Year-End Transactions
The Year-End Closing activities (25.21.4) let you run a process to automatically create closing postings, and to close the GL calendar year to new transactions. You can run year-end closing on the official layer and also on management layers. You can close management layers before or after closing the official layer.
The year-end closing process comprises three steps:
• A setup step to create all accounts and daybooks required.
• A verification step that includes a number of checks on the GL calendar year to close.
• A registration step where the process creates correction periods (if required), postings, and closes all GL periods in the GL calendar year.
The year-end closing postings include:
• A P&L transfer to balance sheet posting
• A P&L closing posting
• A balance sheet closing posting
• A balance sheet opening posting
You can transfer the P&L to the balance sheet manually before the year-end closing is run or it can be included as the first step in closing postings. You can create the other three postings automatically using the year-end closing process.
Year-end postings are created in the base and statutory currencies, and for a single entity at a time. The postings can optionally include sub-accounts, but no other account analysis.