Section 10 of 10

MM Period-End Processing

The MM monthly routine, GR/IR analysis, reconciling stock with the general ledger, and closing the MM period.

Open contents

The MM close finalises stock values and squares them with accounting. Much of it must happen before the FI close, so sequence matters.

The monthly sequence

MM month-end
StepActivityCodePurpose
1Find unprocessed documentsME2N / MB51Identify missing receipts and unverified invoices
2Release blocked invoicesMRBRClear invoices held for differences
3Analyse GR/IRMB5S / F.19Reclassify goods received not invoiced and vice versa
4Reconcile stock with the G/LMB5LCompare inventory value with account balances
5Close the material ledgerCKMLCPWhere actual costing runs
6Close the periodMMPVMove the MM posting period forward

GR/IR analysis

SituationBalanceReclassify asMeaning
Received, not invoicedCreditA liabilityGoods arrived, invoice has not
Invoiced, not receivedDebitAn assetInvoice arrived, goods have not

Review balances per order with MB5S and post the reclassification with F.19, normally reversing it at the start of the next month.

Reconciling stock with the ledger

Inventory value in MM should equal the inventory account balance in FI; MB5L compares them.

Divergence points at changed account determination, changed valuation classes, or inconsistency after a system failure. It should not happen, so any difference needs explaining.

Useful inventory reports
CodeContent
MB5LStock value against G/L balances
MB52Current stock by plant and storage location
MB51Material document line items
MB5BStock as at a chosen date
MC.9Stock trend analysis

Closing the MM period (MMPV)

MM maintains its own posting period, separate from FI. MMPV moves it forward.

Only the current and previous periods accept postings. Running MMPV makes the next month current and the current month previous; anything earlier becomes closed.

Writing stock down

At period end, stock carried above its net realisable value has to be written down โ€” slow-moving and obsolete items in particular.

SAP can calculate write-downs from how long stock has been held and how much has been consumed, through transactions such as MRN0 for market price valuation and MRN9 for slow-moving stock.

๐Ÿ“– Unfamiliar term? Look it up in the SAP glossary.

Check your understanding

Test what you just read.

Quiz 1

Which transaction is used to clear GR/IR account balances?

Quiz 2

MMBE is a transaction for viewing inventory levels by material and plant.

Quiz 3

What should be verified first before MM period-end close?

Quiz 4

The GR/IR clearing account retains a balance until both the GR side and invoice side are fully matched.

Quiz 5

Which transaction is used to close the MM posting period (period change)?

Quiz 6

Arrange the MM period-end closing steps in the correct order.

Click items in the correct order