Start of Content Area

Component documentation Closing Operations  Locate the document in its SAP Library structure

Use

This component enables you to prepare and execute all activities for year-end closing: the transfer of open commitments (commitment carryforward) and a different transfer of non-consumed budget (budget carryforward of residual budgets) from old fiscal years to the new. You use the closing operations to display budgets and assigned values for each period.

This graphic is explained in the accompanying text

Implementation Considerations

You perform the closing operations in a series of steps, which you must carry out in sequence.

The commitment carryforward always reflects the current state of the data in the Funds Management feeder systems. However, there is no automatic link to the closing operations in other components. This means that changes made to documents in other components are not reflected in Funds Management after you have carried out the closing operations in Funds Management. For this reason, we recommend you do not carry out Funds Management closing operations until you have completed the closing operations in the other components.

It is not necessary to carry out closing operations with the fiscal year change in the system if you do not use period-based encumbrance tracking or, whilst using the Budget Control System, have activated multi-year budget execution. If you therefore decide not to carry out closing operations, budget already used remains in the old fiscal year and cannot be used in the new fiscal year. Open commitments are correctly reduced in the old fiscal year if you process them further in the new. (For example, a purchase order from 2005 can be reduced by an invoice arriving in 2006.)

The carryforward of commitment and budget depends on the Update Profile chosen. It is specified in the update profile whether a carryforward is possible and for which value types (e.g. purchase orders, earmarked funds, invoices) a carryforward may take place.

Features

You can simulate the tasks to be carried out with the fiscal year change and schedule them for different dates, regardless of when your fiscal year actually ends. Several programs are available for completing this task for the commitment carryforward and budget carryforward. For more information, see Programs for Closing Operations.

·        Closing open items

You can close open commitment (open commitments such as purchase requisitions, purchase orders or earmarked funds) before the commitment carryforward and delete parked FI documents if amounts not consumed should be returned to the budget.

·        Commitment carryforward

You can apply various selection criteria to the commitment carryforward, such as individual funds centers, specific FM account assignments, or individual documents. By defining a set of rules (Derivation Strategy), you are able to exclude some value types or FM account assignments from a carryover or change account assignments. In general, only documents that can be reduced by other documents are transferred to the fiscal year. This applies to both the payment budget and the commitment budget.

You can reverse the commitment carryforward for individual documents.

·        Budget carryforward

¡        Budget for commitments

You can carry forward budget that has become available due to a commitment carryforward to the new year.

¡        Residual budget

By defining a set of rules, you can control the carryover of residual budget individually and therefore include changes to the organizational structure or budget reassignments. In the new fiscal year, you can distribute the residual budget to one or more receivers. It is possible to carry forward partial amounts.

·        Fund Balance Carryforward

If you work with funds and have allocated an overall budget across several fiscal years, the balance carryforward in funds will allow for an overview of the balances in the funds. Unlike the commitment carryforward, this involves summarizing and carrying forward actual data.

·        Schedule Manager

You can schedule, manage and monitor activities for year-end closing in Funds Management with the Schedule Manager

See also:

Example Commitment Carryforward/Budget Carryforward with Commitments

 

 

 

 

End of Content Area