This documents covers the detail informations about Fiscal Year Defintion , structure ,use & integration in SAP FICO.Fiscal Year DefinitionUsually a period of twelve months for which a company regularly creates financial statements and checks inventories.The fiscal year may correspond exactly to the calendar year, but this is not obligatory.Under certain circumstances a fiscal year may be less than twelve months (shortened fiscal year).Fiscal Year StructureA fiscal year is divided into posting periods. Each posting period is defined by a start and a finish date. Before you can post documents, you must define posting periods, which in turn define the fiscal year.In addition to the posting periods, you can also define special periods for year-end closing.In General Ledger Accounting, a fiscal year can have a maximum of twelve posting periods and four special periods. You can define up to 366 posting periods in the Special Purpose Ledger.What is the Use of Fiscal YearIn order to assign business transactions to different time periods, you must define a fiscal year with posting periods. Defining the fiscal year is obligatory.You define your fiscal year as fiscal year variants which you then assign to your company code. One fiscal year variant can be used by several company codes.You have the following options for defining fiscal year variants:Fiscal year same as calendar yearFiscal year differs from calendar year (non-calendar fiscal year). The posting periods can also be different to the calendar months.You define your fiscal year variants in Customizing for Financial Accounting as follows: Financial Accounting Global Settings ® Fiscal Year ® Maintain Fiscal Year Variant (Maintain Shortened Fiscal Year)Fiscal Year IntegrationWhen you enter a posting, the system automatically determines the posting periodIn the general ledger, the system saves the transaction figures for all accounts for each posting period and each special period separately according to debits and credits. In the Special Purpose Ledger component (FI-SL), you can save the transaction figures as a balance.TRAINING NOTES & TIPSWe can archive & load the historical financial accounting module data. Archiving old & currently not in use data helps to save the storage & increase the program performance. We cannot archive all FI data like which contains open items; archivable data should meet certain parameters. The archived data can be accessed & reloaded in future. Some of the archivable SAP FI data areAccounting documentsPayment requestsCustomer master dataVendor master dataBank master dataPayment program in SAP financial accounting module is used to do the international payment transfers. This helps to make the transactions with vendors & customers easily & by following all country specific rules. The FI subcomponents which are mainly using the payment program areAccounts ReceivableAccounts PayableTreasuryBank AccountingEach data posting in Financial Accounting is known as a document.