What You Need to Know About Period Close

  • by Sachidanand Padgaonkar, SAP Senior Consultant, Infosys Technologies, Ltd.
  • August 1, 2005
SAP R/3 provides various processes to simplify the period closing for different subledgers. Learn how to contribute to and benefit from period closing information quickly and easily.
Key Concept
Period close refers to the end of a fiscal period. The period may be a month, a quarter, or a fiscal year. Many areas of a company, such as sales, accounting, and inventory groups, contribute to closing information; just as many areas use the information for strategic purposes, such as performance evaluation and future planning.
Period close is considered primarily a financial function, to be addressed by finance controllers, cost accountants, and tax groups. That's not the whole story, however. Other departments, such as inventory specialists, purchasing departments, and sales groups, contribute to and rely on period closing information. Many actors in the supply chain must complete a wide range of tasks before their finance department can complete period closing.

By explaining how period closing generally works on the supply chain side, I will help you to develop your own process based on your company's specific business practices. I'll begin by elaborating on period close, present a sample checklist, and, finally, ex- plain some of these activities in more detail.

Sachidanand Padgaonkar

Sachidanand Padgaonkar is an SAP Senior Consultant at Infosys Technologies Ltd. with 10 years of consulting experience executing the diverse modules of SAP Financials, Sales and Distribution, and Logistics, with a special focus on the SAP Retail industry solution. Sachidanand is currently a consultant in the SAP space for leading high-tech companies in the San Francisco Bay Area. He has a degree in electrical engineering and an MBA in finance. He has published many articles in international publications and was a speaker at ASUG 2006 in Orlando.

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