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Year End Closing Activities

Year End Closing Activities

Version No : 1.0 Summary Document


Date : 17.03.2009

Consultant-KPIT Ravikiran S. Kulkarni

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Year End Closing Activities

DOCUMENT RELEASE NOTICE

Customer: Electropnumetics Pvt. Ltd.

Document details: Activities Involved in Year End Procedure

Name Version Description


Finance and Controlling No.
1.00 This document explains steps to
be followed for closing the Fiscal
Year in Finance and Controlling.

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Table Of Contents

Activities In Finance
1. Opening the New Posting Period
2. 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

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1.0 Electropnumetics Ravikiran Kulkarni 17.03.2009

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Year End Closing Activities

1. Maintain Opening & Closing Of Posting Periods

Transaction Code : OB52

To be changed if you
want to close 2009.

To be changed if you
want to open 2010.

To open a New Year change fiscal year in column “Year” (col. After “To Period”). E.g.
if you want to open fiscal year 2010 then change fiscal year as mentioned above.
Here we are not yet closing fiscal year 2009. When you want to close fiscal year
2009 for posting then make as mentioned below -:

Change year (appearing after col. From per.1 & From per.2) to 2010. This will close
year 2009 for posting.

Maintain the Periods

Close a period by selecting the period specifications so that the period to be closed
does not fall within them.

The authorization groups for permitted posting periods could be assigned. This means
that in month-end or year-end closing for example, you can open some posting
periods for specific users only

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Important Points

There must be a minimum entry for each variant.

This entry must have + in column.

This activity is once in the year and should be done with extreme care.

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Year End Closing Activities

2. 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. Enter following details -:

Field Description Example

Company Code Company Code 1100

Source - To Fiscal Fiscal year from which number ranges are to 2009
Year be copied (Previous Year)

Target - To Fiscal Year Fiscal year to which number ranges are to be 2010
copied (Next Year)

Click on button to execute the transaction

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1.0 Electropnumetics Ravikiran Kulkarni 17.03.2009

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3. Valuation Of Foreign Currency

Transaction Code -: FAGL_FC_VAL

Enter following details -:

Field Description Example

Company Code Company Code 1100

Valuate Vendor Open Tick Valuate Vendor Open Items Tick


Items

Valuate Customer Tick Valuate Customer Open Items Tick


Open Items

Posting Date Posting date of revaluation transaction 31.03.2009

Reversal Posting Date Posting date for reversal of revaluation 01.04.2009

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transaction

Click on button to execute the transaction


Following screen will appear -:

On above screen see that no errors exist. If any error exist then remove that and
process as mentioned above again.

To generate postings select as mentioned in following screen -:

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System will generate documents. If you select “Reverse postings” then system will
reverse these posting.

Select Create Postings and run in background processing.

Valuating Open Items

Use
When foreign currencies are valuated, all the OPEN ITEMS that were posted in a
foreign currency are valuated.

The valuation is based on the individual open account items in a foreign currency,
that is, each open account item in a foreign currency is valuated individually.

Prerequisites
1) Before foreign currencies for open items can be valuated, the appropriate
foreign currency postings must exist in the system.
2) The exchange rate table must be maintained (transaction OB08).

Version Management

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Year End Closing Activities

Version Client Author Date


1.0 Electropnumetics Ravikiran Kulkarni 17.03.2009

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Year End Closing Activities

4. Assets Closing.

Steps Involved in Assets Closing

i. Settle the Assets Under Construction


ii. Execute the depreciation run and update the batch input session
iii. Run the fiscal year change in Asset Accounting - This process creates
the balance carry forwards for Asset Accounting.
iv. Carry out inventory postings

i. Settlement of Assets Under Construction

Transaction Code -: AIBU

For more details please refer to user manual on Asset Transactions.

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ii. Depreciation Run Till March

Transaction Code -: AFAB

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iii. Asset Year End Closing

Transaction Code -: AJAB

Before you can close a fiscal year in Financial Accounting from a bookkeeping
perspective, you have to carry out preparatory measures in Asset Accounting.

PROCESS FLOW

You use the year-end closing program to close the fiscal year for a company code
from an accounting perspective.
Once the fiscal year is closed, you can no longer post or change values within Asset
Accounting (for example, by recalculating depreciation).
The fiscal year that is closed is always the year following the last closed fiscal year.
You cannot close the current fiscal year.

Example : Current fiscal year (current date): 1st April 2009


Last closed fiscal year : 2007 [2009 – 2]
You can close fiscal year : 2008 [2009 – 1]

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BACKGROUND PROCESSING

You have to carry out the year-end closing as background processing for performance
reasons. Therefore, start the report as a background job. You can carry out test runs
with fewer than 1000 assets in the foreground.

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).
• Planned depreciation from the automatic posting area has been
completely posted to the general ledger.
• Balances from depreciation areas that are posted periodically (ie. Not posted
online) have been completely posted to the general ledger.
• All incomplete assets (master records) have been completed.

The system lists any assets that do not meet the above requirements in the log of the
year-end closing. The log also shows the reason for the errors.

