DEFINING FISCAL YEAR VARIANT, POSTING PERIOD VARIANT, OPEN AND CLOSE POSTING PERIOD In day to day life

, we are following the year starting from January to December. This is called calendar year. But while maintaining financial records, some business organizations, maintain records from April to March, some January to December or some in other way. The period from which the financial records are maintained is called Fiscal year. Hence we need to define Fiscal year as per the need of our business organization. A Fiscal year is divided into posting periods. Each posting period is defined by a start and a finish date. Before you can post documents, you must define posting periods, which in turn define fiscal year. In addition to the posting period, you can also define special periods for year-end closing. In General Ledger Accounting , a fiscal year can have maximum of 12 posting periods and 4 special periods. You can define up to 366 posting period in the Special Purpose Ledger. Defining fiscal year is obligatory. One fiscal year can be used by several company codes. 1. Creating Fiscal Year Variant :
1.1. First Screen (Creating Fiscal Year Variant) .. Continuing ….. Menu Path : IMG Menu Financial Accounting  Financial Accounting Global Setting  Fiscal Year  Maintain Fiscal Year Variant T-Code : OB29

Second Screen (Creating Fiscal Year Variant) … Continuing ….1. .2.

3. Third Screen (Creating Fiscal Year Variant) … Continuing …. .1.

if the posting Fiscal Year is year dependent. (True.Fields of this Screen a) FV : April to March Fin Year b) Year dependent : (Alpha-numeric. It is Field Status variant) (True. if the calendar months match with Fiscal year month) c) Calendar year : . This is necessary. if the end of the period is not linked to a fixed calendar day. then each years need to be defined individually.

It can be 365 days or can be 2 six month period) 1.4.d) No of Posting period : 12 (The year is divided into 12 months. Fourth and Last Screen (Creating Fiscal Year Variant) .

In the above example. Enter 29 as the day limit for February. This ensures that the system can also determine the posting period correctly in a leap year. there is no problem in configuring the Fiscal year. special periods that can be posted to after a temporary year-end closing. Hence Year Shift field is used to convert the calendar month to Fiscal month.5 Creating Text Names for months ORIGINAL NOTES FROM SAP Fiscal Year A fiscal year consists of several posting periods and if necessary. 1. . fiscal year and calendar year are not same.Note : If Fiscal year and Calendar year is same.

Additional information For more information on fiscal year variants. Your fiscal year is not the same as the calendar year and is not yeardependent In this case. and the periods themselves. The system asks for which calendar year your year-dependent fiscal year variant is valid. Standard settings The following fiscal year variants have been created in the standard system: • Variants in which the fiscal year is the same as the calendar and has up to four special periods . You then enter the month and day of the period end for each of your periods. Year) You can define the following characteristics for a fiscal year variant: • • • how many posting periods a fiscal year has how many special periods you need how the system is to determine the posting periods when posting When defining your fiscal year. you must only select the Calendar year field. To define your posting periods. enter the month and the day of the period end and the period in each case. Mar. On this screen. you first enter the number of your posting periods in the Number posting per.You define how your fiscal year is set up in the SAP System by creating a fiscal year variant at client level. select your fiscal year variant and select Periods on the navigation screen. field.) and a 20-character long text (January. You can specify a three-character abbreviation (Jan. select your fiscal year variant and choose Period texts on the navigation screen. Your fiscal year is not the same as the calendar year and is yeardependent Enter the number of your posting periods in the field Number posting periods and select the field Year-dependent. see the "FI Closing and Reporting" documentation Maintain Fiscal Year Variant (Maintain Shortened Fisc.. March). you have the following options: o o o Your fiscal year is the calendar year In this case.. To define your posting periods. Feb. To do so. Several company codes can use the same fiscal year variant. February. select your fiscal year variant and select Periods on the navigation screen. It is also possible to determine names for the periods of a non-year-specific fiscal year variant. Each company code is assigned a fiscal year variant.

