Period End and Year End Closing

Period-end closing and year-end closing are two important processes in SAP PS that
are used to ensure the accuracy and completeness of project data. However, there are
some key differences between the two processes.

 Frequency: Period-end closing is performed on a monthly basis, while year-end

closing is performed annually.
 Scope: Period-end closing covers all projects, while year-end closing focuses on
key performance indicators (KPIs) and financial reporting.
 Tasks: Period-end closing includes tasks such as posting costs, revenue, and
expenses; closing out budgets; and generating reports. Year-end closing
includes tasks such as performing reconciliations; analyzing variances; and
preparing financial statements.

By understanding the differences between period-end closing and year-end closing, you
can ensure that your project data is accurate and complete throughout the year.

Here is a table that summarizes the key differences between period-end closing and
year-end closing in SAP PS:

Feature Period-End Closing Year-End Closing

Frequency Monthly Annually

Key performance indicators (KPIs) and

Scope All projects
financial reporting

Posting costs, revenue, and expenses; Performing reconciliations; analyzing

Tasks
closing out budgets; generating reports variances; preparing financial statements

Here are some additional details about each process:

 Period-end closing: Period-end closing is a monthly process that is used to

ensure the accuracy and completeness of project data. During period-end
closing, you will typically perform the following tasks:
 o Post costs, revenue, and expenses to project accounts.
o Close out budgets for the current month.
o Generate reports that summarize project costs, revenue, and expenses.
 Year-end closing: Year-end closing is an annual process that is used to focus on
key performance indicators (KPIs) and financial reporting. During year-end
closing, you will typically perform the following tasks:

o Perform reconciliations between project data and external sources, such

as general ledger accounts.
o Analyze variances between actual and budgeted costs and revenue.
o Prepare financial statements that summarize project performance for the
year.

By understanding the differences between period-end closing and year-end closing, you
can ensure that your project data is accurate and complete throughout the year. This
will help you to make better decisions about project planning, budgeting, and execution.