What is Fiscal Year in SAP Hana

The Fiscal Year in SAP Hana is called as Financial Accounting period and Financial Year. The fiscal year determines the posting periods for posting the documents and financial statements to be prepared.

Each fiscal year contains 12 months ( 1 month = One period), each period within a fiscal year is called a posting period.
When you post a transaction in the SAP S/4Hana system, each transaction is assigned to a posting period
The fiscal year variant controls the fiscal years and posting periods variant to open and close posting periods
The fiscal year also uses special periods, which are used to manage period-end closing activities
The shortened fiscal year will be used at the time of incorporation of the company or winding up of the company in the middle of the fiscal year

Types of Fiscal Year in SAP

Year Dependent Fiscal Year
Year Independent Fiscal Year
Calendar Fiscal Year
Shortened Fiscal Year

Calendar Fiscal year: – The calendar fiscal year is a fiscal year that starts on 1st day of the year (i.e. January 1, 2020) and ends on the last day of the year (i.e December 31, 2020). We don’t define the periods for the fiscal year, the system automatically picks the date.

Non-Calendar Fiscal Year: A fiscal year not corresponding to a calendar year is called a calendar fiscal year. For example 1st August – 30th November

Year Dependent Fiscal Year: The number of number days in a month is not as per the calendar month. You need to configure the fiscal year variant for each fiscal year variant.

Year Independent Fiscal Year: Year Independent fiscal year is a fiscal year that is applicable for all subsequent years.

Shortened Fiscal Year: The shortened fiscal year is a fiscal year that has less than < 12 months. A shortened fiscal year can be defined when a company is establishing or switching a non-calendar fiscal year to a calendar fiscal year.

Fiscal Year configuration steps