but for which yearend closing must be carried out. 2. Note Keep in mind that the last period of a fiscal year must correspond to the number of periods in that year. Change the existing variants. Check the standard fiscal year variants. This means that if you want to define 12 periods. The definition of a shortened fiscal year is always yeardependent. each fiscal year must begin with period number 001 . since it represents a year-related exception. Defining shortened fiscal year A shortened fiscal year is a fiscal year having less than twelve months. the last period in that year must be number 12. You must always define an entire calendar year when defining a fiscal year variant. each fiscal year of the variant can begin with period 001. This way. see Defining shortened fiscal years . There are two ways to define a shortened fiscal year: • • If you only use Financial Accounting (FI) without Asset Accounting (FI-AA) . Example . Variants for non-calendar fiscal years: o April to March with four special periods o July to June with four special periods o October to September with four special periods Variants that are set up on a weekly basis.• • • Variants for shortened fiscal years. Assign periods 001 to 003 of the new fiscal year to the months OctoberDecember. If you also implement the Asset Accounting (FI-AA) component or another component such as Materials Management (MM) or Controlling (CO). Example If your shortened year goes from January to September. or create your own variants. to allow asset depreciation calculations to be carried out accurately. These variants can only be used in the Special Purpose Ledger (FI-SL) application. Activities 1. For a fiscal year variant. you can assign periods 004 to 012. but also other periods from the previous or subsequent fiscal year. if necessary. specify the periods and the number of periods the shortened fiscal year has. The year-related fiscal year variant therefore contains not only the periods from the shortened fiscal year. For more information on shortened fiscal years. you can begin a fiscal year with any period. Specify the number of periods for the fiscal year variant (12 in the example above).

or if you are transferring old data from this period. SHORTENED FISCAL YEAR Fiscal year that contains less than twelve months is called shortened fiscal year. select Navigation -> Shortened fisc. 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. The remaining calendar year contains the first three periods of the new fiscal year (periods 001 to 003 ). see the Asset Accounting documentation. You cannot define year.yr. Define the shortened fiscal year.independent fiscal year variants until the shortened fiscal year has been closed (from the accounting perspective). Activities 1. and variant AM for shortened years when Asset Accounting is in use. Bear in mind that you generally need to ensure that it is possible to post to previous fiscal years. Note You define your shortened year and the following normal fiscal years under the same fiscal year variant.If you define a fiscal year with twelve periods.6. For more information about implementing the Asset Accounting component. Year-dependent definitions will be deleted as soon as you convert the fiscal year variants from year-dependent to year-independent. Standard settings Two shortened fiscal year variants are provided with the standard system: variant R1 for a Financial Accounting shortened year. Assign Company Code To Fiscal Year Varian . it can contain a shortened year with nine periods (from 001 to 009 ). first determine which of the two options above will be used. 2. with no further adjustment postings expected. If you need to define a shortened fiscal year. A shortened fiscal year is necessary in the following cases. To define the shortened year for Asset Accounting. for example : o o o Establishment of a company Changeover from calendar year to fiscal year or vice versa Liquidation(closer of company) 1.

1. First screen (Creating Posting Period Variant) … Continuing… Menu Path : IMG Menu Financial Accounting  Financial Accounting Global Setting  Document  Define variant for Open Posting period T-Code : SPRO . 2. Posting Period Variant : A period within a fiscal year for which transaction figures are updated. The transaction figures are then updated for this period. Every transaction that is posted is assigned to a particular posting period.2.

Second and last screen (Creating Posting Period Variant) ORIGINAL NOTES FROM SAP .2.2.

you must change the default settings as described in the "Activities" section. 3. for which you want to use identical variants for open posting periods. If however. if you manage with only a few company codes). If you want to and can continue working on this basis (for example. you want to use identical variants in several company codes. you do not have to make any changes in the configuration. Detailed information on this can be found in the chapter "Allocate company code to variant". to this variant. Open and Close Posting Periods : 3. First screen (Creating Open and Close Posting Period ) … Continuing… Menu Path : IMG Menu Financial Accounting  Financial Accounting Global Setting  Document  Open and Close Posting period T-Code : SPRO . 2. Change the name in one of the variants. you can define variants for open posting periods.Define Variants for Open Posting Periods In this activity. Thus nothing has changed in the system yet: Every company code has its own variant. Allocate all company codes. Activities 1. The name of this variant is identical to the company code name. 3.1. Delete the variants no longer required. Every company code is allocated to this variant with the same name. Standard settings In the standard setting. a separate variant for posting periods is defined for every company code.

