CLOSING PROCESS.ppt
- 1. WELCOME CONFIGURATION FOR PERIOD CLOSING (FI) Compiled By S.N.HEGDE
- 2. Topics A)Closing Process B)Financial Statement C)Assets & Liabilities D)Profit & Loss
- 4. CLOSING PROCESS • SAP records the direct financial effect of any business transaction as it happens. This ensures that the financial accounts are kept in balance at all times. However, in keeping with generally accepted accounting principles the accounting books and records must be closed periodically to provide information to various agencies. His is commonly termed as fiscal period. Most companies keep 12 to 13 fiscal periods in a fiscal year. While the happenings of a business do not cease at the end of a operating period, the basic nature of the business dictates that each enterprise report on its results.
- 5. CLOSING PROCESS The closing of the financial books calls for include • Posting the financial documents associated with the actual business events as they occur during the period. • Recognition of periodic accounting adjustments. • Preparation of financial statements related to the period. • Opening the subsequent period and reversing any temporary accounting adjustments.
- 6. CLOSING PROCESS • In SAP, once the documents of a period are posted, financial statements are automatically updated. The posting of accrual ( periodic adjustments ) can be accomplished through a General Ledger document. Similarly reversing document is accomplished. • There are two types of closing One is part closing ( say monthly) and the other is yearly.
- 7. CLOSING PROCESS • For part period closing ( say monthly), following activities need to be carried out in FI • GR/IR ( in Accounts payable) clearing process • Processing of billing documents/invoicing • All asset management depreciation entries
- 8. CLOSING PROCESS • You can get to the GR/IR clearing payment program screen with the following menu path : • Financial Accounting -> Accounts Receivable and Accounts Payable -> Business Transactions - > Outgoing Payments -> Automatic Outgoing Payments -> Payment methods / Bank selection - > Configure Payment Program • Transaction code:
- 9. CLOSING PROCESS • For fiscal year closing, additionally following activities need to be carried out in FI • Balance carry forward • Technical strategies to open new year • New number range
- 13. C) ASSETS & LIABILITIES
- 15. D) PROFITS & LOSS