Year End Closing ActivitiesVersion No : 1.0 Date : 17.03.2009 Summary Document DOCUMENT RELEASE NOTICE Name Finance and Controlling Version No. 1.00 Description This document explains steps to be followed for closing the Fiscal Year in Finance and Controlling. 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 Version Management This document is subject to the version management. Each change has to be entered into following table. Version 1.0 Client Electropnumetics Author Ravikiran Kulkarni Date 17.03.2009 To be changed if you want to open 2010. Maintain Opening & Closing Of Posting Periods Transaction Code : OB52 To be changed if you want to close 2009. if you want to open fiscal year 2010 then change fiscal year as mentioned above.1 & From per. To open a New Year change fiscal year in column “Year” (col. This will close year 2009 for posting. When you want to close fiscal year 2009 for posting then make as mentioned below -: Change year (appearing after col. E.2) to 2010.1.g. From per. you can open some posting periods for specific users only . The authorization groups for permitted posting periods could be assigned. After “To Period”). This means that in month-end or year-end closing for example. Maintain the Periods Close a period by selecting the period specifications so that the period to be closed does not fall within them. Here we are not yet closing fiscal year 2009. Each change has to be entered into following table. Version Management This document is subject to the version management. This entry must have + in column.03.Important Points There must be a minimum entry for each variant.0 Client Electropnumetics Author Ravikiran Kulkarni Date 17. This activity is once in the year and should be done with extreme care.2009 . Version 1. Enter following details -: Field Description Company Code Source Year - To Fiscal Target . Transaction Code -: OBH2 Specify intervals of document number ranges are to be copied from one fiscal year into another fiscal year.0 Client Electropnumetics Author Ravikiran Kulkarni Date 17. Each change has to be entered into following table.2. Version 1. Maintain Number Ranges For New Fiscal Year.2009 .To Fiscal Year Click on Example Company Code 1100 Fiscal year from which number ranges are to be copied (Previous Year) 2009 Fiscal year to which number ranges are to be copied (Next Year) 2010 button to execute the transaction Version Management This document is subject to the version management.03. 2009 Reversal Posting Date Posting 01.3. Valuation Of Foreign Currency Transaction Code -: FAGL_FC_VAL Enter following details -: Field Company Code Description Example Company Code 1100 Valuate Vendor Open Tick Valuate Vendor Open Items Items Tick Valuate Customer Tick Valuate Customer Open Items Open Items Tick Posting Date Posting date of revaluation transaction 31.04.03.2009 date for reversal of revaluation . To generate postings select as mentioned in following screen -: .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. Each change has to be entered into following table. Select Create Postings and run in background processing. Prerequisites 1) Before foreign currencies for open items can be valuated. Valuating Open Items Use When foreign currencies are valuated. each open account item in a foreign currency is valuated individually. If you select “Reverse postings” then system will reverse these posting.System will generate documents. all the OPEN ITEMS that were posted in a foreign currency are valuated. 2) The exchange rate table must be maintained (transaction OB08). Version Management This document is subject to the version management. that is. . The valuation is based on the individual open account items in a foreign currency. the appropriate foreign currency postings must exist in the system. 2009 .Version 1.0 Client Electropnumetics Author Ravikiran Kulkarni Date 17.03. Settle the Assets Under Construction ii. Settlement of Assets Under Construction Transaction Code -: AIBU For more details please refer to user manual on Asset Transactions. Carry out inventory postings i. Assets Closing. Run the fiscal year change in Asset Accounting .4. .This process creates the balance carry forwards for Asset Accounting. Steps Involved in Assets Closing i. Execute the depreciation run and update the batch input session iii. iv. Depreciation Run Till March Transaction Code -: AFAB .ii. you have to carry out preparatory measures in Asset Accounting. Example : Current fiscal year (current date): 1st April 2009 Last closed fiscal year : 2007 [2009 – 2] You can close fiscal year : 2008 [2009 – 1] . Asset Year End Closing Transaction Code -: AJAB Before you can close a fiscal year in Financial Accounting from a bookkeeping perspective.iii. Once the fiscal year is closed. PROCESS FLOW You use the year-end closing program to close the fiscal year for a company code from an accounting perspective. You cannot close the current fiscal year. you can no longer post or change values within Asset Accounting (for example. The fiscal year that is closed is always the year following the last closed fiscal year. by recalculating depreciation). .BACKGROUND PROCESSING You have to carry out the year-end closing as background processing for performance reasons. Therefore. and still need to make corrections. 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. Planned depreciation from the automatic posting area has been completely posted to the general ledger. you can re-open the last closed fiscal year. Not posted online) have been completely posted to the general ledger. or for all depreciation areas in a company code. The log also shows the reason for the errors. You do this by changing the field for the last closed fiscal year. start the report as a background job. you can reset the last closed fiscal year in Customizing for Asset Accounting. REVERSING THE YEAR-END CLOSING [OAAQ] If you closed a fiscal year too soon. You can carry out test runs with fewer than 1000 assets in the foreground. incorrectly defined depreciation keys). 