1  Tata Consultancy Services Closing & Reporting FI - Closing Cycle

2  Tata Consultancy Services Contents Types of Closing Month-end closing Year-end closing Financial Statement versions

3  Tata Consultancy Services Target Group Audience: Officers responsible for Month and Year End Closing

4  Tata Consultancy Services Course Objectives At the conclusion of this course, you will be able to: –Do Month End & Year End Closing

5  Tata Consultancy Services Types of Closing Day-end –No accounting impact –Take printouts –Take back-ups FI department has no major role to play Month-end Year-end

6  Tata Consultancy Services Month-end Close previous period if desired, Open New period if need be ( normally future periods are always kept open) Clear the GR/IR account Valuate Forex Transactions Take reports such as: –Compact journal/ Ledger –balance audit trail –balance lists –open item list

7  Tata Consultancy Services Year-end..1 In addition to Month-end closing, Additional steps needed –Carry forward the balances for B/S accounts –Carry forward the Retained earnings account ( from P&L) Close previous year if desired, Open New year Clear the GR/IR account Other steps same as Month-end closing

8  Tata Consultancy Services Year-end..2 Steps –Do the closing activities in Asset Accounting first –Then in A/P –Then in A/R –Finally in G/L level

9  Tata Consultancy Services Year-end..3 No need to close last year to start working in the New FY No need to carry forward balances each time a transaction is done in last FY i.e. 2 FY can be open at the same time –SAP adjusts the opening balance automatically You do not need to determine any closing or opening balances

10  Tata Consultancy Services Year-end..4 Asset Accounting: –Post the relevant depreciation values for the fiscal year concerned Materials Management –Complete the physical inventory and material valuation. Sales and Distribution –Post the goods issues and the invoices for all the deliveries

11  Tata Consultancy Services Financial Statement Versions Financial statement version = B/S Multiple versions can be maintained and executed Each version represents –A particular way of grouping the accounts –A tool for analysis of results –the level of detail of your balance sheet and P&L statement.