Accounting and Financial Close supports you in effectively carrying out

your daily business in financial accounting, performing your closing

operations, and reporting on your accounting data. You can reduce risk and
cost of real-time financial reporting and multidimensional data analysis for
accounting standards with SAP solutions. The unified General Ledger
represents the heart of Finance as a single source of truth. SAP S/4HANA
Cloud represents a complete set of Accounting processes with multiple
views, valuation approaches and allocation methods. The solution provides
the basis for instant insight into legal reporting, in addition to management
profitability reporting based on a single source of truth of detailed
information. You can use SAP S/4HANA Cloud to efficiently close books on
time, and create financial statements at the entity and corporate levels for
International Financial Reporting Standards.

Accounting and financial close include:

 General Ledger Accounting

o You use General Ledger Accounting to perform external
accounting tasks.
 Asset Accounting
o You use Asset Accounting to manage and monitor tangible fixed
assets. It provides detailed information about the transactions
relating to tangible fixed assets.
 Inventory Accounting
o You use Inventory Accounting to value and monitor your
material and work-in-process inventories according to legal
regulations and management accounting requirements. All goods
movements are valued in the Material Ledger which supports
parallel, real-time valuation of inventories in multiple currencies.
A special focus lies on high throughput of logistics data that
allows for managing mass data volumes.
o You can choose to value your material inventories at standard
cost or moving average automatically. In addition, you may
make manual adjustments to material costs and inventory
values. You may also use periodic valuation of material
inventories according to statutory requirements such as Lowest
Value or FIFO, or product cost management requirements such
as standard costing.
 Revenue and Cost Accounting
o You use Revenue and Cost Accounting to recognize revenues and
calculate contract liabilities and contract assets.
 Intercompany Matching and Reconciliation
o Intercompany matching and reconciliation allows you to match
transaction data according to the predefined rules and reconcile
balances for paired accounts. You can check the matching and
reconciliation results and perform follow-up activities such as
adding notes, triggering workflows, or making auto-adjustment
postings.