Year End Activities in SAP FICO: Ensuring Accurate Financial Reporting and Compliance

Calculate production work in progress on process orders which are not technically complete. Carry out Assessment cycle for Cost Centers. All month end closing Activities should be carried out. Carry Forward Balances to next year.

General Ledger

As mentioned earlier, there are several tasks that need to be completed before closing the general ledger in the FI module. In this section, we will focus on two important activities: revaluation of foreign currency and carrying forward balances.

Foreign Currency Revaluation

Once you have set up the necessary valuation methods, defined the areas for valuation, and made sure that your system is ready to automatically post gains and losses from foreign currency transactions, you can utilize the Foreign Currency Valuation program to reevaluate open items at the end of the year. This will allow you to determine an accurate financial position using updated exchange rates.

To utilize this program, you can either use the transaction code FAGL_FC_VAL or navigate through the menu path provided.

To access the Foreign Currency Valuation (New) option in SAP, go to the SAP Easy Access Menu and navigate through Financial Accounting, General Ledger, Periodic Processing, Closing, and finally Valuate.

There are many options for running the program. Notice the general selection screen at the top for company code , valuation key date, and valuation area. Use this as a start in selecting items to revalue, then use the tabs below to get more specific on what you want to select. Generally, what the program will accomplish is to post differences in valuation between currencies as gains or losses to a P&L account with the offset to a balance sheet adjustment account. Keep in mind that valuation can only be executed once per key date or valuation area. If there are errors, you must reset valuation and reprocess.

G/L Balance Carryforward

To transfer balances to the upcoming year in the general ledger, you can utilize transaction code F.16 (for classic G/L) or FAGLGVTR (if using the new G/L). Alternatively, you can follow a specific menu path.

To access the Year End Activities in SAP FICO, you can follow these steps: Go to the SAP Easy Access Menu and navigate to Financial Accounting. From there, select General Ledger and then go to Periodic Processing. Next, click on Closing and choose Carrying Forward. Finally, you can use either transaction code F.16 or FAGLGVTR for this process.

In this section, we will explore the functionality of FAGLGVTR in SAP FICO. The screen display will be as follows…

With the help of this application, you have the ability to transfer balances from any ledger to the upcoming fiscal year. Although it can be performed multiple times, usually it is executed only once. The balance sheet accounts will be carried forward along with their assigned accounts, while profit and loss accounts will be consolidated and moved to the retained earnings accounts that were set up during implementation.

Accounts Receivable and Accounts Payable

In order to finalize the accounts receivable and accounts payable for the financial year, a single program is utilized to transfer balances into the upcoming year. To access this carry forward program, you can either use transaction code F.07 or follow the menu path provided.

To access the Year End activities in SAP FICO, you can navigate through the SAP Easy Access Menu. Go to Financial Accounting and then select either Accounts Receivable or Accounts Payable. From there, choose Periodic Processing followed by Closing. Finally, click on Carry Forward and select Balance Carry Forward to proceed with the necessary tasks for year-end closing in SAP FICO.

SAP FICO Year End Activities include the process of carrying forward receivables and payables. This involves transferring the remaining balances from one fiscal year to the next, ensuring accurate financial reporting.

How to perform a year-end process in SAP?

At the end of each financial year, companies using SAP FICO (Finance and Controlling) software need to perform certain activities to close their books for the year. This process involves two main steps: period end close and year end close.

During the period end close, companies complete all necessary tasks to finalize the last fiscal period of the year. This includes recording any outstanding transactions, reconciling accounts, and ensuring that all financial data is accurate and up-to-date.

Once the period end close is completed, companies move on to the year end close process. This step involves using special reports, transactions, and procedures provided by SAP FICO to clear any remaining entries from the previous year and carry forward balances into the new year.

The purpose of these activities is to ensure that all financial information for a particular fiscal year is correctly accounted for before starting a new one. By following these standard processes in SAP FICO, companies can maintain accurate records and comply with regulatory requirements while preparing for a fresh start in the upcoming financial year.

Fixed Assets

In order to complete the year-end activities in SAP FICO, there are certain steps that need to be followed for closing the Fixed Assets submodule. These steps include recalculating depreciation, reviewing incomplete assets, settling assets under construction, capitalizing low value or remaining assets, reconciling asset accounts, and posting periodic depreciation. To carry out these tasks effectively, two standard close programs must be executed – the year end closing program and the fiscal year change program.

To initiate the year-end closing process, you can utilize transaction code AJAB or navigate through the menu path provided.

To perform year-end closing activities in SAP FICO, follow these steps: navigate to the SAP Easy Access Menu, then go to Accounting > Financial Accounting > Fixed Assets. From there, select Periodic Processing and choose Year-End Closing. Finally, click on Execute to initiate the process.

This program will lock the prior year in the asset accounting submodule (close the annual values) so that no further postings can be made. It is highly recommended that this program is first executed in test mode to review for possible errors, then upon satisfactory review, executed in productive mode as a background job.

To initiate the new fiscal year, you will have to run another program. You can accomplish this by utilizing transaction code AJRW or by following the designated menu path.

To access the Fiscal Year Change feature in SAP FICO, navigate through the SAP Easy Access Menu and select the following options: Accounting > Financial Accounting > Fixed Assets > Periodic Processing.

