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Procedure documentation Carrying Out Year-End Closing 

Procedure

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  1.  Determine the company codes that are to be closed.

  2.  Check what the last closed fiscal year was (Periodic processing Year-end closing Reverse).

  3.  Check if there are data inconsistencies in valuation between the Financial Accounting (FI) and Materials Management (MM) components. To do so, start the List of Stock Values: Balances (report RM07MBS, transaction code MB5L) for the last period of the fiscal year. Enter a company code on the initial screen and set the Totals only indicator. If the report finds differences, submit a customer message to SAP. You can continue processing your year end closing while SAP clears up the data inconsistencies. The creation of the balance sheet is the only thing that has to wait until after the inconsistencies are removed.

  4.  Check whether all low value assets have been capitalized. If LVAs were collected in a profit and loss account, the balance from this account must be capitalized to an asset.

  5.  Settle all assets under construction that were completed in the fiscal year you want to close.

  6.  Start the program for recalculating depreciation (refer to Recalculating Values), in order to include any possible changes in the depreciation terms for assets in the fiscal year to be closed.

  7.  Run the last regular depreciation posting run. If the depreciation amounts changed since the last regular posting run, you can start additional posting runs for special periods (refer to Periodic Posting of Depreciation).

  8.  Run reports on the current asset values. Analyze whether these values meet the requirements of your accounting policy. If necessary, you can make adjustment postings within the latitudes allowed for asset values and for the inclusion of assets in the asset portfolio. Return to point 6.

  9.  Start the year-end closing program (Periodic processing Year-end closing). The program blocks the current fiscal year to further posting to assets.

  10.  Create the necessary reports (for example, asset history sheet).

Graphic: Year-End Closing - Flowchart

 

 

 

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