2. Second and last screen (Creating Open and Close Posting Period ) .3.

Therefore. as many company codes as you require can use the same variant. Each company code refers to exactly one variant.Fields of this Screen a) Var (Col) : (Posting Period Variant. produces the beginning of the allowed posting period interval.) d) To Account (col): e) From Per. This describes the specifications for a posting period (for example. beginning and end). together with the specified year.1 (col) f) Year (col) : : g) To Period (col) : (The value in this field and the specified year result in the end of the permitted posting period. b) A (Col) : (Account Type or Mask ) + (for all Accounts) A Assets D Debtors K Creditors M Materials S GL c) From Acct (col): (This field.) .

and 3 of these 10 users also with authorization group '0002'. If. A posting period can be successively restricted. Access can later be restricted to the remaining 3 users by entering '0002'. If the period is only to be accessible to the 10 selected users the authorization group '0001' is entered in the posting period variant.) 4.g. 10 users have the posting period authorization with authorization group '0001'.k) AuGr : (Authorisation group A posting period can be made available to only a limited set of users using the authorization group. e.1 Assigning Posting Period Variant to Company Code ORIGINAL NOTES FROM SAP Open and Close Posting Periods .

You determine the posting periods allowed for the subledger accounts via the corresponding reconciliation accounts. you determine more specifically which periods are to be opened for which accounts. enter the periods to which postings can be made. This means that. Enter an authorization group for each period 1 via which you want to create an authorization protection. You close periods by selecting the period specifications so that the periods to be closed are no longer contained. The authorization object is called F_BKPF_BUP (Accounting document: Authorizations for posting periods). for example. To do this. Via further entries.1 Opening New Fiscal Years . you specify the periods which are to be opened for the variant. 3. some posting periods can only be opened for particular users within monthly or annual closing. and the corresponding reconciliation account. In the columns for the posting periods. for all variants (minimum entry). Caution There must be at least one entry for each variant. such as D or K. add entries for account types or account areas if the periods are to be limited to certain accounts. Note You specify G/L account numbers for your specifications. 4. the columns "From acct" and "To account" may not be filled. Read the corresponding chapter on "User maintenance" in the "Assigning authorizations" topic. This entry must have + in column A . Then. enter a lower period limit. you specify the subledger account type. 2. For every interval.In this activity you specify for each variant which posting periods are open for posting. Two intervals are available for doing this (period 1 and period 2). You can only assign the authorization group at document header level and it only affects period 1. You can also assign authorization groups for permitted posting periods. Specify the periods allowed for posting. 6. 5. Activities 1. First. an upper period limit and the fiscal year.1 Special Periods Special periods are the periods that subdivide the last regular posting period for closing operations.

you have to first create a variant for new fiscal year and assign it to the relevant company code. 2. Sai Technology. New Delhi-110037 No of Visitors. The company codes belongs to one company can use several fiscal year. Before opening a new Fiscal years. you must have to setup new document number range for the new fiscal year. If you are using year-dependent document number range. You do not have to close the old fiscal year before you can post data in the new one. Question and Answer : Find the following statement whether true or false ? 1. You therefore do not need to create closing or opening financial statements. 3. 5. Answers: 1. The relevant posting period must be opened in the new fiscal year. false (Because you can define up to 366 posting periods in special ledger accounts. you have to keep in mind that : If you are using a year-specific fiscal year variant. One fiscal year variant can be used by several company code. 5.The new fiscal year is automatically opened when you make your first posting in the new fiscal year or once the balance carried forward program has been run. A shortened fiscal year must always be defined as year-dependent. You can define up to 366 posting periods. 3. Ture False True False Copyright © Haresh Pradhan. 2. Mahipalpur. 4. 4. . You can exceed a maximum of 16 periods.

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