Reconcile Differing Financial Periods with Fiscal Year Change

  • by Frank J. Stanley, SAP
  • October 15, 2007
Restructure your financial and special periods to unify your financial reporting under one fiscal year.
Key Concept

The fiscal year variant is a key configuration parameter that you can use to define:

  • The number of posting periods and special periods in a fiscal year
  • How the system determines posting periods when posting transactions

Fiscal year variants are assigned to each company code (transaction OBY6) and to the respective Controlling (CO) areas (transaction OKKP). The number of posting periods in the company code must be the same as the number in the assigned controlling area. You use the fiscal year variant to define the posting periods that are stored in all the FI and CO transactions.

When two organizations come together via merger or acquisition, they need to reconcile the fiscal calendar between the two companies so that they are operating within the same calendar. When this happens, one of them, usually the acquired company, must change its fiscal year to match that of the parent company. SAP provides tools to perform two separate functions to accommodate this need:

  • Fiscal year change
  • Fiscal year conversion

You accomplish a fiscal year change through configuration changes in FI and also in Asset Accounting (FI- AA) and Special Purpose Ledger if your system uses them. All changes made in other modules in CO are driven by the FI configuration.

I’ll discuss the configuration steps and the potential need for this previously undocumented fiscal year change process. Discussing the fiscal year conversion is outside the scope of this article. For a brief description, see the sidebar “Fiscal Year Conversion.”

Frank J. Stanley

Frank J. Stanley is a senior applications consultant with SAP America, operating out of the Cleveland office. He has extensive experience working as a Financial Accounting and Controlling consultant for SAP America since 1998. He has also worked with the archiving and Real Estate Management applications in SAP. Frank holds a master’s degree in business administration from Baldwin-Wallace College in Berea, Ohio.

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