The time period which SAP uses to draw the financial statements for a fiscal year is defined as a Fiscal Year Variant. In the standard SAP system, we denote all Calendar Year Fiscal Year Variant as K1, K2 etc. While all Non-Calendar Fiscal Year Variants as V1, V2 etc.
A fiscal year is the accounting period, which usually spreads over 12 months. The Fiscal Year may or may not correspond to the Calendar year.
It is also possible that the fiscal year may the shorter than 12 months and this is called a “Shortened Fiscal Year”.
We can assign one Fiscal Year Variant to one or more Company Codes.
We can check which Fiscal Year Variant is assigned to a company code with the following path.
We can define the Fiscal year variant in SAP in 3 ways.
In SAP, if your fiscal year is the same as the calendar year, the following specifications apply:-
However, a Fiscal Year may also differ from a calendar year (non-calendar fiscal year). In that case, the posting periods can also be different to the calendar months.
It means that the fiscal year only applies to a specific calendar year.
If your fiscal year differs from the calendar year, you must specify the following:-
Since your fiscal year is not the same as the calendar year, you must specify the year displacement for each posting period. You can use the entries -1 0 and +1 for this.
In the illustration that follows, your fiscal year begins on April 1 and ends on March 31. The period limits correspond to the beginning and end of the calendar months.
Since the fiscal year does not correspond to the calendar year, you specify how to determine the fiscal year by entering the year displacement.
If you post with a posting date of 3rd Feb 22, the system uses your definition of the fiscal year variant to determine that posting period 11 is in the fiscal year 2021.
If you are using a non-calendar fiscal year and your posting periods do not correspond to the calendar months, you need to define the difference by specifying the day of the period end.
You can define a year-dependent fiscal year variant. This is a fiscal year variant that only applies to a specific calendar year.
To do this, select the field year-dependent when you define your fiscal year variant. You then have to enter the period ends, defined by month and day limits for each calendar year.
In this case, the year displacement specifications refer to the calendar year for which you have defined posting periods. The year is displayed when you maintain the period ends.
Special posting periods subdivide the last regular posting period for closing operations. Irrespective of how you have defined your fiscal year, you can also use special periods for year-end adjustments.
They therefore merely divide the last posting period into several closing periods. This enables you to create several supplementary financial statements.
Also Read: Closing Activities in S/4HANA Finance
When posting to special periods, you must take the following into consideration
So, you understood, that the Fiscal Year Variant (FYV) controls parameters for a financial year. It includes managing the financial accounting year and posting period variants to open and close posting periods. It also includes Special Periods.
SAP Finance consultants do year-end activities where the Fiscal year variant plays a vital role. To perform them efficiently, you must understand what fits your organization and how to implement it correctly. Learn this concept well and practice it in the system.
Watch Related Video:- FYV & Posting Period in SAP FICO
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