Period-End Closing (SAP Library

Period-End Closing

Use

You use the period-end closing function to close an accounting period for position-changing flows.

It posts Adjustment Flows and Realized Price Gains/Losses, which belong to a position-changing flow that has been posted and whose position value date falls before the key date. In other words, it transfers flows in planned status into actual flows.

Process flow for period-end closing:

Post flows with price gains and price losses
Post adjustment flows (only for position management for all securities accounts)
Close the positions

After you have performed period-end closing, you cannot make any further postings that will affect the position if their position value date falls before the key date. If, however, you still need to make a posting, you have to reverse all the flows posted after the posting date of the flow in reverse order.

Prerequisites

You cannot perform period-end closing if planned records for position-changing flows exist whose position value date falls before the key date. In this case, you first have to post all the flows affected.

It is possible for order settlements, interest/dividend payments and repayments that you have not yet posted, and order executions to exist when you perform period-end closing. You can exclude interest/dividend payments and repayments from period-end closing by deselecting the Consid.plan.int./div./repmnt indicator. The system then ignores the planned records.

Features

Selection

General selections
Company code
Product type
Security ID number	If you do not select a security ID number, the system uses one of the security ID numbers in the securities account selected.
Securities account	Enter the securities accounts for which you want to perform a period-end closing.
Portfolio	You perform period-end closing for all the securities accounts in a valuation group. You are given a selection of portfolios that are sometimes identical to the valuation groups. You have the option of closing an ID number selectively for individual portfolios within a company code.
Closing parameters
Key date	The key date marks the period for which you perform period-end closing. It closes all the flows that are grouped together via the selection criteria whose position value date falls before or on the key date and for which no period-end closing has been performed. The system defaults to the current date as the key date. The period-end closing date does not have to coincide with the opening and closing dates of the posting periods in Financial Accounting. These activities can be carried out independently of each other.
Consid.plan.int./div./repymnt	This indicator prevents period-end closing from being performed for interest payments, dividend payments and repayments that have planned status. If the indicator is not set, the interest payments, dividend payments and repayments that have planned status are ignored by the period-end closing. In this case, you have to make sure that no flows that affect the position are posted at a later date for this ID number. You do this, for example, by capitalizing the dividend. This indicator is set as a default.
Add securities accounts to securities account groups	You can only execute this function for entire securities account groups for each security ID number. If you set this indicator, the missing securities accounts are added automatically to the securities account selected for the relevant securities account groups. If you do not set this indicator and do not select all the securities accounts for a securities account group, the function is not executed. Example: If a balance sheet transfer was transferred between the securities accounts of two valuation groups, both valuation groups must be closed together. Since the securities accounts, which have to be closed together do not necessarily belong to one valuation group, they are described as one period-end closing unit (PEC-un). If you set this indicator, you only select the two securities accounts for the balance sheet transfer when you make the securities account selections. The other securities accounts that belong to the securities account groups are added automatically.
Posting control
Posting date	The posting date can be predefined. This is the date on which you post all flows.
Posting period
Document date	The document date has to be predefined. The current date appears as a default.
Test run	You can simulate the period-end closing. When you perform a test run, the system does not make any postings. It lists all the flows, which were generated by the period-end closing. The system does not check whether the account determination has been maintained correctly for any FI postings that might be necessary. The test run indicator is set as a default. Deselect the indicator if you want to execute the period-end closing as an update run.

Output

List of flows that were closed

The company code you are currently looking at always appears in the list header.

There is a line with information about the company code, the ID number and the period-end closing unit for each new period-end closing unit (PEC-Un).

The system displays all the flows that belong to the period you want to close as well as the flows that have already been posted. This means that it displays all flows whose position value date or due date falls after the period-end closing last performed.

The system also posts the adjustment records and price gains/losses as actual flows to Financial Accounting. These flows are green and marked with an asterisk. The portfolio to which the relevant securities account belongs is displayed at the end of each line. The PEC-Un field displays which securities accounts are viewed together when you perform period-end closing. The PEC-Un is not numbered consecutively.

Valuation group error log

An error log is generated for each ID number, if necessary (Error log: Valuation group).

A cross in the Plan column tells you that planned records still have to be posted.
A cross in the Selection column tells you that the selection was insufficient. You have to expand your selections so that the relevant securities account is also included in the period-end closing.
A cross in the Amount column displays that there are flows whose amounts in position currency and local currency differ even though the position currency is the same as the local currency. A list of the incorrect flows appears at the end of the list of the planned flows that still have to be posted.
Dates in the Position inconsistent column shows that the positions for each date entered are inconsistent. You cannot perform period-end closing for this position.

Error log for planned records which still have to be posted

A list of the planned flows which still have to be posted appears at the end of the Error log: Valuation groups section.

List of flows with inconsistent amounts

The list contains the flows that need correcting. If the flows have already been posted, you have to reverse the posting and repeat it. If the flows have planned status, you refresh the cash flow.

Posting log

The posting log is displayed if postings have been made to Financial Accounting.

Result

Adjustment records with planned status are transferred to actual flows and passed on to FI.

Realized price gains/losses with planned status are transferred to actual flows and passed on to FI.

An internal indicator is flagged which shows that position-changing flows were closed. In the posting journal you can branch to the detailed data for the flows. In the area headed Technical data you can see whether or not a flow was closed.

Integration

To execute an activity based on a particular securities position, you have to make sure that it is impossible to make changes at a later date that might affect the position retrospectively. Period-end closing prevents such changes from being made. You are therefore required to perform period-end closing before you can carry out the following functions:

Accrual/deferral: Perform a period-end closing for the positions you want to accrue/defer.

Valuation: Perform a period-end closing on the valuation key date. You have to wait until the valuation has been posted before you are allowed to perform period-end closing after the valuation key date.

Exercise subscription right: Perform a period-end closing for the class of the relevant subscription right.

Corporate actions: Before you execute a corporate action you must perform a period-end closing on the key date of the corporate action for all the relevant reference securities.

You must not execute a period-end closing after the key date of the corporate action for securities whose positions are affected by the corporate action.

Securities account transfer: You are required to perform period-end closing if you post positions to another securities account group when you perform a securities account transfer.

Balance sheet transfer: You are required to perform a period-end closing on the key date of the balance sheet transfer for the positions in all the relevant securities accounts and all the securities accounts that have been valued.

Sequence of closing activities

If you still need to enter position-changing flows (purchases/sales) after you have performed a period-end closing for a period you have already closed, you can use the Resetting the Period-End Closing function.

You can display the flows from the last period-end closing. See also: Displaying the Last Period-End Closing

Activities

Choose Accounting ® Closing operations ® Period-end closing ® Execute.