FINANCIAL YEAR END DOCUMENT

Prepared for:

Bluekey Clients

Prepared and presented by:

Bluekey Support

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TABLE OF CONTENTS

1 DOCUMENT OVERVIEW .................................................................... 3

1.1 Year End Closing in SAP Business One .......................................... 3

1.2 Check that all periods are in “open” state. ..................................... 3

1.3 Launch the Period End Closing Tool .............................................. 5

1.4 Confirm transactions ................................................................... 8

1.5 Journal Entry created ............................................................. 10

1.6 Final Closing of the Period ......................................................... 11

1.7 Setting up new posting periods ............................................... 13

1.8 Renaming the Period ................................................................. 16

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1 DOCUMENT OVERVIEW

1.1 Year End Closing in SAP Business One

It's that time of year again for, well, year end closings. Closing out the year

in your business accounting software has traditionally been difficult and time

consuming, but with SAP Business One it is a much better experience.

The below instructions are for running the Year End process, and do not

include the steps necessary to "prepare" for Year End Closing.

1.2 Check that all periods are in “open” state.

In SAP Business One, posting periods can have multiple statuses, so it is

important to check that all the periods in the year being closed are in the

correct status. An open period can have any of the following period status:

Closing Period

Unlocked Period

Unlocked Except Sales

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What we're making sure of here is that none of the periods are "locked",

which is a status that should be used after the period is completely closed

and will no longer be used (such as after a year end close, for example).

Tip: Be sure to check each sub-period for the year that is being closed if you

use sub-periods. Sub-periods typically begin with the year and then have a

month or sub-period identifier, such as 2009-12, for the 12th period in

2009.

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1.3 Launch the Period End Closing Tool

This tool can be found at: Main Menu > Administration > Utilities > Period

End Closing

Select all of the General Ledger (GL) accounts that need to be closed by

clicking the check box next to each, or by clicking the column header to check them all.

Select the Year of the periods you want to close and selecting the from and to month.

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Retained Earnings Account: Select the appropriate GL Accounts for

‘Retained Earnings’

Period End closing: Select the appropriate GL Account for ‘Period End closing’

Click on Execute to open the Period End.

Approve the recommended year end postings by ticking the check box.

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Set the due date the same as the posting date to avoid confusion in future.

Once executed again:

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1.4 Confirm transactions

Run the Balance Sheet Report for last day of previous year and for the first

day of the new year, to compare.

Balance Sheet –Selection Criteria:

Include the ‘Add Closing Balances ‘when running the Balance sheet.

Balance sheet for the last day of the previous year:

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Balance sheet for the first day of the New Year:

The balances that show are the opening balance for the new financial year.

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1.5 Journal Entry created

The Period End closing is done; new posting periods can be set.

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1.6 Final Closing of the Period

To close the period, you change its status to lock. Locking the period helps

you prevent any additional or accidental postings. Before you lock the current period, you must close the P&L accounts.

Administration → System Initialization → Posting Periods.

In the Posting Periods window, click for the period you want to lock.

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Change Period status to Locked.

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1.7 Setting up new posting periods

Administration – System Initialization – Posting Periods –click on New

Period.

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Period Code: Enter the current year “2013”

Period Name: Enter the current year name “2013”

Sub –periods: In Months

No. of Periods: Its 12

Period Indicator: Default

Period Status: By default it is on “Unlocked” you will only be change the period status once you have added the Posting Period.

The dates should automatically be aligned, but you need to double check

and make sure they correspond to the previous year periods.

Posting Date: Specify the posting date range for the new period. By default, the From date is the day after the end date of the latest posting

period exists, and the To date is the last day of the year.

Due Date: Specify the due date range of the new period. The due date

range can be longer than the posting date range. You need to keep in mind the Payment Terms for the Business Partner when setting up your due date.

Document Date: Specify the document date range of the new period. The

document date range can also be longer than the posting dates range.

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Start of fiscal year: The first day of the new period.

Fiscal Year: The New Year “2013”

Once you are done, you can than click on Add, to add the new posting

periods:

The new Periods have been created -12 months.

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1.8 Renaming the Period

Click on the Orange arrow starting with 2013-01, you can name both the period code as well as the Period name, name them according to the

previous periods. E.g

Click on update to save the new name.

You must do the same with the other period codes:

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