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Author's profile photo Nitin Kathait

Period-End Closing for Integrated Components

Overview of the period end activities in SAP S/4HANA Cloud – Part1

 

During period-end, modules integrated with financials in SAP S/4HANA Cloud have process steps that are executed as part of the financial period and year-end close. These process steps concern the inventory valuation at year end, as well as period-end closing activities for maintenance orders, plants, and projects

In this blog we will have an overview of the period end activities shown below. In this blog we will discuss Period- End Closing, In the upcoming blog we will discuss on Year-End Closing.

Period-End Closing

Period-End Closing – Maintenance Orders (BF7)

Period-end closing for maintenance orders supports the activities required for the Preventive Maintenance (BJ2) and Corrective Maintenance (BH1) scope items. Once the cost is recorded for the Maintenance Order, Preventive Maintenance, and Unplanned Maintenance order types, you close the period by means of settlement, closing, and reporting.
In the first step, you settle the maintenance orders to the responsible cost centers or other relevant cost objects. Then, you check and close the orders that are completed. In the final step, you verify that the actual values on maintenance orders through reporting.

Period-End Closing – Projects

The period-end closing activities for projects support the settlement of costs that are temporarily collected in projects, to one or more receivers as part of period-end processing for projects.
When you maintain a project, you create the settlement rules for the associated costs and revenue. You can either define a settlement strategy or configure direct settlement (which is simpler). If you have complex projects or changes to settlement rules, you can generate the settlement rules periodically, as part of period-end closing. Costs and revenues posted to a project during the period are settled onto multiple receivers during period-end by executing the settlement run, in accordance to the rules maintained for each project. With overhead costing you can allocate indirect costs (like those settled from projects) to the appropriate objects. Using the costing sheet, you can transfer indirect costs to the final cost of the product or process. Finally, you can execute plan – actual reporting to track the project execution.

When executing the plan actual report, you should filter out the RMRP (purchase order payable liability) and KOAO (result of settlement) transaction types to provide a detailed view of costs and nature of the charges of the project.

Period-End Closing – Plant (BEI)

This process ensures that all costs incurred during the manufacturing process are assigned to production activities.
The steps generally include running an assessment to allocate quality activity related costs onto the cost centers designated for manufacturing. Then, all open purchase orders (POs) are analyzed for correctness, the blocked invoices are released, and any goods movements with errors are reprocessed in accordance to their errors.
Stock and valuation data are managed by period. For values and goods movement to be posted to the correct period, the period must be set whenever a new period starts to perform material movements. This activity must be run when no one is handling a material in the system.
When the new MM period is open, you allocate the actual overheads to production orders, process orders and product cost collectors according to pre-specified overhead rates. You also calculate the work in process (WIP) for production orders. You perform the variance calculation for the orders and then settle these to Financial Accounting. Finally, you close any completed production orders.

 

 

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