Fiscal year in SAP is divided into posting periods. Before a document entry, you must define the posting periods in SAP so that it can identify to which month of the fiscal year a document has to be posted.
System will determine the posting period in SAP based on transaction date that you enter in the document entry screen. In addition to the regular posting periods we also have to define special posting period for year end closing. Maximum special posting period that you can define in SAP is 4.
To carry out above transactions we are required to have following configuration in SAP FICO Module:
- Define Posting Period Variant in SAP (T code: OBBO)
- Assignment of the Variant to Company Code. (T code: OBBP)
- Specify the Time Period (T code: OB52)
You can also define posting period variant by using following path in SAP;
IMG> Financial Accounting> Financial Accounting Global Setting> Document> Posting Periods> Define Variants for Open Close Posting Periods
In this step you are required to create the posting period variant by specifying its name and a description to it.
In the next step you assign the created posting period variant in SAP to your company code through following path (Transaction Code: OBBP).
IMG> Financial Accounting> Financial Accounting Global Setting> Document> Posting Periods> Assign Variants to Company Code
In the last step we define the time period for various account groups. You can use following path or transaction code OB52 for it.
IMG> Financial Accounting> Financial Accounting Global Setting> Document> Posting Periods> open and close posting period
Posting Period Variant in SAP can also be differentiated by Account Type. Opening and closing of posting periods can be controlled by account type. To do that you can use transaction Code is OB52. Followings accounts are used for document entry different transaction types;
- + is for Allowing all the business transaction
- A is for transaction type of assets
- D is for transaction type of customer
- K is for transaction type of vendor
- M is for transaction type of material
- S is for transaction type of general ledger
- Always current and previous posting periods are allowed for document entry. In SAP you have the flexibility to open all periods for document entry but in a company its not advisable to do so, as it will allow the closed posting periods in SAP to have the postings which in turn will affect the reporting, legal issues and very difficult the track.
- We also define posting periods in Material Management for all the MM related transactions. This is different from the FI posting periods that we discussed above. If you get any errors relating to this posting period issues in SAP then you should first check from where that error comes, if it is related to MM transaction then the first thing you need to check is MM period then if everything is ok you go for FI periods in SAP.
- You can have only 16 posting periods (12 regular and 4 special periods). In case of special purposed ledgers you can have maximum of 366 posting periods.
In SAP usually, only the current posting period is open for a document entry and all others are closed. At the year or quarter end, next posting period in SAP will be opened up and the previous one will be closed. Special posting periods can be open for the year end closed during the period-end.