Shortened Fiscal year

[former_member200240]

Hi All

I'd like to know what the challenges/issues or testing scenarios needed in all modules in case of shortening the fiscal year. The current fiscal year is Calendar-based and we want to shorten to Oct and start a new FY Nov-Oct... We are in 4,6c. I have already verified OSS note 672255..

Any valuable documents/inputs will be highly appreciated.

Thanks & Regards

S Jayaram

[Former Member · Accepted solution]

hi

In Standard setting Variants for shortened fiscal years have to be created.

A shortened fiscal year is a fiscal year having less than twelve months, but for which year-end closing must be carried out. The definition of a shortened fiscal year is always year-dependent, since it represents a year-related exception. You must always define an entire calendar year when defining a fiscal year variant. The year-related fiscal year variant therefore contains not only the periods from the shortened fiscal year, but also other periods from the previous or subsequent fiscal year.

There are two ways to define a shortened fiscal year:

1. If you use Financial Accounting without Asset Accounting, you can begin a fiscal year with any period.

Specify the number of periods for the fiscal year variant.

Note - Keep in mind that the last period of a fiscal year must correspond to the number of periods in that year. This means that if you want to define 12 periods, the last period in that year must be number 12.

2. If you implement the Asset Accounting component, each fiscal year must begin with period number 001 , to allow asset depreciation calculations to be carried out accurately.

For a fiscal year variant, specify the periods and the number of periods the shortened fiscal year has. This way, each fiscal year of the variant can begin with period 001.

Further note that, You define your shortened year and the following normal fiscal years under the same fiscal year variant. Bear in mind that you generally need to ensure that it is possible to post to previous fiscal years.

You need to keep the year-dependent fiscal year variant for as long as you are posting in or prior to a shortened fiscal year, or if you are transferring old data from this period. You cannot define year- independent fiscal year variants until the shortened fiscal year has been closed (from the accounting perspective), with no further adjustment postings expected.

Year-dependent definitions will be deleted as soon as you convert the fiscal year variants from year-dependent to year-independent.

and also refer this link

http://help.sap.com/erp2005_ehp_01/helpdata/en/96/8b2fd543ce11d189ee0000e81ddfac/frameset.htm

Thanks & Regards

phaneendra

Edited by: phaneendra Reddy on Sep 4, 2008 8:02 AM

[former_member200240 · Accepted solution]

Hi,

Thanks for your reply. I have considered all these points. What I seek most is what implications we may have apart from what testing scenarios we need to conduct from all modules. SAP says FY Change may impact all modules and beyond that, it is anybody's guess.

If anyone has prior experience, I request to share with me

Thanks & Regards

S Jayaram