Financial Period-End Closing for Healthcare Organization

1. Financial Period-End Closing for Healthcare Organization SAP Best Practices

2. Purpose, Benefits, and Key Process Steps • Purpose • The closing operations component helps you prepare and carry out the activities required for day-end, month-end and year-end closing. • For this purpose, the system provides a series of standard reports that can be used to generate evaluations and analysis of the posted account balances directly • Benefits • The system helps you to carry out the following: • Instantly create financial reporting, like Balance Sheets and Income&Expense general statements. • document the posting data.

3. Purpose, Benefits, and Key Process Steps • Key Process Steps • Day-end closing • Month-end closing • Year-end closing

4. Required SAP Applications and Company Roles • Required SAP Applications • Enhancement package 5 for SAP ERP 6.0 • Company Roles • Finance Manager • Accounts Payable Manager • AP Accountant • AR Accountant • IT Administrator (Professional User) • General Ledger Accountant • General Ledger Accountant (China)

5. Detailed Process Description Day-end closing in Financial Accounting Check gaps in document number assignment Check invoice numbers allocated twice Display compact document journal Display financial reports

6. Detailed Process Description Month-end closing in Financial Accounting Check gaps in document number assignment Check invoice numbers allocated twice Open new accounting period Enter recurring entries Create recurring entries batch input session Run batch input session to post recurring entries Proceed automatic clearing of GR/ IR account Analyze GR/ IR clearing accounts

7. Detailed Process Description Month-end closing in Financial Accounting Proceed automatic clearing of accounts Post adjustment entries Revaluation foreign currency balance Compare document/transaction figures Close previous accounting period Display document journal Release financial reporting

8. Detailed Process Description Year-end closing in Financial Accounting Create factory calendar for new year Carry forward AP/ AR balances Carry forward GL balances Re-group receivables/payables Bad debt provision Create payable balance confirmation Final close and release financial reporting Close previous accounting period Display document journal

9. Process Flow Diagram Process 1, Day-End Closing Event Reporting Evaluation Finance Manager Process Decision Display Compact Document Journal Gaps in Document Number Assignment Cash in Hand Diary Ledger Invoice Numbers Allocated Twice Bank Deposit Diary Ledger Printing out Financial Voucher

10. Process Flow Diagram Process 2, Month-End-Closing Event Updating Posting Reporting Displaying Medical Insurance Provider Opening Item Finance Manager/AR AP Manager/GL Accountant Process decision Clearing of GL accounts Process decision Check gaps in document no. Post adjustment entries Display document journal Enter recurring entries Open new accounting periods Check invoice no. allocated twice Sub Ledger Journal Compare document/ transaction figures Create& run batch input session G/L Balance Report Close previous accounting period Clearing of GR/ IR account G/L Sub Ledger Report Balance Interest Calculation Analyze GR/ IR clearing account Release financial statements Income&Expense Report Balance Sheet Report Medical Inc&Exp subsidiary report

11. Process Flow Diagram Process 3, Year-End-Closing Event Updating Reporting Finance Manager Process decision Final close & release financial reporting Create factory calendar Carry forward AP/ AR balances Close previous accounting period Provision for Bad Debt Carry forward GL balances Display document journal Regroup AR/AP AR Accountant Confirm Receivable for Medical Insurance Provider AP Accountant Confirm AP balance

12. Diagram Connection Legend <Function> Hardcopy / Document External to SAP Financial Actuals Business Activity / Event Budget Planning Unit Process Manual Process Process Reference Existing Version / Data Sub-Process Reference Process Decision System Pass/Fail Decision