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Fiscal Year Variant in sap

Definition Fiscal year:-

A fiscal year is divided into a number of posting periods, and each posting period in an
accounting period is defined by a start date and end date

The fiscal year in SAP can be defined as year-dependent or Year Independent

 Year independent – Same number and dates for the periods every year
 year dependent – Periods can be different from year to year

Define Fiscal year Variant:- Fiscal year variant is used to define the fiscal year
A Fiscal year variant contains the 12 normal posting periods and 4 special periods. We
can define a maximum of 16 posting periods for each year. Special periods are used for
Year-end activities

Fiscal Year Variant in SAP – Scenarios

1. Standard SAP system delivers with server fiscal variant keys to meet business
requirements.
2. You can use the standard fiscal year variants as per your organisation’s needs.
3. You can define FYV as – Calendar fiscal year variant, Shortened Fiscal year variant,
Non-calendar fiscal year variant.

Steps for configuring the Fiscal year variant:-

 Transaction code: OB29
 IMG Path: SPRO > SAP Reference IMG > Financial Accounting > Fiscal year >
Maintain Fiscal year Variant
Step 1:-
Enter SPRO Transaction Code in the SAP Command field and press enter

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Step 2:-
In the next screen, select SAP Reference IMG

Step 3:-
In the next screen, Display IMF, follow the Menu path
SAP Reference IMG –> Financial Accounting –> Global Settings –> Fiscal Year –
>Maintain Fiscal Year Variant

Step 4:- On change view “Fiscal Year Variants”, it displays the list of standard
Fiscal year variants.
 For country India, you can use the FV: V3

 For Country US, you can use the FV: K3,

However, you can also define a new Fiscal variant by copying from the existing variant
or using the new entries functions. In this scenario, we are going to define a new Variant
by using the new Entries.

Click on the New Entries to create a New fiscal year variant

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Step 5:–
On the new entries of the fiscal year variant screen, update the following
information.

1. In the field Fiscal year variant FV, enter the two digits unique code
2. In the description field, update the name of Fiscal year Variant
3. Select the year-Dependent option if the Periods are different from year to year
4. Select the Calendar yr option if the same number and dates for the periods of every
year
5. Update 12 in the Number of Posting periods field
6. Update 4 in the No. of Special Periods Field.
After updating the required data and click on the save icon

Step 6:– Now update the periods for the fiscal year variant.
It is a mandatory step to update the periods for the Fiscal year variant; if you don’t
update periods, when you are posting documents – you will get an error as “For the AD
Fiscal year variant, no period is defined for.

Block Fiscal Year Variant AD and Double Click on Periods folder

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Step 7:-
Select New Entries Button

Step 8:- Maintain the Periods for the Fiscal Year

1. First Column – Month
2. Second Column – Day
3. Third Column – Period
4. Fourth column – Year Shift

After Maintain Fiscal Year Variant Periods, Click and Save icon.
Thus the Fiscal Year Variant is created.

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Important points to be remembered

1. All the fiscal year variants are to be assigned with the company code before any
transactions.
2. You can also assign company code to fiscal year variant directly through global
parameters setting (Tcode OBY6)
3. After the assignment of fiscal year variant FVV to company code, you can post
transaction codes to a company code.

Assign Company Code to Fiscal Year Variant

SPRO > Implementation Guide for R/3 Customizing (IMG) –> Finance Accounting –>
Finance Accounting Global Settings –> Fiscal Year –> Assign Company Code to Fiscal
Year Variant
Transaction Code for Assign Company Code to Fiscal Year Variant
T Code > OB37

Assign Company Code to Fiscal Year Variant Configuration Steps:-

Step 1:-Type SPRO in the Command Field of the SAP Easy Access Menu Screen and
press enter key on the Keyboard.

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Step 2:- Click SAP Reference IMG Icon,

Step 3:- In the next screen, follow the Path Assign Company Code to Fiscal Year
Variant.

Step 4:– Click Position

Step 5:- After selecting a position, update the company code and press enter.

Step 6:– In the next screen, Update the fiscal year variant field for the required
Company Code and Press enter on the keyboard.

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Step 7:- Click the Save icon located at the upper left corner of the screen to save the
updated data.
Thus Company Code AD06 is successfully assigned to Fiscal year Variant.

Posting Period Variants in SAP

The Posting Period Variants ( PPV ) in SAP are used to control which accounting period
is to be open & close for postings and to ensure that the closed periods remain balanced
and reconciled. We can assign posting period variants to one or more company codes.

Important Points – Posting Period Variants Scenarios

1. Posting Periods can be opened and closed for all company codes in SAP by the PPV.
2. The posting period variant controls what period to be open and what to be close for
a particular company code in SAP.
3. One posting period can be assigned to one or more company codes as per
requirements.

