Closing Activities in Asset Accounting in fico

Every depreciation activities for fiscal year 2000 have to be posted in asset accounting.

You have executed the fiscal year change from 2000 to 2001.

You still have to carry out the Year-End Closing in asset accounting.

Purpose

The extent of closing activities in asset accounting widely depends on the requirements of the company. There are some closing activities every company must carry out and others that are only relevant for a smaller number of companies. In this scenario we will show you the following activities:

• Executing periodic reports

You can use periodic reports to analyze, if the forecasted values meet the demands of the company or if they have to be corrected. After closing these reports are used to document the latest state.

• Manual depreciation

Generally the planned depreciations for the actual fiscal year are determined by the depreciation keys in the master record. If you want to determine depreciations individually the system provides the possibility of manual depreciation. For example unplanned depreciations or the transfer of reserves are typically entered manually.

• Posting the depreciation

Every movement of a complex fixed asset results in a modification of the forecasted depreciation but not in an update of the accumulated depreciation accounts for the financial statement. Only by carrying out a periodic depreciation run with a batch input session the planned depreciations for each complex fixed asset will be accumulated per posting level and posted in financial accounting.

• Fiscal year change

Fiscal year change means to open a new fiscal year for a company code. By carrying out a fiscal year change the asset values of the old fiscal year are carried forward to the new fiscal year. From then on you can post assets with asset value date in the new fiscal year though postings in the old year are still possible.

• Year-end closing

Running the year-end closing closes a fiscal year for one or more company codes from the accounting point of view. After you have carried out the year-end closing no more postings or value changes (for example by recalculating the depreciations) can be executed in the closed fiscal year.

You can find more information about this process under .

Prerequisites

To avoid errors in the output controller, please check your printer settings before you start working on this process.

1. To do this, select System
® User profile ® Own data.
2. In the Defaults tab page enter the following data:

Field	Data
Start Menu	Name of your printer

3. Choose .

You can find the data for this process under .

Process Flow

1. First you will display the asset list. There you will give attention to a certain asset.

Displaying the Asset List

2. You will then post an unplanned depreciation for the asset of the previous step.

Unplanned Depreciation: Posting

3. Next you will display the asset in the asset explorer.

Displaying the Asset in the Asset Explorer

4. In order to allow other users to run the same depreciation, you should reverse the previous posting.

Reversing the Asset Posting

5. You will then carry out the depreciation run.

Periodic Depreciation: Carrying Out the Depreciation Run

6. To update the general ledger with the data you will process the batch input session.

Processing the Batch Input Session

7. At the end of the year you can carry out the fiscal year change.

Fiscal Year Change

8. In the new fiscal year you will execute the year-end closing for the last year.

Year-End Closing

The Cash Journal in fico

Purpose

The cash journal is used as a subsidiary ledger in Bank Accounting to manage cash transactions within the organization. It can be used independently of other posting transactions. The opening and closing balances, as well as the cash receipts and payments, are automatically recorded and displayed. Multiple cash journals can exist within each company code.

The cash journal is a single screen transaction. This means that you can enter, display, and change cash documents on one screen.

For more information about this process, see .

Prerequisites

The cash journal and its business transactions have been defined in Customizing for Bank Accounting. A business transaction is a summary of posting information with an appropriate name.

You can find the data for this process under .

Process Flow

1. 
   
Posting Customer Invoices
2. 
   
Entering Cash Receipts
3. 
   
Manually Clearing Customer Accounts
4. 
   
Entering Cash Payments
5. 
   
Printing the Cash Journal

Planning Data Integration Between G/L Accounting and Controlling in fico

Purpose

Integrated planning lets you post planning data created in Controlling automatically to the General Ledger via integration interfaces. The system takes into account all CO planning records that contain primary costs. The system saves the data in the general ledger using the CO planning version. To post planning data automatically, you must set the planning version in CO to integrated. You also need to set the relevant integrated planning data version for the individual general ledger accounts and activate them.

We have already made the necessary settings for IDES. The planning documents have also been transferred. In this IDES process, you display the planning document transfer. In Cost Center Accounting, you plan a cost element. You also plan an internal order. You also execute a periodic transfer posting and distribution in Cost Center Accounting. After each of these business transactions, you use reports to display the current planning status in G/L Accounting to note the effects of the changes.

You can find more information about this process under .

Process Flow

You can find the data for this process under .

1. 
   
Displaying Posted Planning Documents
2. 
   
Executing Primary Cost Planning
3. 
   
Displaying the Newly Posted Planning Documents
4. 
   
Planning an Internal Order
5. 
   
Displaying the Planning Documents of the Internal Order
6. 
   
Resetting the Planned Values

Closing Activities in General Ledger Accounting in fico

Purpose

In this process, you first reconcile the debit and credit balances of the posted documents with the debit and credit balances of the transactions figures in A/P, A/R, and the general ledger, in order to check the consistency of the data in the system.

