This document provides an overview of the routine for closing periods and fiscal years in M3.
All transactions in the General Ledger become balanced. No transactions can be entered in closed periods or fiscal years. The financial system is configured for the new fiscal year.
Transactions can be entered in the new fiscal year.
See each subordinate document for details.
You must have a proficient knowledge of the financial system as well as the national regulations that apply.
Perform Required Periodic Routines
Which periodic routines to perform and in which order depends on a combination of the company's policy, the company's configuration of M3, and national regulations.
Verify That Transactions Have Updated General Ledger
To verify that all transactions are correctly transferred to the General Ledger, check the transaction work file (FCR040) by printing a report in 'Transaction Work File. Print' (GLS970). You can also print a list of journal and vouchers that do not balance in 'Journal/Voucher. Check Balance' (GLS975).
If you find any interrupted or erroneous jobs, follow the instructions in Managing Interrupted Jobs in the General Ledger. If required, re-create internal account entries in 'Internal Account Entry. Create' (CAS950) and ensure that transactions are backdated.
You close a period by changing the start and end dates for each FAM function. The dates determines the time period within which transactions can be entered. There are two ways to change the dates, through mass-update or individual update:
After the update, no transactions can be entered with a transaction date earlier than the start date of the respective FAM function.
Conclude Period/Year End Routines
Once the period is closed, there are a number of tasks to perform such as consolidating the accounts of various units in the company. As is the case with other periodic routines, which ones to perform depend on the company's setup and national regulations.
Close Fiscal Year Definitively
To prevent unauthorized changes of the date ranges of FAM functions to allow posting on fiscal years already closed, you close the year definitively in 'Fiscal Year. Close Definitively' (GLS985). After the closure, no transactions can be entered for that year, even if someone tries to change the date ranges for the FAM functions manually. Note that the process cannot be reversed.
Review and Update Configuration of Financial System
Once the year is closed, verify that the financial system is configured for the new fiscal year. This includes updating the system calendar, various number series, and financial templates.