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Year End Closing Activities
Version No : 1.0 Date : 17.03.2009 Consultant-KPIT
Ravikiran S. Kulkarni
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Year End Closing
Year End Closing Activities
DOCUMENT RELEASE NOTICE Customer: Electropnumetics Pvt. Ltd. Document details: Activities Involved in Year End Procedure Name Finance and Controlling Version No. 1.00 Description This document explains steps to be followed for closing the Fiscal Year in Finance and Controlling.
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Year End Closing
Year End Closing Activities
Table Of Contents Activities In Finance 1. Opening the New Posting Period
Copying Number Ranges for New Fiscal Year.
3. Valuation Of Foreign Currency 4. Asset Year Closing i. Capitalization Of Assets Under Construction ii. Depreciation Run iii. Closing the Asset Year and Change the New Year. 5. Carry Forward Receivables and Payables balances 6. Carry forward the GL balances 7. Reports
Activities In Controlling 1. Assessment Run 2. Over Head Run 3. WIP 4. Settlement
Version Management This document is subject to the version management. Each change has to be entered into following table. Version 1.0 Client Electropnumetics Author Ravikiran Kulkarni Date 17.03.2009
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Year End Closing
you can open some posting periods for specific users only Page 4 of 30 Year End Closing .2) to 2010. When you want to close fiscal year 2009 for posting then make as mentioned below -: Change year (appearing after col.g. From per.1 & From per. After “To Period”). E.Year End Closing Activities 1. Here we are not yet closing fiscal year 2009. This will close year 2009 for posting. The authorization groups for permitted posting periods could be assigned. if you want to open fiscal year 2010 then change fiscal year as mentioned above. To open a New Year change fiscal year in column “Year” (col. This means that in month-end or year-end closing for example. To be changed if you want to open 2010. Maintain the Periods Close a period by selecting the period specifications so that the period to be closed does not fall within them. Maintain Opening & Closing Of Posting Periods Transaction Code : OB52 To be changed if you want to close 2009.
This activity is once in the year and should be done with extreme care. Each change has to be entered into following table. Version 1.2009 Page 5 of 30 Year End Closing .03.Year End Closing Activities Important Points There must be a minimum entry for each variant. Version Management This document is subject to the version management.0 Client Electropnumetics Author Ravikiran Kulkarni Date 17. This entry must have + in column.
Version 1. Maintain Number Ranges For New Fiscal Year. Transaction Code -: OBH2 Specify intervals of document number ranges are to be copied from one fiscal year into another fiscal year.0 Client Electropnumetics Author Ravikiran Kulkarni Date 17.Year End Closing Activities 2.To Fiscal Year Click on button to execute the transaction Version Management This document is subject to the version management. Enter following details -: Field Company Code Source Year To Company Code Description Example 1100 Fiscal Fiscal year from which number ranges are to 2009 be copied (Previous Year) Fiscal year to which number ranges are to be 2010 copied (Next Year) Target .03.2009 Page 6 of 30 Year End Closing . Each change has to be entered into following table.
2009 Year End Closing Page 7 of 30 .Year End Closing Activities 3.04. Valuation Of Foreign Currency Transaction Code -: FAGL_FC_VAL Enter following details -: Field Company Code Company Code Description Example 1100 Tick Tick 31.2009 Valuate Vendor Open Tick Valuate Vendor Open Items Items Valuate Customer Tick Valuate Customer Open Items Open Items Posting Date Reversal Posting Date Posting date of revaluation transaction Posting date for reversal of revaluation 01.03.
If any error exist then remove that and process as mentioned above again.Year End Closing Activities transaction Click on button to execute the transaction Following screen will appear -: On above screen see that no errors exist. To generate postings select as mentioned in following screen -: Page 8 of 30 Year End Closing .
each open account item in a foreign currency is valuated individually. Page 9 of 30 Year End Closing . 2) The exchange rate table must be maintained (transaction OB08). all the OPEN ITEMS that were posted in a foreign currency are valuated. Each change has to be entered into following table. the appropriate foreign currency postings must exist in the system. that is. Valuating Open Items Use When foreign currencies are valuated. If you select “Reverse postings” then system will reverse these posting. Select Create Postings and run in background processing. Prerequisites 1) Before foreign currencies for open items can be valuated. Version Management This document is subject to the version management.Year End Closing Activities System will generate documents. The valuation is based on the individual open account items in a foreign currency.
2009 Page 10 of 30 Year End Closing .0 Client Electropnumetics Author Ravikiran Kulkarni Date 17.Year End Closing Activities Version 1.03.
