Year End Colsosing Act]

Project / Company

SIAE

SAP User Manual Year- end accounts

closing

Version

1.00 Name Document

SIAE Int Rollout SAP User Manual

Author

Roberto Dell’Oro Status

Complete Page

1 / 31

SIAE IntRollout Subsidiaries Year end Closure Pag. 1

SAP User Manual

Year-End accounts closure

Updates:

Rev. Date Level Revised by Verified by Approved by Note

00 20.03.2012 R. Dell’Oro

01 20.12.2012 Daniele Ironi

02

03

Project / Company

SIAE


closing

Version

1.00 Name Document


Author


Complete Page

2 / 31


Index

1 - REMINDER : CLOSING YEAR END ASSETS AND POST THE YEAR-END STOCK

VALUATION ...................................................................................................................................... 3

1.1 CLOSING YEAR END ASSETS .............................................................................................. 3

1.2 Valuation of stock in transit (direct delivery) ............................................................................ 4

1.3 Valuation of in-house stock. ...................................................................................................... 7

2 - ACCOUNTS CLOSURES AT YEAR-END.................................................................................. 9

2.1 Profit and Loss accounts closing .............................................................................................. 10

2.2 Balance Sheet accounts closing/opening ................................................................................. 16

2.3 Profit and Loss G-ACCOUNTS closing .................................................................................. 21

2.4 Balance sheet G-ACCOUNTS opening/closing ...................................................................... 23

3 - REMINDER : Balance carryforward g/l and CUSTOMER VENDOR ....................................... 26

3.1 Balance Carryforward G/L Accounts ...................................................................................... 26

3.2 Balance Carryforward CUSTOMER AND VENDORS .......................................................... 29

Project / Company

SIAE


closing

Version

1.00 Name Document


Author


Complete Page

3 / 31


1 - REMINDER : CLOSING YEAR END ASSETS AND POST THE YEAR-END STOCK VALUATION

1.1 CLOSING YEAR END ASSETS

Before of all remember to do Year’s end Asset closing with transaction AJAB,

for details see manual: SIAE IntRolloutUser – Asset Accounting, page 47. (www.siaemic.com Go to SAP Activities & Business scenario Documentation go on activities independently of any scenario Finance FI Sap Module Assets Accounting).

Insert the company code and fiscalyear to be closed.

The test mode option permits to check if all activities for the year has been executed.

Production mode need to be run in background.

Project / Company

SIAE


closing

Version

1.00 Name Document


Author


Complete Page

4 / 31


1.2 Valuation of stock in transit (direct delivery)

It is necessary to remember to post the stock valuation at year-end because the amount of stock variation in P&L will be included in profit / loss calculation by the closures program.

This step is only for companies that manage direct delivery stock and/or in-house stock.

You can display direct delivery stock in transit situation with transaction S_ALR_87012277

Select the variant for your company . Variant name is “SMxx-IN-TRANS”

The system shows the selection screen as follow.

Insert Fiscal Year you are performing the stock valuation.

Period is from 1 to 12.

Project / Company

SIAE


closing

Version

1.00 Name Document


Author


Complete Page

5 / 31


Execute

The system shows the difference between account 40610020 (cost account for direct deliveries purchases) and G004100020 (Offsetting Account for direct deliveries invoiced to customer) in the period indicated (1 to 12).

If all goods purchased by direct delivery have been invoiced to the customer the balance shown is zero.

If a positive balance is displayed it means that not all the goods purchased by direct delivery have

Project / Company

SIAE


closing

Version

1.00 Name Document


Author


Complete Page

6 / 31


been invoiced to the customer yet. For example :

Post this difference to valuate the stock in transit (direct delivery) with a GL posting at the end of the period :

Transaction FB50

Document type RC

Posting date : end of the period. For example 31.12.aaaa for year-end closure.

DEBIT 13130001 FINAL STOCKS FOR WORKS IN PROGRESS UND. CONTRACTS

CREDIT 30220001 VAR.IN STOCKS OF WORK IN PROG. AND SEMI. GOODS

Project / Company

SIAE


closing

Version

1.00 Name Document


Author


Complete Page

7 / 31


1.3 Valuation of in-house stock.

In order to know the amount of stock in house use transaction S_ALR_87012277 again but with variant ‘SMxx-STOCK’ (for example SMGB-STOCK for Siae UK).

Insert Fiscal Year you are performing the stock valuation.

Period is from 1 to 12.

Execute .

The variant shows the detail of the stock accounts G and displays the total of the period you have indicated in the selection screen.

