Customer Vendor Balance Carry Forward, Year End Close

Now the system closes the fiscal year in a company code if it satisfies some of the conditions. The first condition is the system found no error during calculation of a depreciation like incorrectly defined calculation keys and incorrectly defined numbers. Then next is the planned depreciation from the automatic posting area has been completely posted to general ledger. Thirdly, balances from the depreciation areas posted periodically have been completely posted to the general ledger. And last is all assets acquired in the fiscal year have already been capitalized since this check does not make sense for assets under construction we can prevent this check from being made for assets under construction by means of asset class. So, these are some checklists which the system checks only before closing a fiscal year in a company code. All incomplete assets in the master codes have been completed. The system lists any assets that do not meet the above requirements in the log of the year end closing and the log shows the reasons for the error. So this is how a system closes the fiscal year for a specified company code. At the end, if it finds any error, then it will show the log with the reasons for the errors.

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Capital WIP Closing (AJAB)

Now next, we have capital WIP closing. That is capital work in process closing. Now here we’ll use a transaction code AJAB. So here either we can go via AJAB transaction code or we can use the menu path as accounting then financial accounting fixed assets, then periodic processing and under that, we have year end closing. So, we’ll click on execute button. So this is the screen, here which we’ll get for year end closing asset accounting.

Here, we’ll have to maintain the company code, the asset classes, constants, and the fiscal year to be closed. Then we’ll click on the test run option to run it in the test mode and then we’ll click on the execute button. So after that, we’ll get a screen where it will ask a message that if we want to continue the processing or not.

So here, we’ll click on the yes button. So after that, we’ll get this particular screen.

Now if this is run-in background this screen will appear after providing some of the steps for the processing in background. And the program now will run-in the background so this is the year end closing asset accounting details. Here it has the company code, the asset details and the description for it, so here it is depreciation note posted successfully, this is the message which we get from this asset accounting so here we have 0 number of errors, 0 number of posted items and 0 number of line items, and it is showing that we have some other errors in this particular financial year end closing.

Customer Vendor Balance Carry forward (F.07)

Next, we’ll see customer vendor balance carry forward now forwarding the customer or vendor balance into next financial year. Then we’ll have to use the transaction code F.07.

So here we have to provide the company code and the carry forward year that is the carry forward fiscal year. So after providing these details we’ll click on this execute button Now once we click on the execute button we’ll get a screen where it will give the number of records which are carried forward. So this is the customer records carry forward, and this is the vendor records, which are carried forward.

This is how we carry forward the customer and vendor records to the next financial year as an opening balance.

Year End Close: General Ledger (FAGLGVTR)

Lastly we’ll see how to do a year end close based on the general ledger. Now here we’ll use the transaction code FAGLGVTR. So here at the start of the new fiscal year, it is necessary to close off all the profit and loss account balances to the balance sheet account of the retained earnings. Also, it is necessary to carry forward the balance sheet account balances to the new fiscal year. So this is the main point when we start a new fiscal year for that particular record. Now this process achieves these objectives. Note that if there are any subsequent posting to period 13 to 16 occurring, they will automatically update the opening balance in the new fiscal year like period 0. So this function is performed via transaction code FAGLGBTR. So here for every new fiscal year, we’ll have to close off all the profit and loss account balances to the balance sheet account which is retained in that particular period. And we have to carry forward that particular balance sheet also to the new fiscal year. So for that we have to retain some of the settings for the general ledger, that is we have to update the opening balance period in the new fiscal year. So we can do that via transaction code FAGLGVTR or we’ll have to follow the SAP menu path which is Accounting, Financial Accounting, then General Ledger, then Periodic processing then we’ll go to Closing Carry Forward. There we’ll find the transaction code for balance carry forward for general ledger. So, this is the screen for balance carry forward.

Here, we’ll have to provide the general ledger and the company code, then we have to provide the carry forward fiscal year. After that, we’ll click on the execute button. So this is the sheet which we get, that is the general ledger carry forward sheet for that particular year.

So here we have the list, it is displaying the list of records, which needs to be carried forward. So this is how we get the output.

Next, we have something called as year end close for general ledger. Now here each GL account together with the balance brought forward will now be displayed. Note that if we subsequently back post to this period that is prior period after this run has been completed, we need to rerun this transaction. So when rerunning this transaction only balances that have changed will be transferred. So here we can carry forward the balance sheet for each GL account and if we back post to this year, that is if we back post to the previous year after the run has been completed, then we need to rerun that same transaction for the balances which have been changed. So this is the year end closing for general ledger.

This is the balance sheet that is the display of the balance sheet accounts. Here we have the year end closing, then the company code and details for the transaction. Then after that you will get a retained earnings accounts sheet where it will give the total transactions done till date for that  particular and the company code currency transaction.

This is the details, which we get at the end of the financial year.

Now here we come to an end of this year end activities session. Here we have seen how the year end activities takes place. First, we have seen about fiscal year change based on asset accounting with the help of a transaction code AJRW, then we have seen what is capital WIP closing using transaction code AJAB, then we have seen how to close the customer vendor balance carry forward using transaction code F.07, and last we have seen how to do a year end closed on general ledger using transaction code FAGLGVTR. So these were the topics which we have learnt under year end activities and seen how to do the year end closing activities for all of these about mentioned details.