The fiscal Year Variant Plays Important Role in Business as well as in SAP FICO
Fiscal Year Variant
What is the Fiscal Year variant of SAP?
Fiscal Year Variant is a variant that controls parameters for a Financial Year. It manages financial accounting Year and posting period variants to Open and Close Posting Periods.
Accounting Year is also known as Financial Year. To more clear
If the Accounting period is April 2023 to March 2024, then we call as the financial year 2023 -2024. But in SAP we call as Financial Year 2023.
This Fiscal Year is also known as the accounting period which consists of 12 periods. (1 Period = 1 Month).
Fiscal year variant (FV):- This is a 2 digits alphanumeric key that identifies the fiscal year variant in SAP
Now we will understand, In real time how companies maintain their Fiscal year variant.
SAP has given some standard fiscal year variants.
- For some companies it is K4.
It means this K4 will be used by those companies/countries who follow the Fiscal year from January to December i.e., the calendar year.
This K4 follows 12 posting periods (January to December) with 4 special periods. Looking to enhance your skills in the field of finance and accounting? Join our SAP FICO classes in Pune!
To know more about K1, K2, K3, and K4 contact us or FOLLOW US.
- For Indian companies it is V3.
It means this V3 will be used by those companies/countries who follow Fiscal from April to March.
This V3 follows 12 posting periods (April To March) with 4 special periods.
What are these 4 special periods?
To know more about special periods contact us.
- Some companies use V6.
It means this V6 will be used by those companies/countries who follow the Fiscal year from July to June.
This V6 follows 12 posting periods (July to June) with 4 special periods.
- Some companies use V9.
It means this V9 will be used by those companies/countries who follow Fiscal year from October to September.
This V9 follows 12 posting periods (October to September) with 4 special periods.
You can use standard fiscal year variants which SAP has given; Else you can create your own Fiscal year variant.
Where we are going to create the Fiscal year?
To create a fiscal year variant in SAP FICO
Transaction Code: – OB29
Navigation: – SPRO — IMG — Financial Accounting — Financial Accounting Global Settings — Fiscal Year — Maintain Fiscal Year Variant.
To Know in detail how to create our own fiscal year variant contact us or follow us.
What is the year-dependent check box, what is the calendar year check box, when we will select these checkboxes, and what is shortened fiscal year?
We are here to answer your all queries related to this. To Know in detail contact us or follow us in the next blog. Enroll in SevenMentor’s SAP FICO Course in Pune today and take the first step towards a successful career in finance and accounting!
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