SAP Financial Closing Cockpit

Accounting and Financial Close


SAP’s accounting and financial close solutions streamlines the accounting for multiple companies, currencies, charts of accounts, and reporting standards. The solutions enable finance to efficiently close books on time, and create financial statements at the entity and corporate levels for IFRS, U.S. GAAP, or other local and global requirements.

  • SAP offers a modern accounting system for finance teams needing to streamline core financial and closing processes to meet increasingly complex business and disclosure demands.
  • It accelerates your company’s path to financial transformation by eliminating boundaries between transactional and analytical processes combined with proven excellence in accounting and closing capabilities.
  • SAP Financial Closing cockpit = Transactions codes “FCLOCOx


Top 10 Benefits of SAP Accounting and Financial Close Solutions

1. Lower Cost of Finance

Accelerated processes increase productivity and reduce cost. Automate manual steps  to reduce staff workloads which lowers the cost of their work and increases productivity.

2. Accelerated Closing

Reduce cycle time via automation, integration and collaboration. Virtual soft close provides better insight at anytime from anywhere. Accelerate accounting by integrating GL, fixed assets, accounts payables, accounts receivables, inventory, revenue, and costs in real-time.

3. Real-Time Business Insight

Enables fast issue resolution and gets you closer to the business. Monitor in real-time the progress, quality, and financial results of the closing cycle to avoid bottlenecks and address business concerns

4. Responsiveness

Closes the gap between insight and action. Achieve fast, multi-dimensional reporting without replicating information to a data warehouse Instant access anywhere with drill-down from the highest to the lowest level of detail.

5. Harmonization
Harmonize internal and external reporting without redundancy. Unify financial, regulatory, managerial and operational data in a single repository across multiple systems. Eliminate redundant data aggregation for easy analysis down to the lowest   level of detail. Reduction of memory footprint through elimination of redundancy. Unite OLTP and OLAP together for simplified landscape, processes, and analysis.

6. Seamless Access

Self-service access to transactions and analytics anywhere, at any time. Past, present and future analysis at your fingertips to answer tough questions in briefings and meeting.

7. Modern User Experience

State-of-the-art user experience using the latest technology innovations. Intuitive end user training interfaces and guided processes eliminate complex teaching undertakings. Customize templates for event-driven closing tasks and collaboration.

8. Compliance You Can Count On

Efficiently meet the demands of complex compliance regulations. Generate high-quality financial statements and management reports required by international and local reporting standards.

9. Boundless Extensibility

Unlimited potential to extend system to customer’s specific business needs.

10. Foundation for Finance Transformation and Innovation

A seamless path to your finance transformation. Choose your path towards finance transformation with real-time software available in on-premise, cloud or hybrid options.

Reconciliation Functionality in SAP ERP


Execute Entity Close Tasks


Financial Closing Cockpit on Fiori


  Cockpit to monitor the progress of the entity close via KPIs, also on a mobile device

  Analyze the completion rate of closing tasks by multiple dimensions like region, country, company, milestone, working day, etc

  Monitor the tasks delayed or in error with easy collaboration to respective task owners

  Analysis of historic closing cycles


Source : SAP ™

Thank You

Jayanth Maydipalle

Asset under Construction End to end process

Assets under Construction (AuC) are a special form of tangible assets. They are usually displayed as a separate balance sheet item, requiring separate account determination and their own asset classes. During the construction phase of an asset, all actual postings are assigned to the AuC. Once the asset is completed, a transfer is made to the final fixed asset.

Internal orders are used to capture the costs of AuC during the construction phase. Once the AuC is completed, the final asset is created in the appropriate asset class, and the internal order is set to complete. The next settlement transfers the AuC asset value to the completed asset.

