The purpose of these tasks is to ensure that all necessary checks are performed in order to guarantee the monthly IFRS 16 closure process.
Please be aware that these checks should be performed between D-5 and D-2.
This procedure is applied to all WW companies under IFRS 16.
Pre-closure activities
i. Check of Suspense Account (SAP transaction code FBL3N - PF2: G/L 5112100020 | WP2: 56030110)
The Suspense Account must always be balanced (the only exception when it's acceptable to not be balanced it is when a contract has a "payment in advance" rent posted).
This check should be performed along the month and in case it's not balanced it will need to be corrected until D-3.
Go to transaction FBL3N and insert the account and the company code, then select "Open items" at the last day of the month for which you are performing the check.
In the following case we can see that Company 4056 is balanced.
Company 0005 instead is not balanced.
If you open the line items you can see in detail which are the contracts that aren't balanced.
In this situation as you can see contracts 0005/200000 and 0005/200002 have issues.
For contract 0005/200000 the amount is only in the column "Amount in local currency". This means that Suspense Account for this contract is actually balanced (the column "Amount in document currency" is 0,00), but the currency of this specific contract (GBP) differs from the currency of the company (EUR) and in this situation the error is due to different exchange rates in the system.
For contract 0005/200002 the difference is due to the presence of a "probable end date" in the valuation parameters of the contract, which is limiting the calculation of the valuation part of the contract.
To solve this situation you need to confirm if the contract in fact will be extended, and then create a new time slot in the valuation which will consider the term extension with the correct interest rate.
After the contract is updated you should post the contract and refresh FBL3N to see if it's balanced and the issue is solved.
This is the most frequent reason why the suspense account might not be balanced.
This always happens with "open-end" contracts, as it is necessary to insert a "probable end date" during the contract creation.
ii. Check of Retirement Flow (SAP transaction code FBL3N - PF2 G/L Accounts - 7560020000 & 6560020000 | WP2 G/L Accounts - 89854631 & 89854630)
The Retirement Flow Accounts must always be balanced.
This check should be performed along the month and in case it's not balanced it will need to be corrected until D-3.
Go to transaction FBL3N and insert the accounts and then select "All items" from the first day of the year until the last day of the month for which you are performing the check.
Retirement Flow accounts might not be balanced if a RE-FX contract presents a Special Flow in the valuation of the contract.
In that case it is necessary to analyze and correct the contract.
iii. Check of Postings Without CO Object (SAP code transaction FBL3N - PF2 G/L Account 6100000001 | WP2 G/L Account 98300160)
The RENTING-MOVABLE ASSETS account must always be balanced.
This check should be performed along the month and in case it's not balanced it will need to be corrected until D-3.
Go to transaction FBL3N and select the variant "IFRS16 CO OBJ", then select "All items" from the first day of the year until the last day of the month for which you are performing the check.
There shouldn't exist postings without CO object so these accounts with the selections of these should be balanced.
If it's not balanced it's necessary to analyze and correct the postings.
iv. Check of OI table (SAP code transaction SE16 - PF2: Table name = Z1F_CAPEX_OI | WP2: Table name = ZWFAT58001)
This table is used for vendor OI reclassification. Source : data from WBP
Go to transaction SE16 and select the table according to the system you are in.
Click enter and insert as Key date the last day of the month of closure and "Execute".
The following tab will appear:
If you perform this check and the table above doesn't appear in the transaction, you should report this situation to the Process Expert and the Process Coordinator.
v. Account Clearing (SAP code transaction F-03)
1. Clearing of Suspense Account (PF2: 5112100020 | WP2: 56030110)
In transaction F-03 for the account selection1 insert the correspondent G/L account and the fill in the other fields (Company Code, Clearing Date, Period and Currency) accordingly to the data.
Select "Process Open Items" and the following tab will appear.
If the total of "Not Assigned" is zero, you can save the clearing (CTRL+S) or select icon "save"
to process the open items.
In case the total of "Not assigned" is different from 0, it means that some contracts may have a payment in advance so the following month has been posted already and this makes the suspense account not balanced.
In order to clear the open items, detect the RE-FX contracts with payment in advance. Normally a contract, in F-03, should only have 2 lines posted (one with document type S4 and other with document type S5), so if we have 3 lines for a contract this is a contract with payment in advance (two lines with document type S4 and another line with document type S5).
