand inventory in the Item Location table (F41021), the Item History table (F4115), and the Item Ledger table (F4111) if the quantity was not updated during shipment confirmation.

• The F4111 table with the invoice number if the quantity was updated during shipment confirmation.

• Costs with the current information in the Item Cost table (F4105).

• Prices in the Price Adjustment Ledger table (F4074).

The system updates:

• Invoice information, such as the dates of the first and last invoices and the year-to-date totals for invoices.

• The Account Ledger table (F0911) and the Customer Ledger table (F03B11).

When you run the R42800 program, the system verifies that the necessary automatic accounting instructions (AAIs) are set up in the system to which accounting entries are made.

Step Action
The R42800 program uses multiple processing option tabs. Each tab provides options that control specific functions that occur during the sales update process.
The processing options on the Cost Update tab specify whether the system updates costs prior to the sales update process and show the version of the Sales Order Batch Price/Cost Update program (R42950), if applicable.
The processing option on the Flex Accounting tab specifies whether you are working with flexible sales accounting.
The processing options on the Agreements tab define the method by which the system selects agreements if you use the JD Edwards EnterpriseOne Sales Order Management system with the JD Edwards EnterpriseOne Agreement Management system.
The processing options on the Print tab specify whether the system prints the Sales Journal before it updates journal entries and, if so, the version to use.
The processing option on the Performance tab  specifies whether the system writes warning messages and error messages to the Employee Work Center when you run the R42800 program.
The processing options on the Prepayments tab specify whether you use prepayment processing.

If you have not processed transactions with prepayments through the Print Invoice program (R42565), then set the processing options of the R42800 program so that the system assigns an invoice number.

The processing options on the Defaults tab specify the default values that the R42800 program uses to create GL and AR entries.

If you enter a specific date for the AR invoice date, then you must also enter a specific date for the GL date. If you enter a date value as an AR invoice date, then you must enter a date value for the GL date.

The processing options on the Versions tab specify the versions that the system uses to create entries in AR and GL tables.
The processing options on the Update tab specify the mode in which the system runs the R42800 program and the tables that are bypassed or updated during the sales update process.
The processing options on the Summarization tab specify whether the system writes AR, GL, COGS, and inventory entries in summary or detail.
The processing option on the Bulk Product tab specifies the method by which the system calculates temperature gain and loss records.
The processing options on the Interbranch tab identify the order types for interbranch orders.
If you run multiple jobs, such as printing the Sales Journal before the sales update process, then the system leaves the processing results, the sales journal, and the journal entries open for review.

Use the Print Sales Journal before Update processing option on the Print tab to specify that you want the system to print a sales journal before it creates journal entries.

Step Action
In addition to updating tables in numerous systems, the R42800 program groups transactions into batches for posting journal entries to the Account Detail (F0911) and Account Balances (F0902) tables.
The IB batch type contains entries to these accounts in the Customer Sales Journal:

• Sales (revenue account)

• COGS

• Inventory

• Sales Tax Payable

You set a processing option to have the system create summarized or detailed GL entries.

The G batch type contains entries that post to the Inventory/COGS Journal.

The system creates batch type G for inventory and COGS entries when the summarization processing options in the R42800 program are set to summarize your COGS and inventory entries in a separate batch.

Step Action
You can review the information in each batch at three different levels.
The general batch review displays batches by user ID, batch status, batch number, and entry date range.
The detailed batch review displays journal entry header information, such as invoice number, document type, and gross amount for a single batch.
The individual transaction review displays invoice details and GL distribution information, such as the amount charged to a COGS, inventory, or revenue account.

Step Action
This diagram illustrates the post process for invoice batches.
After reviewing invoice batches, you must post them to update account balances in the GL.
Before you post invoice batches to the GL:

• Verify that batches are in balance and have an approved status.

• Ensure that all post menu selections are routed to the same job queue and that the job queue allows only one job to process at a time.

• Verify the offset method in the AR constants.

Use the General Ledger Post Report program (R09801) to edit and post each type of transaction. The R09801 program edits transaction batches for the F0911 table and updates the batch status to allow the system to post transactions to the F0902 table.
If any errors occur during editing, the system assigns an error status to the batch, sends an error notification, and does not post the batch.
You must correct the error, re-approve the batch, and restart the batch review process to post the batch to the GL.
If no errors occur during editing, the system creates the GL disbursements and changes the batch status to posted.
The system posts the batches to the F0902, F03B11, and F0911 tables and creates a posting journal for review.
After you post journal entries, verify that the batches of journal entries posted successfully. The program creates a variety of messages and reports to help you verify the posting information.

Step Action
You can post batches from the Customer Sales Journal Review form using one of three methods: version, batch, or subsystem.
To post by version, on the Work With Batches form, select Post by Version from the Form menu. Then, select and run the desired version of the R09801 program.

The advantages of this method are:

• The program posts all of the approved batches at one time unless you use data selection to specify a batch, a range of batches, or a list of batches.

• You can run Post by Version locally or on a server.

To post by batch, on the Work With Batches form, select one or more batches, and then select Post by Batch from the Row menu.

The advantage of this method is that the program selects the version to run that corresponds with the batch type and automatically completes the data selection for you.

The disadvantage is that you cannot run Post by Batch locally.

To post by GL subsystem, on the Work With Batches form, select one or more batches and then select Subsystem G/L Post from the Row menu.

The advantage of this method is that data selection occurs automatically, which makes better use of system resources. For example, invoice batches can be held in the subsystem until an off-peak time, when system resources are more readily available.

In summary, you run the Sales Update program to update tables in the JD Edwards EnterpriseOne Sales Order Management, Inventory, General Accounting, and Accounts Receivable systems. You then use the Customer Sales Journal Review program to review and post customer sales to the general ledger.

End of Procedure.

Ayman Refat
Over 20 years of experience in IT area, working as Oracle JD Edwards Developer with expertise in Windows Server, SQL Server and Microsoft Exchange Server, experience in Linux operating systems (Debian and Redhat), VMWare ESX / ESXi, Novell Netware, relational databases like Oracle 10/11g and backup solutions from Computer Associates. Large experience in high-end servers from Dell and HP, having the following certifications: Microsoft: MCP, MCSE, MCDBA, MCSA and MCT (2008 ~ 2013), Computer Associates: Technical Specialist – Storage and Backup Solutions,
http://www.AymanRefat.com

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