Project / Company

SIAE


closing

Version

1.00 Name Document


Author


Complete Page

8 / 31


The total of the stock can be posted with FB50

Document type RC

Posting date : end of the period. 31.12.aaaa.

DEBIT 13140001 FINAL STOCKS FOR FINISH. GOODS AND GOODS FOR RESA.

CREDIT 30220002 VARIATION IN STOCKS OF FINISHED GOODS

The same amount of valuation must be posted in a reversal document with FB50 the day after (first January next year).

DEBIT 30220002 VARIATION IN STOCKS OF FINISHED GOODS

CREDIT 13140001 FINAL STOCKS FOR FINISH. GOODS AND GOODS FOR RESA.

Project / Company

SIAE


closing

Version

1.00 Name Document


Author


Complete Page

9 / 31


2 - ACCOUNTS CLOSURES AT YEAR-END

Transaction to perform year-end closures is F_IT_01

Access path Menu Accounting Financial accounting General Ledger Periodic

processing Closing Opening/Closing entries

Transaction code F_IT_01

Each company has two variants available.

(Example for Siae Germany) :

Use variant SMxx-CLOSE to perform closing of P&L accounts and BS accounts.

Use variant SMxx-G-CLOSE to perform closing of management accounts G.

Choose the variant from here:

Then double click on the variant name to select it.

Project / Company

SIAE


closing

Version

1.00 Name Document


Author


Complete Page

10 / 31


2.1 Profit and Loss accounts closing

The closing of P&L accounts must be posted first.

Choose the variant SMxx-CLOSE. The system shows the following data in the selection screen :

GL account G accounts are not considered (G*)

Fiscal Year : at the moment in the variant is 2010. You’ll have to change it in the future every year.

Project / Company

SIAE


closing

Version

1.00 Name Document


Author


Complete Page

11 / 31


FOLDER ‘Selections’

Posting period : from 1 to 16

Account selection : E (means P&L accounts)

Create batch input product run : if this field is blank, when you execute you’ll run just a test. In order to create an effective run (batch input creation) you have to insert ‘X’ in this field.

Batch input session name : If you have set ‘X’ in the previous field and you execute, the system will create a batch input session. Session name is the one you indicate in the field.

FOLDER ‘Accounts’

In the folder ‘Accounts’ the system sets the transitory ‘Income Statement Account’ (24140008) used to post the balances of the P&L accounts.

In the field ‘Retained Earnings Account’ you have to insert the account 21090001 in case you close the year with a profit. Otherwise if you have a loss use account 21090002.

(Fields ‘Balance sheet account-closing’ and ‘-opening’ will be used in paragraph for Balance Sheet accounts closing – see next paragraph)

Project / Company

SIAE


closing

Version

1.00 Name Document


Author


Complete Page

12 / 31


FOLDER ‘Postings’

In the folder ‘Postings’ you have the document type used for the P&L closing postings (EC).

The posting date is set to year end (31.12.2010 in the example).

The Document date must be indicated according to the date of balance approval/closure. (31.12.2010 in the screenshot below is just an example).

Document type EC will be used and posted on 31.12 period 16.

FOLDER ‘Other parameters’

In the last folder there are other parameters set by the variant.

You can change the field ‘text’ and insert the correct year.

Project / Company

SIAE


closing

Version

1.00 Name Document


Author


Complete Page

13 / 31


If you now execute the transaction without ‘X’ in the field ‘Create batch input product run’ you will execute just a test and you will see the list of postings the system would create.

Check if the test report is correct. The balance should be your profit/loss of the year you are closing.

For some accounts the comment ‘Automatic posting’ could appear in the list :

Project / Company

SIAE


closing

Version

1.00 Name Document


Author


Complete Page

14 / 31


BEFORE PROCEED YOU NEED TO ASK SAP CONSULTANT TO CHANGE THE MASTER DATA IN THE ACCOUNT IN ORDER TO TEMPORARY DEACTIVATE THE ‘AUTOMATIC POSTING’ FLAG’.

ONCE THIS HAS BEEN DONE YOU WILL BE INFORMED AND YOU’LL BE ABLE TO PROCEED AS FOLLOW.

When all the checks are done, insert ‘X’ to create an effective run.

…and Execute

Project / Company

SIAE


closing

Version

1.00 Name Document


Author


Complete Page

15 / 31


The system will create a batch input session ready to be executed.

You can see the batch input session with transaction SM35 :

Select the batch input session line. (it will be highlighted in ‘orange’)

Execute it with button

Select ‘Background’ and press Process.

If everything is ok the batch input session line disappears or shows you a green flag.

If errors occur a red symbol is displayed : Please inform SAP consultant in this case.

