FI / FICOintermediate

FICO Period-End Closing Part 2: The Standard Posting Sequence Step by Step

Key takeaway

Execute the core month-end postings in SAP: open/close periods, MM period, recurring entries, accruals with automatic reversal, depreciation, FX valuation, GR/IR analysis, regrouping of receivables/payables, CO allocations and settlements, and year-end carryforwards.

Explanation

📌 KEY POINTS
✅ Open the new period first so business can continue while you close the old one.
✅ Post recurring entries and accruals (with reversal dates) before valuations.
✅ Run depreciation, FX valuation and GR/IR analysis/regrouping; then regroup receivables/payables by maturity.
✅ CO follows: assessments/distributions, then settlements of orders and projects.
⚠️ Year-end adds balance carryforward (GL and AR/AP) — forgetting it leaves opening balances wrong.

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▶ WHERE WE ARE
Part 1 gave the big picture. Now the steps.

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▶ 1. PERIODS

OB52 open next; MMPV for materials.

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▶ 2. RECURRING AND ACCRUALS

F.14 recurring; accruals with reversal date (F.81 for mass reversal).

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▶ 3. VALUATIONS

AFAB depreciation, FAGL_FCV FX, GR/IR analysis.

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▶ 4. REGROUPING

FAGLF101 sort/reclassify receivables and payables.

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▶ 5. CO AND YEAR-END

KSU5/KSV5, KO88/CJ88; FAGLGVTR and F.07 at year-end.

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▶ STEP BY STEP

Open next period and MM period.
Post accruals and recurring entries.
Run valuations and regrouping.
Run CO allocations and settlements.

✅ CHECKPOINT: trial balance reviewed and period closed.

Code example

ABAP Code

===== SEQUENCE WITH T-CODES =====OB52 open next period | MMPV close MM periodF.14 recurring entries | accrual postings (reversal date) | F.81 reverse accrualsAFAB depreciation | FAGL_FCV FX valuation | GR/IR analysis | FAGLF101 regroupingKSU5 assessment / KSV5 distribution | KO88 order settlement | CJ88 project settlementYear-end: FAGLGVTR (GL carryforward) | F.07 (AR/AP carryforward) | AJRW/AJAB (assets)

Real project scenario

A company settled internal orders on day 2 but ran assessments on day 3; costs assessed to orders stayed unsettled. Reordering tasks (allocations before settlement) fixed monthly corrections.

Common mistakes

Wrong task order.
No variants.
Forgetting reversal dates.
Skipping regrouping.
Missing carryforward.

Best practices

Fixed sequence.
Variants per program.
Reversal dates on accruals.
Regroup for reporting.
Year-end checklist.

Interview angle

Questions: "List month-end steps", "What is FAGLF101?", "What happens at year-end?"
Strong answer: periods, accruals, valuations, regrouping, CO, year-end carryforward.

Practice this lesson

Quick check

1. Which transaction regroups receivables and payables for balance sheet presentation?

2. A team wants to run order settlement before cost center assessments to save time. What happens?

3. Which step typically comes last in the monthly closing sequence?

Interview questions

1. How would you apply Period-End Closing in a real SAP project? Walk through the design or implementation approach.

Answer it in your own words first, then compare.

2. Walk through the standard month-end posting sequence in SAP and explain why the order matters.