DEFINE FISCAL YEAR VARIANT IN FICO OR FISCAL YEAR

FISCAL YEAR:

If Companies in

Idian Companies US Companies

Some Copanies follow

        Fiscal Year Period                                Fiscal Year Variant

April to March + 4 Special Periods                           V3

Jan to Dec + 4 Special Periods                               K4

July to June + 4 Specaial Periods                            V6

Oct to Sept + 4 Special Periods                              V9

If Fiscal Year period  is from  April '08 to March '09, in SAP it is called as Fiscal Year 2008
If Fiscal Year  period is  from July 2008 to June 2009, in SAP it is called as Fiscal Year 2008
If Fiscal Year period  is  from Oct 2008 to Sept 2009, in SAP it is called as Fiscal Year 2009

Logic behind this is besed on Numbe of Months covered in Next Calender Year. If in next Calender Year Period is above 6 months , call it as Next Year , otherwise call with the
same year. So , in above example

        No.of Months in

Period                                                    2008                    2009                    SAP Year ( Fisc.Year)

April 08 to March 09                                     9                         3                         2008

July 08 to June 09                                        6                         6                         2008

Oct 08 to Sept 09                                         3                         9                         2009

What are Special Periods:

For Fiscal Year 2008 i.e, Accounting period from April 2008 to March 2009, March 2009

will be the last Month. In SAP it has 4 special periods for MARCH 09

Month                                     No. in FY

April                                            1 } 

March                                         12 }     Normal Periods

March                                         13 }

March                                         14 }

March                                         15 }      4 Special Periods

March                                         16 }

 Specail periods are part of last period in that Fiscal Year. In this example March 2009.

USAGE OF SPECIAL PERIODS IS OPTIONAL.

WHY SPECIAL PERIODS REQUIRED:

Why SAP has allowed Special period is explained below with the example.

Date                    Status  of Accounting

on 20.03.09        Accounts department released profitability upto the Feb'09 to the Mgt.

Figures upto Feb'09 can not be changed as profitability is finalised upto
Feb 09. In that sence, We open period for March 2009 to March 2009 for
data entry purpose so as to not to change the previous data by any one.
So End user can entere transactions only for the month of March 2009.
for Opening March 2009  to March 2009 means open period is

12.2008 to 12.2008

on 30.03.09         New accounting year April 2009 to March 2010 ( Fisc. Year 2009) will

start after 2 days. So to open the period for Fisc.Year 2009, we have to open period from March 2009 to March 2010 as , for Fisc. Year 2008
B/S is not finalised  and still some entries have to make for March 2009. So period to open would be 12.2008 to 12.2009

on 16.04.09        Accounts Department has closed the Balance Sheet and declared

Profitability for the Fisc. Year 2008 to the Management. Management has suggested to make some adjustments for which adjustment entries hast to be passed by A/c Dept. This Adjustments may be for increase / decrease the profitability.

on 05.05.09        Accounts Dept made passed adjustment entries as suggested by the

Management . Data entered on 05.05.09 but posting dated will be 31.03.09 so as to updated the 2008 Fisc. Year ledgers.

on 12.05.09        Audit has completed and Auditors suggested to make Rectification

Entries. These rectification entries were done on 12.05.09 but the posting date will be 31.03.09 so as to update the Fisc.Year 2008 ledgers.

On 10.07.09        If Management wants to see the Profitability finalized by the Accounts

Department, it is not possible to see  as subsequently adjustment entries
were made as suggested by the Management and Rectification Entries
were made as suggested by the Auditors.  All the data was changed.

TO OVERCOME THIS PROBLEM SAP HAS GIVEN 4 SPECIAL PERIODS WHICH ARE PART OF THE LAST PERIOD OF THAT PARTICULAR FISCAL YEAR.

HOW SPECIAL PERIODS WILL BE USEFUL:

Entries made upto the Profitability of Accounts Department will be posted upto period 12. Entries made for Management Adjustements will be in the period 13.  Entries made for Auditors Rectifictions will be in the period 14.

