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Year end closing - recommended process

KVM1
Product and Topic Expert
Product and Topic Expert
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Hi,

Could you tell me what SAP's recommended year end closing is?

One of my customers closes the year already in December but this has lead to some issues.

Would it be SAP's recommendation to close the year in January?

Can you provide more details on this recommended process?

Thanks and regards,

Kiara

Accepted Solutions (1)

Accepted Solutions (1)

Batista
Product and Topic Expert
Product and Topic Expert

hi

from my point of view, the topic needs to be approached a bit differently. Of course SAP provides features and functions to comply with period and year end closing, but this highly depends on the business processes a company operates, the legal country regulations where operations run and of course the fiscal year (FY). while commonly we see FY running Jan to Dec, is also common to have businesses closing year in March or in October, this is why we also have a variety of FY in the solution.

as for scoping for closing and business process dependency, the process is necessarily different if we have logistics, production, etc. components or not, for example. We have a range of scopes with closing features, of course the J58 focus finance, but also e.g. BF7 for maintenance, BNA for projects, BEI/3F0 production, etc.

So, closing the year in December as such should not represent an issue, as stated, many business closes the year in March or October. But if I understand correctly, issue arose in the particular case that is in Dec was already required to have the next period and year open? as this seems to be a particular scenario, would be good to list the issues and then maybe we can better address them, for example, as part of product portfolio or bug solving, or others if this make sense.

as for a "best practices" year end , SAP provides the different scopes with details on how to run the features, and the organizations, based on their operations, need to structure and orchestrate the same.

Thank you, hope helps,

Answers (1)

Answers (1)

Mark_W
Product and Topic Expert
Product and Topic Expert
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Also to add to Sandra's answer please ensure to consider Asset Accounting, the scope item test script contains steps https://rapid.sap.com/bp/scopeitems/J62
For Asset Accounting it is worth remembering that the fiscal year should be closed and all activities complete before closing GL.

Kind regards
Mark