Asset Under Construction Process:

Asset Acquisition for Constructed Assets (External Procurment)
·         Create Assets
·         Posting the Closing Invoice
·         Define Distribution Rules for Asset Under Construction
·         Settle Asset under Construction
Asset Acquisition for Constructed Asset (Investment Orders)
·         Creating Investment Order
·         Releasing Investment Order
·         Accounts Payable – Posting Invoice to Investment Order
·         Monitoring Order Progress
·         Asset under Construction Settlement (collective processing)
·         Creating Assets for Complete AuC Settlement
·         Maintaining Settlement Rule for Final Settlement
·         Final Settlement of the Investment Order (Collective Processing)
·         Completion of Investment Order

  • 1.1 Create Assets – Asset under construction


1.2 Create Assets – for Final Settlement



We have created two asset master records, one Asset under Construction and one for the final settlement.

1. 3 Posting the Closing Invoice – Acquisition without order – FB01

In this step, you post the acquisition from purchase with vendor.




1.4 Define Distribution Rules for Asset Under Construction AIAB

In this process step, you maintain the settlement rules for the Asset under Construction created in the previous steps.







You have maintained the rules for the settlement. The execution of the settlement is part of the periodic processing.

1.5 Settle Asset under Construction  – AIBU

With the execution of this step, Assets under Construction are settled according to their settlement rules.

Note Under certain conditions, you may need to capitalize an asset under construction before all suppliers have presented their closing invoices. This can cause a few difficulties, especially if the closing invoice cannot be posted until the fiscal year following the capitalization of the asset under construction, and down payments were already posted to the asset under construction.

Initially, you post the down payment normally. If you then need to capitalize the asset under construction at the end of the fiscal year, but before the closing invoice is received, you post reserves for the total amount of the expected invoice. You post these reserves directly to the capitalized asset (external acquisition with vendor, transaction type 100). In the case where you plan to distribute the values from the asset under construction to several final assets, it makes sense to post the reserve to the asset under construction first, and then capitalize it. Whichever method you use, you must reverse the down payment on the asset under construction, because the down payment is not allowed to appear in the account for down payments to fixed assets. Instead, it must appear in the account for completed assets.

To settle the asset under construction, down payments must be cleared with invoice or forecasted invoice (reserve). The asset under construction can only be settled after this clearing






2.1 Asset Acquisition for Constructed Asset (Investment Orders /Internal Order)

2.1 Create Internal Order – KO01




2.2 Release Investment Order / Internal Order  – KO02

This activity releases investment order.


2.3 Accounts Payable – Posting Invoice to Investment Order – FB60

In this activity, you can enter a supplier invoice without reference to a purchase order.


2.4 Asset under Construction Settlement  – KO8G

In contrast to assessment, you cannot perform settlement across fiscal year boundaries. The system automatically determines the posting date from the posting period/fiscal year using the last day of the posting period. There are three processing types defined for settlement:

  • Automatic: The system selects all the distribution rules for a sender.
  • Periodic: All distribution rules with settlement types PER and AuC are selected. PER rules are applied first. In investment measures, this is followed by settlement to assets under construction.
  • Partial capitalization: Use this processing type if you want to partially capitalize an investment measure which is not yet complete, that is, if you want to settle part of the overall cost to finished assets.

With this process step a periodic settlement is executed. All costs collected on the investment order will be settled to the automatically created AuC.










2.5 Create Internal order Settlement Rule – KO02

In this process step the settlement rules for the final settlement are maintained and the status of the investment order will be set to technical completed, which allows the final settlement of the order.



2.6 Final Settlement of the Investment Order (Collective Processing) – KO8G

The final settlement transfers the costs from the AuC asset to the completed asset and to the cost center as specified in the settlement rules. After the final settlement the balance of the investment order and of the AuC is zero.













2.7 Completion of Investment Order -KO02

In this process step the investment order is closed by changing its status to Closed.




Thank You

Jayanth Maydipalle

Variance and Settlements

Variance Calculation determines differences between the actual costs incurred on a production order and the standard costs of the material produced. Variances are calculated not at once, but for different variance categories. The variances computed are then transferred to CO-PA.

