What is year-end closing in SAP FI - Financial Accounting?

SAP Term: year-end closing

• Component: FI

• Component Name: Financial Accounting

• Description: An annual balance sheet and profit and loss statement, both of which must be created in accordance with the legal requirements of the country in question. Standard accounting principles require that the following be listed: All assets All debts, accruals, and deferrals All revenue and expenses

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• Key Concepts: 
  Year-end closing is the process of closing the books of accounts at the end of a financial year. This process involves reconciling all accounts, preparing financial statements, and making necessary adjustments to ensure that all transactions are accurately recorded. In SAP FI Financial Accounting, year-end closing is done using the Year-End Closing Cockpit. 
  
  How to use it: 
  The Year-End Closing Cockpit is a tool that helps users to carry out the year-end closing process in SAP FI Financial Accounting. It provides a step-by-step guide for users to complete the closing process, including tasks such as creating a closing plan, executing closing activities, and generating reports. The cockpit also allows users to monitor the progress of the closing process and make necessary adjustments if needed. 
  
  Tips & Tricks: 
  When carrying out year-end closing in SAP FI Financial Accounting, it is important to ensure that all accounts are reconciled and all transactions are accurately recorded. It is also important to ensure that all necessary adjustments are made before generating the financial statements. 
  
  Related Information: 
  For more information on year-end closing in SAP FI Financial Accounting, please refer to the official SAP documentation here: https://help.sap.com/viewer/product/SAP_FI/2020_08_500/en-US/f9f8d7a2b3e14c8a9f3d7c6b2e5f9a1d.html