REVERSING THE YEAR-END CLOSING [OAAQ]

If you closed a fiscal year too soon, and still need to make corrections, you can reset
the last closed fiscal year in Customizing for Asset Accounting. Using this function,
you can re-open the last closed fiscal year, either for selected depreciation areas in a
company code, or for all depreciation areas in a company code. You do this by
changing the field for the last closed fiscal year.

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.
The above reconcile program is need to be run.

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Year End Closing Activities

Asset Year Change (AJRW)

Put the Company Code and Fiscal Year. Run the same in Test Run and in background
processing run take the actual run.

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This document is subject to the version management. Each change has to be entered
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Version Client Author Date


1.0 Electropnumetics Ravikiran Kulkarni 17.03.2009

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Year End Closing Activities

5. Carry Forward Customer and Vendor balances

This program carries forward the balances for Accounts receivable and Accounts
payable.

The balances of the previous year are carried forward to the new year. If the account
has neither been yet posted in the new year, nor the balance carried forward program
has been run for this account, then, account is opened in the new year with the 1st
balance carried forward. Otherwise, the balance carried forward of the account is
stored in the new year if the result changes.

When posting into a previous year, the system carries forward the balance
automatically. This is independent of whether the program has already run or not.
"posting to a previous year" means that the posting date of the document has an
earlier year than the entry date.

Procedure :

Transaction Code -: F.07

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Enter following details -:

Field Description Example


Company Code Company Code 1100
Carryforward to fiscal year Carryforward to fiscal year 2009
Select Customers Selection for Customer A/cs Tick
Select Vendors Selection for Vendor A/cs Tick
Test Run Test Run Tick
Detail log For c/f balance Details Tick

Click on to execute.
Following screen will appear -:

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Remove test run and execute to carryforward balance. You can run this transaction
as many times as you want.

Version Management

This document is subject to the version management. Each change has to be entered
into following table.

Version Client Author Date


1.0 Electropnumetics Ravikiran Kulkarni 17.03.2009

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Year End Closing Activities

6. Carry Forward GL Balances

This program carries forward the balances for G/L accounts.

Balances in balance sheet accounts are carried forward to their own accounts for
the new fiscal year.

The accumulated balance of P&L statement accounts is carried forward to a


retained earnings account.

If you have not posted items to an account in the new year yet and its balance has
not been carried forward either, the system will open the account in the new year
with the first carry-forward. Otherwise, it will update the account's carry-forward
balance in the new year, if changes have been made.

When you post items to a prior year, the system automatically carries forward the
balance no matter whether the program was run or not. ("Posted to a prior year"
means that the document posting date is in a year prior to the year of the entry
date.) This automatic carry-forward, however, does not occur cumulatively over
several years. That is, a posting made in January 1993 with the posting date
December 1991 changes only the carry-forward balance for 1992, not the carry-
forward balance for 1993.

The following features apply to automatic balance carry-forward:

Using an indicator it sets internally, the system can determine whether or not the
balance carry-forward program has been run for the fiscal year. For each posting
made from that point on, the system will automatically carry forward the balance,
even if it is a posting to the prior year.

If, for example, the program is started near the end of the current fiscal year, the
balance for all further postings is carried forward into the new year.

Automatically correcting the carry-forward balance means that no other steps need to
made for posting to the prior year after FAGLGVTR is run. This eliminates the need to
restart FAGLGVTR after each posting.

You can run the program as often as you require.

If the program has not been run yet, you can still post items in the new year.
When you post items in the new year, the accounts are "opened", but their carry-
forward balance is zero. Once you make postings to the prior year within the new
year, the carry-forward balance will be updated by those postings. The total balance
of the items posted in the old year, however, remains in that year. In this case, the

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carried forward balance represents only the items posted within the new year to the
prior year, not the items posted during the prior year.

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.

T. Code -: FAGLGVTR

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Logs after running the program in test run balance sheet accounts

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This document is subject to the version management. Each change has to be entered
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1.0 Electropnumetics Ravikiran Kulkarni 17.03.2009

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7. 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, S_ALR_87012347.
 List of Customer Line Items - S_ALR_87012197
 Customer Payment History - S_ALR_87012177
 Vendor Balances in Local Currency - S_ALR_87012082
 List of Vendor Line Items - S_ALR_87012103
 Asset History Sheet - S_ALR_87011990
 Balance Sheet & Profit & Loss Statement – F.01.

The More reports are available in Information System

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Version Client Author Date


1.0 Electropnumetics Ravikiran Kulkarni 17.03.2009

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Year End Closing Activities

Year End Activities Carried in Controlling.

1. Assessment

Kindly refer the user manual for more information.

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2. Overhead (CO43 for Collective Overhead processing)

For individual processing T. Code CO42

For more details please refer to user manual

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3. WIP

For more details please refer to user manual

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4. Settlement

For more details please refer to user manual

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This document is subject to the version management. Each change has to be entered
into following table.

