FI334 Umoja Month-End Closing Process. Umoja Period and Year End Closing Process Version 17

Transcription

1 FI334 Umoja Month-End Closing Process Umoja Period and Year End Closing Process Version 17 Last Copyright Modified: United 16-August-13 Nations 1

2 Agenda Course Introduction Module 1: Pre-closing Check/Readiness Module 2: Data Collection Closing Module 3: Reconciliation and Adjustment Module 4: Final Close Course Summary Course Assessment Course Survey 2

3 Introduction Please share with us: Your Name Your Section/Unit # Years with UN Interesting Fact About Yourself 3

4 Ground Rules Please consider the following guidelines during the training session: Turn your cell phone to silent mode. Please step out of the class to take any important phone call Please do not access your or the Internet outside of breaks Participate fully in the training session and respect each other s contribution Breaks are included at the discretion of the trainer X X No Phones Do Not Access Participate Ask Questions Breaks 4

5 Course Overview The purpose of the Umoja Month-End Closing Process course is to provide a rolebased, transactional, hands-on learning in business processes and functions associated with period and year end closing in Umoja. Prerequisite Review You should have completed the following prerequisite courses: Umoja Overview Umoja Master Data & Coding Block Overview Umoja ECC Navigation Umoja BI Navigation Course Duration: 3 hours 5

6 Course Objectives After completing this course, you will be able to: Explain the Month-End Closing process List and execute all the activities conducted as part of the Pre-closing Check/Readiness phase for the Month-End Closing process List and execute all the activities conducted as part of the Data Collection phase for Period-End Closing process Execute all activities conducted as part of the Reconciliation and Adjustment phase Execute all activities conducted as part of the Final Close phase 6

7 Agenda Course Introduction Module 1: Pre-closing Check/Readiness Module 2: Data Collection Closing Module 3: Reconciliation and Adjustment Module 4: Final Close Course Summary Course Assessment Course Survey 7

8 Module 1 Objectives After completing this module, you will be able to: Explain the Month-End Closing process List the activities conducted as part of the Pre-closing Check/Readiness phase for the Month-End Closing process Execute all activities conducted as part of the Pre-closing Check/Readiness phase for the Month-End Closing process 8

9 Key Terminology Key Term Chart of Accounts Cost Center General Ledger (G/L) Account Internal Order Cost Object Description A catalogue of all General Ledger (G/L) accounts available in Umoja A cost object that represents a unit of the organization that collects costs and revenues of on-going operations or functions A Master Data element in financial accounting used to categorize a financial entry into an asset, liability, fund balance, income or expense A cost object that collects costs and revenues of a specific event or simple project. These have defined start and end dates and are usually temporary and unique in nature. They also clearly define where costs should be segregated from other events or on-going operations to enable more detailed monitoring An object that groups costs and revenues, cost centers, internal orders and WBSE s 9

10 Key Terminology Assessment Distribution Key Term Description Allocation process in Controlling (CO) that uses secondary cost elements to move costs between cost centers. The purpose of this process is to charge internal users of a service for the cost of that service An allocation process in CO that uses the original primary cost elements to move costs between cost centers. The purpose of this process is to charge internal users of a service for the cost of that service 10

11 Roles & Responsibilities The following Umoja Enterprise role is involved in the Closing process: Closing User Responsible for the Year End Closing process to close the financial year at the Company Code level (centralized to Headquarters) Responsible for fixed asset depreciation and financial accounting revaluation (IPSAS) at the Company Code level, on a monthly basis Responsible for the reclassification of receivables and payables and balances the carry-forward processes on an annual basis Responsible for the management of the Special Period documents Responsible for the revaluation of Purchase Orders (POs) and earmarked funds, as well as other closing processes in Funds Management (FM), such as obligation close-out and funds balance carry forward 11

12 Introduction to the Closing Process The end of each period is characterized by a series of activities, including the following: Opening of a new accounting period Closing of the current period These activities do not occur sequentially but overlap to provide time for the G/L to be stated accurately for the prior accounting period. The closing lag time is used to correct entries, distribute costs and add entries as necessary. 12

