Fiscal Year Change 

Purpose

Investment planning in the SAP System is intended to be cyclical, based on an annual planning process. You set up and budget a separate investment program for each approval year (refer to Planning and Budgeting of Investment Programs). To simplify this process, you can copy the program structure of the investment program from the approval year being closed. You also carry forward measures and appropriation requests, along with budget values and plan values. There are two ways of handling the values carried forward to the new approval year. You can either manage them separately from the new values, or treat them the same as the values in the new year. There is a function that corresponds to each of these options (choose Periodic Processing ® Fiscal Year Change):

·        Open New Approval Year

You use this function to copy the structure of an existing investment program for the new approval year. It also carries forward the assignments of any old measures and appropriation requests that are not yet closed, along with their budget and plan values, to the new investment program. These measures and appropriation requests and their values are managed separately on the new investment program. They do not have any operative significance, and are needed only for reporting purposes. The assignment of these measures and appropriation requests to the old investment program is unaffected by the carryforward to the new investment program.

·         Opening New Approval Year – Repeat Run

This function makes it possible to update the measures and appropriation requests and their values that were carried forward to the new approval year. This function is particularly useful for removing measures or appropriation requests that were carried forward, but that were closed in the old investment program in the meantime.

·        Closing Old Approval Year

You use this function to carry forward the assignments of old measures and appropriation requests that are not yet closed, along with their budget and plan values, to the new investment program in the new approval year. In this case, however, the measures and appropriation requests and their values that are carried forward are not managed separately in the new investment program. Instead, they become part of the current measures and appropriation requests and part of the current plan and budget values. Measures and appropriation requests that are carried forward in this way then appear as if they were always assigned to the investment program of the new approval year. You also have the option to increase the current plan and budget values on the investment program of the new approval year by the amount of the carryforward from the old measures and appropriation requests. The system can automatically ensure the consistency of this carryforward of plan and budget values. The assignments of the measures and appropriation requests to the investment program in the old approval year are deleted. Reporting on the investment program of the old approval year no longer makes sense after this point. Before you can perform the Closing Old Approval Year function, the investment program of the new approval year already has to exist. You should already have performed the Open New Approval Year function. 

For both of these functions, you can use a status selection profile to further limit the measures or appropriation requests that are included in the carryforward.

The Closing Old Approval Year function is optional. Do not carry out this function if you prefer to keep the values from the old approval year separate from the values of the new approval year.

The following graphics show the differences between the Open New Approval Year function and the Closing Old Approval Year function.

The system establishes a clear separation between the measures carried forward (M1 and M2), including their budgets, and the new measures (M4 and M5).  The carryforward is made primarily for the purposes of reporting.

The measures of the old approval year (M1 and M2) are managed together with the new measures (M4 and M5), and they are all treated the same.