Each month, the finance department performs a month-end close for each company code. This close is performed to finalize a snapshot of transactional activity for the period. The month-end closing processes are performed for the last time for a particular period to ensure that all transactions are posted and reported correctly. The month is officially closed when all the month-end processes are complete. To ensure that new inventory movements are posted to the current period, the period needs to be closed in the MM area.
You need to close the Material Management Period to make sure that postings are in the correct period.
If you want to perform Material Management month end closing, you need to ensure that all inventory movements are posted to the new period, make sure the previous period is closed and the new period is opened. You can go to MMPV tcode or follow this SAP Menu Path :
SAP -> Logistic -> Material Management -> Material Master -> Other -> Close Period
You must enter the company code for which you want to close the period or you can enter range of companies code. then enter the new period that which you want to opened, for example if the period you are closing is period 8, the next period will be 9. You need to select Check and Close Period for safe process, because the check will looks at the any inconsistencies data in the period you are about to close.
After you’ve executed this transaction, a log is displayed informing you of any issue that may have occured, such as entering the next period incorrectly,if the period close succefully , the system display a log entry too.
If your company use material ledger, that also needs to be closed at the end of period using CKMI tcode.