Financial Closing Scenario Overview Click process chevrons for details Financial Closing - Month-End Scenario Explorer Scenario Description Open Legend The Financial Closing business scenario helps you to perform financial period-end closing activities to ensure correct financial statements, such as Balance Sheet, Income Statement, and Cash Flow Statement. Other closing activities are performed in the corresponding areas separately. The system generates a closing activity list according to the company‘s individual scope that can be adapted according to the requirements of month-end or year-end closing. The accountant prepares closing by ensuring that all operational transactions are entered in the system, such as entering and paying invoices or performing physical inventory counts. The Closing Cockpit supports the legal requirements and minimizes the risk of missing important steps or incorrect timing. The accountant performs periodic valuation tasks, such as asset depreciation or foreign currency remeasurement and allocates costs and revenues to the correct periods. This ensures timely and compliant financial reporting and analysis. Scenario/Processes Business Value Scenario Flow Further Information + The following business roles are involved in this scenario: Accountant

Financial Closing Scenario Overview Click process chevrons for details Financial Closing - Month-End Scenario Explorer Scenario Description Legend Open Legend Close Legend The Financial Closing business scenario helps you to perform financial period-end closing activities to ensure correct financial statements, such as Balance Sheet, Income Statement, and Cash Flow Statement. Other closing activities are performed in the corresponding areas separately. The system generates a closing activity list according to the company‘s individual scope that can be adapted according to the requirements of month-end or year-end closing. The accountant prepares closing by ensuring that all operational transactions are entered in the system, such as entering and paying invoices or performing physical inventory counts. The Closing Cockpit supports the legal requirements and minimizes the risk of missing important steps or incorrect timing. The accountant performs periodic valuation tasks, such as asset depreciation or foreign currency remeasurement and allocates costs and revenues to the correct periods. This ensures timely and compliant financial reporting and analysis. Process mainly driven by the user Process mainly driven by the system Manual process not supported by the system Process that communicates with third-party software (mouse-over for details) Process with relevance to Financials Related scenario Info button with more information Scenario/Processes Business Value Scenario Flow Further Information + The following business roles are involved in this scenario: Accountant i <Role Name> <Role Name> <Role Name>

Financial Closing Process Details: Financial Closing – Month End Click process chevrons for details Financial Closing - Month-End X Prepare month-end closing Perform valuation Create financial statement reports i i i Click here to display process variants Scenario Explorer Process Description Further Information The Month-End Closing business process helps you to perform financial period-end closing activities to ensure correct financial statements, such as Balance Sheet, Income Statement, and Cash Flow Statement. Period-end closing activities include completing operational transactions and other month-end preparational postings, such as journal entry vouchers. In the case of partner companies it also includes entering intercompany journal entry vouchers. Performed by Accountant Scenario/Processes Business Value In the Work Center General Ledger Scenario Flow Further Information + See also Financial Statements Quick Guide for Closing Cockpit

Financial Closing Process Details: Financial Closing – Month End Click process chevrons for details Financial Closing - Month-End X Prepare month-end closing Perform valuation Create financial statement reports i i i Click here to hide process variants Quarter-End Closing Year-End Closing Closing with Consolidation Preparation i i i Scenario Explorer Process Description Further Information The Month-End Closing business process helps you to perform financial period-end closing activities to ensure correct financial statements, such as Balance Sheet, Income Statement, and Cash Flow Statement. Period-end closing activities include completing operational transactions and other month-end preparational postings, such as journal entry vouchers. In the case of partner companies it also includes entering intercompany journal entry vouchers. Performed by Accountant Scenario/Processes Business Value In the Work Center General Ledger Scenario Flow Further Information + See also Financial Statements Quick Guide for Closing Cockpit

Financial Closing Business Value Prepare Perform Valuate Report Perform Physical Inventory Send Balance Confirmations to Suppliers and Customers Run Other Period Closing Preparations Perform Foreign Currency Remeasurement Run Perform Depreciation and other Valuation Runs Post Accruals and Valuations Post Reserves and Transfers Create Balance Audit Trail Create Schedule of Fixed Assets Create Financial Statements Scenario Explorer Overview Key Benefits Central and standardized closing procedure ensures the integration of each individual statement form Reconciliation capabilities to proof the consistency across different business areas Access to an up-to-date, comprehensive overview of the closing status, which promotes transparency Parallel accounting functionality enables creation of financial statements that comply with appropriate accounting principles Ability of employees to define closing tasks and their sequence well in advance, thereby supporting compliance and minimizing the risk of missing important steps or getting their timing wrong Built in analytics enables a drill down to capture changes and adjustments affected by closing activities For midsize companies who need to meet quickly and efficiently financial filing deadlines and achieve better transparency and compliance, this scenario aligns payables and receivables, tax and inventory accounting, management and general ledger accounting. You can improve financial and management reporting for regulatory compliance and increase investor confidence. SAP Business ByDesign helps manage efficiently the end-of-period closing process: From completing operational transactions and their required postings, submitting reports to tax authorities through to the creation of financial statements. Scenario/Processes Business Value Scenario Flow Further Information +

Financial Closing Scenario Flow General Ledger Financial Closing - Month-End Quarter-end closing Year-end closing Closing with Consolidation Preparation Scenario Explorer Scenario/Processes Business Value Scenario Flow Legend Further Information + Process mainly driven by the user Process variant1 Process variant 2 Process related to Financials Work Center Work center in which process is performed

Financial Closing Further Information Scenario Explorer Do you want to try it out? Do you need more information? Do you want to discuss with others? Self-Enablement Systems If you want to try out the business scenario, click here.* More Details SAP provides a complete product documentation, covering all aspects of the business scenario. For more details, click here. Forum Get in touch with experts to discuss your specific requirements. To enter the community, click here.* Scenario/Processes Business Value Scenario Flow V WIKI In addition to the product documentation, SAP provides Wikis that describe additional aspects of SAP Business ByDesign. To access the WIKI, click here.* Further Information + * Note that to access the links above you need to have a user in SAP Business Center. If you cannot access the page directly and if you are using Microsoft Internet Explorer®, please check http://support.microsoft.com/kb/890474.