C_TS4FI_2023 · General Ledger & Financial Closing · ~18% of exam
Financial Closing
Month-end and year-end closing procedures, accruals, foreign currency valuation, and balance carry-forward — covering all Financial Closing topics in C_TS4FI_2023.
Key Concepts
Month-End Closing
Periodic activities: post accruals/deferrals, run depreciation (AFAB), foreign currency valuation (FAGL_FC_VAL), GR/IR clearing, CO allocations, run financial statements.
Year-End Closing
All month-end steps + asset fiscal year change (AJRW), balance carry-forward (FAGLGVTR), close fiscal year (OB52 — open only period 13+ special periods).
Accruals & Deferrals
Accruals: costs incurred but not yet invoiced (post manually or via FBS1 recurring entry). Deferrals: revenue/costs paid in advance that belong to future periods. Reversed next period.
Foreign Currency Valuation
Revalues open items and GL balances in foreign currency at closing exchange rate. Posts unrealized gain/loss. Transaction FAGL_FC_VAL. Reversed at period start.
Balance Carry-Forward
Carries P&L account balances to retained earnings GL account. Transfers balance sheet account opening balances. Transaction FAGLGVTR. Can be run multiple times.
GR/IR Clearing
Identifies and clears GR/IR account items where goods receipt and invoice receipt are both posted. Remaining items are regrouped as assets or liabilities at closing.
Transaction Codes (T-Codes)
| T-Code | Description |
|---|---|
| FAGLGVTR | Balance carry-forward (New GL) |
| FAGL_FC_VAL | Foreign currency valuation |
| FBS1 | Post accrual/deferral document (auto-reversal) |
| F.13 / F13E | GR/IR automatic clearing |
| AJRW | Asset fiscal year change |
| OB52 | Open/close posting periods (open special periods 13–16 for year-end) |
Key Rules to Remember
Correct order: AJRW → AFAB → FAGL_FC_VAL → allocations → FAGLGVTR → close period
Special periods (13–16): used for year-end adjustments after period 12 is closed to normal postings
Retained earnings account: defined per P&L account type in FSP0 — all P&L accounts of that type carry forward to this one account
FBS1 accruals always have a reversal date set — never remain permanently open
Config Paths (SPRO)
SPRO → Financial Accounting → GL Accounting → Periodic Processing → Closing → Carry Forward
SPRO → Financial Accounting → GL Accounting → Periodic Processing → Valuate → Foreign Currency Valuation
SPRO → Financial Accounting → GL Accounting → Periodic Processing → Closing → Regroup
Exam Traps — Common Mistakes
Balance carry-forward (FAGLGVTR) can be run multiple times in the new year — each run overwrites the previous result.
AJRW (asset fiscal year change) must be run before AFAB in the new year. You cannot run depreciation in the new year until AJRW is done.
Foreign currency valuation posts unrealized gain/loss. These postings are typically reversed on the first day of the next period using an automatic reversal reason.
P&L accounts do NOT need balance carry-forward — they are automatically reset to zero at year start. Only balance sheet accounts and the retained earnings account are affected.