Steps to Create Posting period variants in SAP:-

In this scenario, we are going to define the posting period variant for the country India &
US. You can control the posting periods for each country with different PPV. If you use a
single PPV for different countries, when you open the posting period for India, it opens
automatically for the country US. So it is recommended to create posting period variants
separately for each country.

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Step 1:-Type SPRO in the Command Field of the SAP Easy Access Menu Screen and
press Enter key on the Keyboard.

Step 2:- Click SAP Reference IMG Icon

Step 3:- In the next screen, follow the menu path to create a posting period variant.
IMG Menu Path:- SPRO > Implementation Guide for R/3 Customizing (IMG) –>
Finance Accounting –> Finance Accounting Global Settings –> Documents –> Posting
Periods –> Define variants for open posting periods

Step 4:- The define posting period variants screen is displayed; click on new entries to
create SAP PPV

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Step 5:- Enter a four-digit code in the Variant field, and update the variant name in the
name field. Here we created posting period Variant ADO6

Step 6:- After updating the posting period variant and name fields, click on the save
icon to save the data.
Thus Posting Period Variant AD06 is defined in SAP.

Assign Posting Period Variant to Company Code

IMG Menu Path:-

SPRO > Implementation Guide for R/3 Customizing (IMG) –> Finance
Accounting –> Finance Accounting Global Settings –> Documents –> Posting Period –
> Assign Variants to Company code
Transaction Code :-OBBP
Steps to Assign Posting Period Variant to Company Code
Step 1:- Enter transaction code SPRO in the SAP Command field and press enter

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Step 2:- Select SAP Reference IMG

Step 3:- In the next screen, follow the path

Step 4:– Click on Position

Step 5:- After clicks on position, enter the company code and press enters on the
keyboard.

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Step 6:- In the next screen, update Posting Period variant Code AD06 in the Variant
field.

Step 7:- After updating the Posting period variant, Click on the Save icon.

Thus Posting Period Variant is Assigned to Company Code.

Define open and close posting periods:-

The posting periods can be maintained as per account type and the year which is to be
open & which is to closed. The Posting Period Variant is used to control which accounting
period is to be open for posting and ensuring that closed periods are remain balanced and
reconciled.

Important Points – Open and Close Posting Periods in SAP

1. Posting period variant (PPV) manages to open and close posting periods in SAP
System.
2. PPV controls the posting periods what to be open and close for a particular
company code.

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Path for Define open and close posting periods:-

Implementation Guide for R/3 Customizing (IMG) –> Finance Accounting –> Finance
Accounting Global Settings –> Documents –> Posting Period –> open and close posting
periods.
Transaction code open and close posting periods :- OB52
Step 1 :- Type SPRO in the Command Field of the SAP Easy Access Menu Screen and
press Enter key on the Keyboard

Step 2 :- Click SAP Reference IMG

Step 3 :- In next screen follow the menu path to Define Variant for open and close
posting periods

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Step 4 :- Click on New entries to Define Variant for Open and Close Posting Periods.

Step 6 :- In Next screen update the required data as described below

1.Variant:– Enter four digits Posting Period variant Code

2. A:– Select Account Type ( A )
+ = Valid for all Account Types (masking)
A = Assets
D = Customers (A/R)
K = Vendors (A/P)
M = Materials
S = General Ledger Accounts.
3.From Account:- Keep Blank
4.To Account:– Update Account
5. From Period 1:– Enter Starting Period
6.Year:- Enter Year

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7.To Period:– Enter Ending Period

8.Year:– Enter Year
9.From Period 2:– Enter First Special Period
10.Year:– Enter Year
11.To Period:- Enter Special Period
12.Year:- Enter Year
13.Authorization group ( AuGr ):- You can assign authorization groups in which
some periods can only be opened for particular users.
14. Click on save icon to save the defined open and close posting periods
Thus Open and Close Posting Periods are configured in SAP.

Define Credit Control Area in SAP

The credit-control area in SAP is an organizational unit that specifies and checks a credit
limit for customers. The credit-control area can include one or more company codes
in SAP.
Credit Control Area – Important points
1. The credit-control area enables the monitoring of the credit for customers.
2. You can define one or more credit control areas in SAP as per requirements.
3. One credit control area can be assigned to one more company code.
4. Company code can use only one credit control area.
Steps to Define Credit Control Area in SAP
 Transaction Code to Define Credit Control Area – OB45
 IMG Menu Path:- SPRO –> Implementation Guide –> Enterprise Structure –
> Definition –> Financial Accounting –> Define Credit Control Area
Step 1:– Enter T-Code SPRO in the Command field and press enter
Step 2:- Click SAP Reference IMG
Step 3:- Follow the IMG Menu path

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Step 4:- In the next screen click on new entries

Step 5:– On new entries of the credit control areas screen, update the required data

1. Credit-Control area:- Enter four digits credit control area code

2. Currency:– Update the currency of the credit control area.
3. Credit limit:- Update the credit limit amount for the customers.

