- SAP Managed Tags:
Fiscal Year Variant:
Defines Financial Year, Defines how many normal periods and special periods for the financial year.
Normal Financial year contains 12 normal periods plus up to 4 Special Periods
Normal periods always start from period1 to 12
Normal periods contains the period definitions.
Special periods does not contains the period definitions
Period definition :
It defines each period start date and end date of the period
Example
Period1--->from April1 to April 30th
Period2 ----> From 1st May to 31st May
Period12-----> From 1st March to 31st March
Type of the Fiscal Year:
1.Calendar Fiscal Year
2.Non Calendar Fiscal Year
1.Calendar Fiscal Year:
Those Financial Year Posting Period should be equal to Calendar Month.
Example: Period1 = Jan , Period2 = Feb , Period3 = Mar , Period4 = Apr , Period5 = May , Period6 = June , Period7 =July Period12 = Dec
Every Period Start Date and End Date should be equal to Calendar Month that type of Financial Year can be called as Calendar Year.
Period1----> 1st jan to 31st jan
Period2----> 1st Feb to 28th feb or 29th Feb
Period3 ----< 1St March to 31st March
Period12----> 1st Dec to 31st Dec
Note :
Not required to define any period definition
System follows standard functionality if FY defined / activated with Calendar year indicator
In the Calendar Fiscal Year, the Posting Periods and Fiscal Year Determines based on Posting Dates
Posting date : 20.03.2022======> system determines Posting Period =3 and Fiscal Year =2022
Not required any mapping rules for period definitions in case of FY as a calendar year
2.Non Calendar Fiscal Year:
Other than Jan to Dec FY can be called as Non Calendar year
Example : April to March
July to June
Oct to Sept
Even though FY follows Jan to dec but period definition not equal to calendar month start date and end date
FY====> 1st Jan to 31st Dec
Period 1------> 1st Jan to 29th Jan not equal to calendar Month # Jan
Period2-------> 30th Jan to 28th Feb not equal to calendar Month # Feb
Period3-------> 29th Feb to 30th March not equal to calendar Month # March
Note :
Posting date : 20.03.2022====> How the system knows what is the posting period = ???? What is the Fiscal year = ???
in case of non calendar FY , Need to specify the period definitions to get the Posting period and FY
In case of Non-Calendar Year ,the Posting Period and Fiscal Year determine based on posting date along with Fiscal Year Variant Configuration Settings
Definition :
In Case of Non-Calendar Year, we need to maintain relationship between Calendar Month and Calendar Day and Posting Period
| Calendar month | Calendar Day | FY Period | Year Shift Indicator | |
| Jan | 1 | 31 | 10 | -1 |
| Feb | 2 | 29 | 11 | -1 |
| Mar | 3 | 31 | 12 | -1 |
| Apr | 4 | 30 | 1 | |
| May | 5 | 31 | 2 | |
| Jun | 6 | 30 | 3 | |
| July | 7 | 31 | 4 | |
| Aug | 8 | 31 | 5 | |
| Sept | 9 | 30 | 6 | |
| Oct | 10 | 31 | 7 | |
| Nov | 11 | 30 | 8 | |
| Dec | 12 | 31 | 9 |
Year Shift Indicator:
in case of Calendar FY====> Not applicable year shift indicator
in case of Non Calendar FY====> applicable / required year shift indicator
Calendar FY
Example 2021----> Period1 (01.01.2021 to 31.01.2021) …….. Period12 (01.12.2021 to 31.12.2021)
in the above case , FY Periods and calendar FY are identical
Calendar Year ===>2021=====> FY 2021===> Periods and calendar months are identical
In the above case , not required year shift indicator functionality
Non calendar FY
Few periods belong to One calendar year and few periods belongs to other calendar year
Example : FY 2021 Apr to March
| Period | Calender Year | FY | Year shift indicator | |
| 1 | 01.04.2021 to 30.04.2021 | Calender Year =2021 | FY =2021 | 0 |
| 2 | 01.05.2021 to 31.05.2021 | 0 | ||
| 3 | 01.06.2021 to 30.06.2021 | 0 | ||
| 4 | 01.07.2021 to 31.07.2021 | 0 | ||
| 5 | 01.08.2021 to 31.08.2021 | 0 | ||
| 6 | 01.09.2021 to 30.09.2021 | 0 | ||
| 7 | 01.10.2021 to 31.10.2021 | 0 | ||
| 8 | 01.11.2021 to 30.11.2021 | 0 | ||
| 9 | 01.12.2021 to 31.12.2021 | 0 | ||
| 10 | 01.01.2022 to 31.01.2022 | Calender Year = 2022 | -1 | |
| 11 | 01.02.2022 to 29.02.2022 | -1 | ||
| 12 | 01.03.2022 to 31.03.2022 | -1 |
Business requirement===> FY 2022=====> Oct 2021 to Sept2022
Example : Define FY Oct to Sept
| Calendar Month | Calendar Day | FY period | Year Shift Indicator | |
| Jan | 1 | 31 | 4 | 0 |
| Feb | 2 | 29 | 5 | 0 |
| Mar | 3 | 31 | 6 | 0 |
| April | 4 | 30 | 7 | 0 |
| May | 5 | 31 | 8 | 0 |
| June | 6 | 30 | 9 | 0 |
| July | 7 | 31 | 10 | 0 |
| Aug | 8 | 31 | 11 | 0 |
| Sept | 9 | 30 | 12 | 0 |
| Oct | 10 | 31 | 1 | +1 |
| Nov | 11 | 30 | 2 | +1 |
| Dec | 12 | 31 | 3 | +1 |
Note :
Need to use year shift indicator to bring the different calendar year periods under one Fiscal year for non calendar FY.