Assets Closing.Year End Closing Activities 4. Settlement of Assets Under Construction Transaction Code -: AIBU For more details please refer to user manual on Asset Transactions. Steps Involved in Assets Closing i. ii. iii.This process creates the balance carry forwards for Asset Accounting. Settle the Assets Under Construction Execute the depreciation run and update the batch input session Run the fiscal year change in Asset Accounting . iv. Carry out inventory postings i. Page 11 of 30 Year End Closing .
Year End Closing Activities ii. Depreciation Run Till March Transaction Code -: AFAB Page 12 of 30 Year End Closing .
you have to carry out preparatory measures in Asset Accounting. Example : Current fiscal year (current date): 1st April 2009 Last closed fiscal year : 2007 [2009 – 2] You can close fiscal year : 2008 [2009 – 1] Page 13 of 30 Year End Closing . by recalculating depreciation). The fiscal year that is closed is always the year following the last closed fiscal year. Once the fiscal year is closed.Year End Closing Activities iii. PROCESS FLOW You use the year-end closing program to close the fiscal year for a company code from an accounting perspective. You cannot close the current fiscal year. Asset Year End Closing Transaction Code -: AJAB Before you can close a fiscal year in Financial Accounting from a bookkeeping perspective. you can no longer post or change values within Asset Accounting (for example.
Using this function. The system lists any assets that do not meet the above requirements in the log of the year-end closing. Therefore. Not posted online) have been completely posted to the general ledger. Page 14 of 30 Year End Closing . or for all depreciation areas in a company code. The log also shows the reason for the errors. start the report as a background job. and still need to make corrections. REVERSING THE YEAR-END CLOSING [OAAQ] If you closed a fiscal year too soon. • Balances from depreciation areas that are posted periodically (ie. you can re-open the last closed fiscal year. You can carry out test runs with fewer than 1000 assets in the foreground. You do this by changing the field for the last closed fiscal year. • Planned depreciation from the automatic posting area has been completely posted to the general ledger. either for selected depreciation areas in a company code.Year End Closing Activities BACKGROUND PROCESSING You have to carry out the year-end closing as background processing for performance reasons. • All incomplete assets (master records) have been completed. The above reconcile program is need to be run. CHECKS The system only closes a fiscal year in a company code if • The system found no errors during the calculation of depreciation (such as. incorrectly defined depreciation keys). you can reset the last closed fiscal year in Customizing for Asset Accounting. Reconcile the asset register balances with the GL accounts balances (ABST2) When Asset values in the asset master doesn’t match with the GL account balances.
Version Management This document is subject to the version management.0 Client Electropnumetics Author Ravikiran Kulkarni Date 17.03. Version 1. Each change has to be entered into following table.2009 Page 15 of 30 Year End Closing . Run the same in Test Run and in background processing run take the actual run.Year End Closing Activities Asset Year Change (AJRW) Put the Company Code and Fiscal Year.
nor the balance carried forward program has been run for this account. Carry Forward Customer and Vendor balances This program carries forward the balances for Accounts receivable and Accounts payable. "posting to a previous year" means that the posting date of the document has an earlier year than the entry date.07 Page 16 of 30 Year End Closing . When posting into a previous year. Procedure : Transaction Code -: F. Otherwise. account is opened in the new year with the 1st balance carried forward.Year End Closing Activities 5. the system carries forward the balance automatically. If the account has neither been yet posted in the new year. then. the balance carried forward of the account is stored in the new year if the result changes. The balances of the previous year are carried forward to the new year. This is independent of whether the program has already run or not.
Year End Closing Activities Enter following details -: Field Company Code Carryforward to fiscal year Select Customers Select Vendors Test Run Detail log Description Company Code Carryforward to fiscal year Selection for Customer A/cs Selection for Vendor A/cs Test Run For c/f balance Details Example 1100 2009 Tick Tick Tick Tick Click on to execute. Following screen will appear -: Page 17 of 30 Year End Closing .
03. Each change has to be entered into following table.Year End Closing Activities Remove test run and execute to carryforward balance.2009 Page 18 of 30 Year End Closing .0 Client Electropnumetics Author Ravikiran Kulkarni Date 17. Version 1. Version Management This document is subject to the version management. You can run this transaction as many times as you want.
