Inventory period has a status of ‘Closed Not Summarized’

After closing the Inventory period, the Status is getting changed to ‘Closed not summarized’ not as ‘Closed’. Even though there is no real impact to operations due to this status, we will see why this happens.

Impact:

The period close reconciliation report was designed as a tool for matching the accounted value to the on-hand value on a period-by-period basis. Information for each period is mostly calculated independently.

For each period, we must arrive at two values: accounted and on-hand.

For the case of on-hand value, we take the current on-hand quantity out of Inventory's information table MTL_ONHAND_QUANTITY and revert transaction quantities in MTL_MATERIAL_TRANSACTIONS for all transactions after the end of the period being reconciled. After multiplying with historical cost at the end of the period, we can arrive at an ending on-hand value for this period.

For the case of accounted value, we need a baseline value and delta. The delta is obtained from rows in the MTL_TRANSACTION_ACCOUNTS distributions table for the respective period. The baseline value is from the previous periods ending on-hand value. The reason we use on-hand value instead of accounted value, as one might expect, is for the independence of each period's values.

The usage of this value ensures that each period begins with a "clean slate" and it is easier to find where discrepancies result from since we don't have to worry about mismatches in value being propagated from one period to the next.

Solution:

Until the Period Close Reconciliation Report is run the status of the Inventory period will be ‘Closed but not summarized’. Once the report is run, it will summarize and the status will be changed to ‘Closed’. 

To know more about Period Close Reconciliation report click the following link http://dj-oracleapps.blogspot.in/2014/08/period-close-reconciliation-report.html 

Note:

1. If the status of the Inventory Period of Dec and Jan is 'closed but not summarized', then first you need to run the Report for the month of Dec and then for Jan. Else you will encounter an error.
2. A 'Closed not Summarized' period is treated by Inventory in exactly the same way as a 'Closed' period (transaction entry not allowed). In addition, the accounting would have already been transferred to GL in both cases. The only thing different has to do with the availability of summary information. This information can be queried through the Accounting Periods form or through the Period Close Reconciliation Report.
3. If it is run on a 'Closed' period, it will simply pick up the summary information previously calculated. If it is run on an 'Open' period, it will run through a simulation of the summarization (can detect any potential errors before closing for real).

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