Today we will learn about the topic Fiscal year and Fiscal year Variants.
FISCAL YEAR and FISCAL YEAR VARIANT
In Accounting terms, we know that Balance sheet and income statement of companies across the globe are usually prepared for a period of one year. This year is called as a financial year.
The same financial year in SAP financial accounting is called as a fiscal year.
Fiscal year in SAP is consists of 16 posting period out of which 12 are normal posting periods and 4 are special posting periods.
For example, In India financial year/ fiscal year start from 1st April and ends on March 31st while in US it starts from 1st Jan and ends at 31st Dec.
Normal posting periods are used to post day to day company transactions and special periods are used for the purpose of adjustments and auditor’s rectification entries.
How Fiscal year are classified in SAP:
Year dependent: It is applicable to that particular year i.e 2011 or 2019. It needs to be changed for every year.
Year Independent: It refers that fiscal year is applicable to all the Financial account year
Calendar year: Fiscal year starting from 1st of Jan and ending at 31st Dec is called as Calendar year.
Shortened Fiscal year: Any fiscal year which has less than 12 normal posting period is called shortened fiscal year.
Fiscal year Variant: A Variant that controls the Fiscal year parameters for the financial years is called as Fiscal year variants:
What are the parameters belong to Fiscal year variant?
How many posting periods a fiscal year has?
How many special periods you need?
How the system should determine the posting periods when you make a posting?
How to create a Fiscal year variant?
Go to SPRO → SAP Reference IMG → Financial Accounting → Financial Accounting Global Setting → Fiscal Years → Maintain Fiscal year variant → Execute.
T code: OB29
Press enter after this.
Select the new entries:
Provide the following details −
FV− Enter 2-digit Fiscal year.
Description− Enter a description of the Fiscal year variant.
Year Dependent− If the start and the end date of the fiscal year changes between year, then check this box.
Calendar Year− If the fiscal year is same as the calendar year Jan-Dec, then check this option.
Number of Postings− Enter the number of posting periods for a Fiscal year.
Number of special postings− Enter the number of special posting periods for a fiscal year.