Fiscal Change - Asset Management

Has anyone gone thru a Fiscal Year change that can give me an idea of how the half year convention works between the stub year and the new year?

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Infor Lawson Financials Group - Discussion

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unknown

It was a long time ago and 3 employers back when I went through it. So the detail are hazy. Best as I can recall, we created a year that was 6 months long. So we had a series of 12-period years, with a six-period year sandwiched in. But I think we were lucky. There are 2 ways for this to happen (ignoring years that start in April or October, but the idea's the same): If you are going from a Calendar year to a year that starts in July, that's much easier. The year starting in January is this year, the year starting in July is listed as next year. So the year-by-year numbering works fine. If you are going from a fiscal year starting in July to a fiscal year that corresponds to a calendar year, that can be trouble. If the "old" fiscal year is named for the year starting in July, you're okay again. The 'short' year is named for the year that starts in July. Then the new fiscal year starts in January of the next year, is named for the next year, and you're golden. (I think that that was what my employer did.) If, however, the fiscal year is named for the year following the July, then you have a year you can't fit neatly into the year numbering. The fiscal year is named for the calendar year ending in June. You're starting in July for a short, 6-period year, but it will end in December, so you can't use next year's year number. So you'll end up with a year like "2018A" or something like that. If I was faced with this, I would get a consultant in to study the matter really carefully, because how the software works with year numbering will be really difficult there. We didn't have that issue with Lawson, because of the way we did our fiscal years, so I have no experience there.

unknown

Thank you for your feedback. I did some testing on this today and with the help of Infor Xtreme and Forms help in the AM program, I found that it looks like it is going to be fairly simple. There is an AM192 program that takes place of the usual month end AM190 that is designed to be used for short years. Rather than run AM190 for the last month of the short year, you run AM192 and then AM195 to close that short year. That resets the calendar to the next 12 months. The checking I did looks like the half year assets were already finished before the end of the short year (since our change will take place after 8 months). So a new 6 month time was started for those assets ending in the new 12 month period. The only thing I didn't get tested was what happens with a new asset that got started at the end of our short year. Normally it would have depreciated half a year in the first year, but there weren't enough periods left in the short year so I don't know what happens to it in the new year. Any input would be appreciated.

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