Interfacing non-General Ledger application entries and closing non-General Ledger applications

Before you close a General Ledger period, you must interface all the non-General Ledger transactions that you want to include in the General Ledger period to the General Ledger. If you defined closing controls for an application on System Control (GL01.1), then you must also close the application period before you can close the corresponding General Ledger period. If an application does not have system control defined, then you must still make sure to interface all the appropriate journal entries to the General Ledger before closing the period.

Before you close a non-General Ledger application, you must reconcile it to General Ledger.

Follow these steps to interface non-General Ledger entries and close a non-General Ledger application:

Note: For complete information about closing procedures in the General Ledger application, see the General Ledger User Guide. For information on closing procedures in a non-General Ledger application, see the appropriate user guide or register for the training class specific to the application.

Complete all transaction entry in the applications you are using.
For Accounts Payable and Accounts Receivable only, calculate unrealized gains or losses.
- In Accounts Payable, run Unrealized Gain/Loss (AP191) to revalue open, non-base currency transactions for flagged vendors and calculate unrealized gains and losses.
- In Accounts Receivable, run Unrealized Gain Loss Report (AR196) to revalue open, non-base currency transactions for flagged customers and calculate unrealized gains and losses.
  
  These programs compare the currency exchange rate in effect at the time of the transaction to the exchange rate in effect as of the Revalue Date you define. If a difference exists, then the programs create unrealized gain or loss entries for the transaction. These programs reverse the calculated unrealized gain or loss entries from the previous run and create new entries if the transactions are still open the next time you run these programs.
Interface all journal entries using the appropriate programs in each application.

For example, in Accounts Payable, Payment Closing (AP170) and Invoice Distribution Closing (AP175) interface entries to General Ledger. In Accounts Receivable, Application Closing (AR190) and Distribution Closing (AR195) interfaces entries to General Ledger.

Note: If your company is not bound by EMU regulations, then proceed to step 5.
If your Accounts Receivable company has a base currency that is regulated by the European Monetary Union (EMU), and must therefore accept payments in either base currency or the euro, then remove any disallowed transactions from the Accounts Receivable Rounding GL account. Disallowed transactions are cross-currency payment transactions between currencies other than the euro and the company base currency.

Note: Define the rounding GL code and its associated accounting unit and account number using GL Code (AR15.7).
1. Run AR Currency Rounding GL Report (GL235) to list all the cross-currency rounding adjustments posted to the rounding GL code specified on Process Level (AR02.1). GL235 requires you to specify the actual rounding GL account rather than the GL code itself.
2. Use the report generated by GL235 to verify the rounding transactions posted to the rounding GL account.
  
  EMU regulations allow EMU member countries to accumulate in the rounding GL account only rounding adjustments resulting from a payment in euro for an invoice issued in company base currency. However, AR195 posts all cross-currency rounding adjustments to the rounding GL account. For example, an invoice in British Pounds could be paid in US dollars, resulting in a rounding adjustment when converting the US dollar amount back to the base currency. Any such transaction must be removed from the rounding GL account through a journal entry.
3. Use Journal Entry (GL40.1) to manually remove disallowed transactions from the rounding GL account.
4. Release the adjusting journal entries.
  
  Note: For applications for which you did not select closing controls, you are not required to close the application period.
For each application for which you selected closing controls on System Control (GL01.1), close the application period.

For example, if you selected closing controls for Accounts Payable, then you must run Period Closing (AP195) at the end of each accounting period. For Accounts Receivable, you must run Period Closing Report (AR199) at the end of each accounting period.
Post all entries using Journal Posting (GL190).