Understanding FISCAL year in SAP
The fiscal year means a general year in common. No company can maintain the books for an indefinite period. They have to close the books for certain period. That depends on company and the country’s policy.
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.
Indian Companies
Fiscal Year Period – April to March + 4 Special Periods
Fiscal Year Variant – V3
US Companies
Fiscal Year Period – January to December + 4 Special Periods
Fiscal Year Variant – K4
Some companies follow
Fiscal Year Period – July to June + 4 Special Periods
Fiscal Year Variant – V6
Fiscal year period – October to September + 4 Special Periods
Fiscal Year Variant – V9
If the fiscal year period is from April 2008 to march 2009 in SAP it is called as fiscal year 2008.
If the fiscal year period is from July 2008 to June 2009 in SAP it is called as the fiscal year 2008.
If the fiscal year period is from October 2008 to September 2009 in SAP it is called as fiscal year 2009
Logic behind this is based on number of months covered in next calendar year. If in next calendar year period is above 6 months, call it as next year, otherwise call with the same year.
Special Periods
Special periods are part of last period in that fiscal year. Usage of special periods are optional.