You then complete various closing activities: Foreign currency valuation of assets, accruals and deferrals, analysis of the purchase orders in process, and clearing of accounts.

In the last part of this process, you run a few programs that document the accounting documents (document journal, list of G/L account postings), and then create financial statements.

To avoid output errors, check your print settings before starting this process chain.

1. To do this, select System
® User Profile ® Own Data.
2. Choose the Defaults tab, and then enter the following data:

Field	Data
Output device	Name of printer you wish to use

3. Choose .

You can find more information about this process under .

Process Flow

You can find the data for this process under .

1. 
   
Reconciliation Documents - Transaction Figures
2. 
   
Accruals/Deferrals: Entering Rent Expense
3. 
   
Accruals/Deferrals: Creating Accrual/Deferral Postings
4. 
   
Accruals/Deferrals: Creating Reversal Postings
5. 
   
Foreign Currency Valuation of Balances: Entering Bank Postings
6. 
   
Foreign Currency Valuations of Balances: Entering Exchange Rates
7. 
   
Foreign Currency Valuation of Balances: Performing Valuations
8. 
   
Foreign Currency Valuation of Balances: Processing Batch Input Sessions and Displaying Posting Documents
9. 
   
Analysis of GR/IR Clearing Accounts: Entering Material Orders
10. 
    
Analysis of GR/IR Clearing Accounts: Entering Goods Receipts
11. 
    
Analysis of GR/IR Clearing Accounts: Running Programs
12. 
    
Analysis of GR/IR Clearing Accounts: Processing Batch Input Sessions and Displaying Posting Documents
13. 
    
Automatic Clearing of GR/IR Clearing Accounts
14. 
    
Compact Document Journal
15. 
    
Balance Audit Trail: Compilation of G/L Account Postings
16. 
    
Creating Business Reports
17. 
    
Sending Business Reports
18. 
    
Receiving Closing Reports
19. 
    
Information on Exchange Rate Types
20. 
    
Lowest Value Principle
21. 
    
Batch Input Session
22. 
    
Analysis Information
23. 
    
Information on Creating Business Reports

Closing Operations in Accounts Receivable and Accounts Payable Accounting in fico

Purpose

In this process you carry out year-end closing in Accounts Receivable and Accounts Payable.

You go through the following steps:

• Generation of account statements: To check posted documents within a period.
• Generation of balance confirmations: To check the number of receivables and payables.
• Individual value adjustments using the special general ledger technique.
• Valuation of open items in foreign currency including the posting of the gains or losses due to exchange rate fluctuations.
• Sorted lists of open items with regrouping of items for changed reconciliation account, vendors with a debit balance and customers with a credit balance according to remaining life.

For more information about this process, see .

Prerequisites

To avoid output errors, check your print settings before starting this process.

1. To do so, choose System
® User Profile ® Own data.
2. On the Defaults tab page, enter the following data:

Field	Data
OutputDevice	Name of printer you wish to use

3. Choose .

Process Flow

You can find the data for this process under .

1. 
   
Correspondence: Entering Invoices
2. 
   
Correspondence: Generating Account Statements
3. 
   
Correspondence: Generating Balance Confirmations
4. 
   
Individual Value Adjustments: Entering Invoices
5. 
   
Making Individual Value Adjustments for Doubtful Receivables
6. 
   
Individual Value Adjustments: Displaying Customer Line Items
7. 
   
Valuating Open Items in Foreign Currency: Entering Invoices in Foreign Currency
8. 
   
Valuating Open Items in Foreign Currency: Posting Exchange Rate Differences
9. 
   
Valuating Open Items in Foreign Currency: Displaying Documents
10. 
    
Allocation of Receivables and Payables According to Remaining Life: Entering Invoices
11. 
    
Allocation of Receivables and Payables According to remaining Life: Executing Programs
12. 
    
Allocation of Receivables and Payables According to Remaining Life: Generating Postings

Posting Example for Cost of Sales Accounting: Other FI and Controlling Examples in fico

Purpose

This process is part of a sequence of four processes that show cost of sales reporting for the profit and loss statement using the special purpose ledger. This process demonstrates various FI and Controlling postings, together with the effects of these postings on your financial reports. The posting processes include:

· Posting overheads in FI to a cost center

· Allocation of costs in CO

· Posting expenditure to a sales order

For general information on cost of sales accounting and cost of sales reporting, see the cost of sales reporting process in Profit Center Accounting.

Prerequisites

In this process, you transfer costs from one cost center to another. You then reconcile FI with CO by running a program that reads the reconciliation ledger and makes transfer postings to FI. If you run this program, you can only use the controlling area and period as selection criteria. In a demonstration environment, that means that you have to be very careful not to affect the examples of other users. The reconciliation ledger is not only used in this example, but also in processes that are restricted to the use of the reconciliation ledger.