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Step 6:– Click on the save icon to save the new credit control area

Thus credit control area in SAP was successfully configured.

Assign Company Code to credit control Area

One credit control area can be assigned to one or more company codes, but one company
code is applicable to use only one credit control area in the SAP system. You can assign
company codes to the credit-control area in SAP using T-code OB38

Steps for Assign company code to credit control area

After creating credit control, the next step is to assign company code to the credit
control area.
IMG Menu Path :- SPRO > Implementation Guide > Enterprise Structure >
Assignment > Financial Accounting > Assign company code to credit Control
Area.
Step 1:– Enter T-Code SPRO in the Command field and press enter

Step 2:– Click on SAP Reference IMG ( short cut key F5 )

Step 3:- Follow the menu path for Assigning Company Code to Credit Control
Area

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Step 4:– In next screen click on the Position icon update the company code and press
enter

Step 5:- In the next screen, update the credit-control code in the CCAr field and

Step 6:– After updating the credit-control code click on the save icon

Thus company code was successfully assigned to the credit-control area.

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Enter Global Parameters

SAP IMG Path : – SPRO -> SAP Reference IMG (F5) -> SAP Customizing
Implementation Guide -> Financial Accounting -> Financial Accounting Global
Settings -> Company Code -> Enter Global Parameters.
Transaction Code: – OBY6

Double click on your company to enter global parameters

Update the following fields.

> Chart of accounts: – chart of accounts is a list of GL accounts master records
that are used by the organization. A chart of accounts must be assigned to each company
code and it is defined at the client level.
> Country charts/Accounts:-Enter the country chart of accounts if the company
code that you configured has a special country or statutory chart of accounts.
> Company: – Company is the organizational unit for which individual financial
statements can be drawn according to the relevant commercial law. A company can
comprise one or more company codes and it has local currencies in which its
transactions are recorded.
> FM Area: – Enter the Financial management (FM) is key if you are using funds
management and it is used for the function of the treasury module.
> Credit Control Area: – Enter your credit control area key for your company code. It
controls the credit limits for your customers.

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> Fiscal Year variant: – Fiscal year variant is used to define the fiscal year, it
contains 12 normal posting periods and 4 special periods. We can define a maximum of
16 posting periods for each year. Special periods are used for Year-end activities.
> Vat. Registration no: – Enter vat (value added tax) registration number here.
> Posting period variant: – The Posting Period Variant is used to control which
accounting period is to be open for posting and ensuring that closed periods remain
balanced and reconciled.
> Propose value data:- Select this indicator to make the current date the default date
by the system. The valued date is used for accounts payable, accounts receivable, and
treasury transactions.
>Business Area in Fin.Statement

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After updating all the mandatory fields, click on the save icon to save the configured
data.

Define additional local currencies

The following SAP training tutorials guide you on how to define additional local
currencies for company code step by step. In our previous training tutorials, we have
learned how to enter global parameters for company code.
You maintain additional local currencies for company code by using one of the following
transaction navigation methods.

 SAP IMG Path: – SPRO > IMG > Financial Accounting > Financial Accounting and
global settings > Company code > Parallel currencies > Define Additional local
currencies.
 Transaction code: – OB22
Step 1: – Enter transaction code “OB22” in the SAP command field and enter.

Step 2: – On additional local currencies for the company code overview screen, click on
new entries to create new parallel currencies as per organization requirements.

Step 3: – On the new entries screen, update the following fields.

1. Company code: – Update the company code that you want to configure, after
updating the company code press enter.
2. Ist local currency: – After updating your company code, the 1st currency field
automatically fills with all the details of your company code currency that you enter
during company code definition.

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3. 2nd local currency: – Every company code can have two parallel currencies, you
can get here more details about currencies. Update the following details.
 Currency Type: – Update the parallel currency type that you want to configure,
possible currency types are hard currency, group currency, index-based
currency, and Global company currency.
 Ex rate type: – Update the Ex rate type that determines how the foreign
currencies are valued at the time of currency translation and revaluation.
 Source currency: – Update the currency that determines the foreign currency
to be translated against the source currency.
 Translation date type: – Update the specific translation type as per
organization requirement. It determines the foreign currency to be translated
based on document type, posting date, and translation date.
4. 3rd local currency: – Update the 3rd local currency for the company, here we are
updating group currency as 3rd currency

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After updating all the details of additional currency for company code, click on the save
button and save the configured data in SAP.

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