closing process.

[Former Member]

Hi friends,

I want to know what is the process is for closing the accounts in the year ending. and how we will carry forward the balaces to next year.Please help me in this.

Thanks in adv.

Rams

[Former Member · Accepted solution]

Hi Rams

You can transfer the balance to next FY by executing the T code FAGLGVTR.The balanace acounts apperar as C/F(carried Forward) in the next FY.But ur profit and loss account balance will be carried to your retained earning account what you would have defined. And in case of P& L G/L account it starts from scratch since these accounts provides the data for a period.

The list of closing procedure are as follows.

1Open and close of posting period.

2.Change of Number range

3.Execution of Recurring entry.

4.Foreign currency valuation for open items in G/L,Customer and vendor balance.

5.Change of FY for asset account.

6.Running of Depreciation.

7.Automatic clearing(f.13)

8.Generating ur Balance sheet and Profit and loss account.

Thanks.

Surendra

[saikrishna_vallurupalli]

1 Execute Report for Inter Company Activity & Journal Entries

2 Open posting period for next yr (T.Code: OB52)

3 Run Business Area's Assignment report. (T.Code: F.50)

4 Review list of recurring journal entries (T.Code: FBD3)

5 Execute Recurring Entries for A/R, A/P, G/L (T. Code: F.14)

6 Process Parked A/R, A/P, G/L accounting documents (T.Code: FBV0)

7 Final Cutoff for the Maintenance of Fixed Asset- Add Transfer and Retire (T.Code: ABUMN)

8 Run Depreciation in Test Run and post (T.Code: AFAB)

9 Verify Display Log for Depreciation Test Run (T.Code: AFBP)

10 Capitalize AUC Assets if needed (T.Code: AIAB, AIBU)

11 Enter Payroll Data to SAP (T.Code: CAT2)

12 Verify Depreciation Balances with GL balances (T.Code: ABST2)

13 Post Depreciation (T.Code: AFAB)

14 Execute Asset History Report, and retire assets if needed (T.Code: S_ALR_87011963, ABAVN)

15 Adjust specific depreciation areas if necessary (T.Code: ABCO)

16 Reconcile AM sub ledger with GL (T.Code: ABST2)

17 Check Bank Data (T.Code: S_P99_41000212)

18 Review AR Open Items (T.Code: FBL5N)

19 Review AP Open Items (FBL1N)

20 Execute Pending Invoices(T.Code: MRBP)

21 Clear Open Item for GRIR, freight (T.Code: F.13)

22 Reconciliation of Financial Documents and transactional figures (F.03)

23 Open new CO Posting Period: (T.Code: OKP1)

24 Compare current (cost estimates) with last current price (Moving Avg) (T.Code: OKBH)

25 Update current cost price to material master price field (T.Code: CK11N, CK24)

26 Process Freight charges, Match SD freight to actual (T.Code: V-31)

27 Review Internal Order Postings(T.Code: OKSA)

28 Settle All Orders (T.Code: KO88)

29 Verify All Post Goods Issue have been Invoiced (Billing Due List) (T.Code: VF04)

30 Review SD Billing Doc from prior month that have not yet been released to accounting (T.Code: F.2D)

31 Reconciliation of MM movements in Transit Intra-SAP to Non SAP

32 Reconcile PI Inventory with SAP (T.Code: MI07)

33 Perform Manual Adjustment if needed (T.Code: F-02, FB50)

34 Verify balance of the GR/IR account (T.Code: MB5S)

35 Post Accruals and Deferrals (T.Code: FBS1)

36 Clearing of Cancelled Documents (T.Code: F-03, F-32, F-44)

37 Check Profitability Segment Adjustment (T.Code: KISR)

38 Aging Report-Reconcile GL balances with sub ledger balances AP (T.code: FBL1N, FBL5N, FBL3N)

39 Check the check run numbers (T.Code: FCH1, FCHI)

