One SAP Consultant asked us through email and we quote ”what is the effect of document postings in prior year(s) where carry-forward process have been carried out in those prior year(s)”.
Because of our extensive experiences in SAP implementation and support, we were able to satisfy the SAP Consultant. We would like to share the answer on the query. You may share it also to others through referring this post.
Normally, companies close their books every year end and open a new fiscal year. Part of the closing procedures is to carry-forward balances of G/L accounts.
Case
New fiscal year (current year) is 2009, and the accounting department noted that there are unposted documents which pertain in 2008. The 2008 G/L account balances have been carried forward already in the SAP system.
Explanation
Do remember that during carry-forward process, the balance sheet accounts are simply carried forward in the new fiscal year e.g. 2009. On the other side, the profit and loss accounts are carried forward to one or many retained earnings account(s depend on the number of retained earning accounts defined for the company code.
In the above case, any postings in the old fiscal year adjust the relevant carried forward balances automatically. The system adjust the accounts through background processing. There is no need to redo the carry-forward process.
Subscribe to:
Post Comments (Atom)
0 Comments:
Post a Comment
Note: Only a member of this blog may post a comment.