The standard Month End Closing must be completed before proceeding with the Year End Closing.

During the Year End Closing, the balances of ANL, MCL, and HOS in the whole year are reconciled, updated and stored at the Employee Information database .

Additionally, ANL is reset, with options to either carry it forward or initialize it; MCL and HOS are also initialized.

Finally, the entitlements for ANL, MCL, and HOS are processed for the upcoming year.

It is mandatory to set up the Period Code for the upcoming year before performing the Year End Closing.