What is closing entry in SAP FI-GL - General Ledger Accounting?

SAP Term: closing entry

• Component: FI-GL

• Component Name: General Ledger Accounting

• Description: Accrual Engine A closing entry is made if the accrual object has been prematurely deactivated before all accruals have been posted. The amount that has not yet been accrued at the time of deactivation is posted as a deactivation amount.

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• Key Concepts: 
  A closing entry is a journal entry made at the end of an accounting period to transfer the balances of temporary accounts to permanent accounts. In SAP FI-GL General Ledger Accounting, closing entries are used to transfer the balances of income and expense accounts to retained earnings or owner’s equity. 
  
  How to use it: 
  In SAP FI-GL General Ledger Accounting, closing entries are created in the same way as any other journal entry. The only difference is that the account codes used are different. The debit account is usually a retained earnings or owner’s equity account, and the credit account is usually an income or expense account. 
  
  Tips & Tricks: 
  When creating closing entries in SAP FI-GL General Ledger Accounting, it is important to ensure that the debit and credit amounts are equal. This will ensure that the books are balanced and that there are no discrepancies in the financial statements. 
  
  Related Information: 
  For more information on closing entries in SAP FI-GL General Ledger Accounting, please refer to the official SAP documentation.