Fiscal Year Variant
Hello. Now we’re going to go to the advanced topics. Let me open up the tutorial. Okay, here it is. We have done the basic configurations and transactions. Now, we go to additional configuration and transactions. See this, under the part two, we have additional configuration and transactions, and we are going to look at the first topic which is Fiscal Year Variant. In the basic configuration just now, I didn’t show you much about the fiscal year variant, right? This is one of the important topics when we set up a new company code.
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Remember, we copied our company code from 1000, so we have used the fiscal year variant which is set up in 1000. Let me show you that. Let me go to company code, see this, global parameters for company code, let me just open up, now, Sun, position to Sun, you see this fiscal year variant, K4, we didn’t define this when we created this company right? I told you I am going to explain in detail about this in the advanced training, so now is the time to get the detailed explanation. This K4 is actually copied from the 1000 company code that we created. Let me just open up my position to 1000. See this, we copied the company code Sun from 1000 right, so this is copied from the K4. So let’s go to Sun again, here it is. Let us see what is defined in the K4 fiscal year variant.
Okay, let me open another session. That’s PRO. Go here. Go here. Go here. Okay, it is here, financial accounting, financial accounting global settings, fiscal year variant posting periods, and this one. This is where we define a new fiscal year variant. Let’s check what is in K4 first. K4 is over here. See this, it is defined as a calendar year and we have a number of posting period of 12 and special period of 4. What this means is that this fiscal year variant is just a code. It is a code given for the fiscal year. Just look at it as a code, and it is defined as a calendar year, which means that our posting periods corresponds to the calendar months and dates.
So for example, if I open up an Excel sheet here, this means that January 1st is our first posting period. Let me just show this. Okay, this is our month, day, 31st, and this is our period. Enable this. Okay. First period. February 28th is our second period. March 31st is our third period. So similarly, for all the posting periods, all the 12 posting periods that we have, it will correspond to the respective month end, so this is what we mean by fiscal year variant is calendar year.
Okay. So I’m not going to draw up to December. Let me just do one more, April 30th is fiscal year period, posting period of 4, and that’s how the calendar year fiscal year works. Now, if you have defined this, the system will assume this pattern, you don’t need to do anything else. Most of the companies will use fiscal year variant which is of calendar year, but in some companies, the posting period will not match the fiscal or the calendar month and day. For example, let me show you this situation here where our fiscal fiscal period, first period starts from July, calendar month of July. In this case, the fiscal period 1 to 12 is actually from July to June. The first period starts in the month of July and last period ends in the month of June next year. Some companies will use such a fiscal year, and that happens if you define that kind of fiscal year, you need to untick this because it’s no longer correspond to the calendar month and day. Let me just show you here. Let me define some of that. I’m going to copy this. I’ll create a new entry, let’s say Sun 4 and I remove this, and it’s not a calendar, non calendar year, and save it.
Okay. Now I have a new fiscal year variant which is S, I give a code of S4, the calendar year is disabled, which means that this fiscal year variant is not dependent on the calendar month and day.
So how are we going to tell the system that our first period starts in the month of July and second period is in the month of August and so forth? How are we going to tell the system? So there is a way to tell the system that. You see this, you just highlight this, you click here, periods, you can setup this table in this sub screen here. This is the sub screen. Let me explain how you are going to do that. Ok, See this table here? This correspond to this, right? This line, month of July, for each month, you have to enter the month and date. The month and day of July is 31st. You must specify the day on which the month will end. This is the required entry, and you must specify the number of the period for the calendar month and day. Our financial period starts from July and ends in June, right? So July 31st is our first period, so I specify 1 here, and the fiscal year shift will be zero. Let me just specify this. Insert row. Insert row. This is our month and date, and this is period and this is fiscal year shift. I’ll explain what this is later. This table corresponds to this. You can actually key in this one by one here. You’ll key in one here, month, 31, and period, 7, and fiscally shift is -1. You can set up a table like this one by one, but it’s a bit difficult because you need to do it one by one.
If you do it in Excel beforehand, I’ll show you how I can do it. I can just copy this, so I get 12. I just delete them. So in this way, if you do it in Excel beforehand and copy to SAP, it’ll be very much easier. I can use this kind of copy and edit functions, which is not available in SAP, so what I’ll do is just copy this, CTRL+C to copy, and I just paste it here. See, I get all these things.
