Year End Closing Activities

Year end Closing Activity

Document details: Activities Involved in Year End Procedure of FI after complete of MM and SD year end
activities.

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

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 Year End Closing Activities

1. Maintain Opening & Closing Of Posting Periods

Transaction Code : OB52

To be changed if you want to

close 2009.

To be changed if you want to

open 2010.

To open a New Year change fiscal year in column “Year” (col. After “To Period”). E.g. if you want to open
fiscal year 2010 then change fiscal year as mentioned above. Here we are not yet closing fiscal year 2009.
When you want to close fiscal year 2009 for posting then make as mentioned below -:

Change year (appearing after col. From per.1 & From per.2) to 2010. This will close year 2009 for posting.

Maintain the Periods

Close a period by selecting the period specifications so that the period to be closed does not fall within them.
The authorization groups for permitted posting periods could be assigned. This means that in month-end or
year-end closing for example, you can open some posting periods for specific users only

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Important Points
There must be a minimum entry for each variant.
This entry must have + in column.
This activity is once in the year and should be done with extreme care.

2. Maintain Number Ranges For New Fiscal Year.

Transaction Code -: OBH2

Specify intervals of document number ranges are to be copied from one fiscal year into another fiscal year.
Enter following details -:

Field Description Example

Company Code Company Code 1100

Source - To Fiscal Year Fiscal year from which number ranges are to be copied 2009
(Previous Year)

Target - To Fiscal Year Fiscal year to which number ranges are to be copied 2010
(Next Year)

Click on button to execute the transaction

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3. Valuation Of Foreign Currency

Transaction Code -: FAGL_FC_VAL

Enter following details -:

Field Description Example

Company Code Company Code 1100

Valuate Vendor Open Items Tick Valuate Vendor Open Items Tick

Valuate Customer Open Tick Valuate Customer Open Items Tick

Items

Posting Date Posting date of revaluation transaction 31.03.2009

Reversal Posting Date Posting date for reversal of revaluation transaction 01.04.2009

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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.

To generate postings select as mentioned in following screen -:

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System will generate documents. If you select “Reverse postings” then system will reverse these posting.

Select Create Postings and run in background processing.

Valuating Open Items

Use
When foreign currencies are valuated, all the OPEN ITEMS that were posted in a foreign currency are
valuated.

The valuation is based on the individual open account items in a foreign currency, that is, each open account
item in a foreign currency is valuated individually.

Prerequisites
1) Before foreign currencies for open items can be valuated, the appropriate foreign currency postings
must exist in the system.
2) The exchange rate table must be maintained (transaction OB08).

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4. Assets Closing.

Steps Involved in Assets Closing

i. Settle the Assets Under Construction

ii. Execute the depreciation run and update the batch input session
iii. Run the fiscal year change in Asset Accounting - This process creates the balance carry
forwards for Asset Accounting.
iv. Carry out inventory postings

i. Settlement of Assets Under Construction

Transaction Code -: AIBU

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For more details please refer to user manual on Asset Transactions.

ii. Depreciation Run Till March

Transaction Code -: AFAB

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iii. Asset Year End Closing

Transaction Code -: AJAB

Before you can close a fiscal year in Financial Accounting from a bookkeeping perspective, you have to
carry out preparatory measures in Asset Accounting.

PROCESS FLOW

You use the year-end closing program to close the fiscal year for a company code from an accounting
perspective.
Once the fiscal year is closed, you can no longer post or change values within Asset Accounting (for
example, by recalculating depreciation).
The fiscal year that is closed is always the year following the last closed fiscal year. You cannot close the
current fiscal year.

Example : Current fiscal year (current date): 1st April 2009

Last closed fiscal year : 2007 [2009 – 2]
You can close fiscal year : 2008 [2009 – 1]

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BACKGROUND PROCESSING

You have to carry out the year-end closing as background processing for performance reasons. Therefore,
start the report as a background job. You can carry out test runs with fewer than 1000 assets in the
foreground.

