Year-End Closing (SAP Library - Closing and Reporting (FI))

Year-End Closing

Year-end closing is split into two phases:

At the beginning of the new fiscal year, you open the new posting periods and carry forward the balances from the previous year.

You then prepare and create the financial statements, document the business transactions using the balance audit trail, and archive those documents you no longer need online.

This graphic is explained in the accompanying text

The first posting in the new fiscal year automatically opens that fiscal year. You must however have opened the relevant posting period first.

The SAP System offers a range of reports with which you can carry forward balances into the new fiscal year. During this process the profit and loss accounts are carried forward to one or more retained earnings accounts. The balances on the balance sheet accounts are simply carried forward into the new fiscal year. You do not have to create special opening financial statements.

Any postings you make in the old fiscal year automatically adjust the relevant carry-forward balance. You do not have to close the old fiscal year and make the closing postings before opening the new fiscal year. For more information, see Fiscal Year

As with month-end closing, you can create all the external reports required, document the posting data, and carry out the internal evaluations.