Closing Activities in Asset

Accounting 

Every depreciation activities for fiscal year 2000 have to be posted in asset accounting.

You have executed the fiscal year change from 2000 to 2001.

You still have to carry out the

Year-End Closing in asset accounting. 

PurposeThe extent of closing activities in asset accounting widely depends on the requirements

of the company. There are some closing activities every company must carry out and

others that are only relevant for a smaller number of companies. In this scenario we will

show you the following activities:

Executing periodic reports

You can use periodic reports to analyze, if the forecasted values meet the

demands of the company or if they have to be corrected. After closing these

reports are used to document the latest state.

Manual depreciation

Generally the planned depreciations for the actual fiscal year are determined by

the depreciation keys in the master record. If you want to determine

depreciations individually the system provides the possibility of manual

depreciation. For example unplanned depreciations or the transfer of reserves are

typically entered manually.

Posting the depreciation

Every movement of a complex fixed asset results in a modification of the

forecasted depreciation but not in an update of the accumulated depreciation

accounts for the financial statement. Only by carrying out a periodic depreciation

run with a batch input session the planned depreciations for each complex fixed

asset will be accumulated per posting level and posted in financial accounting.

Fiscal year change

Fiscal year change means to open a new fiscal year for a company code. By

carrying out a fiscal year change the asset values of the old fiscal year are carried

forward to the new fiscal year. From then on you can post assets with asset value

date in the new fiscal year though postings in the old year are still possible.

Year-end closing

Running the year-end closing closes a fiscal year for one or more company codes

from the accounting point of view. After you have carried out the year-end closing

no more postings or value changes (for example by recalculating the

depreciations) can be executed in the closed fiscal year.

Closing Operations in Accounts

Receivable and Accounts Payable

Accounting 

PurposeIn this process you carry out year-end closing in Accounts Receivable and Accounts

Payable.

You go through the following steps:

Generation of account statements: To check posted documents within a period.

Generation of balance confirmations: To check the number of receivables and

payables.

Individual value adjustments using the special general ledger technique.

Valuation of open items in foreign currency including the posting of the gains or losses

due to exchange rate fluctuations.

Sorted lists of open items with regrouping of items for changed reconciliation account,

vendors with a debit balance and customers with a credit balance according to

remaining life.