Set Up the Fiscal Year

Overview

A fiscal year or a financial year is a period that a company or the government uses for accounting purposes and for preparing financial statements. The fiscal year need not necessarily be the same as a calendar year. You can create your organization's fiscal year calendar starting from any month. 

Standard and Custom Fiscal Years

A fiscal year is based on a calendar type. For example, If your organization's fiscal year follows the Gregorian calendar, but does not start in January, you can easily set your fiscal year in Salesforce by defining a standard fiscal year. If your fiscal year follows a different structure, you can define a custom fiscal year that meets your needs. Whether you use a standard fiscal year or a custom fiscal year, you can define individual fiscal years all at once for your entire organization. If you have defined a custom fiscal year and you need to change the same, you must edit the existing fiscal year definition.

Fiscal years are defined as part of the CL Loan package and are based on the Georgian calendar. During implementation, you can customize the definition as per your business requirement, for example, start the fiscal year from February 15. At the end of each year, the system automatically creates the next fiscal year. 

Set up a Fiscal Year

Before setting up a fiscal year, ensure that the following prerequisite is met:

• A Salesforce account is created.

Day Process for the Fiscal year

Each calendar day is represented through the Day Processes (Day_Proess__c) object in CL Loan. It creates a new day in the system every day, and thereby, determines the current system date so that activities and transactions can be created for the day. At the time of installation, the CL Loan installer creates the day process entries for the entire year starting from the installation date. If an entry for a given day is not present in this object, the system date does not move ahead, and posting transactions for that day results in an error. 

At the end of the year, the end of year job creates the day process records for the next fiscal year, and updates them where required, for example, for all GL accounts, and daily system date revision is resumed.