Maintain Fiscal Year Variant:
SPRO -> SAP Reference IMG -> Financial Accounting -> Financial Accounting Global Settings -> Ledgers -> Fiscal Year and Posting Periods -> Maintain Fiscal Year Variant (OB29)
Maintaining standard FV for Company Code
Assign Company code to a Fiscal Variant:
SPRO -> SAP Reference IMG -> Financial Accounting -> Financial Accounting Global Settings -> Ledgers -> Fiscal Year and Posting Periods -> Assign Company Code to a Fiscal Variant (OB37)
Note: Creating our own Fiscal variants
Z1 --> FY var for Calendar Year --> Jan to dec
Z2 --> FY Apr to March
Period Text=====> Its optional
==> Possible to define our own text both in English , Local languages
==> It follows the standard text if not maintained your own text
Year Independent FY Variant:
Can be defined either calendar year or Non calendar year
FY period definition is constant irrespective of the Fiscal year
Period definition it wouldn't vary depends on the FY
Example :
FY===> Apr to march
FY===> Jan to Dec
FY===> July to June
FY===> Oct to Sept
| Calendar month | Calendar Day | FY Period | Year Shift Indicator | |
| Jan | 1 | 31 | 10 | -1 |
| Feb | 2 | 29 | 11 | -1 |
| Mar | 3 | 31 | 12 | -1 |
| Apr | 4 | 30 | 1 | |
| May | 5 | 31 | 2 | |
| Jun | 6 | 30 | 3 | |
| July | 7 | 31 | 4 | |
| Aug | 8 | 31 | 5 | |
| Sept | 9 | 30 | 6 | |
| Oct | 10 | 31 | 7 | |
| Nov | 11 | 30 | 8 | |
| Dec | 12 | 31 | 9 |
FY ===> Apr to March
Note : In the above case , the above period definition not specified any specific to FY===> these type of FY can be called as year Independent FY
Year dependent FY Variant:
Possible to define only Non calendar years
FY period definition is not constant and period definition it may vary depends on the Fiscal year
Period definition it may vary depends on the FY
Example1 :Define FY Jan to Dec and every period should end with last working day of the calendar month only Sunday is Holiday.
2021
| Month | Day | Period | Year Shift |
| 1 | 30 | 1 | 0 |
| 2 | 27 | 2 | 0 |
| 3 | 31 | 3 | 0 |
| 4 | 30 | 4 | 0 |
| 5 | 31 | 5 | 0 |
| 6 | 30 | 6 | 0 |
| 7 | 31 | 7 | 0 |
| 8 | 31 | 8 | 0 |
| 9 | 30 | 9 | 0 |
| 10 | 30 | 10 | 0 |
| 11 | 30 | 11 | 0 |
| 12 | 31 | 12 | 0 |
2022
| Month | Day | Period | Year Shift |
| 1 | 31 | 1 | 0 |
| 2 | 28 | 2 | 0 |
| 3 | 31 | 3 | 0 |
| 4 | 30 | 4 | 0 |
| 5 | 31 | 5 | 0 |
| 6 | 30 | 6 | 0 |
| 7 | 30 | 7 | 0 |
| 8 | 31 | 8 | 0 |
| 9 | 30 | 9 | 0 |
| 10 | 31 | 10 | 0 |
| 11 | 30 | 11 | 0 |
| 12 | 31 | 12 | 0 |
2023
| Month | Day | Period | Year Shift |
| 1 | 31 | 1 | 0 |
| 2 | 28 | 2 | 0 |
| 3 | 31 | 3 | 0 |
| 4 | 29 | 4 | 0 |
| 5 | 31 | 5 | 0 |
| 6 | 30 | 6 | 0 |
| 7 | 30 | 7 | 0 |
| 8 | 31 | 8 | 0 |
| 9 | 30 | 9 | 0 |
| 10 | 31 | 10 | 0 |
| 11 | 30 | 11 | 0 |
| 12 | 30 | 12 | 0 |
| 12 | 31 | 1 | +1 |
2024
| Month | Day | Period | Year Shift | |
| 1 | 31 | 1 | 0 | ===> 31.12.2023 till 31.01.2024 |
| 2 | 29 | 2 | 0 | ===> 1.02.2024 till 29.02.2024 |
| 3 | 30 | 3 | 0 | ===> 01.03.2024 till 30.03.2024 |
| 4 | 30 | 4 | 0 | ===>31.03.2024 till 30.04.2024 |
| 5 | 31 | 5 | 0 | ====> 01.05.2024 till 31.05.2024 |
| 6 | 29 | 6 | 0 | ===> 01.06.2024 till 29.06.2024 |
| 7 | 31 | 7 | 0 | ===> 30.06.2024 till 31.07.2024. |
| 8 | 31 | 8 | 0 | ===> 01.08.2024 till 31.08.2024 |
