Set Up
Setting up Fiscal Periods
The Fixed Assets Application provides you with the option to set custom Fiscal Periods to calculate the depreciation (Financial and Tax) accordingly. If your organization uses the 4-4-5, or 13 custom periods for managing accounts, you can configure that in the FA Application to appropriately generate Financial and Tax Depreciations. It is a common calendar structure for some industries, such as retail, manufacturing, and the parking industry.
If Standard periods are required, skip this step altogether, as Fixed Assets is defaulted to Standard periods; however, if they are not required, please follow these steps:
Navigate to Fixed Assets > Fiscal Periods and click “New Fiscal Periods.”
Populate the fields as follows:
Fiscal Periods: Standard, 4-4-5 / 4-5-4 / 5-4-4 or 13 Periods
If Fiscal Periods are not equal to “Standard,” then set Last Day of the Fiscal Year to the last day of the prior fiscal year, and Last Day Nearest Occurrence Of 53 Weeks:
*Custom Fiscal Periods must be set during initial setup and should NOT be changed once saved. Changes to Custom Fiscal Periods, once Asset Classes and Assets have been created, will affect the integrity of your data within Fixed Assets.
Fiscal Periods set for 4-4-5 and 13 Periods must respect the standard accounting methodology. Also, note that the Last Day of the Fiscal Year or Last Day Nearest Occurrence of 53 Weeks may be for any Fiscal Year. Using the Last Day of the PRIOR Fiscal Year is the most common scenario.
*Should pro-ration of Depreciation by the number of days in a period be required, set the flag on the Fiscal Period.
Last Saturday of the month at fiscal year-end
Under this method, the company's fiscal year is defined as the final Saturday (or other day selected) in the fiscal year-end month. For example, if the fiscal year-end month is August, the company's year-end could fall on any date from August 25 to August 31. In particular, the last fiscal week is the one that includes August 25, and the first fiscal week of the following year is the one that includes September 1. In this scenario, fiscal years would end on the following days:
2011 August 27
2012 August 25
2013 August 31
2014 August 30
2015 August 29
2016 August 27
2017 August 26
2018 August 25
2019 August 31
2020 August 29
2021 August 28
2022 August 27
2023 August 26
2024 August 31
2025 August 30
2026 August 29
The end of the fiscal year moves one day earlier on the calendar each year (or two days when there is an intervening leap day) until it would otherwise reach the date seven days before the end of the month (August 24 in this case) or earlier. At that point, it resets to the end of the month (August 31) or earlier, and the fiscal year has 53 weeks instead of 52. In this example, the fiscal years ending in 2013, 2019, and 2024 have 53 weeks.
Saturday nearest the end of the month
Under this method, the company's fiscal year is defined as the Saturday (or other day selected) that falls closest to the last day of the fiscal year end month. For example, if the fiscal year-end month is August, the company's year-end could fall on any date from August 28 to September 3. In particular, the last fiscal week is the one that includes August 28, and the first fiscal week of the following year is the one that includes September 4. In this scenario, fiscal years would end on the following days:
2011 September 3
2012 September 1
2013 August 31
2014 August 30
2015 August 29
2016 September 3
2017 September 2
2018 September 1
2019 August 31
2020 August 29
2021 August 28
2022 September 3
2023 September 2
2024 August 31
2025 August 30
2026 August 29
The end of the fiscal year moves one day earlier on the calendar each year (or two days when there is an intervening leap day) until it would otherwise reach the date four days before the end of the month (August 27 in this case) or earlier. At that point, the first Saturday in the following month (September 3 or earlier in this case) becomes the date closest to the end of August and it resets to that date, and the fiscal year has 53 weeks instead of 52. In this example, the fiscal years ending in 2011, 2016, and 2022 have 53 weeks.
Here is a sample configuration with all three Fiscal Period types enabled.