Version Client Author Date


1.0 Electropnumetics Ravikiran Kulkarni 17.03.2009
SAP FI Month End and Year End Activities
1 - Maintain Activity prices - KP26
2 - Release of Standard Cost Estimate - CK40N

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3 - MM period close and open - MMPV


4 - FI period open
5 - Parked documents to be posted - FBV0, MIRO
6 - Reposting of Inter Office CC - KB61
7 - Bank Reconciliation
8 - Update Section Code where missing - J1INPP
9 - Maintain GRIR clearing - F.13
10 - Provision for current month - FB50
11 - Depreciation entry - FB50
12 - Exchange rate - To be Updated
13 - Revaluation of foreign currency open items - F.05
14 - Recognition of Inventory at Bonded warehouse - FB50
15 - Maintain Statistical Key Figures - KB31N/KP46
16 - Variance Calculation of Process Orders - KKS1
17 - Settlement of variances - CO88
18 - Assessment cycles - Aux/WH CC to Main CC - KSU5
19 - Assessment cycles - Functional CC to SBU CC - KSU5
20 - Assessment cycles - SBU CC to COPA - KEU5
21 - Profit Center Reposting - 9KE0
22 - Balance Sheet Adjustment calculation - F.5D
23 - Transfer Profit Center to AR & AP - 1KEK
24 - Transfer Inventory to PCA - 1KEH
25 - Assessment Cycle - Dummy PC to SBU PC - 3KE5
26 - Check for "Delivery made, not Invoiced" - VF03
27 - Match GL and PCA - KE5T
28 - Match PCA and PA
29 - Top Down Distribution in COPA - KE28

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30 - Reclassification of GL balances
31 - Balance Carry forward (Year End Only) - F.16
32 - PCA Balance Carry forward (Year End Only) - 2KES
33 - Transfer to FI - 1KE8
Hi BSR,

Flow for period end CO activities.

RJV's
Internal Order Settlement (IO to Cost Center
Distribution
Cost Center - Assessment Cycles
Actual Activity Price Calculation
WIP
Variance Calculation
Settlement.
COPA - Assessment Cycles

In case you are using Material Ledger with actual costing. 3 Additional T-codes

CKMDUVACT Distribution of Activity Differences


CKMDUVMAT Distribution of Inventory Diffs
CKMLCP

Regards,

Vikrant Sood

Edited by: VIKRANT SOOD on Jan 2, 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.e. cost
center, order).
This step is for Allocate the expense from shared cost center to other cost centers.

4) Transactions: KO8G
Settlement the expense from Specific Expense Internal to the corresponding cost centers.

5) Transactions: CO43
Run Overhead Calculation transaction to calculate OH debiting production order/cost collector and
crediting cost centers. It is calculated applying a % on current BOM/Routing.

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6) Transactions: KKS5
Run Variances calculation procedure to have the difference between current BOM/routing and SIC
BOM/routing. 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. Target costs are calculated
by the system only after this step multiplying the SIC values and the qty declared.
• Variance calculation provides you with detailed cost information on production orders.
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.
• 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.
• Shows the causes of the variances and assigns the variances to different variance categories
depending on the cause.
There will be corresponding messages for the result of the variance calculation; they need be
checked in detail. If there is error message which is caused for Standard Price missing, the standard
price for the related SKU must be maintained immediately.
7) Transactions: CO88
Run settlement variances to post in FI the difference between recovery and actual (material
consumption, hours and oh at current BOM/routing). 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.
• Settlement calculation
• During the production process, production orders are debited with actual costs (confirmations).
• Each time goods are received into inventory; the system valuates the receipt and credits the
production order accordingly.
• 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.
Hope it will help you.

Regards

Ravi
Month end closing Activities in Controlling(CO)

1. Calculate Overheads on all process Orders (CO43)


2. Technically complete all process orders which are fully processed (CORM).

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3. Calculate Variance (KKS1)à (Relevant only if Standard cost is calculated).


4. Settle all process orders which are technically complete (CO88).
5. Close All settled Process Orders
6. Close FI Posting period after the month end closing activity is over (T.Code:OB52)
7. Calculate production work in progress on process orders which are not technically complete. (CO88).
8. Carry out Assessment cycle for Cost Centers.(T.Code: KSUB)
9. Carry Forward Balances to next year
(With TC: F.16 we can carry forward the balance to next year.
With TC: OBH2 copy the number ranges to next year

Thanks
Para

Maintain the settlement rule of the sender


Message no. KD205

Diagnosis
Either the settlement rule for the sender does not exist, or it is incomplete.

The settlement rule must contain settlement parameters and at least one valid distribution rule. A distribution rule is
valid for a settlement run if

• The settlement period is in the validity interval for the rule, and - if a settlement type was specified during
settlement -

• The settlement type corresponds to the rule for the specified settlement type.
Settlement type FUL -> The system selects all rules with the FUL and PER settlement types.
Settlement type PER -> The system selects all rules with the PER settlement type.
• The settlement share is set for the rule (percentage, equivalence number).

Procedure
The settlement rule belongs to the sender master data, where you can maintain it.

• Internal order
Proceed
• CO Production order
Proceed
• Project
Proceed
• Cost object

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