Overview
Closing of the ledger accounting is performed after closing all other subsystems, such as Sales, Purchasing, Production, and other.
Here you will learn how to generate ledger accounting postings based on transaction figures, check data for consistency, and execute various closing activities, including foreign currency evaluation of assets, accruals and deferrals, and account clearing.
For financial accounting purposes, you may need to perform various corrective business transactions that require reclassification (allocation) between income and expense items and affect capital accounts.
In some cases, you need to reclassify the outstanding balances from the regular position to the correct reporting position.
To facilitate the generation of financial reporting figures, all ledger accounting postings need to be analyzed and subsequently balanced. This allows you to read the applicable postings in the Profit and Loss and Balance sheet statements. Trial balance provides an overview of the current status of all general ledger and sub-ledger accounts.
You also need to close the period so that no further transactions are posted for the specific posting period.
Perform accounting and financial close flowchart
How to post held and parked documents
1. Go to General ledger and click Ledger vouchers under General ledger.
2. Set filter to see unposted documents.
3. Set filter to see documents for the reporting period.
4. Check whether the documents must be posted or deleted.
5. Post or delete the documents.
6. Go to Profitability & cost and click Exchange difference calculation under Month-end closing.
7. Set filter to see unposted documents.
8. Set filter to see documents for the reporting period.
9. Check whether the documents must be posted or deleted.
10. Post or delete the documents.
11. Go to Profitability & cost and click Intercompany sales documents under Intercompany.
12. Set filter to see unposted documents.
13. Set filter to see documents for the reporting period.
14. Check whether the documents must be posted or deleted.
15. Post or delete the documents.
16. Go to Profitability and cost and click Flow of other assets and liabilities under Balance sheet statement.
17. Set filter to see unposted documents.
18. Set filter to see documents for the reporting period.
19. Check whether the documents must be posted or deleted.
20. Post or delete the documents.
21. Go to Profitability & cost and click Deferred expense allocation under Income and expenses.
22. Set filter to see unposted documents.
23. Set filter to see documents for the reporting period.
24. Check whether the documents must be posted or deleted.
25. Post or delete the documents.
26. Go to Assets management and click Rental documents under Rental.
27. Set filter to see unposted documents.
28. Set filter to see documents for the reporting period.
29. Check whether the documents must be posted or deleted.
30. Post or delete the documents.
Note
To add filters to the form, click More actions → Configure list.
Paths
Path | General ledger → General ledger → General ledger postings |
|---|---|
| In-app link EN code |
e1cib/app/DataProcessor.DocumentPostingInFinancialAccounting
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| In-app link RU code |
e1cib/app/Обработка.ОтражениеДокументовВМеждународномУчете
|
How to perform postings in financial accounting
1. Go to General ledger and click General ledger postings under General ledger.
2. Click Documents awaiting automatic financial accounting recording.
3. Select a document and click the Dr/Cr icon.
4. In the Financial accounting entries window, click Posting to financial accounting to create or update postings for the document.
5. Check the posting correctness.
6. Get back to the Financial accounting postings workplace.
7. Click Post documents in financial accounting to post and repost all such documents.
How to post custom postings in financial accounting
Use the Transaction (financial accounting) document to create one-off or custom postings. To access the document, go to General ledger and click Ledger vouchers under General ledger.
How to set closing date for postings in financial accounting
1. Go to General ledger and click General ledger postings under General ledger.
2. Click Closing date of posting generation not set.
3. Specify the date for each Company.
Note
Now the system allows you to change any transaction documents in Sales, Purchasing, Warehouse, and other in the reporting period, but all document changes will be posted in the next accounting period only.
The system prohibits to create a new Transaction (financial accounting) document in the reporting period because this document creates only accounting postings.
The system allows changing the existing Transaction (financial accounting) documents.
To do this:
- Open the document.
- Select the Enter date in lines check box.
- Go to the Financial accounting tab.
- Add new lines, specify accounting entries, specify the date of the next accounting period.
- Post the document.
If you change existing entries, the system can perform this allocation between periods automatically.
Paths
Path | Profitability & cost → Month-end closing → Exchange difference calculation |
|---|---|
| In-app link EN code |
e1cib/list/Document.ExchangeDifferenceCalculation
|
| In-app link RU code |
e1cib/list/Документ.РасчетКурсовыхРазниц
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How to conduct foreign currency revaluation
1. Go to Profitability & cost and click Exchange difference calculation under Month-end closing.
2. Set the period filter to see the documents posted in the reporting period.
3. Create a new document.
4. Select the Company.
5. Select Customer AR/AP in the Revalue field.
6. Select the On the payment day and at the end of the month revaluation option.
The system performs revaluation at the payment or invoice date by account payable and receivable.
If there were no transactions for accounts payable and receivable, the system performs revaluation of outstanding balances as of the last date of the month.
Note
If you select the For each day of the month revaluation option, the system performs revaluation of outstanding balances as of each day of the month.
Check the availability of exchange rates for each day of the month in advance.
7. Post the document.
Note
The system performs revaluation of outstanding balances taking into account the original invoice amount, offset of prepayments, further payments, and exchange differences of previous months.
The system does not perform revaluation for prepayments.
Revaluation steps:
- Get the outstanding balance of the AR/AP in the transaction currency and accounting currency.
- Calculate outstanding balance using available currency rates for the date.
- Calculate the difference between the figures from steps 1 and 2.
- Create posting in accounting for the difference amount.
8. Repeat the steps with other transactions: Vendor AR/AP, Lease AR/AP accounting.
9. Go to Profitability & cost → Profitability and cost reports and click Detailed calculation of currency revaluation under Month-end closing.
