SAP Business One year-end closing: The guide to a smooth transition

• A successful closing begins before the balance sheet date with the adjustment and verification of your operational data.

• The Check Document Numbering report ensures that there are no duplicate entries.

• Statistical accounts and clearing accounts must be checked on the balance sheet date and have a zero balance.

• A correct inventory value is the foundation of a consistent balance sheet and requires a precise inventory count.

• Inventory differences must be processed promptly as inventory postings in order to synchronize physical and system inventory.

• Since there is no automatic function for provisions, these must be determined manually and recorded as journal entries.

• The period-end closing transfers the balances of the income statement accounts to the income statement carryforward account.

A successful closing begins before the balance sheet date with the adjustment and review of your operational data.

• Checking document numbering: Use the Check Document Numbering report to ensure that all documents are numbered correctly and that there are no duplicate numbers.
• Completeness of documents: Use the Parked Documents function to check whether all relevant transactions, such as invoices, deliveries, or stock transfers, have already been posted.
• Periods and master data: Create new posting periods for the following year in good time. Remember to initialize the document numbering for the following year.
• Account verification: Statistical accounts and clearing accounts (e.g., for external payroll entries) must be verified on the reporting date and have a zero balance to ensure the completeness of the business transaction.
• Completeness of account statements: Ensure that all parked account statements have been processed or deleted so as not to interfere with bank reconciliation.

An accurate inventory value is the foundation of a balanced balance sheet. By taking a precise inventory, you can ensure that the book value matches reality.

• Negative stock levels: Before taking inventory, be sure to check for negative stock levels (e.g., using the Stock Status Report). These often indicate missing goods receipt postings.
• Performing the inventory: During the count, inventory postings must be prevented for organizational reasons, for example by setting aside items in the Inventory Count window or by blocking document numbering.
• Count results: Next, record and post the count results in the Inventory Count window. Differences must be processed promptly as inventory postings in order to synchronize physical and system inventory.

By reconciling accounts and valuing assets, you ensure that all business transactions are recorded correctly and in the correct period.

• Reconciliation of business partners: Reconcile open items and balances for customers and suppliers with your general ledger. Use the totals and balances list for this purpose.
• Reclassification of negative balances: Check business partners and bank accounts for negative balances on the reporting date. Debtors with credit balances or bank accounts with debit balances must be reclassified manually to ensure correct reporting in the balance sheet.
• Goods received and purchase returns: Reconcile goods receipt and invoice receipt accounts. The remaining balance must correspond to the total of open goods receipts and purchase returns.
• Accruals and provisions: Since there is no automatic function for provisions, these must be determined manually and recorded as journal entries.
• Asset accounting: Perform all necessary depreciation. Make sure to carry out the fiscal year change separately in asset accounting.

The formal conclusion consists of the final reporting and archiving, which are essential for audit compliance.

• Evaluation: Create and check the final trial balance and balance lists (summary    and balance list report) as well as the open item lists. These form the basis for the balance sheet. Also generate the VAT report (tax report) and the tax reconciliation report (tax reconciliation report) to ensure that the reported tax amounts match the postings in the G/L accounts exactly.
• Documentation: To ensure efficient collaboration with your auditor, it is advisable to back up the data from your most important documents on the reporting date. Export account statements, account sheets, and overviews of open documents (e.g., as PDF files). This will ensure that all data relevant to the audit is available in the exact version applicable at the closing date and is permanently documented.
• Period-end closing: Close the year using period-end closing, which transfers the balances and income statement accounts to the income statement carryforward account. At the same time, the fiscal year change in asset accounting is completed so that SAP Business One can seamlessly continue all depreciation in the new year.

"A clean year-end closing in SAP Business One is the best preparation for a successful new fiscal year. This structured approach gives you the security you need and allows you to focus fully on your new goals."

If you have any questions or are unsure about any of the steps, please feel free to contact us at any time. We will help you get the new fiscal year off to a safe and relaxed start!