13 The Month-End Closing Process The Month-End Closing process is divided into the following four phases: Phase 1: Pre-closing Check/ Readiness Phase 2: Data Collection Closing Phase 3: Reconciliation and Adjustment Phase 4: Final Close Each phase is characterized by specific activities that must be completed to close the monthly accounting period and state the G/L correctly. Note: HQ plays more of a coordination role, making sure that other entities are doing what they are supposed to do in the field and in other areas of HQ. 13

14 Pre-closing Check/Readiness (Last Day of Reporting) The Pre-closing Check/Readiness phase comprises the following five pre-closing activities that define the readiness of the account period to close: Maintain Exchange Rates Open Next Posting Period for Appropriate Modules Complete Pre-close Steps and Checks Complete Project Systems Preclose Checks Manage AR, AP and FA Entries Activities conducted by HQ to be concluded by the last day of reporting Activities conducted by Missions and HQ that continue to be conducted beyond the last day of reporting Activities performed in Umoja ECC Note: These activities are actually conducted over an extended period of time, but must be completed by the last day of reporting for the period being closed. 14

15 Maintain Exchange Rates Maintain Exchange Rates Open Next Posting Period for Appropriate Modules Complete Preclose Steps and Checks Complete Project Systems Preclose Checks Manage AR, AP and FA Entries Currently, exchange rates are loaded onto the Treasury website from IMIS, where they are keyed in by the UNHQ Treasury staff. Umoja will pull exchange rates from the treasury website. 15

16 Open Budget Period Maintain Exchange Rates Open Next Posting Period for Appropriate Modules Complete Preclose Steps and Checks Complete Project Systems Preclose Checks Manage AR, AP and FA Entries Open Budget Period: In the first month of the year, the budget period must be opened. This is considered to be part of the Month-End Closing process but only occurs once for the first period. This will be completed at UNHQ. 1 Enter FMOPER in the Command field Click the Enter icon. The Determine Work Area: Entry screen is displayed 2 3 Enter 1000 in FM Area field

17 Open Budget Period Maintain Exchange Rates Open Next Posting Period for Appropriate Modules Complete Preclose Steps and Checks Complete Project Systems Preclose Checks Manage AR, AP and FA Entries The Open Budget Periods Overview screen is displayed. The budget period should be open for one full year (p1-p12). 17

18 Open Next Posting Period Maintain Exchange Rates Open Next Posting Period for Appropriate Modules Complete Preclose Steps and Checks Complete Project Systems Preclose Checks Manage AR, AP and FA Entries Open Next Posting Period Funds Management (FM), Material Management (MM), Financial Accounting (FI), Controlling (CO): While prior accounting periods remain open for accounting, they cannot accept entries that are transacted in the new accounting period. As a result, a key task that must be completed as part of the pre-closing activities is to open a new posting period for all appropriate modules. The screen accessed in Umoja to do this differs based on the type of posting period being opened. Each area has its own ledger and therefore has to be opened separately. Note: MM opens a little differently as there are always two periods open simultaneously. 18

19 Open Next Posting Period Maintain Exchange Rates Open Next Posting Period for Appropriate Modules Complete Preclose Steps and Checks Complete Project Systems Preclose Checks Manage AR, AP and FA Entries Open Next Posting Period FM, MM, FI, CO: The following T-codes are used to access the corresponding modules: Enter FMIR for FM Enter MMPV for MM Enter OB52 for FI Enter OKP1 for CO There is no rule in the system limiting the number of periods that can remain open simultaneously. The only exception is MM wherein two periods are kept opened at any one time. 19

20 Open Next Posting Period Maintain Exchange Rates Open Next Posting Period for Appropriate Modules Complete Preclose Steps and Checks Complete Project Systems Preclose Checks Manage AR, AP and FA Entries Open Next Posting Period FM, MM, FI, CO: 1 2 Enter OB52 in the Command field Click the Enter icon The Posting Periods: Specify Time Intervals: Overview screen is displayed. This is the main screen where all ledgers are opened and closed. 1 Note: There are four document types with special authorization groups. 20

