Period-End Closing Procedures

 

Period-End Closing Checklist

Period-end activities take place at the end of the month or the end of the quarter, or both, depending on how your financial accounting processes work. In either case, the checklist at the end of the period is much the same.
  • Make sure that all transactions for the period were posted properly, including adjustments and accruals
  • Print trial balance (a balance of each account and a current status)
  • Print vendor liabilities aging and customer receivables aging reports to reconcile receivable accounts with the G/L
  • Print inventory audit report to reconcile inventory with the G/L
  • Print financial statements
  • Make a backup of your database and put it in an off-site storage location
  • Close or inactivate the fiscal period by locking it using the posting period window

 

Year-End Closing Checklist
Year-end closing is a big event that affects many aspects of how SAP Business One operates. For example, a year-end close will zero all profit and loss account balances to the retained earnings account. Balance sheet accounts are summarized, bringing the balances forward as the beginning balances in the new fiscal year. All of this activity takes time, of course. The year can remain open until all adjusting entries are received from accountants and other reporting entities. 
Here is a general year-end checklist: 
  • Post final transactions for the period in all modules
  • Complete the period-end procedures 
  • Post any final adjusting entries in the G/L
  • Close the last period of the fiscal year
  • Make a backup of your database and put it in an off-site storage location 
  • Print a final detailed trial balance 
  • Print financial statements  Set up a new fiscal year 
  • Run the period-end closing routine to close the fiscal year
 

Year-End Closing Process

1. Check all periods are in “open” state for the Fiscal year. Make sure is that none of the periods are "locked". Check each sub-period for the year that is being closed.
      Path:> Administration>System Initialization> Posting Period
 
Note: In SAP Business One, an open period can have one of three states: Closing Period, Unlocked and Unlocked Except Sales. Go through and verify that none of your periods are in a Locked state.     ​Periods should only be locked once they will no longer be used (ie: after your year-end closing).
 
2. Launch Period-End Closing Tool
 
  1. Go to Administation>Utilities > Period-End Closing
  2. Select all of the General Ledger (GL) accounts that need to be closed by clicking the checkbox next to each, or by clicking the column header to check them all.
  3. Select the Year of the periods you want to close and select the "From and To" month.
  4. Retained Earnings Account: Select the appropriate GL Accounts for ‘Retained Earnings’
  5. Period End closing: Select the appropriate GL Account for ‘Period-End Closing’
  6. Click on Execute to open the Period-End Window
  7. Approve the recommended year-end postings by ticking the checkbox.
  8. Set the due date the same as the posting date to avoid confusion in future.
  9. Click Execute.
 
3. Confirm transactions
               
  1. Run the Balance Sheet Report for last day of previous-year and for the first day of the new year, to compare. Path:> Financial > Financial Reports>Financal> Balance Sheet
  2. Include the ‘Add Closing Balances ‘when running the Balance sheet.
Note: Balance sheet for the last day of the previous year should be the opening balance of the first day of the year.
 
4. Final Closing of the Period.
 
  1. To close the period, you change the status to locked. Locking the period helps you prevent any additional or accidental postings. Before you lock the current period, you must close the P&L accounts.​ Path :> Administration → System Initialization → Posting Periods.​
  2. In the Posting Periods window, click for the period you want to lock.
 

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