Period Closing Activities for Payables/Receivables 

Purpose

You transfer payables and receivables to Profit Center Accounting in the course of normal period-closing activities.

You can transfer payables and receivables as often as you wish, since the system deletes previously transferred data before each new transfer.

Process Flow

Step 1: Calculation

The payables and receivables to be divided are calculated in FI at the end of the period. This is done under the menu option Accounting ® Financial Accounting ® General ledger ® Periodic processing ® Closing ® Regroup ® Balance sheet readjustment ® Calculate B/S readjustment).

Enter the company codes for which you want to perform the calculation. For these company codes, the payables and receivables are divided according to profit center and business area. The results are then saved.

Once you have calculated the payables and receivables to be transferred, you can use the standard report FI document for payables/receivables to access the FI document directly (see Standard Report Painter Reports in Profit Center Accounting).

You can display the breakdown of payables and receivables for each FI document under the menu option Environment ® Subsqt BA/PA adjstmt.

Step 2: Posting

You can now transfer the data to Profit Center Accounting. Do not choose the next menu option Post B/S readjustment n Financial Accounting. Instead, transfer the data in the Profit Center Accounting application menu under the menu option Actual postings ® Period-end closing ® Transfer payables/receivables.

You obtain a list of all the company codes in the active controlling area. Select the desired company codes and the period and fiscal year which you want to transfer to Profit Center Accounting.

The system then posts the payables and receivables to Profit Center Accounting under the reconciliation accounts of the general ledger. No FI documents are created in the process.

Checkboxes on the selection screen let you run the program in the test mode or in the background. If you check off Line items, the system writes a line item for each customer and each supplier. You can use this function for purposes of reconciliation.

Result

The payables and receivables from the period in question are transferred to Profit Center Accounting. They are assigned to the profit centers via the accounting documents.

The program prints an error log. You can display the updated data using standard reports in Profit Center Accounting. You can display the transferred data in the information system (see Standard Reports). Provided that line items are available, you can analyze them using the corresponding line item report and. if desired, compare them with FI document for payables/receivables.

First the program updates the final balance of open receivables and payables. It also determines the final balance of the previous period and updates this with a minus ("-") sign. As a result, the summary records in each period contain the movements in the payables and receivables, as is customary in Financial Accounting. This indirect method has the advantage that you do not need to carry the balance forward in Profit Center Accounting at the end of the year. The total balance of open payables and receivables is posted to the period 01 if there is no balance in period 0.

 

If you want to create your own Report Writer reports, note that you obtain the final balance of a period by adding up the summary records of the periods 0 through the desired period.