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Every day, new users start using SAP S/4HANA Cloud. Sometimes, your first approach to the system can be a little bit confusing in how to use some apps in Finance, for example, Create Supplier Invoice, Close Periods, Manage Posting Periods, and more. Other users are transitioning to get a Cloud mindset because they have been using some OnPrem versions previously.
Some questions I received regarding these apps are: Why can I not post in the Create Supplier Invoices app even when I can see the open period in the Manage Posting Period app? Can I restrict to only one open period in the Close Periods app?
This blog will help you answer these and more questions regarding the Close Posting Period app functionality and how it links with the Create Supplier Invoice app and Manage Posting Period app in SAP S/4HANA Cloud.
SAP S/4HANA Cloud is a modular ERP system. Each department must run its month-end closing activities every month as all modules are connected.
Before opening a posting period in accounting in the Manage Posting Periods app, you must be sure that all the closing activities of the other departments are finished.
- What can the General Ledger Accountant do after the month-end closing activities are completed in the Sourcing and Procurement department (for example, Goods receipts/ Supplier invoices are not pending to post)?
Once the month-end closing activities are completed in the Sourcing and Procurement area, the General Ledger Accountant must open the new posting period in the Close Periods app. Then, open the same period in the Manage Posting Periods app.
- How does the Close Periods app work?
The Close Periods app allows you to keep: two posting periods open (current and previous) for material documents, such as Goods Receipt, and three posting periods open for supplier invoices, meaning the previous, current, and the last period of the previous year are open to post.
Nevertheless, this app is linked directly with the Manage Posting Periods app, and I’ll give you more details in the following questions.
- How can I open my next posting period?
For this example, let’s imagine that all the month-end close activities were completed in February 2023; for that reason, the GL Accountant needs to close this period and open the next period, March 2023
The following screens are some examples of the test executed in an SAP Internal System – SAP S/4HANA Cloud 2302
In the initial screen, you can confirm the next period to be opened.
You can enter the following data: company code, the previous period/year (February 2023), select the option “Check period only,” and click on the Execute button.
The following log will be displayed, and you can see the current period in the Sourcing and Procurement area.
The message mentioned an error because, in the initial screen, in the Enter next period, I entered February 2023, and the correct next period to be open is March 2023.
Warning! It is very important to validate which period will be opened because if there is an error, there is no option to reopen closed periods in the Close Periods app.
Go back to the initial screen.
In the initial screen, enter the correct new posting period, and you have two options to open it:
- Check and close period: The system will rerun the check period step before opening the period.
- Close period only: Use this option when you don’t need or want to execute the check period step.
Click on the Execute button.
The log doesn’t display any error.
The following periods: February and March 2023, are now available for the Material documents. And the last month of the previous year (December 2022) for Supplier Invoices.
- Why does the Close Period app allow me to have two open periods?
In the standard functionality, the system keeps the current and the previous open when you open a new period. The exception is for the Supplier Invoices app where the system keeps open the last period of the previous year too.
This allows the users to create registers in the previous period because maybe they received the supplier invoice late, because of an audit adjustment in the last period of the previous year, or for any other reason.
However, the Close Periods app is linked directly with the Manage Posting Periods app, which means that if you don’t open the previous period in the Manage Posting Periods app, you will get an error in the Create Supplier Invoice app.
- How are the "Post Goods Receipt," "Create Supplier Invoice," "Close Periods," and "Manage Posting Periods" apps linked?
Following the same example, now you have opened the period March 2023 in the Close Periods app, and the system keeps it open in the backend for the previous period, February 2023
Only for Supplier Invoice documents are available for posting in a third period, the last month of the prior year.
The GL Accountant can restrict the accounting posting periods in the Sourcing and Procurement area register based on the periods open in the Close Periods app.
Look at the following common errors in the Create Supplier Invoice app:
Example of the error Message No. M8022 When trying to post in a closed period (January 2023) in the Close Periods app.
Example of error Message No. 5903 when the previous period (February 2023) it’s not open in the Manage Posting Periods app
- Can I open only the current posting period in the Close Periods app?
In the Allow Posting to Previous Period in Background app, you can restrict the postings only to the current posting period and the adjustment period of the last year, because the Audit comes in the coming months after the End-year closing activities.
To restrict the postings only in the Current Period, open the Allow Posting to Previous Period app and select the Posting to Previous Period Not Permit check box to restrict back posting of data.
There is an exception in the Create Supplier Invoice app, where the system keeps the current period open and the last period of the previous year.
You can only use these periods if they are open in the Manage Posting Periods app.
In conclusion
Close Periods app allows you to restrict the posting in the Sourcing and Procurement area.
The standard functionality only allows you to use a maximum of two periods open for material documents like Good receipts.
The Close Periods app is linked directly to the Manage Posting periods. You need to open the periods in both apps to be able to post.
The Create Supplier Invoice app checks the periods open in both apps. If the posting period you try to use is closed in the Close Periods app, you will get the error Message No. M8022. If the posting period is closed in the Manage Posting Periods app, you will get the error Message No. M5903. Only for this app can you open three periods: Current, Previous, and Last month of prior year. The last month of the prior year can only be used if this period is open in the Manage Posting Periods app.
Useful links:
- SAP Note 2833921 - Error Allowed Posting Periods raised in app Create Supplier Invoice Link
- SAP Best Practices - Master Data / Scope item BNZ - Create New Open MM Posting Period - MDS Link
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