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Mar 31, 2015 at 10:43 AM

Conceptual understanding regarding Annual Displacement Factor


Dear Experts,

We have a query regarding Annual Displacement Factor in Fiscal Year Variant (FYV).

In our client, we have a fiscal year from 01-Jul-2014 to 30-Jun-2015, so in order to cover the posting periods, we have taken SAP standard FYV V6 (i.e. Jul-Dec with annual displacement factor -1 and Jan-Jun as 0). Now when we open posting periods from 1 to 12 of 2015 (In open and close posting periods - OB52) and try to post any GL entry on lets say 31-Mar-2015, system gives an error that Posting Period 09 of 2014 is not open, that means the system is considering the March as 9th period of FY 2014. Screenshots attached below

And considering the same scenario if we place Annual Displacement Factor as 0 for Jul-Dec and +1 for Jan-Jun, then the system is allowing us to post in the same date of 31-Mar-2015, that means, in that case the system is considering the March as 9th period of FY 2015.

As per our understanding, from both Accounting and Tax perspective we usually consider the Fiscal Year as 2015 / 2014-2015 instead of 2014 (when we post in between Jul-2014 to Jun-2015 (for which we have to use +1 as annual displacement factor)).

Our query is that in what cases/scenarios, we have to use -1 as Annual Displacement Factor, where an enterprise might have to treat its Fiscal year as 2014 instead of 2015, as SAP has used -1 as Annual Displacement Factor in many of its examples.

A detailed answer would be highly appreciated.


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