Creating Balance Confirmations

Objectives

After completing this lesson, you will be able to:

Explain closing activities in receivables and payables
Create balance confirmations

Closing Activities in Receivables and Payables

Diagram showing legal requirements: balance confirmations, foreign currency valuation, value adjustments, receivables/payables regrouping; and technical/organizational requirements for fiscal year start.

Receivables and Payables Accounts Closing

Receivables and payables accounts closing consists of the following activities:

At the beginning of the fiscal year, the central balance carryforward program in General Ledger Accounting is run, carrying forward the balances of the customer and vendor accounts to the next fiscal year. However, you can choose to perform balance carryforward separately for vendor and customer accounts.
The posting periods of the old fiscal year are blocked, and the special periods for closing postings are opened.
Balances are then confirmed, the foreign currency documents valuated, the values adjusted, and the receivables regrouped.
Special periods can be closed once balance confirmation is done.

Hint

The closing processes may vary from country to country. Your instructor can provide you with information on special procedures that may be required in your country.

Balance Confirmations

Balance confirmations, including reply slips, are automatically created for a variable number of customers and vendors. A reconciliation list and a results table are also created.

Balance confirmations and reply slips are sent to the customers or vendors and the lists are forwarded to a control center (the internal or external auditor). The customers or vendors check the balance information they receive and send their reply to the control center. The replies are compared to the reconciliation list.

How to Execute the Balance Confirmation Program

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Create a Balance Confirmation

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Balance Confirmation Customizing

Flowchart with two sections: Define form names for printing'links SAPF130D/SAPF130K with forms F130 and IDs; Define sender details'links them with header, footer, signature, sender text.

To enable you to check the balance of receivables and payables, reports SAPF130D and SAPF130K create correspondence to and from the customers and vendors.

Reports SAPF130D_PDF and SAPF130K_PDF create balance confirmations using PDF forms. The following information applies to reports SAPF130D and SAPF130K.

Procedures Available

The following procedures are available:

Balance confirmation
Balance notification
Balance request

For each company code, the reports display a checklist and an error list. You can use these lists to check the receipt of balance confirmations. In the error list, the report logs the errors that occurred during the evaluation.

You can also create a results list to evaluate the replies. For example, you can create a results list including the number of replies received and the total amount contained in the replies received.

The SAP system can print a selection coversheet for each report run. Alternatively, you can use the reports to print reminders for overdue balance confirmations and inquiries. To do so, on the selection screen, enter the customers/vendors concerned, as well as the old issue date and old reply date.

Steps for balance confirmation: 3. Define reply addresses with company/address details. 4. Specify criteria with DEBI and KRED variants for account types using tables. 5. Prepare confirmations via SAPF130D/K.

You can enter any address ID to send balance confirmations to, or you can leave the field blank. For example, enter the address of the internal audit department as ID 0001 for the same company code. This ID is entered in the selection criteria of the report for balances that the internal audit is interested in.

How to Customize Balance Confirmations

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