Period / year End Closings

Question

Hi,
can any one please, send me the step by step Period and year end closing prosedures to be followed.
Thank you
vrk

Answer 1

HI Krishna
Here is the list for FI/CO year end closing check list:
CLOSING ACTIVITIES
1 Execute Report for Inter Company Activity & Journal Entries
2 Open posting period for next yr (T.Code: OB52)
3 Run Business Area's Assignment report. (T.Code: F.50)
4 Review list of recurring journal entries (T.Code: FBD3)
5 Execute Recurring Entries for A/R, A/P, G/L (T. Code: F.14)
6 Process Parked A/R, A/P, G/L accounting documents (T.Code: FBV0)
7 Final Cutoff for the Maintenance of Fixed Asset- Add Transfer and Retire (T.Code: ABUMN)
8 Run Depreciation in Test Run and post (T.Code: AFAB)
9 Verify Display Log for Depreciation Test Run (T.Code: AFBP)
10 Capitalize AUC Assets if needed (T.Code: AIAB, AIBU)
11 Enter Payroll Data to SAP (T.Code: CAT2)
12 Verify Depreciation Balances with GL balances (T.Code: ABST2)
13 Post Depreciation (T.Code: AFAB)
14 Execute Asset History Report, and retire assets if needed (T.Code: S_ALR_87011963, ABAVN)
15 Adjust specific depreciation areas if necessary (T.Code: ABCO)
16 Reconcile AM sub ledger with GL (T.Code: ABST2)
17 Check Bank Data (T.Code: S_P99_41000212)
18 Review AR Open Items (T.Code: FBL5N)
19 Review AP Open Items (FBL1N)
20 Execute Pending Invoices(T.Code: MRBP)
21 Clear Open Item for GRIR, freight (T.Code: F.13)
22 Reconciliation of Financial Documents and transactional figures (F.03)
23 Open new CO Posting Period: (T.Code: OKP1)
24 Compare current (cost estimates) with last current price (Moving Avg) (T.Code: OKBH)
25 Update current cost price to material master price field (T.Code: CK11N, CK24)
26 Process Freight charges, Match SD freight to actual (T.Code: V-31)
27 Review Internal Order Postings(T.Code: OKSA)
28 Settle All Orders (T.Code: KO88)
29 Verify All Post Goods Issue have been Invoiced (Billing Due List) (T.Code: VF04)
30 Review SD Billing Doc from prior month that have not yet been released to accounting (T.Code: F.2D)
31 Reconciliation of MM movements in Transit Intra-SAP to Non SAP
32 Reconcile PI Inventory with SAP (T.Code: MI07)
33 Perform Manual Adjustment if needed (T.Code: F-02, FB50)
34 Verify balance of the GR/IR account (T.Code: MB5S)
35 Post Accruals and Deferrals (T.Code: FBS1)
36 Clearing of Cancelled Documents (T.Code: F-03, F-32, F-44)
37 Check Profitability Segment Adjustment (T.Code: KISR)
38 Aging Report-Reconcile GL balances with sub ledger balances AP (T.code: FBL1N, FBL5N, FBL3N)
39 Check the check run numbers (T.Code: FCH1, FCHI)
40 Bank reconciliation Data (T.Code: FF67 & FEBA)
41 Enter Tax Journal Entry (T.Code: FB41)
42 Reconcile GL balances with sub ledger balances AR/MM/AP (T.Code: F.03)
43 Display Balance Sheet Adjustments (T.Code: F.5F)
44 Post Balance Sheet Adjustments (T.Code: F.5E)
45 Post Foreign Currency Valuation (foreign exchange) (T.Code: F.05)
46 Check generic cost centers for posting with wrong accounts
47 Correct wrong postings on generic cost centers
48 Check Validation dates for Cost Centers, Cost Elements, CO area (T.Code: GGB0)
49 Check COGI--for both month end and year end
50 Doubtful receivables (T.Code: F104)
51 Verify In-transit Inventory
52 Reconcile PA to G/L (T.Code: KE5U)
53 Post Cost Center Assessments and Distributions (T.Code: KSU5 & KSV5)
54 Run CO-FI Reconciliation to balance (T.Code: KALC)
55 Run BW reports P&L and Balance Sheet
56 Maintain CO yr variant (T.Code: KCRQ)
57 Fiscal Yr Balance carry forward AP/AR/AM (T.Code: F.07,
58 Fiscal Yr Balance carry forward CO (T.Code: CXS1)
59 Fiscal Yr balance carry forward FI (T.Code: F.16)
60 Fiscal Yr balance carry forward PCA (T.Code: 2KES)
61 Set Document number ranges - FI - new year (T.Code: OBH2, OBA7)
62 Set Document number ranges AP/AR - new year (OBA7)
63 Generate Financial statement Reports (T.Code:OB58) OR (T.Code: FSE2)
64 Change Fiscal Year For Assets (T.Code: AJRW)
65 Year end Closing-- Asset Accounting--final for year end (T.Code: AJAB)
66 Close CO Posting Period : (T.Code: OKP1)
67 Close Prior A/R Posting Period (T.Code: OB52)
68 Close Prior A/P Posting Period (T.Code: OB52)
69 Close Prior MM Posting Period (T.Code: OMSY)
70 Reverse accruals and deferrals for the new month (T.Code: F.81)
71 Reconciliation of Financial Documents from old fiscal year and new fiscal year (T.Code: FNSL)
72 Load Balances, Budget Data for Cost centers, sales
73 Update Retained Earning Account , balance carry fwd (T.Code: F.16)
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)
Year end closing Activities:
1. Calculate production work in progress on process orders which are not technically complete. (CO88).
2. Carry out Assessment cycle for Cost Centers.(T.Code: KSUB)
3. All month end closing Activities should be carried out.
4. Carry Forward Balances to next year
With TC: F.16 we can carry forward the balance to next year.
With TC: OBH2 copy the number ranges to next year
Open next year periods by selecting the Posting Period Variant.
then test by posting the transaction in F-02
Hope this will make u clear
Anup