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Impact of changing from a fiscal calendar to an annual calendar

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Posted on by Charlane Conner

We will need to change from a fiscal calendar year July-June to a typical calendar year Jan-Dec. We are trying to avoid creating a new legal entity and are experiencing challenges relate to Fixed Asset configurations. I was able to find a similar situation in the Microsoft community and included the link below, but I do not think it addresses the issues that we encountered in our initial testing.

https://community.dynamics.com/forums/thread/details/?threadid=c3581024-c59d-4ef0-8314-32a6fccb3161

We need to change for all existing legal entities:

Calendar year
- It appears we will have to perform year end close, but it will only be for stub periods (July 1 -Dec 5 and the second stub period will be Dec 6 -dec 31)
- Will we need to re-run year end close for Jan -Dec for prior years (they have data from 2016)?
- Thoughts on reporting year over year in FRD going forward?
Fixed Assets
- Depreciation Book need to be changed but it is not an editable field.
  - Create new Depreciation book that is configured to the calendar year
- Depreciation profile, can be changed
  - We created a new depreciation profile called SLCY for calendar year and monthly as opposed to fiscal year and period.
- Will depreciation need to be re-run or should it be fine with updating the depreciation book with the new depreciation profile?

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Bill Ngo 374 on at

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Hi Charlane,

In my implementation experience, when there is a change in the main financial year as you described. You should create a new legal entity, cutoff the current financial and take the balance to bring a new legal entity.

Because according to the work of transferring the financial year in the old Legal entity, it will not only affect your fixed assets module but also affect other modules, especially the General Ledger.

You should consider the skill.
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Frank Hamelly | MVP... 46,633 Moderator on at

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Calendar year

It appears we will have to perform year end close, but it will only be for stub periods (July 1 -Dec 5 and the second stub period will be Dec 6 -dec 31)

Will we need to re-run year end close for Jan -Dec for prior years (they have data from 2016)? No. Prior years are independent of future years.

Thoughts on reporting year over year in FRD going forward? Easy to do, as you can define Reporting periods/dates in each column of the column definition.

Fixed Assets

Depreciation Book need to be changed but it is not an editable field.

Create new Depreciation book that is configured to the calendar year

Depreciation profile, can be changed

We created a new depreciation profile called SLCY for calendar year and monthly as opposed to fiscal year and period.

Will depreciation need to be re-run or should it be fine with updating the depreciation book with the new depreciation profile? You'll need to re-run depreciation to update the new book with historical depreciation amounts.