1. Financial Closing Scenario Overview
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Financial Closing - Month-End
Scenario
Explorer
Scenario Description
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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

2. Financial Closing Scenario Overview
Click process chevrons for details
Financial Closing - Month-End
Scenario
Explorer
Scenario Description
Legend
Open Legend
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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
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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>

3. Financial Closing Process Details: Financial Closing – Month End
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Financial Closing - Month-End X
Prepare month-end closing
Perform valuation
Create financial statement reports i i i
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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

4. 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

5. 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 +

6. 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

7. Financial Closing Further Information
Scenario
Explorer
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