Creating financial calendar

This page allows you to create a new financial calendar. Tell me more.

• Select the “Create Financial Calendar” link under the “Accounting Setup” business component.

The “Create Financial Calendar page" appears.

The system displays the following:

• Enter the following fields in the “Financial Year Details” group box:

Note: If a financial year exists before this the system will default the last date of the previous financial year + 1.

Note: The date entered in this field must be after the date entered in the “Start Date” field.

• Enter the following field in the “Period Details” group box:

Note: If “Half-yearly”, “Quarterly”, “Monthly” or “Fortnightly” is selected, the system automatically calculates start date and end dates of the financial periods. If “Customized” is selected the start dates and end dates of the financial periods must be entered.

• Click the “Compute Period” pushbutton to calculate the financial periods based on the frequency selected, start date and the end date of the financial year.

The system calculates and retrieves the start dates and end dates of the financial periods in the “Financial Period Details” multiline.

• Enter the following fields in the “Financial Period Details” multiline:

Note: At least one financial period must be defined for a financial year.

The system displays the following:

Note: The system displays the start date of the financial year by default in the first row of the multiline In the subsequent rows of the multiline the system displays the start date as the end date on the previous financial period + 1.

• Enter the following fields in the “Financial Period Details” multiline:

Note: The date entered in this field must not be after the end date of the financial year.

Note: If “Yes” is selected for a financial period all the preceding financial periods must also have legacy dates.

If “No” is selected for a financial period, the subsequent financial periods must also not have legacy dates.

• Click the “Create” pushbutton to create the financial calendar.

The status of the calendar is updated as “Active”.

The system displays the following:

To proceed, carry out the following

• Select the “Attach Financial Calendar” link at the bottom of the page to attach financial calendars to a company.

• Select the “Create Tax Calendar” link at the bottom of the page to create a tax calendar for the defined financial year.

• Select the "Attach Notes" link at the bottom of the page to record your observations.

Creating financial calendar – An overview

You can define a financial year by providing the year start date and the end date. You can also divide the year into financial periods. The duration of the financial period is based on the business requirements of the user. In any case the system allows you to calculate the financial periods based on the frequency that has been selected. You can divide a financial year into financial periods in the standard frequencies as half-yearly, quarterly, monthly or fortnightly. You can also divide the financial year into financial periods based on your requirements, the start and end dates of these financial periods must also be defined. While using the standard frequency for the financial periods, the end date of a financial period will always be assumed as the starting date of the next financial period Refer Example 1. A financial period must always end on the last day of a calendar month irrespective of the fact that the start of the financial period is in the middle of the month Refer Example 2. The status of the newly created financial period is updated as “Active”. If you are migrating from the earlier system in the middle of a newly defined financial year, you can set the financial periods that have been completed as legacy dates.

Companies under the same business unit must have the same financial calendar. You can attach the calendar that has been created first by a company in the business unit to all the other companies that fall under the same business unit Refer Example 3.

EXAMPLES

Example 1:

For a financial year “FY1” that starts on 01^st of January ’01 and ends on 31^st of December ’01 that is to have a “Quarterly” frequency, the system divides the financial period as outlined below:

Example 2:

For a financial year “FY2” that starts on 15^th of January’02 and ends on 31^st of December’02 that is to have a “Half-Yearly” frequency, the system divides the financial period as outlined below:

Example 3: 

“Company A” and “Company B” form a part of “Business Unit 1”. “Company A” has a financial calendar “FY01” defined for the year 1^st January ’01 to 31^st December ’01. Then the same calendar must be attached to “Company B” also. “Company B” will not be able to create a financial calendar for the same year.

In the subsequent year if “Company B” has defined a financial calendar “FY02” for the year 1^st January ’02 to 31^st December ’02 before “Company A”, this calendar must be attached to “Company A”. “Company A” will be not be able to create a financial calendar for the same year.

What you can do in this page

Generate financial periods

Generate financial periods

You can generate financial periods for the financial year by selecting a frequency. Based on the frequency selected the system will generate the financial periods along with the start dates and end dates.

•  Select the “Frequency” in which the financial periods must be created.

•  Click the “Compute Periods” pushbutton to generate the financial periods.

The system generates the financial periods based on the selected frequency.