| 9 | 30 | 9 | 0 | ===> 01.09.2024 till 30.09.2024 |
| 10 | 31 | 10 | 0 | ===> 01.10.2024 till 31.10.2024 |
| 11 | 30 | 11 | 0 | ===> 01.11.2024 till 30.11.2024 |
| 12 | 31 | 12 | 0 | ===> 01.12.2024 till 31.12.2024 |
Short End Fiscal Year:
Those fiscal year posting periods less than the 12 calendar months can be called as shortened fiscal year.
Fiscal year Conversions ( Specific year conversion)
Business Use New case :
Newly incorporation of a company or newly starting a business during the year.
Winding up and merging of the company during the year, the specific year becomes the shortened FY
Shifting from Calendar year to Non Calendar Year or Vice versa.
FY Jan to dec====> FY Oct to Sept
FY Jan to dec====> FY APR to March
Shifting from Non Calendar year to Calendar Year
FY Oct to Sept====> FY Jan to Dec
FY Apr to March ====> FY Jan to Dec
Business Example :
Business need to shift from Jan to dec into APR to March
| FY | 2020 | Jan 2020 to Dec 2020 | ======> Full Financial Year | Year dependent FY |
| FY | 2021 | Jan 2021 to March 2021 | ======> Shortened FY | Year dependent FY |
| FY | 2022 | APR 2021 to March2022 | ======> Full Financial Year | Year dependent FY |
| FY | 2023 | APR 2022 to March2023 | ======> Full Financial Year | Year dependent FY |
Process steps to be followed
1.Need to complete all the period end activities
Month end closing process to be completed
FI Period end process
CO period end process
2.Apply the FY conversions
Use the Same FY variant code ( example Y8)
Need to activate Year dependent FY indicator , Short FY indicator for FY variant Y8 for the year 2021
Need to define Year dependent FY variant for year 2021
Need to define Year dependent FY for future atleast to 10 years to 20years ( like 2022, 2023, 2024 till 2041)
Need to define Year dependent FY for past atleast 10years to 20 years back ( like 2019,2018,2017,2016,2015 -------->1990)
3.Need to perform settings in Asset accounting
Asset Accounting Configuration relating to Fiscal year change
Step1: Define Reduction rules for shortened Fiscal Year
Path: SPRO->Financial Accounting->Asset Accounting->Valuation->Fiscal Year->Shortened Fiscal Years->Define Reduction Rules for Shortened Fiscal Years
Step2: Generate Period Control Rules
Path: Financial Accounting->Asset Accounting ->Depreciation->Valuation Methods->Period Control->Generate Period Controls OA84
Step3: No reduction is Short year for depreciation key
Path: SPRO->Financial Accounting->Asset Accounting->Valuation->Depreciation->Valuation Methods->Depreciation Key->Maintain Depreciation Key AFAMA
4.Need to perform period end process again FI & CO
Difficulties :
Dump / run time errors in the settlement of orders / asset accounting
These issues resolved by applying the SAP OSS ( Support) notes
Current FY ====> Calender Year as below
Now need to shift from Jan to dec to April to march from year 2021 onwards
FY conversions to be defined as a Year dependent FY
Base year to be defined as Shorted FY
FY 2021====> Jan 2021 till March 2021====> No of periods==>3Periods
Save
FY 2020
FY2020===> Jan 2020 to Dec 2020
Save
Do not save then click on Fiscal year Variant
Maintain for year 2022
Do not save then click on Fiscal Year variant
Save