40 Bank reconciliation Data (T.Code: FF67 & FEBA)

41 Enter Tax Journal Entry (T.Code: FB41)

42 Reconcile GL balances with sub ledger balances AR/MM/AP (T.Code: F.03)

43 Display Balance Sheet Adjustments (T.Code: F.5F)

44 Post Balance Sheet Adjustments (T.Code: F.5E)

45 Post Foreign Currency Valuation (foreign exchange) (T.Code: F.05)

46 Check generic cost centers for posting with wrong accounts

47 Correct wrong postings on generic cost centers

48 Check Validation dates for Cost Centers, Cost Elements, CO area (T.Code: GGB0)

49 Check COGI--for both month end and year end

50 Doubtful receivables (T.Code: F104)

51 Verify In-transit Inventory

52 Reconcile PA to G/L (T.Code: KE5U)

53 Post Cost Center Assessments and Distributions (T.Code: KSU5 & KSV5)

54 Run CO-FI Reconciliation to balance (T.Code: KALC)

55 Run BW reports P&L and Balance Sheet

56 Maintain CO yr variant (T.Code: KCRQ)

57 Fiscal Yr Balance carry forward AP/AR/AM (T.Code: F.07,

58 Fiscal Yr Balance carry forward CO (T.Code: CXS1)

59 Fiscal Yr balance carry forward FI (T.Code: F.16)

60 Fiscal Yr balance carry forward PCA (T.Code: 2KES)

61 Set Document number ranges - FI - new year (T.Code: OBH2, OBA7)

62 Set Document number ranges AP/AR - new year (OBA7)

63 Generate Financial statement Reports (T.Code:OB58) OR (T.Code: FSE2)

64 Change Fiscal Year For Assets (T.Code: AJRW)

65 Year end Closing-- Asset Accounting--final for year end (T.Code: AJAB)

66 Close CO Posting Period : (T.Code: OKP1)

67 Close Prior A/R Posting Period (T.Code: OB52)

68 Close Prior A/P Posting Period (T.Code: OB52)

69 Close Prior MM Posting Period (T.Code: OMSY)

70 Reverse accruals and deferrals for the new month (T.Code: F.81)

71 Reconciliation of Financial Documents from old fiscal year and new fiscal year (T.Code: FNSL)

72 Load Balances, Budget Data for Cost centers, sales

73 Update Retained Earning Account , balance carry fwd (T.Code: F.16)

Month end closing Activities

1. All the expenses including amortization, prepaid expenses, Preliminary expenses and accruals have been booked.

2. Complete Bank Reconciliation (T.Code: FF67)

3. Make sure that Sum of Inter company balances is Zero

4. Suspense Accounts should be cleared regularly.

5. Ensure that all documents related to MM & SD have been entered in system. (T.Code:F-22 & F-43)

6. Ensure that all billing documents are released to accounting.

7. Calculate Overheads on all process Orders (CO43)

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

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

10. Settle all process orders which are technically complete (CO88).

11. Close All settled Process Orders

12. Close MM period (Transaction Code: MMPV).

13. Carry out GR/IR clearing (F.13) transaction

14. Depreciation Run (AFAB) has been carried out for the month

15. Close FI Posting period after the month end closing activity is over (T.Code:OB52)

Year end closing Activities:

1. Calculate production work in progress on process orders which are not technically complete. (CO88).

2. Carry out Assessment cycle for Cost Centers.(T.Code: KSUB)

3. All month end closing Activities should be carried out.

4. Carry Forward Balances to next year

(With TC: F.16 and F.07 we can carry forward the balance to next year.

With TC: OBH2 copy the number ranges to next year

Open next year periods by selecting the Posting Period Variant.

then test by posting the transaction in F-02)

assign points

[Former Member]

Hi,

Have this too...

