Job Summary: Month-End Closing in RTR (Record to Report):
As part of the month-end closing process in the RTR profile, the following tasks are performed to ensure timely
and accurate financial reporting:
1. Intercompany and GL Cutoff: Implement the Intercompany and GL cutoff dates on WD-4 and open the
next period. This ensures all transactions are recorded in the correct period.
2. Close Sub Ledgers: Subledgers are closed on WD-3 to ensure all subsidiary transactions are reflected
properly before the general ledger is finalized.
3. Missing Invoices and Accruals: Identify and address any missing invoices in the Subledgers, post
accruals on WD-2 and WD-1 with a posting date of WD-4 to maintain accurate financial records as per
GL cutoff.
4. Intercompany Reconciliation: Perform thorough Intercompany reconciliations, resolving any out-of-
balance situations between IC receivables and payables. Post necessary adjusting entries and closing
the Intercompany accounts by WD+1.
5. Forex and Inventory Revaluations: Run Forex Revaluations and record any unrecognized gains or
losses. Additionally, perform Inventory revaluations to ensure proper valuation of assets.
6. Tax Provision Entry: Post the required Tax Provision entry for the month to account for applicable tax
obligations.
7. Financial Reporting: Complete the financial closing by submitting the final statements in the HFM tool
for consolidation and reporting purposes.
8. Period Locking in SAP: Finally, lock the periods in SAP to prevent any further changes after the closing,
ensuring the integrity of the financial data.
This comprehensive approach ensures accurate and timely month-end financial reporting, compliance with
accounting standards, and preparation for subsequent periods.
Balance Sheet Reconciliations:
Summary: Balance Sheet Reconciliations in RTR:
Balance Sheet Reconciliation is a process in Record-to-Report (RTR) that ensures the accuracy and
completeness of financial records by comparing the balances in the general ledger accounts to supporting
documentation and external sources (such as bank statements, invoices, or vendor statements). This
reconciliation helps identify discrepancies and errors, ensuring that the financial statements reflect the true
financial position of the company.
The process involves:
1. Reviewing Open Items: Open items refer to transactions or amounts in the balance sheet accounts that
have not been settled or cleared. These could include pending invoices, accruals, or unmatched
payments. The reconciliation process involves reviewing these open items to determine if they are valid
and ensure that they are appropriately cleared or aged.
2. Supporting Documentation: All balance sheet accounts should be supported by relevant documents
such as invoices, bank statements, contracts, or other transaction records. This documentation is used
to verify that the balances in the accounts are accurate and in line with the company's operational
activities.
3. Approval: After completing the reconciliation, the balances and the open items must be reviewed and
approved by relevant stakeholders. This ensures that any discrepancies or pending items are addressed,
and the reconciliation process is formally validated. Approvals can come from finance managers or
senior accountants who are responsible for overseeing the process and ensuring compliance with
financial reporting standards.
4. Clearing of Items: Once discrepancies are identified, action must be taken to resolve them, which may
involve adjusting the accounts, clearing open items, or communicating with relevant departments to
resolve outstanding issues.
5. Reporting: After the reconciliation process is complete, a report is typically generated to summarize the
findings, detailing any adjustments made and the status of open items.
Short Answer for Interview: Balance Sheet Reconciliations Process
Balance Sheet Reconciliation is the process of verifying and reconciling the balances in a company’s balance
sheet to ensure they are accurate and reflect the true financial standing. It involves comparing the general
ledger balances with supporting documents, such as bank statements or invoices, to ensure everything aligns
correctly.
The key steps in the process are:
Review of Open Items: Identifying and resolving items that are still pending or unmatched.
Supporting Documentation: Ensuring all balance sheet accounts are backed by relevant and valid
documents.
Approval Process: Once reconciliations are completed, they are reviewed and approved by the
appropriate stakeholders to ensure accuracy and compliance.
The process helps maintain the integrity of financial statements, detect errors, and ensures that all
transactions are properly accounted for in the company’s financial records.
