What is two-dimensional period management in SAP FS-PM - Policy Management?

SAP Term: two-dimensional period management

• Component: FS-PM

• Component Name: Policy Management

• Description: A change to a business object creates a new version. New versions can be valid with an effective date that is independent of the receipt date. If the system recreates an old version by reversal, the subsequent versions are retained. Changes are possible in the future or in the past.

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• Key Concepts: 
  Two-dimensional period management is a feature of the SAP FS-PM Policy Management component. It allows users to define and manage periods in two dimensions, such as fiscal year and calendar year. This enables users to create and manage multiple periods for different purposes, such as budgeting, forecasting, and reporting. 
  
  How to use it: 
  To use two-dimensional period management, users must first define the two dimensions they want to use. This can be done in the SAP system by creating a period type for each dimension. Once the period types are created, users can then create periods for each dimension. For example, a user could create a fiscal year period type and a calendar year period type. Then, they could create periods for each type, such as FY2021 and CY2021. 
  
  Tips & Tricks: 
  When creating periods for two-dimensional period management, it is important to ensure that the periods are properly aligned. For example, if you are creating a fiscal year period type and a calendar year period type, make sure that the start and end dates of the fiscal year period match up with the start and end dates of the calendar year period. 
  
  Related Information: 
  For more information on two-dimensional period management in SAP FS-PM Policy Management, please refer to the official SAP documentation here: https://help.sap.com/viewer/product/FS_PM_POLICY_MANAGEMENT/latest/en-US