Month-end close in SAP CO: a checklist

Month-end close in SAP requires finance (FI) and controlling (CO) steps to be done in the right order. When the order breaks, costs go to the wrong objects and reports have to be rerun. The list below is a general framework you can adapt to your own business.

Pre-close checks

• Check that postings for the period (goods receipts, invoices, production confirmations) are complete.
• Review open and faulty production orders and missing confirmations.

Cost centre activities

• Are planned activity prices and actual activity quantities up to date?
• Run distribution and assessment cycles (e.g. KSV5 / KSU5) in test mode first, then in update mode.

Production and order close

• Apply overhead surcharges (e.g. KGI2 / CO43).
• Calculate work in process (WIP) (e.g. KKAX / KKAO).
• Calculate variances (e.g. KKS1 / KKS2).
• Settle orders (e.g. KO88 / CO88 / KO8G).

Profitability analysis (CO-PA)

• After settlement, check the values posted to CO-PA and compare them with FI.

Period lock

• After the checks, lock the CO period (OKP1) and open the next one.

Transaction codes may vary with system configuration and the SAP version in use. Putting your own closing calendar in writing along these lines is the easiest way to shorten the close.