How to Perform Year End in SAP Business One How To Guide

Transcription

How To Guide
SAP Business One 2005A/2007A/8
How to Perform Year End
in SAP Business One Overall Business Processes
ACCOUNTING
Related Business Process
ACCOUNTING
Responsible Department
ACCOUNTING
Involved Departments
ACCOUNTING
Last Updated
11/01/2011
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How To Guide
CONTENTS
YEAR END (PERIOD END CLOSING) ......................................................................................................................3
INTRODUCTION..............................................................................................................................................................3
PROCESS FLOW .............................................................................................................................................................3
DESCRIPTION.................................................................................................................................................................3
PREPARATION .............................................................................................................................................................4
BACKUP ........................................................................................................................................................................4
CHECKING CONTROL ACCOUNTS ..................................................................................................................................4
EXCHANGE RATE REVALUATION ..................................................................................................................................6
FINANCIAL AUDIT ADJUSTMENTS .................................................................................................................................9
RUN STOCK AUDIT REPORT ..........................................................................................................................................9
YEAR END CLOSING................................................................................................................................................. 10
YEAR END CLOSING PROCESS..................................................................................................................................... 10
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How To Guide
Year End (Period End Closing)
Introduction
The Year-End Closing window enables you to create postings in the accounting system when a
fiscal year or posting period ends.
This function allows the transfer of previous profit and loss G/L account balances from one fiscal
year or period to another.
The procedures described in this function represent a concept that is generally applicable. The
character of this document is generic and does not cover special cases.
Process Flow
The procedures described in this document must be followed step by step for accuracy of content
or the completeness of the year-end closing. You are ultimately responsible for the correct
operation of this and providing the necessary documentation to ensure accuracy.
Before performing this procedure, it is highly advisable that you discuss the procedure in detail
with your audit consultant or the person responsible for your year-end closing (if applicable).
Description
The Year End Closing function allows companies to easily proceed with the closing of all the
profit and loss items and the transferring of the profit or loss result of the year to the reserves
account in the balance sheet.
Note: All data, values, amounts and names appear within this document do not represent true
figure and are been used for presentation purposes only.
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How To Guide
Preparation
Backup
Perform a backup of the SAP Business One database before you start the Year End Closing
process.
This is important because it is not always possible to re-construct a report backdated to the cut-off
date in SAP Business One. The status of the previous fiscal year is saved in the backup.
Note: If you are not familiar with the backup prcedure please contact your IT
administrator or Supernova Support Center.
Checking Control Accounts
Checking Control Accounts that are matching the individuals master data balances is a simple
process. Please follow the process below for checking the Control Accounts.
1. From Main Menu go to ReportsFinancialsFinancialTrial Balance
2.
3.
4.
5.
The Trial Balance – Selection Criteria window will open.
Select BP indicator and select under Groups field the option ALL.
Select Customer’s and Supplier’s Control Accounts.
At the Date field select Posting Date and enter as the date range the first and the last date
of the year that you are processing for the Year End.
6. Click OK.
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How To Guide
7. The Trial Balance Report will pop up.
8. In this example G/L Accounts are viewed at level 1.
9. Check that Customer’s and Supplier’s totals are equal to the Control Account Balances.
10. You can change the level as shown below to view more details.
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How To Guide
Exchange Rate Revaluation
When you maintain a foreign currency (FC) business partner and/or accounts, all related
bookkeeping is conducted in the FC. As the bookkeeping system must also be conducted in local
currency (LC), every FC transaction of this nature also is expressed in LC according to the FC
exchange rate on the date of transaction. The daily fluctuations in the FC exchange rates create a
situation whereby the balances in LC and FC do not match. The automatic exchange rate
differences are designed to periodically recalculate the LC and FC balances, according to the
exchange rate on the day the differences are calculated.
SAP Business One can provide recommendations for executing automatic journal transactions for
exchange rate differences in FC business partners and accounts, correct to a given date. The
