Fiscal Year Variant
Accounting all over the world are
done and reported for a specific period. This period of accounting and
reporting financial statements is known as Financial Year or Fiscal Year. The
fiscal year may differ from country to country as per the prevailing rules and
regulations. Given below is the list of some fiscal years:
January to December
April to March
July to June
Every fiscal year will have 12 months,
these months are called as Periods in SAP.
Definition
Fiscal Year Variant is the code
that contains the number of posting periods in a fiscal year and number of
special periods. This is required to be assigned to Company Code and
Controlling Area.
Background
Before we proceed to creation of
Fiscal Year Variant, it is important to understand certain SAP terminologies
related to Fiscal Year Variant:
Calendar Year
A Fiscal year variant is said to have Calendar year when the Fiscal Year starts from January and Ends on December every year.
Calendar Year Independent
A Fiscal year variant is said to have Calendar year when the Fiscal Year starts from any month other than January and Ends on any month other than December every year. For e.g. Fiscal Year “April to March” or “July to June”. Year Dependent
This is a special type of fiscal year. In this type of fiscal year the start and end date for the fiscal year is entered manually as it can’t fit in both of the above formats of fiscal year.
For e.g. the fiscal year starts from January and ends on December but the period in between i.e. months are not calendar months, they the first month starts on 1st January and ends on last Sunday of the month and the 2nd period starts from the very next day. This logic continues till November. In the month of December, the month starts on the very next day of November’s last Sunday and ends on 31st December. In such cases, the beginning and end of period is to be specified manually.
Normal Periods
Normal Periods are the 12 periods created for the 12 months of the year. The first period may differ as per the fiscal year.
Special Periods
Special Periods are special provision given by SAP for doing special postings (closing). The last period of the fiscal year is divided into special periods. Maximum number of special periods available in 4.
The closing activities can be divided into the 4 special periods provided. For e.g. all the regular postings will be done in the normal 12 periods provided. The adjustments related to audit can be made in period 13, management adjustments in period 14, other adjustments in 15 etc.
The special periods play an important role in the accounting. They help identify and draw financial statements with particular adjustments. With reference to the above example, run financials from period 01 to 14 for financials with audit adjustments, 01 to 15 for audit and management adjustments etc.
Implementation Consideration
Define Fiscal Year Variant
IMG Path: Financial Accounting
(New) > Financial Accounting Global Settings (New) > Ledgers > Fiscal
Year and Posting Periods > Maintain Fiscal Year Variant (Maintain Shortened
Fisc. Year)
SAP provides following fiscal year
variant which can be used in most of the cases.
Fiscal Year Remarks
K0 January
to December with no special periods
K1 January
to December with 1 special period
K2 January
to December with 2 special periods
K3 January
to December with 3 special periods
K4 January
to December with 4 special periods
V3 April
to March with 4 special periods
V6 July
to June with 4 special periods
V9 October
to September with 4 special periods
Assign Fiscal Year Variant
IMG Path: Financial Accounting
(New) > Financial Accounting Global Settings (New) > Ledgers > Fiscal
Year and Posting Periods > Assign Company Code to a Fiscal Year Variant
Tip
The Fiscal Year Variant is
assigned to Company Code and Controlling Area as well. Company Code can be
assigned to a Controlling Area only when both have same Fiscal Year Variant.
Reference Material
Tags#
SAP Calendar Year, SAP Fiscal Year, SAP Fiscal Year Variant, SAP Fiscal Year Variant guide, SAP Normal Periods, SAP Periods, SAP Special Periods, SAP Year dependent Fiscal Year,
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