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. All incomplete assets (master records) have been completed. Balances from depreciation areas that are posted periodically (ie. The system lists any assets that do not meet the above requirements in the log of the year-end closing. either for selected depreciation areas in a company code. The above reconcile program is need to be run. Using this function. Version 1.Asset Year Change (AJRW) Put the Company Code and Fiscal Year. Version Management This document is subject to the version management.0 Client Electropnumetics Author Ravikiran Kulkarni Date 17. Run the same in Test Run and in background processing run take the actual run.2009 .03. Each change has to be entered into following table. 5. If the account has neither been yet posted in the new year. When posting into a previous year. "posting to a previous year" means that the posting date of the document has an earlier year than the entry date. Otherwise. The balances of the previous year are carried forward to the new year. the system carries forward the balance automatically. Carry Forward Customer and Vendor balances This program carries forward the balances for Accounts receivable and Accounts payable. account is opened in the new year with the 1st balance carried forward. This is independent of whether the program has already run or not. Procedure : Transaction Code -: F. then.07 . the balance carried forward of the account is stored in the new year if the result changes. nor the balance carried forward program has been run for this account. Following screen will appear -: Example 1100 2009 Tick Tick Tick Tick .Enter following details -: Field Company Code Carryforward to fiscal year Select Customers Select Vendors Test Run Detail log Description Company Code Carryforward to fiscal year Selection for Customer A/cs Selection for Vendor A/cs Test Run For c/f balance Details Click on to execute. 2009 .0 Client Electropnumetics Author Ravikiran Kulkarni Date 17. Version 1.Remove test run and execute to carryforward balance. Each change has to be entered into following table. Version Management This document is subject to the version management.03. You can run this transaction as many times as you want. does not occur cumulatively over several years. the system will open the account in the new year with the first carry-forward. For each posting made from that point on. but their carryforward balance is zero. Automatically correcting the carry-forward balance means that no other steps need to made for posting to the prior year after FAGLGVTR is run. it will update the account's carry-forward balance in the new year. Carry Forward GL Balances This program carries forward the balances for G/L accounts. That is. When you post items in the new year. the system automatically carries forward the balance no matter whether the program was run or not. You can run the program as often as you require. you can still post items in the new year. The following features apply to automatic balance carry-forward: Using an indicator it sets internally. the . the accounts are "opened". When you post items to a prior year.6. for example. Otherwise. not the carryforward balance for 1993. If. the carry-forward balance will be updated by those postings. This eliminates the need to restart FAGLGVTR after each posting. even if it is a posting to the prior year. however. a posting made in January 1993 with the posting date December 1991 changes only the carry-forward balance for 1992. remains in that year. if changes have been made. the program is started near the end of the current fiscal year. The total balance of the items posted in the old year. ("Posted to a prior year" means that the document posting date is in a year prior to the year of the entry date. The accumulated balance of P&L statement accounts is carried forward to a retained earnings account. Balances in balance sheet accounts are carried forward to their own accounts for the new fiscal year. If the program has not been run yet. however. Once you make postings to the prior year within the new year. 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 automatically carry forward the balance. the system can determine whether or not the balance carry-forward program has been run for the fiscal year.) This automatic carry-forward. In this case. the balance for all further postings is carried forward into the new year. carried forward balance represents only the items posted within the new year to the prior year. so that the balance carried forward is corrected. 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. T. not the items posted during the prior year. Code -: FAGLGVTR . 2009 . Each change has to be entered into following table.03.0 Client Electropnumetics Author Ravikiran Kulkarni Date 17.Logs after running the program in test run balance sheet accounts Version Management This document is subject to the version management. Version 1. 2009 . Version 1. Each change has to be entered into following table. 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_870289.0 Client Electropnumetics Author Ravikiran Kulkarni Date 17.01. S_ALR_87012347.S_ALR_87012103 Asset History Sheet .S_ALR_87011990 Balance Sheet & Profit & Loss Statement – F.S_ALR_87012177 Vendor Balances in Local Currency .03.S_ALR_87012082 List of Vendor Line Items . List of Customer Line Items .7. The More reports are available in Information System Version Management This document is subject to the version management.S_ALR_87012197 Customer Payment History . Year End Activities Carried in Controlling. . Assessment Kindly refer the user manual for more information. 