Closing operations recur periodically and can be subdivided as follows in Financial Accounting:

• Day-End Closing
• Month-End Closing
• Year-End Closing

You can use the closing operations component to support the preparation and carrying out of activities required for closing. For this purpose, the system provides various standard reports that you can use to generate evaluations and analyses directly from the posted account balance. The system supports the following closing operations:

• Periodic accrual and deferral of expenditure and revenue
• Creating the financial statements
• Documenting the posting data

To carry out closing operations in General Ledger Accounting, you must first carry out the closing operations in the subledgers that you use. These include, for example:

• Accounts Receivable and Accounts Payable
• Materials Management
• Asset Accounting
• Payroll

Under certain circumstances, you can produce simplified consolidated financial statements in Financial Accounting. However, to create standard, extensive consolidated financial statements, you must implement the Consolidation (SEM-BCS or EC-CS) components.