  • Define Variance Keys

The Variance Key is part of the order header and controls variance calculation. The system selects the value set by this step as default value when a material master is created. From the material master, the variance key is then transferred to the order when an order for the material is created.


In Product Cost by Order you usually calculate the variances cumulatively.

In cumulative variance calculation, the target costs are calculated on the basis of the quantity you have transferred to stock for the order. The actual costs are for the entire life of the order. Variance calculation requires that the order have the status DLV (delivered) or TECO (technically completed).

In Product Cost by Period, you always calculate the variances periodically.

In variance calculation by period, the target costs are calculated on the basis of the quantity that you delivered to stock in the period. The actual costs are only for the period in which you calculate variances. Variance calculation requires that a goods receipt was posted for the order in the period. If that is not the case, the system only calculates remaining variances.


  • Check Variance Variants


In this step you define the variance variants. Variance variants determine what variance categories are calculated.



  • Define Target Cost Versions


The target cost version controls various parameters related to calculation of target costs in variance calculation. In variance calculation, target costs are needed as a comparison to the actual costs incurred.

Target cost versions are used in the variance calculation in the following ways:

  • To control which variance (total variance, production variances or planning variance) is calculated
  • To valuate unplanned scrap (scrap variance) Unplanned scrap is valuated in the period-end closing activities when the variances are calculated. You can specify in a valuation variant for WIP and scrap which cost estimate you want to use to calculate the target costs for the valuation of unplanned scrap. You assign the valuation variant to target cost version 0 if you want to include it in the valuation of scrap



  • Define PA Transfer Structure for Settlement Procedure

When variances are calculated in Cost Object Controlling (CO-PC), production variances are determined and stored. When you settle production orders, you can transfer these variances – differentiated by cost element and variance category – to value fields in CO-PA.

Although it is technically possible, via a joint maintenance dialog, to use the same PA transfer structures from different allocation types to settle production variances, you should instead define separate PA transfer structures.




  • Create Settlement Profile

The settlement profile controls various parameters related to settlement.



Profile Text
YBMFP1  PP Valuated to COPA
YBMF99 Rework – Via Notification





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ABT1N – Asset Inter Company Transfers

There are three reasons why you might need to carry out an intracompany transfer within a company code:

i.If changes are made to organizational structures (reclassification of asset classes, changes to profit centers, and so on).

ii.An intracompany transfer might be necessary if account assignments are incorrect (for example, incorrect asset class).

iii.A managed asset under construction is completed for summary settlement.

Intracompany transfers from one fixed asset to another within the same company code can be carried out in one step. Automatic intracompany transfers are only possible, however, if no values from the sending asset are lost and every area of the target asset is supplied with values.



i.Enter document date, posting date and asset value date.

ii.Choose “Specifications for revenue”.

iii.Input the “transfer to company Code”. This is the company code receiving the asset. Select “New Asset”, if a new asset is to be created in the receiving company code.

iv.Click on Master Data button to create the Asset master data in “Create Asset Screen” that will pop up.

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Display the documents using transaction FBU3 to review the Inter Company accounting postings.


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Below mentioned Roles are required to activate “Manage bank accounts” app on Fiori.

The user must be assigned with role:

  • SAP_BR_CASH_SPECIALIST (for On-premise Edition)
  • SAP_BCR_FIN_CM_BAM_MC (for Cloud Enterprise Edition)
  • SAP_BCR_FIN_CM_BANK_ACC_MGM (for Cloud Project Services Edition)

Component: Web Dynpro Application


Use transaction “SICF” and make sure that the ICF service for the Web Dynpro application is activated.


Component: Back-End Role



The Manage Bank Accounts transactional app provides an overview of your bank accounts in a hierarchical structure and allows you to maintain bank account master data according to your organization’s business requirements, as shown in


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