This article includes links to PDFs of SAP’s documentation for Year-End Closing in SAP Business One. 
The documentation is specific to the version of SAP that you are running, so please be sure to only read the attachment that relates to your version.

How To Year End Close SAP Business One versions 2007A & 8.8

How To Year End Close SAP Business One versions 8.81 and 8.82

How To Year End Close SAP Business One version 9.0


The documents are quite extensive and deal with process reviews, audits, and general housekeeping prior to physically closing the fiscal year.  The function in SAP that actually zero’s out the P&L accounts and books them to retained earnings is near the end of the document under the Period-End Closing section.  This function can be run at any time.  It does not have to be run before you start processing in your new year.  We recommend backing up your database just prior to running this function.  We have never seen an issue with it, but it is still better to be safe than sorry.

Year-end Closing Checklist for SAP Business One


Entry deadline for orders and purchase orders
All orders and purchase orders for the old period should be entered in the system.


Perform preparation work

  • Check the document numbering.
  • Check the completeness of transactions, including:
    • Document drafts
    • Documents pending approval
    • Recurring postings
    • Reverse transactions
    • Proposed exchange rate differences and conversion differences
  • Check for negative inventory.
  • Check for execution payment runs.
  • Check statistical and clearing
  • accounts.
  • Check for completeness of bank statements

Post deadline for A/P and A/R

  • Invoices
  • Credit memos
  • Deliveries
  • Returns

Perform inventory count

Reclassify business partners and bank accounts with a negative balance

Close period - Change period status to Closing Period

Perform reconciliation

  • Internal reconciliation upgrade journals
  • Business partners
  • Fixed assets
  • Bank statements and bank and cash accounts
  • Allocation and expense clearing accounts
  • Inventory accounts
  • Accruals (including revenues for undelivered A/R reserve invoices)
  • Assets under construction
  • Depreciation
  • Valuation of foreign currencies
  • Material valuation
  • Work in progress
  • Allowances

Provisions and transfer postings

Posting deadline for general ledger

Reporting - Create and print reports

Period-end closing

  • Restart document numbering.
  • Create new periods for the new fiscal year.
  • Change fiscal year in fixed assets.
  • Perform period-end closing.

Final closing of the old period - Change the period status to Locked