This eliminates the need to restart FAGLGVTR after each posting. Otherwise. Once you make postings to the prior year within the new year. remains in that year. The following features apply to automatic balance carry-forward: Using an indicator it sets internally. When you post items to a prior year. however. the carry-forward balance will be updated by those postings. If. You can run the program as often as you require. the balance for all further postings is carried forward into the new year. the system can determine whether or not the balance carry-forward program has been run for the fiscal year. the accounts are "opened". the program is started near the end of the current fiscal year. you can still post items in the new year. In this case. That is. The accumulated balance of P&L statement accounts is carried forward to a retained earnings account. does not occur cumulatively over several years. even if it is a posting to the prior year. If the program has not been run yet. the system will open the account in the new year with the first carry-forward. if changes have been made. however. The total balance of the items posted in the old year. for example. the Page 19 of 30 Year End Closing . it will update the account's carry-forward balance in the new year. For each posting made from that point on.) This automatic carry-forward. but their carryforward balance is zero. If you have not posted items to an account in the new year yet and its balance has not been carried forward either. not the carryforward balance for 1993. ("Posted to a prior year" means that the document posting date is in a year prior to the year of the entry date. Automatically correcting the carry-forward balance means that no other steps need to made for posting to the prior year after FAGLGVTR is run. the system will automatically carry forward the balance. Balances in balance sheet accounts are carried forward to their own accounts for the new fiscal year.Year End Closing Activities 6. Carry Forward GL Balances This program carries forward the balances for G/L accounts. a posting made in January 1993 with the posting date December 1991 changes only the carry-forward balance for 1992. When you post items in the new year. the system automatically carries forward the balance no matter whether the program was run or not.
Note: If you find in the new year that a G/L account was mistakenly set up as a P&L account in the prior year instead of as a balance sheet account (or vice versa). you have to rerun program SAPF011 after changing the G/L account master record. so that the balance carried forward is corrected.Year End Closing Activities carried forward balance represents only the items posted within the new year to the prior year. T. not the items posted during the prior year. Code -: FAGLGVTR Page 20 of 30 Year End Closing .
Each change has to be entered into following table.0 Client Electropnumetics Author Ravikiran Kulkarni Date 17. Version 1.03.Year End Closing Activities Logs after running the program in test run balance sheet accounts Version Management This document is subject to the version management.2009 Page 21 of 30 Year End Closing .
List of Customer Line Items .S_ALR_87011990 Balance Sheet & Profit & Loss Statement – F.01. S_ALR_87012347.Year End Closing Activities 7. Each change has to be entered into following table.S_ALR_87012197 Customer Payment History .S_ALR_87012177 Vendor Balances in Local Currency . The More reports are available in Information System Version Management This document is subject to the version management.03. Reports Main Reports : GL Account Balances – S_ALR_87012277 Totals & Balances – S_ALR_87012301 GL Account Line Items – S_ALR_87012282 Document Journal – S_ALR_870289.2009 Page 22 of 30 Year End Closing .S_ALR_87012082 List of Vendor Line Items .0 Client Electropnumetics Author Ravikiran Kulkarni Date 17. Version 1.S_ALR_87012103 Asset History Sheet .
1.Year End Closing Activities Year End Activities Carried in Controlling. Assessment Kindly refer the user manual for more information. Page 23 of 30 Year End Closing .
Overhead (CO43 for Collective Overhead processing) For individual processing T. Code CO42 For more details please refer to user manual Page 24 of 30 Year End Closing .Year End Closing Activities 2.
Year End Closing Activities 3. WIP For more details please refer to user manual Page 25 of 30 Year End Closing .
Each change has to be entered into following table.0 Client Electropnumetics Author Ravikiran Kulkarni Date 17.CK40N Page 26 of 30 Year End Closing .03.Year End Closing Activities 4.KP26 2 .Maintain Activity prices . Settlement For more details please refer to user manual Version Management This document is subject to the version management.Release of Standard Cost Estimate . Version 1.2009 SAP FI Month End and Year End Activities 1 .
Parked documents to be posted .Match PCA and PA 29 .CO88 18 .F.5D 23 .Dummy PC to SBU PC .MM period close and open .KKS1 17 .FB50 15 .05 14 .Variance Calculation of Process Orders .Recognition of Inventory at Bonded warehouse .Revaluation of foreign currency open items .Balance Sheet Adjustment calculation .Functional CC to SBU CC .FB50 11 .Update Section Code where missing .Year End Closing Activities 3 .13 10 .KSU5 19 .Assessment Cycle .Provision for current month .Check for "Delivery made.Assessment cycles .VF03 27 .Depreciation entry .1KEK 24 .1KEH 25 .3KE5 26 .FBV0.KB61 7 .Exchange rate .Match GL and PCA .9KE0 22 .Settlement of variances .Maintain Statistical Key Figures .F.KB31N/KP46 16 .SBU CC to COPA .KE5T 28 . not Invoiced" .Transfer Inventory to PCA .Assessment cycles .KSU5 20 .Transfer Profit Center to AR & AP .To be Updated 13 .J1INPP 9 .Profit Center Reposting .Aux/WH CC to Main CC .F.Reposting of Inter Office CC .FI period open 5 .Top Down Distribution in COPA .Maintain GRIR clearing .Assessment cycles .KEU5 21 .KE28 Page 27 of 30 Year End Closing .Bank Reconciliation 8 .FB50 12 . MIRO 6 .MMPV 4 .
