Prerequisites:
Month End Closing Activities:
1. All the expenses including amortization, prepaid expenses, preliminary expenses and accruals have been booked.
2. Bank Reconciliation is completed.
3. Summation of Inter- company balances is Zero.
4. Suspense Accounts are cleared.
5. All documents related to MM & SD have been entered in system.
6. All billing documents are released to accounting.
7. All Settled Process Orders are closed.
Process Details for MONTH END CLOSING
Sl No Description of Activity / Process Carried out Suggested solution
1 Calculate Overheads on all process Orders Transaction code – CO43
2 Technically complete all process orders, which are fully processed Transaction code – CORM
3 Calculate Variance
(Relevant only if Standard cost is calculated) Transaction code – KKS1
4 Settle all process orders, which are technically complete Transaction code – CO88
5 Close MM period Transaction code – MMPV
6 Carry out GR/IR clearing
Transaction code – F.13
7 Review Parked documents and resolve issues Transaction code – FBVO
Various document parked by users to be reviewed and necessary action to be taken by the various locations whether to delete or post the park document.
8 Provision for doubtful debts and advances
Provision to be created for debts due beyond 6 months only. On the basis of ageing report decide how much provision will have to be created.
Transaction code:S_ALR_87012168
Due date analysis for open items report would give the list of customers who are due beyond 6 months.
Provision would be created by way of manual JVs.
9 Provision for taxation Provision for taxation is outside sap and JV is posted year wise.
10 Interest calculation on debtors / creditors Transaction code – F.24 / F.47
Interest calculation on debtors / creditors balance for overdue balance on the basis of number of days overdue
11 Revaluation of foreign currency customer / vendor line items & account balances Transaction code – F.05
Foreign currency line items / balances are revaluated at the current exchange rate. The difference between the current and original posted exchange rate would be posted to the balance sheet readjustment account and to gain/loss account
12 Recurring Entries Transaction Code : FBD1 & F.14
However, at a specified date, when a recurring entry document will be processed, it will generate automatically the accounting documents and postings will affect account balances
13 Accruals/Deferral Document :
Transaction Code: FBS1
This function allows you to post automatically accruals and deferrals:
The accruals can be reversed later automatically through Transaction code –F.81
14 Depreciation Run Transaction Code: AFAB
Depreciation run for the company code will be done at the corporate for the locations.
Depreciation run will be done every month for the asset as cost needs to be transferred to costing every month.
15 Open and close posting periods Open and close posting periods: Transaction code:OB52
Previous period would be closed for FI postings on the last day of the month. Backdated postings can be done through FI after opening the previous period at a later date. However, no material movements can be posted on a previous date.
Prerequisites:
Year End Closing Activities:
1. Calculate production work in progress on process orders which are not technically complete.
2. Carry out Assessment cycle for Cost Centers.
3. All month end closing Activities should be carried out.
Process Details for YEAR END CLOSING
Sl No Description of Activity / Process Carried out Suggested solution
1 FI postings in special periods
(Appropriation of profits and provision for taxations) FI postings in special period
All audit adjustments in the subsequent months for financial reporting are done in special period which are 13-16. The documents are posted with posting date of ’31.03.xx’ and posting period is to be changed in the document.
3 Copy Number ranges to next year Transaction code – OBH2
5 To check which year is closed for asset accounting Transaction code – OAAQ
6 Change of fiscal year for Asset Accounting Transaction code – AJRW
Fiscal year change in FI-AA
To start transaction in new fiscal year in Asset Accounting, new fiscal year is to be open. It can be done without closing previous fiscal year.
7 Closing the Fiscal year for asset accounting Transaction code – AJAB
Year end closing in FI-AA
To close the fiscal year in FI-AA. The year should be closed only after completion of audit and posting of audit adjustment entries. Fiscal year once closed is not available for further postings.
8 Carry forward receivables and payables balances Transaction code – F.07
Carry forward receivables / payables
Closing balance of receivables and payables are carried forward to next year. However, without carrying forward the balances, postings are allowed in the new fiscal year.
9 GL balance carry forward Transaction code – F.16
Balance carry forward
Closing balance of general ledger accounts are carried forward to next year. However, without carrying forward the balances, postings are allowed in the new fiscal year.
10 Number ranges carry forward Path: SPRO Financial accounting financial accounting global settingsDocumentDocument Number rangesCopy to fiscal year.
11 Provisional Entries Provisional voucher will pass thru F-02 and document type PV. On next period thru TC FB08 the same document will reverse.
12 Trial balance The same can be taken thru report S_ALR_87012277 - G/L Account Balances
13 Trial balance for profit centre Profit centre wise trial balance can be taken thru TC FGI3. Once inside the FGI3, put the cursor on 0SAPBLNCE-01 G/L Account - Balances SAP 12.01.2004 0SAPBLNCE-01 and execute. You can give the range of profit center.
Opening and closing the posting periods Open and close posting periods: Transaction code:OB52
All previous periods should be closed for FI postings. Special periods also would be closed and to be open at the time of posting accounting document.
Close CO Posting Period Transaction code – OKP1
POINTS!!!!!!!!!!!!!!!!!!!
Rgds,
Harmees
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