Closing Procedures & Reports

This topic provides information on the tasks associated with closing a period and year in Financials.
This includes accruals, credits to review, invoices to be issued, recurring entries, balance transfers,
and closing the period and year. In addition, an overview of the reports and inquiry tasks available
are discussed.

Final Validation
Go to Financials > Current processing > Validation

To change the status or journal entries from Temporary to Final. This includes entries made
manually in the Journal Entries task as well as those posted from other modules.

The entries validated are based on a criteria you define in the Criteria section. For example, you can
select to only finalize entries based on a specific company and site, as well as a specific journal type.

To view a log file of the results generated based on this task, verify that the Log file check box is
selected. This is important to view any warnings or errors generated by this task. Additionally, the log
file provides a list of entries that have been finalized. After defining the criteria, click OK to begin the
process.

Complete the Final Validation for Specific Entries

Go to Financials> Current processing > Final Validation

1- Clear the All companies check box, and verify that company 010 displays.
2- Verify the Log file check box is selected, and click OK. Review the log file and click End to close
the task.
Simulations
Simulated entries allow you to enter a transaction that does not post to the general ledger or affect
balances, but can be included on inquiries and reports to see how transactions may impact balances,
reports, etc.

Simulated entries are created through the Journal Entry task, by selecting Active Simulation as the
category.

- You must select a document type that is set up to allow for simulated entries.

- Additionally, you must enter a number to track the simulation at the Number field.

- You cannot enter a status for a simulation entry.

Simulation Activation
If a simulation entered has a category of Inactive Simulation, you can either manually make it active
by selecting Active Simulation as the category on an entry-by-entry basis or you can activate a batch
of inactive simulations using the Activation task on the

Go to Financials > Current processings > Simulations menu.

Simulation entries are activated based on a selection criteria you define.

Simulation Deactivation
If a simulation entered has a category of Active Simulation, you can either manually make it inactive
by selecting Inactive Simulation as the category on an entry-by-entry basis or you can inactivate a
batch of active simulations using the Deactivation task on

Financials > Current processings > Simulations> Deactivation

Simulation entries are deactivated based on a selection criteria you define.

Simulation Cancellation
Go to Financials > Current processings > Simulations Cancellation

To cancel simulation journal entries regardless if they are active or inactive. Once cancelled, you can
no longer make them active or inactive.

Posting Simulations
If you decide after creating a simulation journal entry, that you now want it to be temporary or final,
you can do so by changing the category to Actual on an entry-by-entry basis or you can make a batch
of the actual journal entries using the Post task on the Financials > Current processings > Simulations
menu.

Simulation entries are made into actual journal entries based on a selection criteria you define.

In the Generation section, you can select to generate them as Temporary or Final, as well as assign
them to a specific document type and journal.

- Temporary journal entries generated are made final using the same process as discussed previously
for a standard journal entry.
Commitments
Commitments allow you to take into account future commitments that may impact your financials.
Commitments are made automatically when entering such items as a purchase order; however, you
can also manually enter commitments. You can view commitments and pre-commitments in general
balance and analytical balance inquiry tasks.

These commitments are viewed and defined through the Commitments task on the

Go to Financials > Journals menu> Commitments

To view and define commitments, you can view and modify commitments generated from purchase
orders. The description details the purchase order the commitment is from. Pre-commitments are
generated when requests are made and may or may not be approved. Commitments are normally
made when the actual purchase is made. You can delete or cancel generated commitments and pre-
commitments.

Analytical Modifications
Go to Financials > Current processing > Dimensional modification to select and modify on an entry-
by-entry basis amounts/quantities distributed to a dimension.

This is typically used after transactions have been made final and you discover the dimension value
was incorrect. For example, you selected the PDT value for the Department dimension and it should
have been SALES. The entries displayed for modification are based on the criteria defined. For
example, you can select to only modify entries entered for a specific company, site, document type,
journal, and dimension. After clicking OK, the list of entries meeting the criteria are displayed and
you can make the appropriate modifications to the dimension values.

Matching
The matching process consists of pairing account postings in order to analyze an account balance on
a given date. Matching is done based on collective accounts defined. For example, matching would
associate an invoice entry with its payment entry. Matching allows for reconciliation of collective
accounts and to apply outstanding transactions to open items.

Transactions recorded in the A/P-A/R Accounting module for customer and supplier accounts that
are applied to existing open items are automatically matched (e.g. the payment is posted directly
against the invoice).

The principle of matching in Financials consists of generating a selection process and the
reconciliation of postings as a function of previously defined criteria.

- This can be done manually or automatically using either Manual Matching or

Manual Matching
Use Manual Matching on the Financials > Matching menu to manually match entries based on
criteria you define including the site, ledger, account, BP, and date range. When matching
transactions, you can select all lines that to match and click the Matched button.
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1- Enter the site

Transactions matched will indicate their „match‟ with an upper or lower case letter.