1 Execute Report for InterCompany Activity & Journal Entries

2 Open posting period for next yr

3 Run Business Area's Assignment report.

4 Review list of recurring journal entries

5 Execute Recurring Entries for A/R, A/P, G/L

6 Process Parked A/R, A/P, G/L accounting documents

7 Final Cutoff for the Maintenance of Fixed Asset- Add Transfer and Retire

8 Run Depreciation in Test Run and post

9 Verify Display Log for Depreciation Test Run

10 Capitalize AUC Assets if needed

11 Enter Payroll Data to SAP

12 Verify Depreciation Balances with GL balances

13 Post Depreciation

14 Execute Asset History Report, and retire assets if needed

15 Adjust specific depreciation areas if necessary

16 Reconcile AM subledger with GL

17 Check Bank Data

18 Review AR Open Items

19 Review AP Open Items

20 Execute Pending Invoices

21 Clear Open Item for GRIR, freight

22 Reconciliation of Financial Documents and transactional figures

23 Open new CO Posting Period

24 Compare current (cost estimates) with last current price (Moving Avg)

25 Update current cost price to material master price field.

26 Process Freight charges, Match SD freight to actual

27 Review Internal Order Postings

28 Settle All Orders

29 Verify All Post Goods Issue have been Invoiced (Billing Due List)

30 Review SD Billng Doc from prior mth that have not yet been released to accounting

31 Reconciliation of MM movements in Transit Intra-SAP to NonSAP

32 Reconcile PI Inventory with SAP

33 Perform Manual Adjustment if needed

34 Verify balance of the GR/IR account

35 Post Accruals and Deferrals

36 Clearing of Cancelled Documents

37 Check Profitability Segment Adjustment

38 Aging Report-Reconcile GL balances with subledger balances AP

39 Check the check run numbers

40 Bank reconciliation Data

41 Enter Tax Journal Entry

42 Reconcile GL balances with subledger balances AR/MM/AP

43 Display Balance Sheet Adjustments

44 Post Balance Sheet Adjustments

45 Post Foreign Currency Valuation (foreign exchange)

46 Check generic cost centers for posting with wrong accounts

47 Correct wrong postings on generic cost centers

48 Check Validation dates for Cost Centers, Cost Elements, CO area

49 Check COGI--for both month end and year end

50 Doubtful receiviables

51 Verify In-transist Inventory

52 Reconcile PA to G/L

53 Post Cost Centre Assessments and Distributions

54 Run CO-FI Reconciliation to balance

55 Run BW reports P&L and Balance Sheet

56 Maintain CO yr variant

57 Fiscal Yr Balance carryforward AP/AR/AM

58 Fiscal Yr Balance carryforward CO

59 Fiscal Yr balance carryforward FI

60 Fiscal Yr balance carryforward PCA

61 Set Document number ranges - FI - new year

62 Set Document number ranges AP/AR - new year

63 Generate Financial statement Reports

64 Change Fiscal Year For Assets

65 Year end Closing-- Asset Accounting--final for year end

66 Close CO Posting Period

67 Close Prior A/R Posting Period

68 Close Prior A/P Posting Period

69 Close Prior MM Posting Period

70 Reverse accruals and deferrals for the new month

71 Reconciliation of Financial Documents from old fiscal year and new fiscal year

72 Load Balances, Budget Data for Cost centers, sales

73 Update Retained Earning Account , balance carry fwd

Assign points

Z

[Former Member]

Hi,

Year-End Closing: Checklist

Assets

Fixed 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 (RAPERB00)

Current Assets

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

• Prerequisite: The accounts have been maintained in the system (SAP LO-MM) and cleared (SAP FI)

• Note: you first have to run the foreign currency valuation for the open items

• Period closing program (SAP LO-MM)

• Settle the work in process (SAP FI-CO)

• Post the reconciliation ledger (SAP FI-CO)

• Make an inventory of and post the inventory differences (SAP LO-MM)

• Valuate the inventory (SAP LO-MM)

• Post the valuation difference manually (SAP FI)

• Material ledger (SAP LO-MM)

Material ledger is not configured for the US Enterprise Baseline product.

Receivables and Other Asset Items

• Check whether all the billing documents have been posted (SAP LO-SD)

• Clarify the open items and differences

• Valuate the foreign currency for the open items (SAP FI), see also Payables

• Print the balance confirmations (SAP FI)

• Settle the rebate (SAP LO-SD), accruals, if necessary

• Calculate the interest for interest-bearing receivables (SAP FI)

• Valuate the foreign currency for the balances (SAP FI + SAP FI-TR)

• Reconcile the cash journal/print out the journal (SAP FI)

Accruals and Deferrals

• Post accruals/deferrals (SAP FI + SAP FI-TR)