Project / Company

SIAE


closing

Version

1.00 Name Document


Author


Complete Page

16 / 31


At the end of the execution the system will have closed the P&L accounts in this way:

1) All the costs and the revenues will be closed against the temporary retained earning accounts stored in the GL account master data (21090003 or 21090004)

2) Balances on retained earnings accounts 21090003 and 21090004 will be automatically closed against transitory profit/loss account 24140008.

3) Balance on transitory account 24140008 is definitively automatically closed against balance sheet account 21090001 in case of profit; against 21090002 in case of loss.

INFORM SAP CONSULTANT WHEN YOU HAVE FINISHED IN ORDER TO SET AGAIN ‘AUTOMATIC FLAG’ IN THE MASTER DATA OF AUTOMATIC ACCOUNTS.

2.2 Balance Sheet accounts closing/opening

Use transaction F_IT_01 and the same variant used in paragraph 1, but change the following fields:

Account Selection : Set ‘P’ (that means balance sheet accounts)

Batch input session name : the name saved in the variant is SMxx-year-BS.

v

Project / Company

SIAE


closing

Version

1.00 Name Document


Author


Complete Page

17 / 31


Balance Sheet Account- Closing : balance sheet offsetting account to which the closing balances of balance sheet accounts are to be posted at year-end in period 16.

Balance Sheet Account- Opening : balance sheet offsetting account to which the opening balances of balance sheet accounts are to be posted on 01 January of the following year.

Document type EC will be used for closing postings in period 16. EA for opening postings in period 1 of the next year.

Document date for closing period must be set as the date of balance approval.

Document date for opening posting must be the day after.

(in the screenshot 30.06 and 01.07 are just examples).

Project / Company

SIAE


closing

Version

1.00 Name Document


Author


Complete Page

18 / 31


Change year in the Text field.

Click on to execute a test session.

Test run postings are shown.

Check the test report.

Project / Company

SIAE


closing

Version

1.00 Name Document


Author


Complete Page

19 / 31


As well as in the P&L closing for some accounts the comment ‘Automatic posting’ could appear in the list.

BEFORE PROCEED YOU NEED TO ASK SAP CONSULTANT TO CHANGE THE MASTER DATA IN THE ACCOUNT IN ORDER TO TEMPORARY DEACTIVATE THE ‘AUTOMATIC POSTING’ FLAG’.

ONCE THIS HAS BEEN DONE YOU WILL BE INFORMED AND YOU’LL BE ABLE TO PROCEED AS FOLLOW.

When all the checks are done proceed and insert ‘X’ to create an effective run.

…and Execute

…the system will create a batch input session ready to be executed.

You can see the batch input session with transaction SM35 :

Select the batch input session line. (It must become ‘orange’)

Execute it with button

Project / Company

SIAE


closing

Version

1.00 Name Document


Author


Complete Page

20 / 31


Select ‘Background’ and press Process.

If everything is ok the batch input session line disappears or shows you a green flag.

If errors occur a red symbol is displayed : Please inform SAP consultant in this case.

At the end of the process the Balance Sheet accounts will have been closed (balance = 0) in period 16 against account 21100001 CLOSING ACCOUNT FOR ASSETS AND LIABILITIES and opened on 01.01 of the next year against account 21100002 OPENING ACCOUNT FOR ASSETS AND LIABILITIES.

INFORM SAP CONSULTANT WHEN YOU HAVE FINISHED IN ORDER TO SET AGAIN ‘AUTOMATIC FLAG’ IN THE MASTER DATA OF AUTOMATIC ACCOUNTS.

Project / Company

SIAE


closing

Version

1.00 Name Document


Author


Complete Page

21 / 31


2.3 Profit and Loss G-ACCOUNTS closing

Use transaction F_IT_01 and the variant SMxx-G-CLOSE.

G/L account : only G accounts are included

Account selection : The system set ‘E’ = profit and loss accounts.

Batch input session name : Change the year

Create batch input prodctn run : ‘X’ only when you want to run in effective mode. Otherwise you run just a ‘test’.


G accounts will be posted :

Project / Company

SIAE


closing

Version

1.00 Name Document


Author


Complete Page

22 / 31


Document type GG will be used :


Proceed the same way you posted the P&L accounts closing:

Execute in test

Check the list

Verify if ‘Automatic posting’ comment is present for some accounts in the list. If yes, ask SAP consultant to change master data for those accounts.

Check again and run in effective if everything is ok.

Ask SAP consultant to change back the master data for automatic accounts.

