‘Financial Closing’ involves completing the following activities and taking out the financial statements for the period concerned:
- Revaluate/Regroup:
- Revalue Balance Sheet items managed in foreign currencies—use the report RFSBEW00 to valuate GL Balance Sheet Accounts managed in a foreign currency. (The report generates a Batch Input session to post the revenue or expense resulting from any exchange rate differences.)
- Clear Receivables or Payables with the ‘exchange rate difference.’
- Valuate all the Open Items using the report SAPF100. This is used to valuate all the open receivables and payables, using the period-end exchange rates. Here also, the report generates a Batch Input session to post the entries resulting from any exchange rate differences.
- Regroup GR/IR using the program RFWERE00 to allocate the net balance (depending on whether the balance is a net debit or credit) in the GR/IR Account to one of two GL Accounts (created to actually depict the net effect of the balance in the GR/IR Account).
- Ensure accounting accuracy:
- Use the program SAPF190 to compare the totals created by the system in the (1) indexes (customers, vendors, and GL) and documents (customers, vendors, and GL) with that of the (2) account balances (customers, vendors, and GL) to ensure the transaction accuracy.
- Run required reports:
- Generate the financial statements (balance sheet and profit & loss account) using the financial statement versions. You may also generate the key figure/ratio reports (use the GL account information system).