Hello Kavitha,
Background- A shortened fiscal year results when you change from a normal fiscal year to a non-calendar fiscal year, or the other way around. This type of change might be necessary, for instance, if an enterprise becomes part of a new corporate group.
Features:The R/3 Financial Accounting component fully supports the use of shortened fiscal years. However, there are still some points to consider from the perspective of Asset Accounting when you use a shortened fiscal year.
Configuration: Define the length of the shortened fiscal year and the distribution of the periods in the shortened fiscal year. (Refer to Shortened Fiscal Years).
Determine the rules for reducing depreciation for the individual depreciation types and depreciation areas. This is done in FI-AA Customizing: Valuation->Fiscal Year-> Shortened Fiscal Year).
If the current fiscal year was changed to a shortened fiscal year, start the program for recalculating depreciation (under Tools).
Hope I had beena ble to help you. please assign points.
Rgds
Manish
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