Period Closing and Period Opening in SAP MM
It is important to know what is a period and what is period closing. A period is a window which is usually a month during which the transactions are posted in SAP. Once posting of the documents are completed for the relevant period or month, you need to close the period so that the SAP users cannot post the documents or transactions during past period or the month.
In SAP, posting of documents like Invoices, goods receipt etc. are allowed to be posted in the current month. In case you receive materials and invoices at the end of the month say Jan 31, 2020 which are yet to be accounted and your month has rolled over to Feb 1st 2020 physically, you can configure the system in such a way that the system allows you to post the material as on Jan 31st, 2020 even though physically the date has changed to Feb 1st 2020. Once all the goods receipts, invoices etc. are accounted for Jan 2020, then you close the January period in MM and FI. Simultaneously you open the periods in MM and FI for Feb 2020, so that posting can be done in the February period. Usually, the companies allow 2 to 3 working days in the next month to close all the previous months transactions. This process of closing periods and opening periods continues month after month. At the end of the year, you do a financial close.
In a calendar year there are 12 months so you have 12 periods. In addition to the 12 periods say January to December, you have 4 other periods that you can close say at the end of each quarter. At the end of the year, you do a financial close. Finance closing will be discussed in a separate blog.
You can check the current Period using transaction code MMRV.
You can close the old period and open the new period using transaction code MMPV.
Before closing any period, you need to check the current period of the SAP system using tcode MMRV.
Period Closing in SAP MM
Once you know the current period. You can go ahead and close the previous period month by month. Use MMPV to close the old periods and bring it to current period.
A new window pops up as shown below, with a message that Period Closing Complete. System closes the period and opens the new period in SAP. You can use transaction code MMPV to do the following activities depending on which radio button you select as shown in the above screen shot.
- Check Period only
- Close Period only
- Check and Close Period
To check if the period was closed correctly and to confirm the new period, you can use transaction code MMRV as shown below. You will notice that we have closed the February period and opened March period for posting.
The above activities are done by a MM consultant or a Super user in the Company. Period closing is also called as the month end close. Once period closing is done by MM consultant, the FICO consultant takes over. There are several activities the FICO team does at the end of each period & end of each quarter and end of financial year. This will be discussed in a separate blog. This blog is only about Opening period and Closing period in SAP MM.
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