21 Open Next Posting Period Maintain Exchange Rates Open Next Posting Period for Appropriate Modules Complete Preclose Steps and Checks Complete Project Systems Preclose Checks Manage AR, AP and FA Entries Each ledger is represented by a different symbol: + All Ledgers S General Ledger M Materials Management A Assets K Vendor D AR/AP Specifies the Period Range (timeframe during which the posting period will remain open) Authorization Group limits the types of users that can access each ledger 21

22 Open Next Posting Period Maintain Exchange Rates Open Next Posting Period for Appropriate Modules Complete Preclose Steps and Checks Complete Project Systems Preclose Checks Manage AR, AP and FA Entries Open Next Posting Period FM: 1 Enter FMIR in the Command field Click the Enter icon. The Determine Work Area: Entry screen is displayed Enter 1000 in the FM Area field Note: This step is executed to open a new fiscal year. 22

23 Open Next Posting Period Maintain Exchange Rates Open Next Posting Period for Appropriate Modules Complete Preclose Steps and Checks Complete Project Systems Preclose Checks Manage AR, AP and FA Entries Opening a new period in the same fiscal year: The steps are as follows: 1 Enter FMIR in the Command field 2 Click the Enter icon 3 Enter 1000 for the Company Code field 4 Change the From period value to 8 5 Change the To period value to 8 6 Click the Save icon Note: This step is only relevant when opening a new period in the same fiscal year. 23

24 Open Next Posting Period Maintain Exchange Rates Open Next Posting Period for Appropriate Modules Complete Preclose Steps and Checks Complete Project Systems Preclose Checks Manage AR, AP and FA Entries Before opening a new MM period, it is important to confirm if the prior period is still open. To do this, complete the following steps: 1 Enter MMRV in the Command field 2 Click the Enter icon The Allow Posting to Previous Period Screen appears. 3 Enter 1000 in the Company Code field 4 Press the Enter key The Allow Posting to Previous Period screen reappears displaying the current period, previous period and last period in previous year. 24

25 Open Next Posting Period Maintain Exchange Rates Open Next Posting Period for Appropriate Modules Complete Preclose Steps and Checks Complete Project Systems Preclose Checks Manage AR, AP and FA Entries Open Next Posting Period MM: 1 Enter MMPV in the Command field 2 Click the Enter icon. The Close Period for Material Master Records screen is displayed 3 Populate the following details: Enter 1000 in the From Company Code field Enter 1000 in the From Company Code field Enter 5 in the Period field Enter 2013 in the Fiscal year field 4 Select the Check period only radio button 5 Click the Execute icon

26 Open Next Posting Period Maintain Exchange Rates Open Next Posting Period for Appropriate Modules Complete Preclose Steps and Checks Complete Project Systems Preclose Checks Manage AR, AP and FA Entries Open Next Posting Period CO: 1 Enter OKP1 in the Command field 2 Click the Enter icon. The Change Period Lock screen is displayed 1 26

27 Open Next Posting Period Maintain Exchange Rates Open Next Posting Period for Appropriate Modules Complete Preclose Steps and Checks Complete Project Systems Preclose Checks Manage AR, AP and FA Entries 3 Populate the following details: Enter 1000 in the Controlling area field Enter 2013 in the Fiscal Year field 4 Click the Actual button to view the Actual Period Lock The Change Actual Period Lock: Edit screen is displayed. Checked boxes indicate that the corresponding period is locked

28 Manage AR, AP and FA Entries Maintain Exchange Rates Open Next Posting Period for Appropriate Modules Complete Preclose Steps and Checks Complete Project Systems Preclose Checks Manage AR, AP and FA Entries The accuracy of the G/L is determined by the quality of its entries. The purpose of this activity includes: Resolve open items that have not been posted to the G/L which includes all parked, blocked and pending documents Review the G/L to identify incorrect and/or missing entries Ensure the completeness of the postings from other modules The completion of this activity is confirmed by the completion of the following tasks: Ensure postings are current Review and action parked documents Review and action blocked documents Review and action documents pending in account interface Note: This activity is conducted as a final check before the period is closed. People should conduct this check daily. 28

