A fiscal year variant determines the posting periods to be used by your clients company. SAP allows maximum of 16 posting periods each fiscal year. The 16 months periods normally comprise 12 regular posting periods and 4 special posting periods which can be used for such things as posting audit or tax adjustments to a closed fiscal year.

We have to assign a retained earning account for each P&L account, by specifying a P&L statement account type in the chart of accounts area

An account group is segregating or grouping similar accounts into a single group. Each account group in SAP is assigned to a chart of accounts,

The definition of business area is an independent organizational unit that has its own area of responsibility within the organization. Which can prepare financial statements

The assignment of company code to the chart of accounts (COA) is the link between company code and chart of accounts it is established through the assignment of company code to chart of accounts in SAP.