In order to clear the items you have to "unselect" the S4 document that is related to next month's rent and have as total of zero for the "Not assigned".
After the "Not assigned" amount is zero you can save the clearing in order to process the open items.
The clearing document will be posted in the company selected
To confirm that the clearing was performed correctly you should have no open items when you check the G/L account balance in FBL3N, unless the contract is an advance payment contract and you'll have as open item the posting for next month's rent.
2. Clearing of Lease Liability (ST) Lease reclassifications Account (PF2: 5112100070 | WP2: 56030160)
Before you perform the clearing please check the balance of this G/L account in FBL3N (open items last day of the current month).
In order to proceed with the clearing the balance has to be zero.
If the balance is not zero, this means that when the transaction was performed in a previous closure one of two postings wasn't performed due to accounts in OB52 being closed.
In order to correct this situation we need to manually reverse, through FB03, the document that was posted, since the balance for this account should also be zero.
After all necessary corrections were done and G/L account is balanced (=0) in FBL3N you can proceed with the account clearing.
In transaction F-03 for the account selection1 insert the correspondent G/L account and the fill in the other fields (Company Code, Clearing Date, Period and Currency) accordingly to the data.
Select "Process Open Items" and the following tab will appear.
You can save the clearing (CTRL+S) or select icon "save" to process the open items.
Before you perform the clearing please check the balance of this G/L account in FBL3N (open items last day of the current month).
In order to proceed with the clearing the balance has to be zero.
If the balance is not zero, this means that when the transaction was performed in a previous closure one of two postings wasn't performed due to accounts in OB52 being closed.
In order to correct this situation we need to manually reverse, through FB03, the document that was posted, since the balance for this account should also be zero.
After all necessary corrections were done and G/L account is balanced (=0) in FBL3N you can proceed with the account clearing.
In transaction F-03 for the account selection1 insert the correspondent G/L account and the fill in the other fields (Company Code, Clearing Date, Period and Currency) accordingly to the data.
Select "Process Open Items" and the following tab will appear.
You can save the clearing (CTRL+S) or select icon "save" to process the open items.
vi. Check of ASKB
Transaction ASKB posts the periodic asset from local to group account.
Insert one company at the time and run in "Test Run".
If there's nothing to post the screen will appear as following:
Otherwise if there are assets to be posted it will appear as following:
In this second case, go back to ASKB main page, remove the tick from "Test Run" and click on "Program" to "Execute in background" (or press F9).
Choose as "Output Device" LP01
Then, run "Immediate", check and save.
In order to check the status of ASKB posting, go to transaction SM37 and "Execute" (or press F8) the transaction.
Here you can see the status of the action performed.
Going back to ASKB, check again on "Test run" if the same company has nothing else to post.
If everything is done correctly, it should appear as image below.
vii. Check of AFAB
The transaction AFAB runs the depreciation of each company.
Run in "Test Run" one company at a time, inserting the current fiscal year and the current month.
Always run AFAB in "Repeat" mode.
If there is nothing to post the following message will appear:
If there are documents that need to be posted, please follow the same steps of ASKB.
Go back to AFAB main page, remove the tick from "Test Run" and click on "Program" to "Execute in background" (or press F9).
Chose as "Output Device" LP01.
Then, run "Immediate", check and save.
To check the status of AFAB postings, go to transaction SM37 and "Execute" (or press F8) the transaction.
Going back to AFAB, check again on test run if the same company has nothing else to post.
viii. Check of Z1AANNUL
This transaction needs to be run twice a month, during pre-closure and closure periods.
During pre-closure, run Z1AANNUL only in test mode, to verify if the different accounts are balanced.
Fill Z1AANNUL with the required information – templates with pre-filled information can be found in the "Variant Directory of Program Z1AANNUL".
Use as charts of account COCA for PF2 and Z001 for WP2.
Run one company at the time, remembering to change the Country Key, based on the country identity of the company code (e.g.: company 0001 Belgium – country key BE; company 5835 Italy - country key IT, etc..).
To run Z1AANNUL during pre-closure in test run, remove the ticks on "CREATE BATCH-INPUT" and "SCMA".
Example of balanced account:
Unbalanced accounts:
For this last situation you should perform an analysis of the contract and the IFRS 16 accounts that can impact the Z1AANNUL posting.
Please ensure that all necessary analysis and corrections are performed before D-1.
After this last task you may consider all closure activities as completed.