So similarly, if I have set up all this here in Excel, I just copy like this, CTRL+C, and then, I just go to the first column here, CTRL+V, CTRL+V is for pasting, I’ll get all these things here, so it’s very much easier. I don’t need to enter one by one. This is only a tool, Excel is, you can use Excel as a tool to speed up your data entry, but nothing stops you from entering these values directly in SAP. I leave it to you on how you want to do it, but let’s go to the concepts of these fields. You know what is a month, and you know this day is the last day in the month, and then, this is where you define the financial year period, so I defined that my period is starting on July 31st, first period, second period, third period, fourth period, fifth period, sixth period, and the seventh period will fall on January, 2010. This is 2009, right? This is supposed to be 2010. Now, pardon me for that. Let me just correct this typo error. Okay, now it makes more sense. 2009, my period starts July, and I have 6 periods and my 7th period will be falling on the month of January 2010, and my 8th period will be February 2010 and so forth until June. Let me just put it here, July 2009 to 2010. This makes more sense. This is my financial period. The purpose of this fiscal year shift is to define that if I post a document on January 12th, 2010, let’s say this is my posting date. When I post a document using the posting date of this, what the system will do is that, it will come and check in this table. January is here, and 12th falling within this range, so you will know the details. Select this row here, and then, check this period, 7th, and it determines the posting period as 7, and to determine the financial year, you will take this minus 1 and deduct from this 2010 and derive 2009. Okay, the posting period is defined as 7 previously. Now, to determine the financial year, we’ll take this minus one and deduct from the calendar year of the posting date and derive this, 2009, so the system will post the document amount of this document to this period and this financial year. Okay. Do you understand this? So one more time, let’s say I have one document and the document amount is $1000, and this has to be posted to posting period of 8th, and the financial year of 2009, but I cannot enter posting date as 12th of August, 2009. If I have set up the fiscal year as this, I cannot enter like this. I can enter like this only if I have set up the fiscal year as a calendar year, whereby, the tick mark I showed you, must tick the calendar year, only then, I can enter like this. Since I didn’t tick the calendar year, so I can’t enter like this. I have to enter like this, 12th of February 2010.
Okay. When I enter the posting date as 12th of February 2010, what the system will do is, it will check this month here, February corresponds to month two, and the 12th is here, right? 12th is before 29th, so we’ll take this into account, and then, we’ll take the posting period of 8 and we’ll minus 1 from this 2010 and we’ll derive this.
You have to enter the posting date of 12th of February, 2010. Okay, let’s enter this now. Let’s go, I’ve already entered right? Let me enter once again, CTRL+V. Let’s cancel this. I’ll do it from the scratch.
We go to posting period, new entries, CTRL+V. Okay. I’ve copied this and entered here. Now, I’m going to save it. Data was saved.
Okay. One more thing, for February, you would have to enter 29. You cannot enter 28. If you enter 28, then you cannot post anything on the 29th of February if it’s a leap year. So to cater for the leap year, you have to enter 29 here. Save it.
Now we will do some postings to check whether the system is posting to the correct period. Okay, I’ll pause it for a moment. Okay. Now let us try to do some postings and see whether the system can determine the correct financial period and financial year from the posting date. Okay, look at this table here, I have added a new column here, fiscal year, and I moved the calendar year to the right so that it’s more clear for you to understand. See, once we have set up this in an SAP system, if you look at this calendar year, this is also a calendar month. Let me do that first.
Okay. Now, our fiscal year is this. Now, if the posting date has got a calendar month of 3 and a posting year of 2010, the system will determine the financial period and year as this. Do you know why? We will minus 1 from this calendar year of 2010 to derive this, but if your posting date is 8th of 2009, the system will still determine period two, and the fiscal year will still be 2009. Do you know why? For this combination 8th and 2009 calendar month, the calendar month is 8, if the year is 2009, the system knows that for calendar month, 8, there should not be any change on the fiscal year because it is defined as 0. So 2009 plus 0 will still be 2009. I know it will be very confusing for you to understand this in the first place, but you have to replay this video again and again until you can fully understand what I’m talking about.
