Defining the Fiscal Year

Fiscal year variants can be used to define posting periods in relation to calendar months. The fiscal year is usually defined on the basis of 12 periods, which correspond to the calendar months. The year
is closed when the period or month is changed from 12 to 01.

Fiscal year variants can also be used to define non-calendar fiscal years (calendar month <> posting period), shortened fiscal years (number of posting periods < number of calendar months) or fiscal
years with special periods (number of posting periods > number of calendar months).

The period closing program interprets fiscal year variants assigned to the company code and is capable of recognizing whether a fiscal year change is necessary when a period is closed.