Financial Closing

Scenario Overview
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Financial
Closing Month-End

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Scenario Description

The Financial Closing business scenario helps you to perform financial period-end closing activities to ensure correct financial
statements, such as Balance Sheet, Income Statement, and Cash Flow Statement. Other closing activities are performed in the
corresponding areas separately. The system generates a closing activity list according to the companys individual scope that can be
adapted according to the requirements of month-end or year-end closing.
The accountant prepares closing by ensuring that all operational transactions are entered in the system, such as entering and paying
invoices or performing physical inventory counts.
The Closing Cockpit supports the legal requirements and minimizes the risk of missing important steps or incorrect timing.
The accountant performs periodic valuation tasks, such as asset depreciation or foreign currency remeasurement and allocates costs and
revenues to the correct periods. This ensures timely and compliant financial reporting and analysis.

The following business roles are involved in this scenario:

Accountant

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Financial Closing
Scenario Overview
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Financial
Closing Month-End

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Explorer
Scenario/Processes
Business Value
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Further Information

Scenario Description

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The Financial Closing business scenario helps you to perform financial period-end closing activities to ensure correct financial
statements, such as Balance Sheet, Income Statement, and Cash Flow Statement. Other closing activities
are performed
in the
Process
mainly driven
by the user
corresponding areas separately. The system generates a closing activity list according to the companys individual scope that can be
adapted according to the requirements of month-end or year-end closing.
Process mainly driven by the system
The accountant prepares closing by ensuring that all operational transactions are entered in the system, such as entering and paying
Manual process not supported by the
invoices or performing physical inventory counts.
system
The Closing Cockpit supports the legal requirements and minimizes the risk of missing important steps or
incorrect timing.
The accountant performs periodic valuation tasks, such as asset depreciation or foreign currency remeasurement and allocates costs and
Process that communicates with thirdrevenues to the correct periods. This ensures timely and compliant financial reporting and analysis.
party software (mouse-over for details)
Process with relevance to Financials

The following business roles are involved in this scenario:

Related scenario
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Accountant

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<Role Name>

<Role Name>

Financial Closing
Process Details: Financial Closing Month End
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chevrons for details

Financial Closing - Month-End

Prepare
month-end
closing

Perform
valuation

Create
financial
statement
reports

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variants

Scenario
Explorer
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Business Value

Process Description
The Month-End Closing business process helps you to perform financial period-end closing
activities to ensure correct financial statements, such as Balance Sheet, Income Statement,
and Cash Flow Statement.
Period-end closing activities include completing operational transactions and other monthend preparational postings, such as journal entry vouchers.
In the case of partner companies it also includes entering intercompany journal entry
vouchers.

Further Information
Performed by
Accountant

In the Work Center

General Ledger

Scenario Flow
Further Information

2013 SAP AG. All rights reserved.

See also
Financial Statements
Quick Guide for Closing Cockpit

Financial Closing
Process Details: Financial Closing Month End
Click process
chevrons for details

Financial Closing - Month-End

Prepare
month-end
closing

Perform
valuation

Create
financial
statement
reports

Click here to hide process variants

i
i
i

Quarter-End Closing
Year-End Closing
Closing with Consolidation Preparation

Scenario
Explorer
Scenario/Processes
Business Value

Process Description
The Month-End Closing business process helps you to perform financial period-end closing
activities to ensure correct financial statements, such as Balance Sheet, Income Statement,
and Cash Flow Statement.
Period-end closing activities include completing operational transactions and other monthend preparational postings, such as journal entry vouchers.
In the case of partner companies it also includes entering intercompany journal entry
vouchers.

Further Information
Performed by
Accountant

In the Work Center

General Ledger

Scenario Flow
Further Information

2013 SAP AG. All rights reserved.

See also
Financial Statements
Quick Guide for Closing Cockpit

Financial Closing
Business Value

Perform

Prepare

Perform
Physical
Inventory

Send Balance
Confirmations
to Suppliers
and Customers

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Explorer
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Further Information

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Run Other
Period
Closing
Preparations

Perform
Foreign
Currency
Remeasure
ment Run

Report

Valuate
Perform
Depreciation
and other
Valuation
Runs

Overview
For midsize companies who need to meet
quickly and efficiently financial filing deadlines
and achieve better transparency and
compliance, this scenario aligns payables and
receivables, tax and inventory accounting,
management and general ledger accounting.
You can improve financial and management
reporting for regulatory compliance and
increase investor confidence.
SAP Business ByDesign helps manage
efficiently the end-of-period closing process:
From completing operational transactions and
their required postings, submitting reports to
tax authorities through to the creation of
financial statements.

Post
Accruals
and
Valuations

Post
Reserves
and
Transfers

Create
Balance
Audit Trail

Create
Schedule of
Fixed Assets

Create
Financial
Statements

Key Benefits
Central and standardized closing procedure ensures the integration of each
individual statement form
Reconciliation capabilities to proof the consistency across different business areas
Access to an up-to-date, comprehensive overview of the closing status, which
promotes transparency
Parallel accounting functionality enables creation of financial statements that comply
with appropriate accounting principles
Ability of employees to define closing tasks and their sequence well in advance,
thereby supporting compliance and minimizing the risk of missing important steps or
getting their timing wrong
Built in analytics enables a drill down to capture changes and adjustments affected
by closing activities

Financial Closing
Scenario Flow
General
Ledger

Financial Closing
- Month-End

Quarter-end closing
Year-end closing
Closing with
Consolidation
Preparation

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Explorer
Scenario/Processes
Business Value
Scenario Flow

Further Information

2013 SAP AG. All rights reserved.

Legend
Process
mainly
driven by
the user

Process
variant1
Process
variant 2

Process related
to Financials

Work
Center

Work center in which

process is performed

Financial Closing
Further Information

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Explorer
Scenario/Processes

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More Details
SAP provides a complete product
documentation, covering all
aspects of the business scenario.
For more details, click here.

Self-Enablement Systems
If you want to try out the business
scenario, click here.*

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Business Value

VV

Scenario Flow
Further Information

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WIKI
In addition to the product
documentation, SAP provides
Wikis that describe additional
aspects of SAP Business
ByDesign.
To access the WIKI, click here.*

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check http://support.microsoft.com/kb/890474.