Project / Company

SIAE


closing

Version

1.00 Name Document


Author


Complete Page

23 / 31


At the end of the execution the system will have closed the P&L G-accounts in this way:

1) All the P&L G-accunts will have been be closed against the temporary retained earning accounts stored in the GL account master data (G21090001 or G21090003)

2) Balances on retained earnings accounts G21090001 and G21090003 automatically closed against transitory profit/loss account G24140008.

3) Balance on transitory account G24140008 definitively automatically closed against balance sheet account G21090001.

2.4 Balance sheet G-ACCOUNTS opening/closing

Use transaction F_IT_01 and the variant SMxx-G-CLOSE again.

Project / Company

SIAE


closing

Version

1.00 Name Document


Author


Complete Page

24 / 31


G/L account : only G accounts are included

Account Selection : Set ‘P’ (that means balance sheet accounts)


Create batch input prodctn run : ‘X’ only when you want to run in effective mode. Otherwise you run just a ‘test’.


G accounts will be posted :

Document type GG will be used.


Project / Company

SIAE


closing

Version

1.00 Name Document


Author


Complete Page

25 / 31


Proceed the same way you posted the balance sheet accounts closing:

Execute in test

Check the list

Verify if ‘Automatic posting’ comment is present for some accounts in the list. If yes, ask SAP consultant to change master data for those accounts.

Check again and run in effective if everything is ok.

Ask SAP consultant to change back the master data for automatic accounts.

At the end of the process the Balance Sheet G-accounts will have been closed (balance = 0) in period 16 against account G21100001 CLOSING G ACCOUNTS and opened on 01.01 of the next year against account G21100002 OPENING G ACCOUNTS.

As final step the balance on retained earning account G21090001 must be closed manually against G21100001 and NOT opened the day after.

Use transaction FB50 to do it :

Document date and posting date 31.12.aaaa

Period 16

Document type GG

Example:

Project / Company

SIAE


closing

Version

1.00 Name Document


Author


Complete Page

26 / 31


3 - REMINDER : BALANCE CARRYFORWARD G/L AND CUSTOMER VENDOR

After execution of previous steps you must execute the balance carryforward:

3.1 Balance Carryforward G/L Accounts

Run transaction FAGLGVTR

Insert these data:

Ledger: 0L

Company code: your company code (in this case: SMGB)

Carry forward to fiscal year: New fiscal year where you want register balance carryforward

(in this case 2012)

Test run: flag this checkbox to run the carryforward process in a testing mode in order to

check if data are correct.

Access path Menu Accounting Financial accounting General Ledger Period

Processing Closing Carrying forward Balance Carryforward (new)

Transaction code Display : FAGLGVTR

Project / Company

SIAE


closing

Version

1.00 Name Document


Author


Complete Page

27 / 31


Click on to execute a test session.

Test run postings are shown.

This message is displayed at the bottom of the screen :

Run the transaction without the ‘Test’ flag to effectively carry forward the balances.

Carrying forward balances transaction is just a technical operation to have correct data displayed for each account. It doesn’t represent a closing/opening transaction!

If other operations are performed in the previous fiscal year after run the carry forward transaction, it won’t be necessary to run the program again, as the balances will be automatically updated.

Project / Company

SIAE


closing

Version

1.00 Name Document


Author


Complete Page

28 / 31


Use again transaction FS10N to check the balance carried forward :

Now the initial balance carried forward is displayed.

Project / Company

SIAE


closing

Version

1.00 Name Document


Author


Complete Page

29 / 31


3.2 Balance Carryforward CUSTOMER AND VENDORS

The procedure has the same functionality explained before for the G/L accounts balances.

SAP Transaction to carry forward customers and vendors balances : F.07

Access path

Menu Accounting Financial accounting Customers (or Vendors)

Period Processing Closing Carry forward Balance

Carryforward

Transaction code Display : F.07

Company code : Set the company code.

Carryforward to fiscal year : Set the new fiscal year.

Select customers : flag to carry forward balances of the customers accounts.

Select vendors : flag to carry forward balances of the vendors accounts.

Test run : flag to run a test mode execution.

Detail log : flag to have a detailed log of the execution.

Click on to execute.

The system shows the details as follow :

Project / Company

SIAE


closing

Version

1.00 Name Document


Author


Complete Page

30 / 31


Deselect the ‘Test run’ checkbox in the selection screen to effectively execute the carrying forward

process:

Click on to proceed with the run.

Check the carried forward balance with transactions FD10N for the customers and FK10N for the

vendors.

Example:

Project / Company

SIAE


closing

Version

1.00 Name Document


Author


Complete Page

31 / 31


Documents

Year End Colsosing Act]