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Former Member

Month End Procedure

Hi,

Can anybody tell me what are steps required for Month End closing in Asset Accounting/AR/AP/GL.

Thanks in Advance

Yours

s.vinaya kumar

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2 Answers

  • Best Answer
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    Former Member
    Oct 03, 2007 at 05:18 PM

    hi Vinaya,

    Month-End Closing: <b>Assets</b>

    Checklist

    <b>Assets</b>

    Fixed Assets

    -Execute the depreciation run (SAP FI-AA)

    <b>

    Current Assets</b>

    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 (SAP LO-MM)

    Period closing program (SAP LO-MM)

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

    -Post the reconciliation ledger (SAP FI-CO)

    <b>Receivables and Other Asset Items</b>

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

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

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

    Accruals and Deferrals

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

    Liabilities and Owner’s Equity

    Accruals

    <b>Payables</b>

    -Payroll accounting (SAP HR)

    -Valuate the foreign currency open items (SAP FI), see also Receivables

    -Valuate the foreign currency G/L balances (SAP FI)

    Accruals and Deferrals

    -Post accruals/deferrals (SAP FI)

    Miscellaneous:

    Additional Tasks (SAP FI)

    -Post accruals/deferrals (SAP FI)

    -Check whether the accrual/deferral documents have to be reversed

    -Carry out recurring entries and update the batch input session (SAP FI)

    -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 (SAPF190)

    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 and Notifications:

    -Financial Statements (Balance sheet and P&L account)

    -Advance return for tax on sales and purchases (VAT)

    -EC sales list (quarterly)

    -INTRASTAT declarations (SAP LO-MM)

    -Account balances (SAP FI)

    -Journals (SAP FI)

    Internal Closing (SAP FI-CO)

    Internal order and project-related tasks:

    -Transfer postings, surcharges, project interest calculation, settlement

    Product and production-related tasks:

    -Release a standard cost estimate, perform inventory costing, transfer postings, surcharges

    Variance calculation, results analysis, and settlement

    Cost center-related tasks:

    -Transfer posting, distribution, assessment, activity allocation, transfer key figures, cost center variance, price calculation

    Results-related tasks

    -Evaluate actual postings, transfer external data, distribution, assessment, transfer balance sheet items to Profit Centre Accounting (PCA).

    Regards

    Ranjit

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    Former Member
    Oct 04, 2007 at 01:15 PM

    Dear Vinay Kumar,

    This is the complete month end procedure details.kindly go through this

    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)

    Hope this helps you

    Prem

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