Enter your company codes and the upcoming fiscal year, then run the program in a trial mode. Once you are satisfied with the results, execute it as a background task. This is simply a technical process that transfers balances to the next year and enables you to generate reports for the new year.

Asset year end activities in SAP S4HANA: A comprehensive guide

The first step is posting planned depreciation. This means recording and updating the expected decrease in value of assets over time. It can be done using a transaction called AFAB or through the Schedule Asset Accounting Jobs FIORI app. This step ensures that the correct amount of depreciation expense is accounted for during the year-end closing.

The second step involves running a Depreciation Posting Run. This means executing a program or job that calculates and posts actual depreciation amounts for each asset based on their respective depreciation methods and parameters set up in SAP FICO. The purpose of this step is to accurately reflect the current value of assets after considering their depreciated values.

Overall, these steps ensure that all necessary calculations and postings related to asset depreciation are completed correctly before finalizing financial statements at year-end in SAP FICO module.

Other

During the year-end closing process in financial accounting, it is typical to secure company code posting variants based on account types for the preceding year and then make them accessible for the upcoming year. Additionally, number ranges are often duplicated for use in the new year.

Modifying the posting periods based on account type is a regular activity performed during the period close process. It is important to mention this task in the year-end closing tutorial as a reminder. Keep in mind that the posting period variant is configured and assigned to the company code through global parameters in the IMG (Implementation Guide). To complete this task, you can utilize transaction code OB52 or follow the menu path provided.

To access the necessary settings for managing posting periods in SAP FICO, navigate to SPRO > SAP Reference IMG > Financial Accounting > Financial Accounting Global Settings > Document > Posting Period. From here, you can open and close the required posting periods as per your business requirements.

Navigate to the posting period variant assigned to the company codes you are finalizing and modify the start and end periods for both regular and special posting periods to correspond with the new period and year.

The subsequent step involves transferring the document number ranges to the upcoming fiscal year. This can be accomplished by utilizing transaction OBH2 or following the menu path provided.

To copy document number ranges to the fiscal year, navigate to SPRO > SAP Reference IMG > Financial Accounting > Financial Accounting Global Settings > Document > Document Number Ranges.

Enter the company code, number range, source year, and target year and execute.

Please ensure to follow the two-step process when using the new general ledger in SAP FICO. This involves copying the document ranges for entry view and general ledger view separately. You can find this option under the Financial Accounting Global Settings (New) menu in the SPRO transaction.

Understanding the Year-End Closing Asset Process in SAP

The year-end closing process in SAP FICO is when you officially finish the accounting activities for a specific fiscal year. This program allows you to close the books for one or more company codes, which means that you cannot make any more changes or add new transactions related to asset accounting once this process is completed.

During the year-end closing, all financial transactions and balances are reviewed and adjusted if necessary. This ensures that everything is accurate and up-to-date before moving on to the next fiscal year. Once this process is done, it marks the end of posting or modifying values within Asset Accounting.

Closing the fiscal year involves various tasks such as reviewing general ledger accounts, reconciling bank statements, verifying asset values, calculating depreciation expenses, and preparing financial statements. These activities help ensure that all financial information is correctly recorded and reported according to legal requirements.

Conclusion

This tutorial reviewed the most common and required steps used in each submodule of Financial Accounting for SAP Year End closing process. Remember that the year-end process is tightly meshed with the fiscal period end process and there are many other programs that may be required depending on the organization’s implementation. There are also steps in other modules that must be executed, of which examples were given in the first part of this document.

If you found this tutorial helpful, we would greatly appreciate your feedback. Please leave any questions or comments in the section below. Your input is valuable to us and will assist us in improving our free SAP FI tutorials for your benefit.

The SAP financial closing process: What is it?

The financial close process is a crucial accounting procedure that takes place at the end of each month to finalize the current posting period. This process involves a series of tasks that are performed periodically, whether on a daily, monthly, or periodic basis. It encompasses both system (batch) processing and manual activities to ensure accurate and complete financial reporting.

During the financial close process, various steps are undertaken to reconcile accounts, verify transactions, and prepare financial statements. These tasks include reviewing general ledger entries for accuracy, reconciling bank statements with recorded transactions, analyzing revenue and expense accounts for any discrepancies or adjustments needed, and ensuring all necessary documentation is in order.

Year-end accounting: A step-by-step guide

To wrap up the year in SAP FICO, it is important to follow a series of activities. Firstly, prepare a closing schedule to ensure all necessary tasks are completed on time. Next, gather any outstanding invoices and receipts for proper documentation. Review asset accounts to verify their accuracy and reconcile any discrepancies found.

Afterwards, it is crucial to close out both accounts receivable and payable by ensuring all transactions have been properly recorded and accounted for. Additionally, accrue any pending amounts in the accounts receivable and accounts payable categories.

Furthermore, adjust grants and entitlements as needed based on the latest information available. This step ensures that financial statements accurately reflect the current status of these items.

By following these steps diligently, businesses can effectively complete their year-end activities in SAP FICO while maintaining accurate financial records.

SAP month end activity explanation

Closing activities in SAP FICO involve all the month-end and year-end activities for finance and controlling modules. Such as carrying forward the closing balance of ledgers, receivables and payables. Further includes the execution of depreciation run for fixed assets and many more.

Katy