| # Year end processing When you close the financial year, ERP Enterprise balances the profit and loss accounts and builds the opening balances of the balance sheet accounts for the new year. After you finally close the financial year, no financial transactions can be created or posted for the closed year. Before you can close the financial year, you must process all integration transactions and recurring transactions, finalize all transactions, and close all the periods except the last GLD period. The last GLD period is typically the correction period. The GLD period must remain open because ERP Enterprise must create the entries to balance rounding differences and to balance the profit and loss accounts. Run the Period Status (tfgld0107m000) session to set the periods for the individual modules to Closed. For more information, refer to Using periods. To close the financial year: Ensure the integrity of the financial data This step is optional. However, for best results, run the Rebuild Opening Balance/History from Transactions (tfgld3203m000) session to ensure that all the history transactions match with the finalized transactions. With this session, you can rebuild the ledger history and the dimension history at the same time. During the rebuilding process, no financial transactions must be entered or generated in the current financial company. Otherwise, the rebuild may fail, or the result can be unreliable. Close the year provisionally This step is optional and is used for information only. You can run the Close Year - Provisional (tfgld6201m000) session to simulate the closing of the year. Without creating any transactions or postings, ERP Enterprise accumulates the amounts of all profit and loss accounts and builds provisional opening balances for all balance sheet accounts in the new fiscal year. You can view the new opening balances in the general ledger. You can perform provisional year closing for the current fiscal year, which ERP Enterprise displays in the Company Parameters (tfgld0503m000) session. After provisional year closing, you can continue to process transactions for the current fiscal year. You can still post corrections to a period in the year, and you can repeat the provisional year closing as required. Clear the profit and loss accounts Run the Automatic Balancing of Profit and Loss Accounts (tfgld6202m000) session to balance the profit and loss accounts. Several balancing methods are available. Correct the rounding (Optional) If the Close Year - Provisional (tfgld6201m000) session or the Automatic Balancing of Profit and Loss Accounts (tfgld6202m000) session result in an error message such as Total profit and loss balance is not yet zero for a currency or Balance ledger account does not tally for a currency, you must correct the rounding of the amounts. After you complete corrections: Run the Rebuild Opening Balance/History from Transactions (tfgld3203m000) session. Rerun Close Year - Provisional (tfgld6201m000) or Automatic Balancing of Profit and Loss Accounts (tfgld6202m000) If rerunning the latter session results in a new batch, finalize this batch before you proceed. Finally close the financial periods Run the Close Periods (tfgld1206m000) session to set the period status of all GLD periods to Finally Closed for all period types. Close the year Run the Close Year (tfgld6203m000) session to finally close the current year and to create opening balances for the new year. This will result in a new batch, which must be finalized in the next year. If you finally close the current year, you can no longer process any transactions for the year. The opening balances created by the provisional year closing are overwritten. Archive the history data In the Store Data for X Years field of the Group Company Parameters (tfgld0101s000) session, you specify the number of years that the financial details must be retained in the current financial company. If the number of years has expired, you can run the Archive / Delete Period Totals (tfgld6206m000) session to archive and/or delete the financial data of a financial year. ERP Enterprise does not automatically perform this action. Related topics Balancing methods for Profit and Loss accounts To correct the rounding |