When we want to see the Report:

        Period                                                             Report we view

From           To

1                  12                          Profitability finalized by Accounts Department

1                  13                          Profitability suggested by Management

1                  14                          Profitability finalized by the Auditors

14                14                          To see the list of Rectification Entries suggested by Auditors

How to Convert Calender Year to Accounting Year Periods:

SAP by default Know only Calender Year ( Jan - Dec) as Accounting Year ( Fiscal Year) Below is the process to convert the Calender year to Accounting Year.

Conversion for A/c Year from Apr 2009 to March 2010 ( Fisc. Year 2009)

	Month	Days	Period in SAP	Year Shift
Jan	1	31	10	-1	For Accounting Year 2009-2010,
Feb	2	29	11	-1	April will be the 1st Month
Mar	3	31	12	-1	For April Calender year =2009
Apr	4	30	1	0	For April Fiscal Year - 2009
May	5	31	2	0	So, Year Shift is "0" ( 2009-2009)
June	6	30	3	0
July	7	31	4	0	But for Jan to March , Cal Year =2010
August	8	31	5	0	Fiscal Year = 2009
Sept	9	30	6	0	So, Year Shift = "-1" ( 2009-2010)
Oct	10	31	7	0	When we post document for Jan-2010
Nov	11	30	8	0	it should updated the FY. 2009 ledger
Dec	12	31	9	0	But not the 2010, so Year shift= -1.

Scenario -II

Conversion for A/c Year from Oct 2009 to Sept 2010 ( Fisc. Year 2010)

	Month	Days	Period in SAP	Year Shift
Jan	1	31	4	0	For Accounting Year 2009-2010,
Feb	2	29	5	0	Oct will be the 1st Month
Mar	3	31	6	0	For Oct Calender year =2009
Apr	4	30	7	0	For Oct Fiscal Year -2010
May	5	31	8	0	So, Year Shift is "+1" ( 2010-2009)
June	6	30	9	0
July	7	31	10	0	But for Jan to Sept , Cal Year =2010
August	8	31	11	0	Fiscal Year = 2010
Sept	9	30	12	0	So, Year Shift = "0" ( 2010-2010)
Oct	10	31	1	1	When we post document for Jan-2010
Nov	11	30	2	1	it should updated the FY. 2010 ledger
Dec	12	31	3	1	But not the 2009, so Year shift= 0.

PATH FOR FISCAL YEAR CONVERSION:

SPRO---->Financial Accountin---->Fin. A/c Global Setting---->Fiscal Year---->Maitain Fiscal Year Variant( Maintain Shortend Fiscal Year  TC=OB29)---->

Select Position Button             Fiscal Year Variant =V3            Press Enter

Double Click on Period Folder. It will display default Window, If we want to Create our own Variant Press on New Entries Button

                        FV           Description

                       1A            April to March + 4 special Periods---> Deselect Year Dependent--Deselect

              Calender Year  Check Box----> No of Posting Periods =12 ----> No of Spl. Periods =4  Select Save Button or CTRL+S

Select F.Year Variant as 1A. Double click on Periods folder---> Select New Entries

	Month	Days	Period in SAP	Year Shift
Jan	1	31	10	-1
Feb	2	29	11	-1
Mar	3	31	12	-1
Apr	4	30	1	0
May	5	31	2	0
June	6	30	3	0
July	7	31	4	0
August	8	31	5	0
Sept	9	30	6	0
Oct	10	31	7	0
Nov	11	30	8	0
Dec	12	31	9	0

Press Save Button

Why to De-select Year Dependent Check Box:  If we select the Year Dependent Check

Box, at the time of Saving , SAP will ask for Which Fiscal Year.  If we gave 2009 as FY,

Conversion is applicable to that FY only. We have to do the Same process of Conversion for each and every year. If we de select, converion is applicable to all the years.

Why to De-select Calender Year Check Box: If we select this check box, System will consider January as Period 1 in the Fiscal Year and April will be as 4th period. But we
require April will be treated as 1st period and January will be 10th in Periods.