Understanding Common Tasks for the Year-End Close

The specific process for closing a fiscal year is unique for each company. Your organization should develop its own detailed closing tasks and include them in your internal documentation.

This list includes common tasks that most companies perform for the fiscal year close:

• Review and post all batches.

• Run integrity reports and correct errors.

  This is one of the tasks that every company should include in their closing processes. Integrity reports supplement your internal balancing procedures and locate any data inconsistencies.

• Enter and post audit adjustments.

  Many companies reserve an accounting period for audit adjustments. Many companies also use a specific document type (UDC table 00/DT) for their year-end closing entries.

  Assume that you want to enter and post audit adjustments to record the final adjusting entries for fiscal year 2008. Ensure that the fiscal year on the Company Setup form is 2008. If the fiscal year is 2009, reopen fiscal year 2008 by entering the beginning start date (for example, January 1, 2008) and change the current period to the last period of fiscal year 2008 for General Accounting only.

• Close the fiscal period and year for AP, AR, and GL.

• Run year-end financial reports, trial balances, and any other reports that are required.

• Close the fiscal period and year for financial reporting.

• Run the Annual Close program.