It's that time of year again for, well, year end closings. Closing out the year in your business accounting software has traditionally been something of a pain in the butt, but with SAP Business One it is a much better experience.
Below you will will find basic instructions, a video, and some additional resources for closing out your year and completing the year end process in SAP Business One. Best of all, this process that traditionally takes weeks or even months in older systems, now takes a day or two in SAP Business One.
The below instructions are for running the Year End process, and do not include the steps necessary to "prepare" for Year End Closing. For information on prepping your year end, please refer to the document attached to this blog post entitled "Tips for Year End Closing", a very detailed document showing step-by-step instructions on closing out the year.
Year End Closing Steps in SAP Business One
1. Check that all periods are in "open" state
In SAP Business One, posting periods can have multiple statuses, so it is important to check that all the periods in the year being closed are in the correct status. An open period can have any of the following period status:
¦Closing Period
¦Unlocked Period
¦Unlocked Except Sales
What we're making sure of here is that none of the periods are "locked", which is a status that should be used after the period is completely closed and will no longer be used (such as after a year end close, for example).
Tip: Be sure to check each sub-period for the year that is being closed if you use sub-periods. Sub-periods typically begin with the year and then have a month or sub-period identifier, such as 2009-12, for the 12th period in 2009.
2. Launch the Period End Closing Tool
This tool can be found at: Main Menu > Administration > Utilities > Period End Closing
Select all of the General Ledger (GL) accounts that need to be closed by clicking the check box next to each, or by clicking the column header to check them all.
Tip: Some companies need to exclude certain accounts from Year End Closing, so you can uncheck individual accounts accordingly.
2a. Select the periods to close by choosing the first period of the year in the "From" drop down menu and the last period of the year in the "To" drop down menu.
2b. Select the appropriate GL Accounts for "Retained Earnings" and "Period End closing"
Note: The "Period End Closing Account" can be described as a clearing account that is used to move entries from the P&L to Retained Earnings. Clearing accounts help make the entries easier to follow and reconcile.
2c. Approve the recommended year end postings
Tip: Set the Due Date to the same date as the posting date, to reduce chance of confusion later on. This has no effect on postings, however.
3. Confirm transactions
3a. Run the Balance Sheet Report for last day of previous year and for the first day of the new year, to compare.
Tip: Make sure when running the report for the first day of the new year to check the box "Add Closing Entries". This will ensure that the Year End Closing entry to retained earnings is included in the balance sheet.
Compare the Retained Earnings in the two reports to check that everything was closed out correctly at year end.
And that's it, your year end is now closed and you are ready to go for next year.
Be sure to check out the document that is attached entitled "Tips for Year End Closing" for everything that is necessary to do prior to running the processes above.
expert empowerment link http://scn.sap.com/docs/DOC-10707
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