29 Manage AR, AP and FA Entries Maintain Exchange Rates Open Next Posting Period for Appropriate Modules Complete Preclose Steps and Checks Complete Project Systems Preclose Checks Manage AR, AP and FA Entries Display List of Invoice Documents: A report that displays a list of open invoice documents is run. This information is reviewed by the user to determine why the listed line items are open, whether they should be taken through workflow, or whether they should be removed from workflow altogether. The steps to display a list of invoice documents are: 1 Enter MIR5 in the Command field 2 Click the Enter icon The Display List of Invoice Documents screen is displayed. 29

30 Manage AR, AP and FA Entries Maintain Exchange Rates Open Next Posting Period for Appropriate Modules Complete Preclose Steps and Checks Complete Project Systems Preclose Checks Manage AR, AP and FA Entries 4 Enter the required details in the following fields: Fiscal Year Company Code Posting Date from Posting Date To Deselect Invoice Verified Online under Origin and Status Entry Type section Select Parked under Origin and Status Entry Type section Click the Execute icon 30

31 Manage AR, AP and FA Entries Maintain Exchange Rates Open Next Posting Period for Appropriate Modules Complete Preclose Steps and Checks Complete Project Systems Preclose Checks Manage AR, AP and FA Entries 7 Click the Invoice document number for each of the documents in the list 8 Review the selected document(s) 7 31

32 Manage AR, AP and FA Entries Maintain Exchange Rates Open Next Posting Period for Appropriate Modules Complete Preclose Steps and Checks Complete Project Systems Preclose Checks Manage AR, AP and FA Entries 9 View the Entered By column Reach out to the respective users provided in the Entered By fields and notify the users to review and post relevant document(s)

33 Manage AR, AP and FA Entries Maintain Exchange Rates Open Next Posting Period for Appropriate Modules Complete Preclose Steps and Checks Complete Project Systems Preclose Checks Manage AR, AP and FA Entries View all FI parked document: 1 Enter FBV0 in the Command field Click the Enter icon 2 The Post Parked Documents: List screen is displayed 3 Select Document List 4 Enter 1000 in the Company Code field 5 Enter 2013 in the Fiscal year field 6 Enter 31 July 2013 in the Posting date field 7 Click the Enter icon 33

34 Manage AR, AP and FA Entries Maintain Exchange Rates Open Next Posting Period for Appropriate Modules Complete Preclose Steps and Checks Complete Project Systems Preclose Checks Manage AR, AP and FA Entries Ensure that the Entered by field is blank. (Note: This field defaults the SAP User ID for the session). 7 Click the Execute icon 8 Press F5 on the keyboard to select all documents or 9 Click the Check icon to check individual documents Note: This function enables the system to list all warnings, information messages, or errors for the selected documents in one log. 34

35 Manage AR, AP and FA Entries Maintain Exchange Rates Open Next Posting Period for Appropriate Modules Complete Preclose Steps and Checks Complete Project Systems Preclose Checks Manage AR, AP and FA Entries Navigate from Document to Simulate General Ledger 10 35

36 Manage AR, AP and FA Entries Maintain Exchange Rates Open Next Posting Period for Appropriate Modules Complete Preclose Steps and Checks Complete Project Systems Preclose Checks Manage AR, AP and FA Entries 11 Click the Back icon or press F3 on the keyboard 12 Click the Post icon 13 Press Ctrl + F8 on the keyboard to change the layout to include the SAP User. (Note: Standard layout displays Company Code, Document Number and Fiscal Year) Reach out to the users for them to review and post the document 14 Note: Missions can view all FI parked documents by User Name. 36

37 Learning Checkpoint 1 All of the following phases are part of the Month-End Closing process, EXCEPT: Select the correct option. A. Pre-closing Check/Readiness B. Data Collection Closing C. Reconciliation and Adjustment D. Final Close E. All of the above 37

38 Learning Checkpoint 1 All of the following phases are part of the Month-End Closing process, EXCEPT: Select the correct option. A. Pre-closing Check/Readiness B. Data Collection Closing C. Reconciliation and Adjustment D. Final Close E. All of the above Option E is the correct answer. The Month-End Closing process is comprised of four phases: preclose check, data collection closing, reconciliation & adjustment and final close. 38

