Sage X3 Core Financials - Day 6 - Final Validation & Closing

Question 1

FINAL VALIDATION & CLOSING:

Answer 1

In this Lesson we will learn about the Final Validation process and the options available when Closing Fiscal Years and Periods.

TOPICS IN THIS LESSON INCLUDE:

• Final Validation,
• Closing Periods,
• Multi-Company Period Opening and Closing,
• Closing Fiscal Years.

Question 2

Final Validation: (CPTVAL)
Path: Financials > Current Processes > Final Validation

Answer 2

We use Final Validation (CPTVAL) to change the Status or Journal Entries from Temporary to Final.
This includes Entries made manually in the Journal Entry Function as well as those posted from other Modules.

• The Entries Validated are based on Criteria you define in the Criteria Section.
  For example, you can Select to only Finalize Entries based on a Specific Company and Site, as well as a Specific Journal Type.
• To view a Log file of the results generated based on this function, verify that the Log file Checkbox is Selected.
  This is important to view any errors or any warnings generated by this function.
  Additionally, the Log file provides a list of entries that have been finalized.
• After Defining the Criteria, Click OK to begin the process.

Question 3

Closing Periods: (GESPER)
Path: Common Data > General Accounting Tables > Periods > Close Button

Answer 3

We Close Periods in Sage X3 by clicking on the Close Button in the Periods (GESPER) Function.

• Periods are Closed for:
  A Specific Company,
  Ledger Type, and
  Fiscal Year.
• You must Close all Periods on order to Close Fiscal Years.

PRE-REQUISITES BEFORE CLOSING PERIODS:
- The Prior Period must be Closed and the next Period Open.
- The Current Date is greater than the Period end date.
- All Documents must be posted in Accounting,
- All Stock Accruals must be generated.
- Verification that the recurring Journals are generated.
- Verification that there are no Items to be Reversed.
- All Journal entries, regardless of Source, must be in a Final Status.
- The matched Groups must be balanced.
- Open Items must be balanced.
- Existence of GL Accounts must be verified.
- Consistency between the Control Account, the BP and the GL Account must be verified.
- For Analytical Accounting, the Existence of Nature’s, Dimension views, and Dimensions are Verified.

PRE-CLOSING VERIFICATION REPORT:
(CLOPER)
- The Pre-Closing Verification (CLOPER) Report identifies all the Blocking and warnings issued as part of Closing the period.
- For example, if the balance of a certain Account is Contra Nature against what is defined in the Account definition.
- This Report is printed by selecting:
Reports > Prints/Groups > Financials > Financial Accounting > Pre-Closing Verification.

Question 4

Closing A Period: (GESPER)
Path: Common Data > General Accounting Tables > Periods

Answer 4

We use Periods (GESPER) to close a Fiscal Period.

• NB: You can close more than one Period at time.
• Once a Period is closed, you can not Create, Modify, or delete any Entry Journals in that period.
• Click Closing in the upper right Corner.

The Period and Stock status change to Closed and the Closing date is defaulted.

• Periods are Closed one after the other in their order!

CLOSING LAST PERIOD OF A FISCAL YEAR REQUIRES MORE ATTENTION:
- Checks if balance is balanced.
- Checks if the GL is balanced,
- Checks Analytical Coherence,
- Checks if the generic Accruals are launched,
- Verification that the Generation of the Fixed Asset charge postings is made.

RE-OPENING A CLOSED PERIOD: (OPNPER)
Path: Financials > Utilities > Closing > Reopen.

We use the Reopen Period (OPNPER) to Reopen a Closed Fiscal period.
This returns the Status to Open for the last Closed period.

• If additional transactions take place while the period is open, you must close using the Standard Closing process in the Fiscal Periods function.
• If there are no movements or activity, you can use the Period Closing (UTICLOPER) Function under the Closing in the Financials > Utility menu.

Question 5

Multi-Company Period Opening & Closing: (TRTPERMC
Path: Common Data > General Accounting Tables > Multi-Company Period Opening

Answer 5

We use Multi-Company Period Opening (TRTPERMC) Function to open Multiple Periods at one time for a Single Company or Multiple Companies.

• You can select to include all Companies by selecting the All Companies Checkbox or a range of Companies at the From Company and To Company fields.
  You can also define a specific group.
• For a Single Company, Simply select the same Company at the From and To Company fields.
• In the Ledgers Section, Select the Ledgers for which you are Opening Periods.
• At the Period date until field, enter the date up to which you want to open the Periods.

Question 6

Closing Multiple Periods: (FUNPMCCL)
Path: Common Data > General Accounting Tables > Multi-Company Period Closing

Answer 6

We use Multi-Company Period Closing (FUNPMCCL) Function to close Multiple Periods at one time for a Single Company or Multiple Companies.

• Similar to Opening Multiple Periods, you can select to close all Companies or a range of Companies.
• Use the Ledger Section to define the Ledgers to be impacted by the Close.
• At the Period date until field, select the date up to which Periods will be closed.
• After running the process, a log file details which Periods were closed, and for any Periods not closed, a reason is Noted.

Question 7

Closing Fiscal Years: (FIYEND)
Path: Financials > Closing Processes > Fiscal Year End

Answer 7

We use Fiscal Year End (FIYEND) to close the Fiscal Year.

• You can close the Fiscal Year for a single or Multiple Companies and Ledgers.
• The Start date for the New Financial Year is automatically displayed.
• Once information is entered, a trace File is used to follow the operation that is carried out.
• You must define a Closure Document to use when an entry Journal is generated to balance Accounts.
• On the first day of the new Fiscal Year, an entry Journal is generated to balance all the carry forward Accounts as well as the Not Carry forward Accounts (results)
• The carry forward procedure is performed according to the two Level Structures of Dimension and Dimension view Code.
• The same processes are reviewed as discussed for the last period of the Fiscal Year.

YEAR END SIMULATION:
You can optionally choose to perform a Year End Simulation which takes into Account Simulations. The Year is actually not Closed in this process.

• This is done through: Year End Simulation (SIMULFINEX) Function under Closing in the: Financials > Utilities > Closing > Year End Simulation.

Question 8

Reopening a Fiscal Year: (OPNFIY)
Path: Financials > Utilities > Closing > Reopen Fiscal Year

Answer 8

We use the: Reopen Fiscal Year (OPNFIY) Function to re-open a Closed Fiscal Year.

• This deletes all the Carry Forward Entry Journals generated and will set the Fiscal Year Status to Open.
• You must follow the normal process for Re- Closing the Fiscal Year.