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, incorrectly defined
depreciation keys).
 Planned depreciation from the automatic posting area has been completely posted to the
general ledger.
 Balances from depreciation areas that are posted periodically (ie. Not posted online) have been
completely posted to the general ledger.
 All incomplete assets (master records) have been completed.

The system lists any assets that do not meet the above requirements in the log of the year-end closing. The
log also shows the reason for the errors.

Asset Year Change (AJRW)

Put the Company Code and Fiscal Year. Run the same in Test Run and in background processing run take
the actual run.

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5. Carry Forward Customer and Vendor balances

This program carries forward the balances for Accounts receivable and Accounts payable.

The balances of the previous year are carried forward to the new year. If the account has neither been yet
posted in the new year, nor the balance carried forward program has been run for this account, then,
account is opened in the new year with the 1st balance carried forward. Otherwise, the balance carried
forward of the account is stored in the new year if the result changes.

When posting into a previous year, the system carries forward the balance automatically. This is
independent of whether the program has already run or not. "posting to a previous year" means that the
posting date of the document has an earlier year than the entry date.

Procedure :

Transaction Code -: F.07

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Enter following details -:

Field Description Example

Company Code Company Code 1100
Carry forward to fiscal year Carry forward to fiscal year 2009
Select Customers Selection for Customer A/c Tick
Select Vendors Selection for Vendor A/c Tick
Test Run Test Run Tick
Detail log For c/f balance Details Tick

Click on to execute.
Following screen will appear -:

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Remove test run and execute to carry forward balance. You can run this transaction as many times as you
want.

6. Carry Forward GL Balances

This program carries forward the balances for G/L accounts.

Balances in balance sheet accounts are carried forward to their own accounts for the new fiscal year.

The accumulated balance of P&L statement accounts is carried forward to a retained earnings account.

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 open the account in the new year with the first carry-forward. Otherwise, it will update
the account's carry-forward balance in the new year, if changes have been made.

When you post items to a prior year, the system automatically carries forward the balance no matter whether
the program was run or not. ("Posted to a prior year" means that the document posting date is in a year prior
to the year of the entry date.) This automatic carry-forward, however, does not occur cumulatively over
several years. That is, a posting made in January 1993 with the posting date December 1991 changes only
the carry-forward balance for 1992, not the carry-forward balance for 1993.

The following features apply to automatic balance carry-forward:

Using an indicator it sets internally, the system can determine whether or not the balance carry-forward
program has been run for the fiscal year. For each posting made from that point on, the system will
automatically carry forward the balance, even if it is a posting to the prior year.

If, for example, the program is started near the end of the current fiscal year, the balance for all further
postings is carried forward into the new year.

Automatically correcting the carry-forward balance means that no other steps need to made for posting to
the prior year after FAGLGVTR is run. This eliminates the need to restart FAGLGVTR after each posting.

You can run the program as often as you require.

If the program has not been run yet, you can still post items in the new year. When you post items in
the new year, the accounts are "opened", but their carry-forward balance is zero. Once you make
postings to the prior year within the new year, the carry-forward balance will be updated by those postings.
The total balance of the items posted in the old year, however, remains in that year. In this case, the

carried forward balance represents only the items posted within the new year to the prior year, not the items
posted during the prior year.

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, so that the balance carried forward is corrected.

T. Code -: FAGLGVTR

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Logs after running the program in test run balance sheet accounts

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7. 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, S_ALR_87012347.
 List of Customer Line Items - S_ALR_87012197
 Customer Payment History - S_ALR_87012177
 Vendor Balances in Local Currency - S_ALR_87012082
 List of Vendor Line Items - S_ALR_87012103
 Asset History Sheet - S_ALR_87011990
 Balance Sheet & Profit & Loss Statement – F.01.

The More reports are available in Information System

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