This is a video tutorial on how to perform closing activities of Day End, Month End and Year End in SAP FICO. Here is a summary of the key points discussed in the video:
Purpose of Closing Activities
- Closing activities help prevent businesses from experiencing financial challenges, losses, and translation issues.
- It’s important for the finance team to verify, validate, and confirm all transactions have been posted into the SAP system to ensure a true and fair view of the financial state of the business.
- These processes are generally time-consuming and require attention to detail.
- The essence of the video is to equip SAP users with the skills to perform these activities.
Closing Activities in SAP
- In SAP, a financial closing activity is an accounting procedure that ensures all financial transactions have been accounted for in the previous day, month, or year, and all reconciliations have been closed out.
- The purpose of these activities is to check the books and make sure that all open items that are supposed to have been closed are indeed closed.
- The same applies for year-end closing activities.
- The video then goes on to discuss the day-end activities that should be carried out by those who have authorizations for these transaction codes.
- These activities are mostly carried out by end users and super users.
- They are supposed to check these various transactions to make sure that the books of accounts and the ledgers and the sub-accounts are correct and in line with standards.
- Some of the activities include checking the customer line item, vendor line item, GL line item, daily cash reconciliation, and updating exchange rates.
Month-End and Year-End Activities
- The video also briefly mentions the month-end and year-end activities.
- These activities are carried out at the end of the month or year to close out all open items.
- Some of these activities include GL account clearing, customer account clearing, vendor account clearing, and bank reconciliation.
Demonstration of Day-End Activities
- The video then demonstrates how to perform some of the day-end activities in SAP, such as checking the customer line item, vendor line item, GL line item, and daily cash reconciliation.
- The presenter also shows how to update exchange rates and run cost center reports.
- The video concludes with a demonstration of how to check for gaps in document numbers, which is an important task for auditing purposes.