For a company involved in a merger or acquisition, one of the first steps after completing the transaction is to ensure common financial reporting standards. When the merged business units use different fiscal years, this is critical to be aligned.
Differences in fiscal year setup can take various forms. In some cases, the difference in fiscal year setup can be related to the fiscal periods’ setup – for example, fiscal periods based on calendar months versus fiscal periods based on a 4-4-5 calendar. In other cases, the fiscal year’s start and end date may be different.
Changing the fiscal year in your SAP system can be a challenging project:
– Time dependency – as the end of the fiscal year is coming nearer, making changes to the fiscal year setup can become a time-critical project.
– Lack of experience – typically, the fiscal year setup is only rarely changed in an up and running SAP system, and both IT departments and system integrators lack experience.
– System complexity – fiscal year periods are used and maintained in various areas in your system. As a result, fiscal year changes must be done consistently between general ledger, asset accounting, logistics, controlling, connected systems, etc. Failure to do so can result in critical data inconsistencies.
– Data adjustment – some applications may have already posted data into future fiscal periods that need to be changed. Examples are applications such as revenue recognition or financial and logistics planning data.
Datavard offers standardized services and tools for making the fiscal year change in your SAP system, adjusting both the fiscal year configuration and any dependent data in the system.
To learn more about the Datavard services for changing fiscal year setup, schedule time with one of our technical experts to address your questions.