It is well described by Vidhyadhar. I add only a small thing which seems
to be vital at the time of closing a Year and beginning of a New Year.
Please look after the Document Number Ranges since you will find some
no.ranges are Year specific and some are fixed for future. And you must
check it irrespective of all the Modules like SD,MM,FI,PP,PM etc.
thanks
_____________________
Subhendu
SAP FI associated consultant
This e-mail is confidential and intended only for the use of the above
named addressee. If you have received this e-mail in error, please delete
it immediately and notify us by e-mail or telephone.
| | | ---------------Original Message---------------
From: VidhyaDhar
Sent: Sunday, December 26, 2010 8:44 AM
Subject: FI Year End Tasks
Hi
Year end closing may have a bearing on country-specific statutes with the actual procedure showing minor country-specific norms.
However, in principle the following generic procedures would be adopted usually.
Purchases : Freezing all inflow and outflow of material and related accounting documents with a cutoff date. Goods inwards documents, Goods Return / Rejection documents, Vendor Invoices and Vendor credit memos would be frozen to prevent further accounting during the fiscal year. This would also help in ascertaining goods - in - transit, finalizing physical inventory reconciliation with book figures. All material flow and document flow would be arrested.
Sales:Freezing all outflow and inflow of material and related accounting documents with a cutoff date. Goods issue documents, Return / Rejection documents, Customer Invoices and Customer credit memos would be frozen to prevent further accounting during the fiscal year. This would also help in ascertaining goods - in - transit, finalizing physical inventory reconciliation with book figures. All material flow and document flow would be arrested.
In the aforesaid areas all material and document flow relating to material transfers would also be arrested.
Production: All issues to shop floor, all returns from shop-floor, scrap related activities, Work in process transfers, value additions would be stopped . The related documentation also would be frozen.
HR: Necessary payroll processing activities would be carried out with related accruals and activities ( and documentation )would be finalized.
Fixed Assets: All activities and documentation related to asset inflow, transfer and outflow would be arrested and depreciation and related entries would be finalized.
Physical inventory would be carried out and reconciled with book figures ( with excess and and shortage adjustments). This job would become easier if the organization has a perpetual inventory system instead of year end inventory. Country-specific norms in valuation would prevail in this regard.
General Ledger: Foreign currency valuation, reckoning of Bad and doubtful debts, Reclassification and re-grouping of receivable and payable ( in line with country-specific norms) amounts would be carried out and confirmation of dues / balances duly attested by auditors would take place. All other accruals and deferrals would take accounted for.
Controlling: Necessary adjustments and reconciliations would be carried out.
All sub ledgers would be closed after extracting necessary reports.
Balance carry forward programs would be run to transfer closing balances of assets and liabilities.
Special periods would be opened for posting finalized adjustment entries. Auditors do play a vital role in finalizing this activity. This would include taxation,dividend declaration etc. New fiscal year would be opened and old fiscal year closed.
Fixing targets , computing budgets/estimates, planning activities,costing (usually determination of standard costs) / pricing activities ( determination of estimated sales volumes, fixation of selling prices etc) for the next fiscal year would be finalized based on available data.
All statutory and Internal reporting ( including MIS reports). Back up of all data in soft and hard formats would be extracted.
These are the general , generic closing procedures adopted
Hope this helps
Regards
VidhyaDhar |
| __.____._ Copyright © 2010 Toolbox.com and message author.
Toolbox.com 4343 N. Scottsdale Road Suite 280, Scottsdale, AZ 85251
| | Most Popular White Papers
In the Spotlight  _.____.__ |
