What is shortened fiscal year handling in SAP FS-PM - Policy Management?

SAP Term: shortened fiscal year handling

• Component: FS-PM

• Component Name: Policy Management

• Description: A modified settlement cycle for reported value settlements that takes account of mid-year insurance periods resulting from a shortened fiscal year. Shortened fiscal year handling is particularly relevant for the initial scheduling of a reported value settlement.

Smart SAP Assistant

• Key Concepts: 
  Shortened fiscal year handling is a feature of the FS-PM Policy Management component of SAP. It allows companies to adjust their fiscal year to a shorter period than the standard 12 months. This is useful for companies that need to adjust their fiscal year to match their business cycle or to comply with local regulations. 
  
  How to use it: 
  To use shortened fiscal year handling, first you must define the new fiscal year in the system. This can be done in the Customizing settings for FS-PM Policy Management. Once the new fiscal year is defined, you can then adjust the accounting periods and other settings accordingly. 
  
  Tips & Tricks: 
  When setting up a shortened fiscal year, it is important to ensure that all relevant settings are adjusted accordingly. This includes setting up the correct accounting periods, adjusting any existing documents, and ensuring that all reports are generated correctly. 
  
  Related Information: 
  For more information on shortened fiscal year handling, please refer to the SAP Help Portal or contact your local SAP support team.