function of the program that calculates the exchange rate differences is to reconcile between the
FC card balance and the LC balance, considering the fluctuation in the FC exchange rate.
The exchange rates used for revaluation are those saved in the exchange rate table on the execution
date. The current exchange rate that is valid for the valuation must already exist in the exchange
rate table before executing the transaction.
NOTE: Regarding SAP B12005A version before proceeding with any transactions, make sure
that you have set as default the proper period. Otherwise system will generate an error message:
To setup the default period see in the image below.
Above screenshot applies only to SAP B1 2005A version
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How To Guide
1. To access the Exchange Rate Differences function, choose Financials → Exchange Rate
Differences.
2. Select Business Partner.
3. Enter Execution Date and the G/L Accounts for Gain and Loss.
4. Currently, the execution date is used only to determine the exchange rate from the rate
table with this date. The system does not select the open items backdated to this date and it
selects the open items based on the system date. Therefore, we recommend that you
perform the currency valuation promptly after all transactions for the previous fiscal year
have been entered or do a manual comparison with the results of the AGING report.
5. Click Execute.
6. The Exchange Rate Differences window will pop up.
7. Fill in text fields, check BP’ account differences.
8. Select BP’s and click Add.
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How To Guide
9. In this example, the account of the first BP will be debited with 9.633 and the Exchange
rate G/L account will credited with 9.633
10. The 3rd BP account will be credited with 9.460 and the Gain/Loss Account will be debited
with 9.460.
11. The system in this example will create four journal entries, one for each BP Account.
12. Some processes must be followed for the General Ledger Accounts as shown below.
13. Click Execute.
14. We recommend that you create an automatic reverse posting on the first day of the
subsequent period.
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How To Guide
It is advisable to check the suggested accounts carefully. Very often, you have to differentiate
between realized and unrealized exchange rate differences. The system default shows the accounts
that are set in the account determination setup and the accounts are normally set for realized
exchange rate differences.
Financial Audit Adjustments
After audit control you must proceed with the final audit adjustments postings.
Note: All financial adjustments must be posted on the last date of each fiscal year
Run Stock Audit Report
This report provides an audit trail for the posted stock transactions in the chart of accounts.
You use this report to make comparisons between the accounting view (stock balance accounts)
and the logistics view (stock value displayed by the audit report). The report explains the value
changes in stock accounts.
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How To Guide
Year End Closing
Year End Closing Process
To carry forward the balances of the P&L accounts to the corresponding account in the balance
sheet (or several different balance sheets), you can use the PERIOD-END CLOSING function.
You can store the result initially as a report and then post them at a later stage. If you make
postings after the balances carried forward have been entered, you need to restart the period-end
closing routine to include these subsequent postings.
When the balance is carried forward, the balances of the P&L accounts are posted to a clearing
account on the day of carrying forward (the last day of the period). Therefore, the balances are
reduced to zero. On the first day of the subsequent period, the clearing account is posted to the
corresponding balance carried forward to the account in the balance sheet.
1. To open this window, choose Administration → Utilities → Period-End Closing.
2. Select the Period as year, for this example is the year 2009.
3. In the From and To fields enter the first and the last month of the year as shown above.
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How To Guide
4. Click on the Settings button. The Period End Closing Selection Criteria will pop up.
5.
6.
7.
8.
In the Ref 1 and Ref 2 fields, enter required references for the journal entries.
In Value Date and Document Date, enter required dates for the journal entries.
Click OK.
In the Retained Earnings Account field choose the relevant G/L account to be used as the
clearing account in the journal posting made in the accounting system, i.e. Retained Earnings
for the Year.
9. In the Period End Closing field choose the relevant G/L account to be used as a clearing
account to the P&L account, and to the retained earnings account, Year Earnings Suspense.
10. Click Execute. The Period-End Closing window will open as shown below.
11. Click on the Approved column label to select all the accounts and click Execute again.
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How To Guide
12. After the system finishes the Year End Closing calculations, go back to the journal entry
window.
13. Click to navigate back to the last transaction.
14. You will notice that the system credited the Retained Earning B/F account and debited the
Retained Earnings for the Year account using as posting date the 1st date of the new fiscal
year.
15. If you go back one more transaction, you will find that the system credited the P/L Account
and debited the Retained Earnings B/F account with the same amount as in the last
transaction.
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How To Guide
16. These are the transactions that the system records for each P/L Account.
NOTE: Instead of using R/E B/F you can use R/E directly. If you use R/E B/F then
you need to manually post Profit / Loss from R/E B/F to R/E
Page 13 of 13

How to Perform Year End in SAP Business One How To Guide

Transcription

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