Fiscal Year Variant
The fiscal year variant determines the posting periods to be used by the client’s company. SAP allows a maximum of 16 posting periods each fiscal year – normally 12 regular posting periods and 4 special posting periods are used. The special posting periods are used for posting audit or tax adjustments to a closed fiscal year.
The requirement for Fiscal Year Variant change was felt due to the following scenario:
1), ABC Ltd Business is sold to XYZ Ltd.
2), Fiscal Year followed by ABC Ltd is ‘April – March’, but XYZ Ltd. follows a cycle of ‘January – December’ as their Fiscal Year.
3),ABC Ltd wants to switchover to the Fiscal Year covering ‘January – December’ to align their reporting period with the one followed by XYZ Ltd…
4), Statutory reporting e.g., Excise, Sales Tax, Withholding Tax to continue as per law of the land. The period to follow is ‘April – March’, as always followed.
5), ABC Ltd wants to end the Fiscal Year 2004 at December 2004 and move to the New Year 2005 from January 2005. Here ABC Ltd wants to close the year 2004 after 9 months, thereby shortening the Fiscal Year of 2004.
Steps to be performed
To meet the requirement of business scenarios, we need to perform the following changes in SAP: –
1) Creation of a new Fiscal Year Variant. Here we can copy a SAP provided Standard Variant to make the new one.
2) New variant to be made Year Dependent. Year dependent status to be extended for required numbers of past and future years to create the number of periods in terms of month.
3) The new Fiscal Year Variant to be shortened on the basis of number of periods under consideration.
4) New Fiscal Year Variant to be assigned to all Co Codes involved (OB37).
5) Change of Fiscal Year Variant in Controlling Area (OKKP).
6) Fiscal Year to be shortened for Depreciation Areas in Asset Accounting customization (OAYP).
7) Table T093C to be viewed to check whether the field XRUMPF (Shortened Fiscal Year) has been activated with “X”. If the field is found to be blank then we need to refer to SAP Note 123026 and then execute program ZRUMPF. That will activate XRUMPF in T093C.
8) Recalculate Depreciation to be executed (AFAR). This will adjust the planned depreciation according to the number of periods in the shortened fiscal year.
9) After checking the recalculated depreciation, Depreciation run (AFAB) and other closing activities to be performed as per normal procedure.
Relevant SAP Notes
SAP Note 123026 to be applied for activation of field XRUMPF (Shortened Fiscal Year) in Table T093C. Some of the related notes are 672255, 506622, 484048, 183546, 26891 etc. SAP Note 373894 is a very important master note.
Also See: How to Do Month end Provision Entries in SAP?
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