39 Learning Checkpoint 2 In which of these Umoja modules do the two prior periods automatically close as soon as a new period is opened? Select the correct option. A. FM B. MM C. FI D. CO 39

40 Learning Checkpoint 2 In which of these Umoja modules do the two prior periods automatically close as soon as a new period is opened? Select the correct option. A. FM B. MM C. FI D. CO Option B is the correct answer. There is no rule in the system limiting the number of periods that can remain open simultaneously. The only exception is MM wherein two prior periods automatically close as soon as a new MM period is opened. 40

41 Module 1 Summary The key points covered in this module are listed below: The end of each period is characterized by a series of activities which includes opening of a new accounting period and closing of the current period The Period End Closing process is divided into four phases which are, Phase 1: Preclosing Check/Readiness, Phase 2: Data Collection Closing, Phase 3: Reconciliation and Adjustment and Phase 4: Final Close Normally, system opens ledgers automatically based on internal clock. This is the goal once the system stabilizes 41

42 Agenda Course Introduction Module 1: Pre-closing Check/Readiness Module 2: Data Collection Closing Module 3: Reconciliation and Adjustment Module 4: Final Close Course Summary Course Assessment Course Survey 42

43 Module 2 Objectives After completing this module, you will be able to: List the activities conducted as part of the Data Collection phase for Period-End Closing process Execute all activities conducted as part of the Data Collection phase for Period- End Closing process 43

44 Data Collection Closing The Data Collection Closing phase of the Period-End Closing process comprises of activities that ensure that all necessary accounting data generated during the former accounting period has been collected, processed and cleared in the G/L. This phase occurs from days one to five and is characterized by the following six key activities: Confirm Currency of Interface Postings Perform G/L, AP and AR Clearing Close Treasury Complete Controlling Postings Complete Project Settlement to AuC & FA Close Posting Period for NAU Activities performed in Umoja ECC Note: These activities are actually conducted over an extended period of time, but must be completed by the last day of reporting for the period being closed. 44

45 Confirm Currency of Interface Postings Confirm Currency of Interface Postings Perform G/L, AP and AR Clearing Close Treasury Complete Controlling Postings Complete Project Settlement to AuC & FA Close Posting Period for NAU The currency, accuracy and completeness of interface postings are required to be confirmed as part of the data collection phase. Umoja interfaces with a number of secondary systems, which run throughout the open period, but stop once the period is closed. Some of these interfaces will be maintained for a brief transitional period, while others will be interfaced for longer periods of time. Interfaces represent data entry points. It is therefore extremely important to ensure that the data being imported is current, correct and complete. Umoja interfaces with the following three key systems: IMIS Progen (Payroll) Galileo 45

46 Perform G/L, AP and AR Clearing Confirm Currency of Interface Postings Perform G/L, AP and AR Clearing Close Treasury Complete Controlling Postings Complete Project Settlement to AuC & FA Close Posting Period for NAU Each line item in the G/L can be cleared against completed transactions once it has been confirmed that the data in the G/L for the most recent accounting period is accurate and complete. Automated clearing will be run at month end, not in regular reconciliation activities. 46

47 Close Treasury Confirm Currency of Interface Postings Perform G/L, AP and AR Clearing Close Treasury Complete Controlling Postings Complete Project Settlement to AuC & FA Close Posting Period for NAU UN Treasury HQ will be responsible for executing a separate closing for Treasury. The completion of this activity will comprise of the following tasks: Load security prices Fix and post derived business transactions Accrual/deferral of revenue and expenses (money markets) Execute valuation and amortization Accrual deferrals (securities) Treasury will be conducting its closing on a daily basis. The closing user will only be responsible for confirming with Treasury that closing as in fact occurred. 47

48 Complete Controlling Postings Confirm Currency of Interface Postings Perform G/L, AP and AR Clearing Close Treasury Complete Controlling Postings Complete Project Settlement to AuC & FA Close Posting Period for NAU The completion of this activity is confirmed by the completion of the following tasks: Staff Assessments Manual adjustments Order settlement Allocations 48

