Changing the Fiscal Year: Why You May Want to Choose the Year-Dependent Option

  • by Bill McNaughten , Senior Consultant, Cap Gemini Ernst & Young
  • May 15, 2003
Changing an existing fiscal year variant is a tricky process. In addition to selecting the correct approach to meet your new financial reporting periods, you must consider historical transactions and how they will be reported.

Many companies face the challenge of changing the fiscal year in an existing production environment. This usually occurs after a merger or acquisition when two companies need to synchronize their fiscal year periods to achieve consistency in financial reporting.

The fiscal year variant is defined in the IMG under Financial Accounting. The R/3 system uses it to determine the financial periods to which transactions are posted. As defined in R/3, the fiscal year is divided into posting periods, each with a starting date and an ending date.

Changing an existing fiscal year variant is a tricky process. In addition to selecting the correct approach to meet your new financial reporting periods, you must consider historical transactions and how they will be reported. R/3 provides three approaches for companies setting up a fiscal year variant or changing an existing variant. You make the initial selection on the screen shown in Figure 1.

Bill McNaughten

Bill McNaughten is a senior applications consultant for Cap Gemini Ernst & Young who specializes in the implementation and support of the SAP R/3 CO module. His SAP career began in 1996 with Anheuser Busch. After completing a successful implementation, Bill spent several years as an independent consultant before joining CGEY. In his seven years of experience, he has specialized in implementing product costing systems in manufacturing environments. Bill's hobbies include playing the guitar and listening to all styles of music.

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