What is shortened fiscal year in SAP FI - Financial Accounting?

SAP Term: shortened fiscal year

• Component: FI

• Component Name: Financial Accounting

• Description: A shortened fiscal year arises following a shift in the end of the fiscal year. The shortened fiscal year covers the period between the end of the last fiscal year in the old cycle and the beginning of the next fiscal year in the new cycle. For example, if your old fiscal year runs from October 1 1997 to September 30 1998 and you want the new fiscal year to begin on January 1 1999, you would set up a shortened fiscal year for the period October 1 1998 to December 31 1998.

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• Key Concepts: 
  A shortened fiscal year is a period of time that is shorter than the standard 12-month fiscal year. It is used when a company needs to adjust its financial reporting to align with a specific business cycle or to accommodate a change in the company’s operations. 
  
  How to use it: 
  In SAP FI Financial Accounting, a shortened fiscal year can be set up by entering the start and end dates of the period in the system. The system will then automatically adjust the financial reporting to reflect the new period. 
  
  Tips & Tricks: 
  When setting up a shortened fiscal year, it is important to ensure that all relevant documents and reports are updated to reflect the new period. This includes invoices, bank statements, and other financial documents. 
  
  Related Information: 
  For more information on setting up a shortened fiscal year in SAP FI Financial Accounting, please refer to the SAP Help documentation.