SAP MONTH END
ACTIVITIES
CREATED BY CHIRAG .H. THAKKAR CERTIFIED S4HANA
CONSULTANT
S4HANA FINANCE CONSULTANT, TRAINER AND MENTOR - MAKING
SAP CONCEPTS SIMPLE TO UNDERSTAND
"Successful month end activities"
"Successful month-end activities in SAP are crucial for
maintaining accurate financial reporting and ensuring the
integrity of financial data. By diligently performing tasks such
as posting accruals, deferring revenues and expenses, running
depreciation, reconciling intercompany transactions,
generating financial statements, and conducting bank
reconciliations, organizations can effectively close the
accounting period and pave the way for a smooth transition
into the next month. These activities, supported by the robust
features and capabilities of SAP, enable businesses to uphold
financial transparency and make informed decisions based on
reliable data."
MONTH END
ACTVITIES
Asset Depreciation Run
Depreciation run program is periodic processing that posts
planned depreciation to all Assets which are active in
system. Most of the companies execute this program every
month or quarterly or yearly basis.
Menu Path: Financial Accounting -> Asset Accounting ->
Periodic Processing -> Depreciation Run -> Execute
Depreciation Run
Transaction Code: AFAB
Posting Accruals
Accrual of an expense is reporting an expense in the period in which they occur
irrespective of the payment made. Expenses are reported in the period in which
they occur, and that period is prior to the period in which the payment is made.
Deferral of expenses means that a payment is made in one period, but the expense
itself will be reported as an expense in a later period.
In Accrual/Deferral document method, provisions are made on a month’s end and
the same are reversed on the next month’s first working day.
Menu Path: Financial Accounting -> General Ledger -> Periodic Processing ->
Closing -> Post Accruals
Transaction Code: FBS1
Open and Close Periods
Posting Periods can be defined in fiscal year variants. Posting Periods can
be open and close for postings. As many periods as require can be open
for posting simultaneously. Normally only the current posting period is
open for posting, all other posting periods are closed. At the end of
current posting period, the period is closed and the next posting period is
opened.
Menu Path: SPRO –> IMG –> Financial Accounting (New) –> Financial
Accounting Global Settings (New) –> Ledgers -> Fiscal year and posting
periods –> Posting Periods –> open and close posting periods.
Transaction Code: OB52
Bank Reconciliation
Bank reconciliation in SAP can be done with the help of two kinds of bank
statements; manual and electronic. If it is a manual statement than you
need to enter the details of the statement manually into SAP, but if it is an
electronic statement you can just upload the statement to SAP.
Menu Path:
Manual: Accounting -> Financial Accounting -> Banks -> Manual Bank
Statement.
Electronic: Accounting -> Financial Accounting -> Banks -> Electronic
Bank Statement.
Transaction Code: FF67/FF.5
Foreign Currency Valuation
Every month end, financial reports need to be prepared for local authority
in local currency as well as for group consolidation in group currency. This
program is executed on the month end & generated postings gets
automatically reversed on the 1st day of the next month. Reversal is
automatic because after the month end reporting, books of accounts must
be match with the entered postings.
→
Menu Path: Accounting Financial Accounting→ General Ledger/Accounts
Receivable/Accounts Payable → Periodic Processing → Closing → Valuate
→ Foreign Currency Valuation (New).
Transaction Code: FAGL_FCV
Financial Reporting
Generate financial statements such as balance sheets and profit and loss
statements.
→
Menu Path: Accounting Financial Accounting→ General Ledger/Accounts
Receivable/Accounts Payable → Periodic Processing → Closing → Valuate
→ Foreign Currency Valuation (New).
Transaction Code: FAGL_FCV
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