SAP FICO Month End Activities

Hello, everyone. In today’s session, we’ll learn about month end activities and the finance model. Now month end activities itself means finalizing financial accounting processes, now under month end activities we can have finalizing the financial account postings, we can finalize the financial account cycles  then there is settlement of CWIP and internal orders at the month end. Then we have to close all the settled process orders, then month end periods by posting periods. Then we have to open and close all the accounting periods.

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So  there are some of the activities which are done at the month end of the process. Let us see what is the month end activities closing activities. Now here we take it into consideration some of the activities, like finalizing the financial accounting postings and automatic posting of exchange rate differences, then post recurring journal entries, run assessment cycles, and settlement of CWIP internal orders, and open and close accounting pages. So these are some of the activities, which are taken into consideration during the month end. Now, here it includes journal, that is GL journal entries in financial accounting, then accounts payable postings, and account receivable  postings, so these things should be finalized at the time of financial accounting. Now at the end of the month, if we wish to convert any foreign currency balances at a rate other than the rate applied at the date of the transaction, then we can do that, that is by re-evaluating this foreign currency postings. So, for example, if we wish to re-evaluate all the foreign currency items to a rate applicable at the end of the month, we can do that by re-evaluating the foreign currency postings. So to re-evaluate that foreign currency balance is for account payable accounts, we’ll use the transaction code FAGL_FC_VAL.

So this is the re-evaluation transaction code for foreign currencies, or we can use this SAP menu path. So we have to go under accounting, then financial accounting. Under that, we’ll go to general ledger, then periodic processing. Under that, we’ll have the option of closing where we can click the value add button for foreign currency valuation. So this is the transaction code for evaluating the foreign currencies. So here all the foreign currency items open as of this date will be considered for revaluation. Now you should note that if we select the field postings requested, the document will be automatically posted at the time we hit the execute button.

This illustrates the reason for the document posting and the amount to be posted. The program may also be run to re-evaluate foreign currency open items for general ledger accounts and accounts receivable. So this is how we revaluate the foreign currencies. This is the foreign currency valuation screen.

Here, we’ll have to provide the company code or a vendor code or we can provide a general ledger account ledger accounts range, which we want to re-evaluate. Then under that, we’ll have 3 options, like postings, open items, general ledger balances, and miscellaneous. So we can apply any of those tabs for providing the details for this foreign currency valuation. So after providing the company codes, we’ll click on this execute button. Once we click on the execute button, we’ll get this particular screen that is the foreign currency valuation screen. Now here it is given the valuation in company code currency.

So here we’ll have the currency USD amount, and we’ll have the local currency that is the INR currency amount. So this is the foreign currency valuation screen, and here we have the exchange rate for that particular currency. So this is how we do the foreign currency valuation at the month end and this is the postings, which are carried out after that execution.

So here we’ll have the general ledger items, the company code, and the documents and here this is the amount, that is the local currency amount given for this particular postings. This is how we maintain the valuation, that is revaluating the currencies in month end period. So here we come to an end of this session, which was on month end activities under finance domain. Month end activities includes finalizing the financial account postings, then we have opening and closing account period, then assessment cycles,  then month end also includes settlement of CWIP and internal orders, then it has updates of exchange rates, then displaying the document general ledger at the one hand, then it also includes closing all the settled process orders, month end period, and finance posting periods. So these were the things which come under month end activities. And, also, we have explored how to do the foreign currency valuation during month end if required.