Period-End Closing

Period-End Closing

Use

You use the period-end closing function to close an accounting period for position-changing flows.

It posts Adjustment flows and Realized price gains/losses, which belong to a position-changing flow that has been posted and whose position value date falls before the key date. In other words, it transfers flows in planned status into actual flows.

Process flow for period-end closing:

Post flows with price gains and price losses
Post adjustment flows (only for position management for all securities accounts)
Close the positions

After you have performed period-end closing, you cannot make any further postings that will affect the position if their position value date falls before the key date. If, however, you still need to make a posting, you have to reverse all the flows posted after the posting date of the flow in reverse order.

Prerequisites

You cannot perform period-end closing if planned records for position-changing flows exist whose position value date falls before the key date. In this case, you first have to post all the flows affected.

It is possible for order settlements, interest/dividend payments and repayments that you have not yet posted, and order executions to exist when you perform period-end closing. You can exclude interest/dividend payments and repayments from period-end closing by deselecting the Consid.plan.int./div./repmnt indicator. The system then ignores the planned records.

Features
Selection

General selections
Company code
Product type
ID number
Portfolio	You perform period-end closing for all securities accounts in a valuation group. You are given a selection of portfolios which are sometimes identical to the valuation groups. You have the option of closing an ID number selectively for individual portfolios within a company code. Although you make your selections according to portfolio, the valuation groups that belong to the portfolio selection are analyzed individually internally. If you have securities accounts in a valuation group that belong to different portfolios, you have to select all these portfolios to close the valuation group. If you performed a securities account transfer for securities accounts belonging to two valuation groups, you have to close both valuation groups together. Since the securities accounts that you want to close together do not necessarily belong to one valuation group, they are marked as a period-end closing unit (PEC-Un). You perform period-end closing for the selected valuation groups, if possible.
Key date	The key date marks the period for which you perform period-end closing. It closes all the flows that are grouped together via the selection criteria whose position value date falls before or on the key date and for which no period-end closing has been performed. The system defaults to the current date as the key date. The period-end closing date does not have to coincide with the opening and closing dates of the posting periods in Financial Accounting. These activities can be carried out independently of each other.
Control
Simulation	You can simulate period-end closing. When you perform a simulation run no postings are made. It list all flows, however, that were created by the period-end closing. It does not check whether the account assignment reference has been correctly maintained for any FI postings that might be necessary. The simulation indicator is set as a default. If you want to perform the period-end closing as an update run, you have to deselect the indicator.
Consid.plan.int./div./repymnt	This indicator prevents period-end closing from being performed for interest payments, dividend payments and repayments that have planned status. If the indicator is not set, the interest payments, dividend payments and repayments that have planned status are ignored by the period-end closing. In this case, you have to make sure that no flows that affect the position are posted at a later date for this ID number. You do this, for example, by capitalizing the dividend. This indicator is set as a default.
Posting date	The posting date can be predefined. This is the date on which you post all flows.
Document date	The document date has to be predefined. The current date appears as a default.

Output

· List of flows that were closed

The company code you are currently looking at always appears in the list header.

There is a line with information about the company code, the ID number and the period-end closing unit for each new period-end closing unit (PEC-Un).

The system displays all the flows that belong to the period you want to close as well as the flows that have already been posted. This means that it displays all flows whose position value date or due date falls after the period-end closing last performed.

The system also posts the adjustment records and price gains/losses as actual flows to Financial Accounting. These flows are green and marked with an asterisk. The portfolio to which the relevant securities account belongs is displayed at the end of each line. The PEC-Un field displays which securities accounts are viewed together when you perform period-end closing. The PEC-Un is not numbered consecutively.

· Valuation group error log

An error log is generated for each ID number, if necessary (Error log: Valuation group).

- A cross in the Plan column tells you that planned records still have to be posted.

- A cross in the Selection column tells you that the selection was insufficient. You have to expand your selections so that the relevant securities account is also included in the period-end closing.

- A cross in the Amount column displays that there are flows whose amounts in position currency and local currency differ even though the position currency is the same as the local currency. A list of the incorrect flows appears at the end of the list of the planned flows that still have to be posted.

- A date in the Position inconsistent column shows that the positions for each date entered are inconsistent. You cannot perform period-end closing for this position.

· Error log for planned records which still have to be posted

A list of the planned flows which still have to be posted appears at the end of the Error log: Valuation groups section.

· List of flows with inconsistent amounts

The list contains the flows that need correcting. If the flows have already been posted, you have to reverse the posting and repeat it. If the flows have planned status, you refresh the cash flow.

· Posting log

The posting log is displayed if postings have been made to Financial Accounting.

Result

Adjustment records with planned status are transferred to actual flows and passed on to FI.

Realized price gains/losses with planned status are transferred to actual flows and passed on to FI.

An internal indicator is flagged which shows that position-changing flows were closed. In the posting journal you can branch to the detailed data for the flows. In the area headed Technical data you can see whether or not a flow was closed.

Integration

To execute an activity based on a particular securities position, you have to make sure that it is impossible to make changes at a later date that might affect the position retrospectively. Period-end closing prevents such changes from being made. You are therefore required to perform period-end closing before you can carry out the following functions:

- Valuation: You must perform period-end closing on the valuation key date. You must wait until the valuation has been posted before you are allowed to perform period-end closing after the valuation key date.

- Exercise convertible bond: You must perform period-end closing for the convertible bond.

- Detach warrant: You are required to perform period-end closing for warrant bond CUM.

- Exercise subscription right: You have to perform period-end closing for the subscription right.

- Corporate actions: Before you execute a corporate action you must perform period-end closing on the key date of the corporate action for all the relevant reference securities.

You must not execute period-end closing after the key date of the corporate action for securities whose positions are affected by the corporate action.

- Securities account transfer: You are required to perform period-end closing if you post positions to another securities account group when you perform a securities account transfer.

Sequence of closing activities

Activities

Choose Accounting ® Period-end closing.