Professional Documents
Culture Documents
Purpose:
Closing operations are periodic tasks and can be subdivided in FI as follows:
Day-end closing
Month-end closing
Year-end closing
The closing operations component helps you prepare and carry out the activities
required for day-end, month-end, and year-end closing. For this purpose, the
system provides a series of standard reports that you can use to generate
evaluations and analyses directly from all of the posted account balance. The
system helps you carry out the following:
(Time-based) accruals/deferrals of expenses and revenues
Creating the balance sheets and P&L statements
Documenting the posting data
Audience:
(Who need to understand the closing procedure and are involved in the closing
process)
Prerequisites :
To carry out the closing operations in G/L accounting, you first need to carry out
the closing operations in the subledger accounting areas you are using. These
include:
Accounts receivable and accounts payable accounting
Inventory accounting
Asset accounting
Payroll accounting (get posting data)
Closing: Day-end
Day-end closing includes all the activities required at the end of the day to check
that all of the business transactions posted on that day have been correctly
processed.
Day-End Checklist:
The following things should be followed for day-end closing and for documenting
the posting data:
Correspondence with business partners (very Important)
Document journal
Evaluation of the documents that have not been posted
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Pre-Close activities ensure that all necessary entries have been posted in the
G/L, including entries from feeder systems/sub ledgers and accruals and
recurring entries posted directly to the G/L.
Pre-close activities occur in both the old and new months.
Managerial Close:
Controlling
Reposting
Cost allocations/Settlements
Re-open G/L for adjustment postings
Financial Close:
CO reconciliation posting to FI
Business area/profit center/profitability segment adjustments
Final Close of old period
Reporting
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General Steps for Month-end closing:
Month-end closing includes all the activities involved in closing a posting period
for the month and opening a new period for the next month.
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Things to check out for:
Fixed Assets
Execute the depreciation run and update the batch input session (SAP FI-AA)
Inventories
GR/IR clearing account clarify any differences and correct them if necessary
(SAP LO-MM)
Clear the GR/IR clearing account (SAP FI)
Prerequisite: Accounts have already been maintained by MM
MM Period closing program (SAP LO-MM)
Settle the work in process (WIP) (SAP FI-CO)
Post the reconciliation ledger (SAP FI-CO)
Results-related tasks
Evaluate actual postings, transfer external data, distribution, assessment,
transfer balance sheet items to PCA
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Reconcile cost of sales accounting/period accounting/profit center ledger
(SAP FI/SAP FI-CO)
Close the posting period (SAP FI)
Run the reconciliation program
(This program checks the documents and transaction figures in the R/3 System.
You can only execute this run if you do not intend to carry out any
postings for the period, otherwise reconciliation differences will occur. You
can schedule the job to run in the background)
Printing Reports :
Balance sheets and P&L statements
Sales tax report from the External Tax program
Account balances (SAP FI), Journals (SAP FI)
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Year-End Closing
The first posting in the fiscal year automatically opens that fiscal year. You must,
however, have opened the relevant posting period first.
The SAP System offers a range of reports with which you can carry forward
balances into the new fiscal year. During this process, the profit and loss
accounts are carried forward to one or more retained earnings accounts. The
balances of the balance sheet accounts are simply carried forward into the new
fiscal year. You do not have to create special opening financial statements.
Any postings you make in the old fiscal year automatically adjust the relevant
carry-forward balance. You do not have to close the old fiscal year and carry out
the closing postings before opening the new fiscal year.
As with month-end closing, you can create all the external reports required,
document the posting data, and carry out the internal evaluations.
Assets
Settle the AuC (SAP FI-AA)
Execute the depreciation run and update the batch input session (SAP FI-AA)
Run the fiscal year change in Asset Accounting (SAP FI-AA)
(This process creates the balance carryforwards for Asset Accounting. We
recommend that you execute this run on the first day of the new fiscal year. Note:
by this time, you should have completed year-end closing for Asset Accounting
for the previous year.)
Carry out inventory postings
Inventories
GR/IR clearing account clarify differences and correct them if necessary
(SAP LO-MM)
Clear the GR/IR clearing account (SAP FI)
(Prerequisite: The accounts have already been maintained by MM.)
Run the foreign currency valuation for the open items
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Period closing program (SAP LO-MM)
Settle the work in process (WIP) (SAP FI-CO)
Post the reconciliation ledger (SAP FI-CO)
Valuate the inventory (SAP LO-MM)
Post the valuation difference manually (SAP FI)
Accruals
Accruals for rebates, discounts, and commissions (SAP LO-SD)
Payables
Payroll accounting
Results-related tasks
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Evaluate actual postings, transfer external data, distribution, assessment,
transfer balance sheet items to PCA