10. Set the Period.
11. Select the Company and click Generate.
12. Review revaluation postings by financial assets.
How to reclassify P&L items
For reclassification between Profit and loss items and Lines of business amounts, use the Posting of non-operating income and expenses document with:
- Expense reclassification transaction
- Income reclassification transaction
- Expense transfer between branch offices transaction
For reclassification between Ledger accounts amounts, use the Transaction (financial accounting) document.
How to balance off ledger accounts
Paths
Path | General ledger → General ledger reports → Trial balance |
|---|---|
| In-app link EN code |
e1cib/data/Catalog.ReportsOptions?ref=9a0a0242ac11000411eda4ae176a26d1
|
| In-app link RU code |
e1cib/data/Справочник.ВариантыОтчетов?ref=a7a9000d884fd00d11e4c1801775010c
|
Checking account balance side
1. Go to General ledger → General ledger reports, click Trial balance and then click Settings.
2. Set the filter for Account Type with values: Asset.
3. Generate and review the report.
4. Check if the Dr balance amount is correct or not.
5. Repeat steps with the Active/Passive, Passive types.
Paths
Path | General ledger → General ledger → Period-end transaction - Financial accounting |
|---|---|
| In-app link EN code |
e1cib/list/Document.PeriodEndTransactionFinancialAccounting
|
| In-app link RU code |
e1cib/list/Документ.РегламентнаяОперацияМеждународныйУчет
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Closing PL accounts to Retained Earnings account
1. Go to General ledger and click Period-end transaction - Financial accounting under General ledger.
2. Click Create.
3. Select a Company.
4. Select the Closing of ledger accounts of income and expenses operation type and post the document.
Creating translation differences postings
1. Go to General ledger and click Period-end transaction - Financial accounting under General ledger.
2. Click Create.
3. Select a Company.
4. Select the Exchange difference calculation in the presentation currency operation type and post the document.
5. Repeat these steps with the Exchange difference calculation in the functional currency operation type.
How to check balance sheet figures
Posting one-off balance sheet transactions
Create the following documents to perform custom transactions:
- Non-operationg income and expenses document
Note
The Non-operationg income and expenses document allows you to make a double entry between the items of assets and liabilities and items of income and expenses for management and local accounting amounts at the same time.
- Flow of other assets and liabilities document with:
- Asset increase and expense decrease transaction
- Asset increase and income incurrence transaction
- Liability increase and expense incurrence transaction
- Liability increase and income decrease transaction
Note
The Flow of other assets and liabilities document allows you to change items of assets and liabilities against another item of assets and liabilities or income and expenses, but only in management accounting. Use Transaction (financial accounting) document to make postings in local accounting also.
Create the following documents for reclassification between Balance sheet items and Lines of business amounts:
- Flow of other assets and liabilities document with:
- Asset increase and other asset decrease transaction
- Asset increase and liability increase transaction
- Liability increase and other liability decrease transaction
Use the Cash deposits/withdrawals by line of business document to reclassify Cash balances between Lines of business amounts.
Note
Make changes in the original document for reclassification between Cash flow items amounts.
Paths
Path | Profitability & cost → Profitability and cost reports → Balance sheet statement → Balance control |
|---|---|
| In-app link EN code |
e1cib/data/Catalog.ReportsOptions?ref=9a0a0242ac11000411eda4ae176a26f6
|
| In-app link RU code |
e1cib/data/Справочник.ВариантыОтчетов?ref=824d5404a6a68c0311e64f4ec10df123
|
Dealing with differences caused by business operations
1. Go to Profitability & cost → Profitability and cost reports and click Balance control under Balance sheet statement.
2. Set the Period.
3. Click Settings, enable Advanced mode, add company, items, and documents to the document structure, and click Generate.
4. Review the differences by Period, Asset/liability items, and Documents.
5. Open documents to find the user in charge of the document, create a Duty for them, and specify the required actions.
Dealing with currency exchange differences
Paths
Path | Profitability and cost -> Profitability and cost reports -> Balance sheet statement -> Balance sheet statement |
|---|---|
| In-app link EN code |
e1cib/data/Catalog.ReportsOptions?ref=9a0a0242ac11000411eda4ae176a26f5
|
| In-app link RU code |
e1cib/data/Справочник.ВариантыОтчетов?ref=a7a9000d884fd00d11e4c18017750303
|
Note
When you use different management and local accounting currencies in the infobase, the Management balance sheet report has a limitation associated with translation into the report currency at exchange rates. There may be discrepancies in the report on a number of items, which could cause an imbalance. In the system, the following documents are not maintained in the management currency but translated from the transaction currency:
- Gift certificates
- Returned / received Returnable packaging
- Goods for registration in consignor report
On assets/liabilities items, the system calculates the amounts of the mentioned documents in the management currency by translating them at the exchange rate at the date of the transaction. This can lead to variances due to exchange rate differences between receipts and expenses transactions on different dates.
1. Go to Profitability and cost -> Profitability and cost reports and click Balance sheet statement under Balance sheet statement.
2. Set the Period and Frequency.
3. Check the balance sheet totals.
How to restrict further posting for accounting transaction in accounting period
1. Go to Master data and settings and click Users and rights settings under Settings. 2. Click the Period-end closing dates section. 3. Select the Period-end closing dates check box. 4. Click Configure. 5. Click For specified users. 6. Click Pick and select user groups or users from the form. 7. For each selected user: Note 8. Repeat it for each user selected.