- Upper case letters indicate that the entire transaction is fully matched (i.e. debits equal credits),
while lower case letters indicate transactions still have unapplied amounts to match.

Automatic Matching
Go to Financials > Matching > Automatic Matching
Scan through transactions in specific collectives and match entries based on criteria you define
including the site, ledger, account, BP, and date range.

You can use this task to scan through transactions in a single site, company, or multiple companies at
one time.

Unmatching
Financials > Matching > Unmatch

To transactions matched either in the manual or automatic tasks. This may be necessary if the
criteria defined was incorrect or you matched transactions prior to all entries being made.

Invoices To Be Received
To Financials > Closing processing > Accruals

To account for invoices to be received from the non-invoiced supplier receipts. This process is
normally run at the end of the month. If a receipt has been posted at the end of the current month
and it has not yet been invoiced for the next month, a new invoice receipt is generated and posted as
well as reversed based on dates you define.

This process considers the non-posted receipts (not having been the object of an invoice receipt) and
not invoiced or posted, non-invoiced receipts where the reversal date of the associated invoice
receipt is less than the new generation date. You can define selection criteria based on the company,
site, and supplier.

You can also determine if the entries generated are actual or simulated. If simulated, you cannot
enter a reversing date as these are not actual postings affecting the balance of an account

In the Products to be processed section, choose which products to include. You can select to include
all products, only managed stock, or products not managed (non-stock). When reviewing the line
items that meet the criteria defined, the system also determines if it falls into the products to be
processed selection.
Credits To Receive
Go to Financials > Closing processing > Credits to receive

To account for credit notes to be received from the non-invoiced supplier returns, or partially
invoiced returns and pending a credit note. This process is normally run at the end of the month. If a
return has been posted at the end of the current month and it has not yet been the object of a credit
note, a new credit note is generated and posted as well as reversed based on dates you define. This
process considers the non-posted returns (not having been the object of a credit note) and not
invoiced return or posted and non-invoiced returns where the reversal date is less than the new
generation date.

Invoices To Be Issued
Go to Financials > Closing processing > Invoice to be issued

To account for invoices to be issued arising from the validated and not invoiced customer shipments.
This process is normally run at the end of the month. Inter-site shipments, sub-contractor shipments,
and loan shipments where the return date is not exceeded and the totally returned shipments are
not considered. If a shipment has been posted at the end of the current month and it has not yet
been the object of a credit note, a new invoice to be issued is generated and posted as well as
reversed based on dates you define. This process considers the non-posted shipments (not having
been the object of an invoice) and not invoiced or posted non-invoice shipments where the reversal
date of the associated invoices to be issued is less than the new generation date. It is important to
note, the invoices to be issued from the non-invoiced shipments take into account any invoicing
elements and regroup the shipments within these documents following the same grouping rules as
the grouping of shipments on invoice with the exception of certain differences.

- An invoice per shipment or manual invoicing – an invoice to be issued is created for each shipment.

- One invoice per complete order or one invoice per order – a single invoice to be issued is created
for each order grouping together the order shipments.

- One invoice per ship-to customer – an invoice to be issued is created for all the shipments invoicing
the same ship-to customer.

- One invoice per period – An invoice to be issued is created for all shipments respecting the
following group criteria and this is irrespective of the periodicity of the invoicing: bill-to customer,
invoicing method, currency, price type, project code, pay-by BP, tax rule, group customer, payment
condition, first line of the bill-to customer name, first line of the invoicing address, postal code for
invoicing address, town/city for invoicing address, and country/state for invoicing address.

Run the Invoices to be issued accrual process

Go to Financials > Closing processing > Invoices to be issued.

1- Verify the All companies and all sites check boxes are selected. If not, select them now.
2- In the Invoices to be issued window, select Actual as the generation type. .
3- Enter the document date and as the reversal date. Accept all other defaults.
4- Click OK.
5- Review the log report and click End.
 6- Review the entries generated.

Generic Accruals
Costs and products taken in advance can be prorated within the current fiscal year or across fiscal
years. For example, an insurance invoice is entered once a year but covers a period which often
straddles two fiscal years since they depend on the contract.

- If the contract covers the period 04/01/2016 through 3/31/2017, the invoice receipt is entered and
posted as of 04/01/2016. It should be considered as cost only 9 months in 2010 and 3 months should
be deferred to 2017.

When entering the invoice (supplier or customer), you must detail the cost/profit period. Parameters
define if one document is created for each BP or for each invoices, as well as the journal type used,
expense/revenue accrual journals, and whether the closing process is blocked or not based on
whether this process is run.

Go to Financials > Closing processing > Generic accruals

You must run this process separately for expenses and revenues. You can optionally choose whether
or not to actually generate any entries by selecting or clearing the Generate Entries check box.

- Clear this check box to simply view the entries that would be generated without making any
simulations or actual journal entries.

- If the check box is cleared, you cannot define information in the Generation section.