49 Complete Project Settlement to AuC and FA Confirm Currency of Interface Postings Perform G/L, AP and AR Clearing Close Treasury Complete Controlling Postings Complete Project Settlement to AuC & FA Close Posting Period for NAU Project Settlement to Assets under Construction (AuC) and Financial Accounting will be handled outside of Umoja. 49

50 Close Posting Period for Non-Account Users Confirm Currency of Interface Postings Perform G/L, AP and AR Clearing Close Treasury Complete Controlling Postings Complete Project Settlement to AuC & FA Close Posting Period for NAU In this final activity, the posting period is closed to all users with the exception of specific authorized groups. 50

51 Learning Checkpoint 1 True/False: Treasury Closing is conducted separately from the Month-End Closing process. Fill in the blank with the correct option. A. True B. False 51

52 Learning Checkpoint 1 True/False: Treasury Closing is conducted separately from the Month-End Closing process. Fill in the blank with the correct option. A. True B. False Option A is the correct answer. Treasury Closing is conducted separately from the Month-End Closing process described in this course. It is absolutely crucial that Treasury closes on a daily basis in order for Month-End Closing process to occur. 52

53 Module 2 Summary The key points covered in this module are listed below: The Data Collection Closing phase comprises of six activities that ensure all necessary accounting data generated during the former accounting period has been collected, processed and cleared in the G/L This phase occurs from days one to five The currency, accuracy and completeness of interface postings are required to be confirmed as part of the data collection phase The G/L, AP and AR clearing is automated. Manual processing will only be conducted for exception items that cannot be reconciled The Controlling postings are marked complete upon completion of manual adjustments, order settlement and allocations In the final activity of this phase, the posting period is closed to all users with the exception of specific authorized groups 53

54 Agenda Course Introduction Module 1: Pre-closing Check/Readiness Module 2: Data Collection Closing Module 3: Reconciliation and Adjustment Module 4: Final Close Course Summary Course Assessment Course Survey 54

55 Module 3 Objectives After completing this module, you will be able to: Explain the purpose and benefits of the Reconciliation and Adjustment phase Execute all activities conducted as part of the Reconciliation and Adjustment phase 55

56 Reconciliation and Adjustments The Reconciliation and Adjustment phase comprises of the following two activities: Reconcile Account Entries Adjust Financial Postings Activities performed in Umoja ECC 56

57 Reconciliations Reconcile Account Entries Adjust Financial Postings Reconciliations are conducted across the following financial areas: Pension funds Interagency accounts Bank accounts Inventory balance (Galileo) Inventory balances (clearing account; Umoja with IMIS) Inter-fund reconciliation System checks 57

58 Adjustments Reconcile Account Entries Adjust Financial Postings Revaluation/adjustments are conducted across inventory (assets to be consumed within one year stationery, fuel, food items) and physical inventory differences are calculated as well. Then, the following FI adjustments are posted: Manual adjustments Recurring entry Accrual and Reversals 58

59 Adjustments Reconcile Account Entries Adjust Financial Postings Enter an Accrual The detailed steps for entering an Accrual are provided in the FI308 Umoja General Ledger Process course. Reverse a Posted G/L Entry The detailed steps for reversing a posted G/L entry are provided in the FI308 Umoja General Ledger Process course. Create and Post a Recurring Entry The detailed steps for creating and posting a recurring entry are provided in the FI308 Umoja General Ledger Process course. 59

60 Revaluation Reconcile Account Entries Adjust Financial Postings Revaluation in FI and FM Commitment items and purchase orders in local currencies must be revaluated to account for fluctuations in exchange rates. 60

61 Revaluation Reconcile Account Entries Adjust Financial Postings Revalue Open Amounts in Funds Commitment The steps to revalue open amounts in Funds Commitments are as follows: 1 Enter FMZZ in the Command field 2 Click the Enter icon The Revalue Open Amounts in Funds Commitments screen is displayed

62 Revaluation Reconcile Account Entries Adjust Financial Postings The steps to check the status of the background job are as follows: 1 Enter SM37 in the Command field 2 Click the Enter icon 3 Click the Execute icon 4 Repeat earlier steps with the Test run check box cleared 5 Check the spool request 62