e. 4) Transactions: KO8G Settlement the expense from Specific Expense Internal to the corresponding cost centers. order).16 32 . Page 28 of 30 Year End Closing . Vikrant Sood Edited by: VIKRANT SOOD on Jan 2.PCA Balance Carry forward (Year End Only) . It is calculated applying a % on current BOM/Routing. 3 Additional T-codes CKMDUVACT Distribution of Activity Differences CKMDUVMAT Distribution of Inventory Diffs CKMLCP Regards.Assessment Cycles In case you are using Material Ledger with actual costing. Flow for period end CO activities. 2010 6:20 PM 1) Transactions: ZACO88 Transfer the expense from the testing/rework order to the corresponding cost center or Internal orders 2) Transactions: KP46 Upload SKF using as tracing factor when Cost allocation 3) Transactions: KSV5 Allocations in Cost Center Accounting are performed to move costs between cost objects (i. cost center.Balance Carry forward (Year End Only) .Assessment Cycles Actual Activity Price Calculation WIP Variance Calculation Settlement.2KES 33 .Year End Closing Activities 30 . COPA .1KE8 Hi BSR. RJV's Internal Order Settlement (IO to Cost Center Distribution Cost Center .F.Transfer to FI . This step is for Allocate the expense from shared cost center to other cost centers. 5) Transactions: CO43 Run Overhead Calculation transaction to calculate OH debiting production order/cost collector and crediting cost centers.Reclassification of GL balances 31 .
Page 29 of 30 Year End Closing . Hope it will help you. • Variance calculation provides you with detailed cost information on production orders. You need to perform this task to have actual recovery (Actual in SAP terminology) and SIC recovery (Target in SAP terminology) values in PC reporting. • Determines the difference between the actual costs debited to the production order and the credit from goods receipts (total variance). • Determines production variances and planning variances for informational purposes. Calculate Overheads on all process Orders (CO43) 2. hours and oh at current BOM/routing). the standard price for the related SKU must be maintained immediately. Variances can be calculated in simulation mode (test mode) for a single production order or collectively • Variance calculation accomplishes the following: • Shows the amount of the variance between the standard costs and the actual costs. they need be checked in detail.Year End Closing Activities 6) Transactions: KKS5 Run Variances calculation procedure to have the difference between current BOM/routing and SIC BOM/routing. 7) Transactions: CO88 Run settlement variances to post in FI the difference between recovery and actual (material consumption. You need to perform this task to have on production orders/cost collectors balance = 0 • Settlement is based upon: • Sender: the production order • Receiver: the GL-account • After settlement no costs are associated to the production order anymore. There will be corresponding messages for the result of the variance calculation. Regards Ravi Month end closing Activities in Controlling(CO) 1. If there is error message which is caused for Standard Price missing. • Each time goods are received into inventory. Target costs are calculated by the system only after this step multiplying the SIC values and the qty declared. • The actual costs posted to the production order can be more or less than the value with which an order was credited when the goods receipt was posted 8) Transactions: KKRC This step is a data preparation for reporting and you need to perform it before run PC reports. • Settlement calculation • During the production process. production orders are debited with actual costs (confirmations). • Shows the causes of the variances and assigns the variances to different variance categories depending on the cause. Technically complete all process orders which are fully processed (CORM). the system valuates the receipt and credits the production order accordingly.
8. • • • • Internal order Proceed CO Production order Proceed Project Proceed Cost object Page 30 of 30 Year End Closing . 5.Code: KSUB) 9. Settlement type FUL -> The system selects all rules with the FUL and PER settlement types. 4. Carry Forward Balances to next year (With TC: F. Close FI Posting period after the month end closing activity is over (T. where you can maintain it. Carry out Assessment cycle for Cost Centers. Settle all process orders which are technically complete (CO88). or it is incomplete. and . • The settlement share is set for the rule (percentage.16 we can carry forward the balance to next year. (CO88). Calculate Variance (KKS1)à (Relevant only if Standard cost is calculated). Procedure The settlement rule belongs to the sender master data. KD205 Diagnosis Either the settlement rule for the sender does not exist.Code:OB52) 7. Calculate production work in progress on process orders which are not technically complete. A distribution rule is valid for a settlement run if • • The settlement period is in the validity interval for the rule. Settlement type PER -> The system selects all rules with the PER settlement type. Close All settled Process Orders 6. With TC: OBH2 copy the number ranges to next year Thanks Para Maintain the settlement rule of the sender Message no.(T. The settlement rule must contain settlement parameters and at least one valid distribution rule.if a settlement type was specified during settlement The settlement type corresponds to the rule for the specified settlement type.Year End Closing Activities 3. equivalence number).
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