Period-End Closing and Reporting
Contents
 Deferrals
 Exchange Rate Differences, Conversion Differences
 Period-End Closing
 Year Transfer
 Financial Report Templates
 Company Reports and Comparison Reports
 Cash Flow
 Tax Reports
 SAP AG 2003
Period-End Closing and Reporting: Unit Objectives
At the conclusion of this unit, you will be able to:
 Post deferrals
 Determine exchange rate and conversion
differences, and post them automatically
 Perform period-end closing of revenue and
expense accounts
 Create financial report templates and run
company and comparison reports
 Generate cash flow and tax reports
 SAP AG 2003
Period-End Closing and Reporting:
Course Overview Diagram
Human Resources
Financials
Banking
Service
 SAP AG 2003
Period-End
Closing and
Reporting
Period-End Closing and Reporting: Business Scenario
 Certain closing operations must be carried out by the
Accounting department at the end of every period.
You can use the adjusted data to compile company
reports and produce the required statutory
statements.
 SAP AG 2003
Deferrals with Automatic Reversals
Old Year
New Year
Vendor
100
100
60

 
 Post Invoice
 Post Deferral
 Reverse Deferral
 SAP AG 2003
Expenses
Old Year
New Year
100
60
 
60

Deferred
Expenses
60
60
 
Doubtful Debts
Control Accounts
For Receivables
Due Date of
Invoice
1000
+ z Days
250
+ y Days
Time
+ x Days
25%
Customer
1000
250
250
Control Accounts
For Doubtful Debts
250
 SAP AG 2003
Doubtful Debts
Journal Entry
30%
50%
Exchange Rate Differences, Conversion Differences
Account in Foreign Currency
Exchange Rate
Differences
10 LC
Non-Valuated Bal.
Valuation
10 LC
200 LC 100 FC
Valuated Balance
190 LC 100 FC
Reject
Proposal
or
Proposals from
Difference Postings
 SAP AG 2003
Accept and Post
Proposal
Period-End Closing
Expense Account
X
2
Period-End Closing
Account
2
X
Y
1
3
Y
X
4
Revenues Account
1
Y
Retained Earnings
Account
4
X
Y
3
Reject
Proposal
or
Proposal from
Difference Postings
 SAP AG 2003
Accept and Post
Proposal
Creating a New Fiscal Year
Company X
Company X (03)
Year Transfer:
Fiscal
Year
2003
1.
System Initialization and
General Settings,
Print Documents, and User
Queries
2.
G/L Accounts, business
partner master records, and
item master records
Company X (04)
3.
Documents of selected
document types
Fiscal
Year
2004
4.
Balances of G/L and
business partner accounts,
item stocks
Fiscal
Year
2003
Year Transfer
Fiscal
Year
2004
 SAP AG 2003
Financial Report Templates
Level 1
Assets
General Ledger
Liabilities
Template for Balance
Active
Accounts
Passive
Accounts
Assets
Profit Period
Liabilities.
Cap. + Res.
Cap. + Res.
Template for P&L
Turnover
+ Turnover
- Cost of Sales
Cost of Sales
= Gross Profit*
- Operating Costs
Operating C.
Non-Operating
= Operating Profit*
+/- Non-Operating Inc. and Exp.
= Profit after Financing Expenses*
Tax + Extr.
+/- Taxation and Extraordinary Items
= Profit Period*
* Default Subtotals
 SAP AG 2003
Editing a Financial Report Template
Level 1
Level 2
Level 3
Level 4
Bank Loans
Due < 1 Year
Template for Balance
Assets
Profit Period
Liabilities.
Cap. + Res.
Current
Liabilities
Template for P&L
+ Turnover
- Cost of Sales
= Gross Profit
Level 5
Long Term
Liabilities
Creditors
Due Within
One Year
Creditors
Due After
One Year
Bank Loans
& Overdrafts
Other Loans
Due < 1 Year
...
Accruals &
Deferred
Income
...
- Operating Costs
= Operating Profit
+/- Non-Operating Inc. and
Exp.
= Profit after Financing
Expenses
+/- Taxation and
Extraordinary Items
= Profit Period
 SAP AG 2003
Called Up
Share Capital
Ordinary
Share Capital
Ordinary
Share Capital
Ordinary
Share Capital
...
Titles
Dummy Titles
Accounts
Cash Flow Report
Totals and Balances (Per Time Interval) of:
Cash Flow
Report
 Cash accounts
 Clearing accounts for credit cards
 Clearing accounts for checks
 Customer accounts
 Vendor accounts
 SAP AG 2003
Tax Postings and Tax Report
Input Tax
Vendors
VAT
Input
Tax
Sales
Tax
Tax
Input Tax: Tax Receivables
Sales Tax: Tax Liabilities
Tax Authority
 SAP AG 2003
Customers
Tax Groups for EU Sales Report
Vendor
Expenditure
Tax
Group
Acquisition Tax
(Sales Tax)
 SAP AG 2003
Acquisition Tax
(Input Tax)
Period-End Closing and Reporting: Unit Summary
You are now able to:
 Post deferrals
 Determine exchange rate and conversion
differences, and post them automatically
 Perform period-end closing of revenue and
expense accounts
 Create financial report templates and run
company and comparison reports
 Generate cash flow and tax reports
 SAP AG 2003