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Period end closing question

Former Member
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Hi,

I have a client who is using the period closing utility monthly. After doing the period closing, 2 JEs are created. No.1 on last day of the month, moving balance from GL account to Period end closing account. No.2 moving it to Retained earnings account.

The company account then manually reconciles the transactions in the GL account. This is time consuming and they are wondering why it is not automated in SAP?

I would guess that it doesnt reconcile automatically in case it is to be reversed?

Is it necessary to reconcile these?

Accepted Solutions (1)

Accepted Solutions (1)

Former Member
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Hi,

Your client may not have the need to do monthly closing but YEC only. Check with them to see why they need it every month.

Thanks,

Gordon

Former Member
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Hi Gordon,

I think they are following the process that they have always had for monthly financial reporting. I will suggest that it is maybe not necessary to do it monthly.

Is there a way to automatically reconcile the transactions?

If no, what is the effect of leaving them unreconciled? I think it will be okay so long as they use the correct date range when looking at GL and using reporting? Is it recommended by SAP to internally reconcile these?

Former Member
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I am not sure how to automatically reconcile those transactions. Since all PEC would be accounting department's responsibility, it is depending on them to do reconcile. It should be a problem to leave them unreconciled. However, what is the purpose of those monthly PEC then?

Former Member
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It is for monthly financial reporting.

Former Member
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If it is for reporting only, any customized reports could do the job. There is no need to do PEC just for that.

Answers (1)

Answers (1)

Former Member
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Client will continue to do this as a way to ensure the period end closing process is working correctly.