Process Flow

You can find the data for this process under .

1. 
   
Running the Report for the Profit and Loss Statement
2. 
   
Posting Overheads in FI to a Cost Center
3. 
   
Allocation of costs in CO
4. 
   
Posting Expenditure to Sales Orders

Posting Example for Cost of Sales Accounting: Sales Order Processing in fico

Purpose

In this process, (as in three additional processes), we show you how to create your profit and loss statement based on cost of sales accounting using the special purpose ledger. You will see the various steps of a sales process and the effect they have on your profit and loss statement (P&L). For general information about cost of sales accounting, see the process Posting Example for Cost of Sales Accounting: Other Financial and Controlling Examples

You initiate the sales process by accepting a sales order for the PC components that you manufactured in repetitive manufacturing in the process Posting Example for Cost of Sales Accounting: Repetitive Manufacturing. You send your product, issue the invoice, and examine the effect on your profit and loss statement. You only have to carry out the repetitive manufacturing process before this one if you do not have sufficient products for sale in storage.

The following diagram reflects the procedures in this process:

For more information about sales order processing, see the SD process Sales Order Processing and Subsequent Functions.

Process Flow

You can find the data for this process under .

Entering Sales Orders

Delivering Products

Issuing Invoices

Running the Report for the Profit and Loss Statement

Posting Example for Cost of Sales Accounting: Repetitive Manufacturing in fico

Purpose

This process is part of a sequence of processes that show cost of sales reporting for the profit and loss statement using the special purpose ledger. The processes for repetitive manufacturing and their effect on the profit and loss statement are demonstrated. The other processes deal with the following topics:

• In the process
Posting Example for Cost of Sales Accounting: Sales Order Processing, you sell the product that you manufacture in this process.
• For other examples, see the process
Posting Example for Cost of Sales Accounting: Other Financial and Controlling Examples

In this production process, you manufacture a product (a PC component) in repetitive manufacturing. First of all, you analyze the master data of the product cost controller. This forms the basis for updating the costs. You then produce the production line memory chips that you report at various reporting points. You analyze the costs on the product cost controller. Due to a production error, you have to scrap some of the components. The finished products are then transferred to stock. You calculate the overhead costs, the work in process (WIP), and the variances.

The following diagram reflects the procedures in this process:

Special Notes

• If several demonstrations are being run simultaneously, your example could become confusing, since several users will be posting to one run schedule header. If you do not want to be affected by other users while you are carrying out this example, you have the following options:

- Select a run schedule header with a different date.

- Create new materials.

- Execute this example in a client where you are the only active user.

• This is a complex process. In order to ensure that it is carried out successfully, you must follow the steps exactly.
• The values used in this process are valid for fiscal year 2000. If your activities, materials, and cost centers in the future are no longer identical to those for the year 2000, the values described will be different when you execute this process. The content of the process however will remain the same.

For more information about this process, see .

Process Flow

You can find the data for this process under .

Generating the Initial Data for the Process

Displaying Material Master Data

Displaying Bills of Material

Displaying Routings

Displaying Product Cost Collectors

Preliminary Costing of Product Cost Collectors

Backflushing for the First Reporting Point

Displaying Goods Issue Documents

Creating the Profit and Loss Statement Using Cost of Sales Accounting (I)

Analyzing Costs for the Product Cost Collector

Entering Scrap for Reporting Point 2

Displaying Material Documents

Creating the Profit and Loss Statement Using Cost of Sales Accounting (II)

Backflushing for the Second Reporting Point

Displaying Material Documents (II)

Creating the Profit and Loss Statement Using Cost of Sales Accounting (III)

Calculating Overheads

Determining WIP

Determining Variances

Settling the Product Cost Controller

Creating the Profit and Loss Statement Using Cost of Sales Accounting (IV)

General Ledger Information System - Germany

Purpose

In this process, you call up IDES AG’s financial statements and cash flow analysis. First of all, you learn how to make the settings necessary for calling up the reports. Next you learn about financial statements and cash flow analysis and the drilldown options for these reports.

You prepare the data for creating these reports online. This means that the system also immediately takes into account documents created by you when compiling the reports.

Since balance sheet rules differ greatly from country to country, all process data used here is valid only for Germany. Where this process is used for other countries, data and procedures should be changed in accordance with the rules in force in those countries.

Process Flow

You can find the data for this process under .

1. 
   
Data Selection
2. 
   
Financial Statements: Actual/Actual Comparison
3. 
   
Variable Display
4. 
   
Analyzing Fixed Assets
5. 
   
Analyzing Payables and Receivables
6. 
   
Cash Flow Analysis (Direct Method)
7. 
   
Cash Flow Analysis (Indirect Method)

General Ledger Accounting (FI-GL) in fico

General Ledger Information System

Closing Activities in Accounts Receivable and Accounts Payable

Closing Activities in General Ledger Accounting

Cash Journal