Year-End Closing 

Use

From a technical viewpoint, the main role of the year-end closing in FI-AA is to block the values from prior years to further depreciation calculation. From an accounting viewpoint, this function is needed in order to guarantee that asset values that were included in the balance sheet are not subsequently changed. Carrying out the year-end closing, therefore, is absolutely necessary for the consistence of accounts.

Prerequisites

Before you carry out the year-end closing, you must have already completed the following:

1. Adjustment postings related to year-end closing preparations

2. If needed, depreciation simulation and corrections to depreciation records for acquisitions in the year being closed

3. Depreciation posting for the last period of the year being closed

4. Fiscal year change

In our example, however, you have not made any adjustment postings, and it is possible that all depreciation was not posted up to the end of the year. You therefore carry out the following process only in test mode.

Procedure

  1. Call up the transaction as follows:
    2.

    Menu Path

    Accounting ® Financial Accounting ® Fixed Assets ® Periodic Processing ® Year-End Closing ® Execute

    Transaction Code

    AJAB

  2. Enter the following data:
    3.

    Field

    Data

    Company Code

    1000

    Fiscal Year

    2000

    Test run

    Select

  3. Choose .

    4. To continue processing, in the dialog box choose Yes.

    You receive a log for the test run. The year-end closing was not carried out. No errors were found.

    In a production system, it is possible that errors might be found, for instance, because master data is not complete, or depreciation was not completely posted. If this is the case, you have to correct these errors before you carry out the test run again.

    If you really want to close the fiscal year, you have to carry out the process without selecting test mode. However, once you do this, it is no longer possible to post in Asset Accounting in the old fiscal year.

  4. Choose until the overview tree appears.