Closing and Reporting (FI) 

Purpose

Closing preparations recur periodically and are subdivided as follows in Financial Accounting:

·        Day-end closing

·        Month-end closing

·        Year-end closing

The Closing component supports you in preparing and carrying out activities required for closing. To do this, the system provides you with a number of standard reports that you can use to create evaluations and analyses from the account balance posted. The system supports you in the following closing preparations:

·        Time-based accruals and deferrals

·        Creation of financial statements

·        Documentation of posting material

Integration

To carry out closing preparations in the general ledger, you first have to carry out closing preparations in the subledgers that you use. These include:

·        Accounts Receivable and Accounts Payable

·        Inventory Accounting

·        Asset Accounting

·        Wages and Salaries Accounting

Features

Under certain circumstances, you can produce simplified consolidated financial statements in Financial Accounting.  However, to create standard, extensive consolidated financial statements, you must implement the Consolidation (SEM-BCS or EC-CS) components.