63 Reclassification Reconcile Account Entries Adjust Financial Postings Reclassification of Receivables The steps to reclassify receivables are as follows: 1 Enter FAGLF101 in the Command field Click the Enter icon. The Balance Sheet Supplement OI Analysis screen is displayed

64 Reclassification Reconcile Account Entries Adjust Financial Postings 3 Enter the appropriate data: Company Code Balance Sheet Key Date Sort method Valuation Area Batch input session name Document date Document Type Posting date Reversal Document Type Reversal posting date 64

65 Reclassification Reconcile Account Entries Adjust Financial Postings 4 Click the Execute icon. Two views of the report can be displayed: A) B) 65

66 Reclassification Reconcile Account Entries Adjust Financial Postings 5 Go to Postings and Messages screens 6 Review the postings and messages 66

67 Reclassification Reconcile Account Entries Adjust Financial Postings 7 Repeat earlier steps with the Generate postings check box selected 8 Click the Execute icon The reclassification is executed successfully. Three views of the report can be displayed: A) 67

68 Reclassification Reconcile Account Entries Adjust Financial Postings The reclassification is executed successfully. Three views of the report can be displayed B) 68

69 Reclassification Reconcile Account Entries Adjust Financial Postings The reclassification is executed successfully. Three views of the report can be displayed C) 69

70 Complete Asset Accounting Reconcile Account Entries Adjust Financial Postings Complete Asset Accounting Asset Depreciation & Asset Impairment In Umoja, depreciation cannot be run until all assets have been entered into the system. This will occur at the end of Cluster 1, once assets for all missions have been entered into Umoja. Since depreciation is run system-wide, running it for each month would prevent data for missions remaining outside of Umoja from being converted into Umoja. 70

71 G/L Custom Batch Processing Reconcile Account Entries Adjust Financial Postings G/L Custom Batch Processing Finally, a series of custom batches are processed in IMIS. This data is then interfaced into Umoja. These batches include the following: Average cost AVGC processing BISO processing (expenditure data exported for budget system) 71

72 Learning Checkpoint 1 Commitment items and purchase orders in local currencies must be revaluated to account for fluctuations in. Fill in the blank with the correct option. A. Fuel costs B. Shipping rates C. Exchange rates D. Raw material costs 72

73 Learning Checkpoint 1 Commitment items and purchase orders in local currencies must be revaluated to account for fluctuations in. Fill in the blank with the correct option. A. Fuel costs B. Shipping rates C. Exchange rates D. Raw material costs Option C is the correct answer. Commitment items and purchase orders in local currencies must be revaluated to account for fluctuations in exchange rates. 73

74 Module 3 Summary The key points covered in this module are listed below: The reconciliation and adjustment phase is used to reconcile account entries across financial siloes and adjust financial postings as necessary Reconciliations are conducted across multiple financial areas Revaluation/adjustments are conducted across inventory; physical inventory differences are also calculated Commitment items and purchase orders in local currencies are revaluated to account for fluctuations in exchange rates A series of custom batches are processed in IMIS. This data is then interfaced into Umoja 74

75 Agenda Course Introduction Module 1: Pre-closing Check/Readiness Module 2: Data Collection Closing Module 3: Reconciliation and Adjustment Module 4: Final Close Course Summary Course Assessment Course Survey 75

76 Module 4 Objectives After completing this module, you will be able to: Explain the purpose and benefits of the Final Close phase Execute all activities conducted as part of the Final Close phase 76

77 Final Close The Final Close phase comprises of the following two activities: Generate Reports Close Posting Period Activities performed in Umoja ECC 77

78 Reporting Generate Reports Close Posting Period The following reporting is carried out during the Final Closing phase: Trial Balance Detail Journal Listing Entry Report Detailed steps for reporting are provided in subsequent slides. 78

79 Trial Balance Report The Trial Balance Report displays financial data for all UN accounts contained in the General Ledger T-code: ZGLTRIALBAL Selection Criteria Company Code Business Area Fund Fund Group Grant Grant Group Segment Funded Program G/L Account Fiscal Year Posting Period Ledger Currency Additional Selection Criteria Cost Center WBS Elements Internal Order Functional Area Cost Element 79