These concepts are very simple, but you need a lot of patience to replay this video again and again until you understand. Later on, after I show you an example, maybe you can understand this better. See, our fiscal year is supposed to be July 2009 to June 2010, so this is how we set up. So if we post something on the October 2010, then the system will look up this table here, October falls here, then it will not do any changes to the fiscal year because it’s zero. 2010 plus zero will still be 2010, so this will be posted to posting period 4 of financial year 2010. That’s how the system determines them.
Let us do an example here. Okay, this is our test company code. I have created a test company code. It must come here, global parameters. Just click here, go to test 2. I have created a test company code so that we can test it out, and enter the fiscal year variant as S4. S4 is what we have created, so enter, S4, save it. I’ve already entered. Then you open up a session, and you post a G/L account document, FB50 or just follow this menu path here, this one, FB50. Let us see I’m going to post, I’m going to post something on August 2009. Let’s see if the system can determine this period.
Okay. August 2009. I select this, August 2009, let me put a date of 10th, and I copy this, and the posting period is this. The financial period and year is determined from the posting period, not from this date. This date can still be something else, let’s say, 6th.
I’m going to put credit as 100 and I’m doing a cash transfer from bank to cash in hand. Debit, 100. I simulate. Document date and posting date in different fiscal years, doesn’t really matter. Period, 8, adjusted with 9 with the posting date, yes, enter.
This one requires a date, double click, enter this. If the system doesn’t prompt for this, it doesn’t really matter. It’s not really important. Enter this. Simulate now. Okay. Now, look at the financial period and the financial fiscal year, 2 and 2009, but our posting date is 10th of August, 2009. Let’s come back to our table here. See, 2, 2009, so it is correct. For calendar month of August and calendar year of 2009. August and 2009. The financial period and financial year that should be determined is this, and the system is doing it accordingly.
This amount will be posted to the period 2 of 2009. This is good. Let us see this. I’m going to post something on calendar month of March and calendar year of 2010.
I can’t really change now. Okay, I have to do it again. Okay, what am I going to do is that, March and 2010. The date can be anything. This one, I’ll put 6, 2010, or I’ll put 1, 2010, and this one, I’ll put 11, March, 2010. Again, transfer something from here, debit, 100, double-click and put in the date. Okay. Alright, let’s simulate now.
Okay, my posting date is March and the calendar year is 2012, and the system is supposed to post it to period 9, 2009. See here, period 9, 2009. This is correct. So what the system is doing is that, it is looking up in this table, this is calendar month, right? Calendar month 3 is supposed to go to period 9, and should deduct one from the calendar year and to derive the fiscal year of 2009, so it’s right.
There’s one more thing I need to explain here. To determine the financial period and fiscal year, the document date does not play any role in determining these two values here. It’s only the posting date, which will play a role to determine the period and the fiscal year, so the document date is just a dummy date, which doesn’t have any control over the period or fiscal year. Only the posting date has got a direct control to the period and fiscal year. See, my document date is something else, 10th of January, 2010. It doesn’t determine the posting period or it doesn’t have any influence to the posting period of the fiscal year. This is something very important you have to remember. So once again, the financial period and fiscal year is always determined from the posting date only and not from the document date. I think I’ve explained the fiscal year concept as much as I could, so that’s about it.
Fiscal year variant. So once again, to recap, just determine whether your fiscal year variant is calendar dependent, matches the calendar months, if not, remove the tick mark, and go there again. Just make sure whether your company’s financial year Is actually matching the calendar month and date. If yes, just put the tick mark. If not, remove the tick mark, and then, specify the periods in this table and year shift using this flag, and save it, and then, assign it to the global parameters here.
You choose your company and assign it here. Okay. But for our Sun company code, our financial year wherein is K4, so I’m not going to change anything on that. K4 is this. K4 is actually following the calendar month and date. January to December strictly following the calendar month and date. It’s very simple. That’s why, if I drill down here, if I go to the sub screen, the system will say the periods cannot be maintained for calendar dependent financial year variant. It’s calendar dependent. Okay. Since it’s calendar dependent, we don’t have to maintain any periods here. That’s about it.
You may watch the full course on the following YouTube link
https://www.youtube.com/watch?v=DjX1y9ffC_0&list=PLN17Nn94liux88cwVwqbiRQQo1qK4sOdQ&index=56