1. Code CO42 For more details please refer to user manual .2. Overhead (CO43 for Collective Overhead processing) For individual processing T. WIP For more details please refer to user manual .3. Version 1.Release of Standard Cost Estimate .Maintain Activity prices . Settlement For more details please refer to user manual Version Management This document is subject to the version management.CK40N Date 17.4. Each change has to be entered into following table.0 Client Electropnumetics Author Ravikiran Kulkarni SAP FI Month End and Year End Activities 1 .03.2009 .KP26 2 . Aux/WH CC to Main CC .Maintain GRIR clearing .Settlement of variances .1KEH 25 .Functional CC to SBU CC .05 14 .KSU5 20 .KSU5 19 .FB50 15 .J1INPP 9 .KEU5 21 .KE5T 28 .To be Updated 13 .KKS1 17 .Variance Calculation of Process Orders .Parked documents to be posted .3KE5 26 .Assessment cycles .MM period close and open .Revaluation of foreign currency open items .Match GL and PCA .Provision for current month .Recognition of Inventory at Bonded warehouse .CO88 18 . not Invoiced" .KE28 .Update Section Code where missing .FB50 11 .Maintain Statistical Key Figures . MIRO 6 .Top Down Distribution in COPA .Reposting of Inter Office CC .MMPV 4 .VF03 27 .KB61 7 .Depreciation entry .5D 23 .F.Check for "Delivery made.FBV0.13 10 .F.Assessment cycles .9KE0 22 .Exchange rate .Transfer Inventory to PCA .FI period open 5 .F.3 .SBU CC to COPA .Assessment cycles .Profit Center Reposting .FB50 12 .1KEK 24 .Balance Sheet Adjustment calculation .Transfer Profit Center to AR & AP .Dummy PC to SBU PC .Match PCA and PA 29 .KB31N/KP46 16 .Assessment Cycle .Bank Reconciliation 8 . e.Assessment Cycles In case you are using Material Ledger with actual costing. RJV's Internal Order Settlement (IO to Cost Center Distribution Cost Center . It is calculated applying a % on current BOM/Routing. order). COPA . Vikrant Sood Edited by: VIKRANT SOOD on Jan 2.30 .Reclassification of GL balances 31 .2KES 33 . Flow for period end CO activities. 4) Transactions: KO8G Settlement the expense from Specific Expense Internal to the corresponding cost centers. This step is for Allocate the expense from shared cost center to other cost centers.F.PCA Balance Carry forward (Year End Only) . 3 Additional T-codes CKMDUVACT Distribution of Activity Differences CKMDUVMAT Distribution of Inventory Diffs CKMLCP Regards.Assessment Cycles Actual Activity Price Calculation WIP Variance Calculation Settlement.16 32 .1KE8 Hi BSR. cost center. 5) Transactions: CO43 Run Overhead Calculation transaction to calculate OH debiting production order/cost collector and crediting cost centers.Transfer to FI . 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.Balance Carry forward (Year End Only) . . Target costs are calculated by the system only after this step multiplying the SIC values and the qty declared. • Settlement calculation • During the production process. Calculate Variance (KKS1)à (Relevant only if Standard cost is calculated). There will be corresponding messages for the result of the variance calculation. 7) Transactions: CO88 Run settlement variances to post in FI the difference between recovery and actual (material consumption. Regards Ravi Month end closing Activities in Controlling(CO) 1. the system valuates the receipt and credits the production order accordingly. If there is error message which is caused for Standard Price missing. 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. • Determines production variances and planning variances for informational purposes. • Determines the difference between the actual costs debited to the production order and the credit from goods receipts (total variance). Calculate Overheads on all process Orders (CO43) 2. the standard price for the related SKU must be maintained immediately.6) Transactions: KKS5 Run Variances calculation procedure to have the difference between current BOM/routing and SIC BOM/routing. production orders are debited with actual costs (confirmations). 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. • 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. Technically complete all process orders which are fully processed (CORM). 3. hours and oh at current BOM/routing). they need be checked in detail. . • Variance calculation provides you with detailed cost information on production orders. Hope it will help you. • Each time goods are received into inventory. 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. • Shows the causes of the variances and assigns the variances to different variance categories depending on the cause. Close All settled Process Orders 6. Procedure The settlement rule belongs to the sender master data.Code:OB52) 7. A distribution rule is valid for a settlement run if The settlement period is in the validity interval for the rule.(T. The settlement share is set for the rule (percentage. Internal order Proceed CO Production order Proceed Project Proceed Cost object .4. 5. Carry out Assessment cycle for Cost Centers. With TC: OBH2 copy the number ranges to next year Thanks Para Maintain the settlement rule of the sender Message no.if a settlement type was specified during settlement - The settlement type corresponds to the rule for the specified settlement type. Close FI Posting period after the month end closing activity is over (T. (CO88). or it is incomplete. Settle all process orders which are technically complete (CO88). KD205 Diagnosis Either the settlement rule for the sender does not exist. Calculate production work in progress on process orders which are not technically complete. Settlement type PER -> The system selects all rules with the PER settlement type. and . Carry Forward Balances to next year (With TC: F. The settlement rule must contain settlement parameters and at least one valid distribution rule. Settlement type FUL -> The system selects all rules with the FUL and PER settlement types. equivalence number). 8. where you can maintain it.16 we can carry forward the balance to next year.Code: KSUB) 9.