80 Trial Balance Report 80

81 Detail Journal Listing Entry Report The Detail Journal Entry Listing Report functions as a high functioning excel spreadsheet. Each field displayed on the ZGL_JOURNAL_ENTRY screen represents a data filter that contributes to the composition of the report. By omitting a specific field, the user omits the inclusion of that data from the report. T-code: ZGL_JOURNAL_ENTRY Header Section Company Code Document Number Fiscal Year General Selection Posting Date Reference Number Fund Grant Funded Program Sponsored Program Budget Period Split Posting (Y/N) Partner Fund Partner Grant Partner Segment Trading Partner Ledger Ledger Groups Cost center WBSE Internal Order Profit center Funds Center Functional Area Segment G/L Account Document Date Entry Date User ID Approver ID 81

82 Close Posting Period Generate Reports Close Posting Period The final activity completed in the Period End Closing process is the locking of the period across FI, FM and CO. Once this has been done, the Month End Closing process can be considered complete. 82

83 Learning Checkpoint 1 The final activity to be completed in the Month-End Closing process is. Fill in the blank with the correct option. A. Processing a series of custom batches in IMIS B. Posting of the FI adjustments C. Locking of the period across Finance, FM and Controlling D. Running the trial balance report 83

84 Learning Checkpoint 1 The final activity to be completed in the Month-End Closing process is. Fill in the blank with the correct option. A. Processing a series of custom batches in IMIS B. Posting of the FI adjustments C. Locking of the period across Finance, FM and Controlling D. Running the trial balance report Option C is the correct answer. The final activity to be completed in the Month End Closing process is locking of the period across Finance, FM and Controlling. 84

85 Module 4 Summary The key points covered in this module are listed below: The Final Close phase includes the activities Generate Reports and Close Posting Period The reports generated during the Final Close phase include the Trial balance Report and the Detail Journal Listing Entry Report The Month End Closing process is considered complete when the posting periods across FI, FM and CO have been locked 85

86 Agenda Course Introduction Module 1: Pre-closing Check/Readiness Module 2: Data Collection Closing Module 3: Reconciliation and Adjustment Module 4: Final Close Course Summary Course Assessment Course Survey 86

87 Course Summary The key points covered in this course are listed below: The end of each period is characterized by a series of activities which includes opening of a new accounting period and closing of the current period The Period-End Closing process is divided into four phases: Pre-closing Check/Readiness, Data Collection Closing, Reconciliation and Adjustment and Final Close The G/L, AP and AR clearing is automated. Manual processing will only be conducted for exception items that cannot be reconciled The reconciliation and adjustment phase is used to reconcile account entries across financial siloes and adjust financial postings as necessary The Month End Closing process is considered complete when the posting periods across FI, FM and CO have been locked 87

88 Agenda Course Introduction Module 1: Pre-closing Check/Readiness Module 2: Data Collection Closing Module 3: Reconciliation and Adjustment Module 4: Final Close Course Summary Course Assessment Course Survey 88

89 Course Assessment Now that you have completed all the modules in this course, you can test your knowledge by completing the Course Assessment. To receive credit for completing this course, you must pass this assessment with a minimum score of 90%. To complete the assessment you must return to the Learning Management System: 1. Log into Inspira 2. Navigate to Main Menu -> Self-Service -> Learning -> My Learning 3. Search for the name of the course under the My Learning Activities section 4. Click the Start link of the course assessment 5. Click the Submit button once you have completed the assessment 89

90 Agenda Course Introduction Module 1: Pre-closing Check/Readiness Module 2: Data Collection Closing Module 3: Reconciliation and Adjustment Module 4: Final Close Course Summary Course Assessment Course Survey 90

91 Course Survey Your feedback is important to the continuous improvement of our training program. Please complete the evaluation for this course using the following steps: 1. Log into Inspira 2. Navigate to Main Menu -> Self-Service -> Learning -> My Learning 3. Search for the name of the course under the My Learning Activities section 4. Click the Start link of the course survey 5. Click the Submit button once you have completed the course survey 91

92 Congratulations! You have successfully completed the Month-End Closing Process course. 92