Accelerate Your Closing Process with mySAP ERP New G/L and New Functions

  • by Aylin Korkmaz, Manager, Accenture UK
  • June 15, 2006
Fast period closing enables quick identification, investigation, and elimination of accounting problems. Here’s how to take advantage of mySAP ERP’s new G/L and new functions in accounting for your fastest closings yet.
Key Concept

In period-end closing, a company compiles information at the end of a fiscal period. Many departments of a company contribute to closing information as well as use the information for strategic purposes, so coordinating this effort in a way that ensures it can be accomplished quickly and the information put to best use is a challenging task. For every company it is an ultimate goal that the period-end close run smoothly and provide the basis for the company’s financial and management reporting. Achieving this objective has two aspects. The first is to manage the organization of people, accountability of the closing tasks, and communication. The second is to eliminate error-prone and time-consuming tasks. mySAP ERP offers new functions and a simplified data structure to achieve both.

Speeding up the period-end closing process has been a longstanding objective for almost every company. After the US Securities and Exchange Commission (SEC) demanded quicker preparation of financial statements, fast closing became even more important to US public companies.

Faster close enables fast identification, investigation, and elimination of accounting issues. It allows companies to react faster as conditions change, perform better, and make significant improvements in total cost of ownership (TCO).

mySAP ERP introduced a unified data structure with the new G/L and new functions to accelerate closing tasks. Many time- consuming and error-prone closing tasks become obsolete with mySAP ERP’s new G/L. Also new functions were introduced to speed up the closing process. In this article, I will explain these fast closing methods. As many of the closing tasks are organization-specific, depending on your SAP implementation and your requirements you can use some or all of these methods to achieve fast closing in your organization:

  • Elimination of reconciliation ledger postings by enabling real-time CO to FI integration
  • Elimination of profit and loss (P&L) and balance sheet adjustments with on-line splitting functionality
  • Elimination of transfer payables/receivables to Profit Center Accounting (PCA) by using segment reporting in the new G/L
  • Elimination of PCA allocation by using new G/L allocations
  • Use of a Closing Cockpit to obtain a simplified overview of the entire closing process
  • Use of cross-system intercompany reconciliation to speed up intra-group reconciliation processes

Aylin Korkmaz

Aylin Korkmaz is a manager in Accenture’s Global Energy practice specializing in finance streamlining and management reporting. She has seven years of experience working in global multi-stream projects containing challenging business process designs and change management issues. Aylin has deep process architecture and design skills, and is one of Accenture’s leading practitioners in the area of Financial and Strategic Enterprise Management modules. She has led design and configuration teams within complex SAP solution environments and delivered cutting-edge finance and business intelligence solutions.

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