JD Edwards Financial Best Practices Series – Changing the Fiscal Year

This post is 4th in our series on JD Edwards Financial Best Practices. Read the previous post, Changing a Chart of Accounts. Read the first post in the series, Setting up Intercompany.

Not only is the population of the world more mobile, the corporate landscape is more mobile than it was in the past as well. J.D. Edwards itself is an excellent example. The software company was officially created in 1977. It was acquired in 2003 by PeopleSoft which, in turn, was acquired by Oracle in 2005.

During either an acquisition or a merger one of the issues is the determination of the Fiscal Year and the consolidation of Financial Reporting. If one of the participants in the acquisition/merger has a stated Fiscal Year different than the one used moving forward, that organization must change their existing Fiscal Year to coincide with the one used by the new corporate structure.

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For our working example, we have a corporation with several companies in the United States operating with a Fiscal Year of October 1st through September 30th. The acquiring Japanese firm had a Fiscal Year equal to the Calendar Year. The US firm was officially acquired and registered with the SEC as closing on January 12, 2015 and becoming a part of the Japanese firm as of January 13, 2015.

The following process we’re discussing was actually run in a partial manner to change the previous Period End Date for Period Three (December) to be January 12, 2015 instead of December 31, 2014 and Period Four (January) to be January 13, 2015 through January 31, 2015.

The second step in the process, after adjusting entries were posted and balances were approved by both corporations and the SEC, was taken to change the Fiscal Year officially to be January first through December 31st.

There are three main applications that are used to set up Intercompany Transactions in E1; R099102, R099103, and R099104. Our example has been set up in Release 9.0 with Tools Release 8.98.  If you are using the Fixed Asset module, you might also use the Fixed Asset Repost, R12910. We’ll discuss when the Fixed Asset Repost will not work and what must be done instead later in this article.

Most of us are familiar with R099102, the General Ledger Repost, since it is used for remedying instances where the General Ledger Detail has become different than what has been posted to the Balances table. You may also have used the Fixed Asset Repost at some point but R09103, which is used to change the periods in the General Ledger detail, is not often needed.

R099104, Clearing Account Balances, is a new but sorely needed Universal Batch Engine (UBE) which will clear the buckets in the General Ledger Balance Table. In years past, the clearing of the Account Balances was something that needed to be done manually. Usually the Repost replaces balances perfectly. The instances where it does not are those cases where there are no transactions in the General Ledger detail for a period, in other words are zero balance in that period. With no records in the General Ledger detail to trigger writing to the Balance table, the new zero balance would not wipe out the balance previously recorded for that period. R099104 solves that problem. It will not, however, clear the beginning balance for an account.

Observe Carefully

As always when doing a mass change to the system you will need to ensure that:

  • The system is backed up.
  • The process has been stepped through completely in a test environment first.
  • The Finance Department has decided which reports they will use to validate the conversion, they have all been run and saved for reconciliation after the process is finished. We used Trial Balance, Consolidated Balance Sheet, Consolidated Operational Expenses, Consolidated Income Statement, Open Accounts Payable Aging, and Fixed Asset Integrity Reports. If you also use the Accounts Receivable module, I would recommend an Open Accounts Receivable Aging as well.
  • Every step that can be run in proof mode is done so first to validate the processing.
  • The Financial Department has approved the changes in the test environment and given the go ahead for production.
  • No one is using the environment in which the processing is being done.

 

Let’s take this step-by-step.

 

Fiscal Date Pattern (F0008)

First determine:

  • What is the current Fiscal Year schedule?
  • What is the Fiscal Year Code used in the Company Master?

This can be done by looking at the Company Master (F0010) and obtaining the Fiscal Date Pattern Code. In our working example the Fiscal Date Pattern was F.

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Use the Form menu to access the Fiscal Date Pattern and, if necessary, to set up the Fiscal Date Pattern to that which you’ll be using going forward. In our case it was Fiscal Date Pattern R which someone had almost totally set up for us. Especially if you are using the Fixed Assets module, you must ensure that all of the years for the lives of the Assets have been set up – past and future.

The exception in the Fiscal Date Pattern will be with the current year, in our case, 2014. We set up the Fiscal Date Pattern for 2014 to start on October 1, 2014 and end on December 31, 2014. Fiscal Year 2015 began on January 1, 2015. Future years defined follow the new Date Pattern. See below.

Current:

Fiscal Date Pattern

For Conversion of the Fiscal Year:

As you can see in the screen below, our Fiscal Year 2014 begins in October 1, 2014 and has only three periods. If, for example, our Fiscal Year had begun in June 2014, our “Conversion Fiscal Year” would have the periods from June 2014 through December 2014.

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Change the Company Master(s) to have the new Fiscal Date Pattern

 

R099103 – Changing the Period Numbers in General Ledger Detail (F0911)

Now that the Company Masters are set up the way that we want, we need to make the data in the General Ledger detail match the newly created periods. Therefore, the records that have periods one through three in them, will not change. They are correct as they are. However, starting in period four, they now should be in period one for Fiscal Year 2015.

Here is a table that I hope makes this clear:

sbblog_jdefinance4_4

Processing Options

Here are the processing options for R099103. I ran this in proof mode, checking the report between each run until I was satisfied that the transactions were going to be moved to the periods the way that I wanted. If the Version field for R099102 is left blank, it isn’t submitted to run after this is finished giving you more flexibility to do any needed processes, like running R099104 to clear the Account Balances.

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Data Selections

You may select a Company but we were running for all Companies so we didn’t have a Company Selection line.

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R099104 – Clearing the Account Balances (F0902)

The Recalculation Report now looks the way that we want it to and we’ve run it in Final Mode. The next step is to clear the Period buckets in the General Ledger Balances table.

 Processing Options

No processing options.

Data Selections

I left the Short Account ID Selection line for illustration purposes only. We ran it wide open for Fiscal Year greater than or equal to 14.

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R099102 – General Ledger Repost

The General Ledger Repost is a treasure. It will always take the data that is in the General Ledger detail and post it to the Period and Fiscal Year that is in the record by Short Account ID. The General Ledger detail is the Truth of what is posted in your system.

Processing Options

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Data Selections

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You may wish to make the Data Selection for Fiscal Year greater or equal to the current year. Both need to be reposted. Or you may do them in separate steps, Reposting the new Fiscal Year after the Annual Close for the current year.

R12910 – Fixed Asset Repost (F1202)

*** Only run this if the Depreciation Calculations have never been summarized ***

If this sounds like the voice of experience, it is. This functionality is only available to you if the Depreciation Calculations (R12855) has never been run with a ‘1’ in Processing Option Number Four on the Processing tab. This is so important I’ve created an Appendix at the end of this document that discusses the alternative if Depreciation has been summarized.

So, assuming it has not been summarized, zero out the balances in the Fixed Asset Balance table, and run the Repost.

Processing Options

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Data Selections

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You may wish to make the Data Selection for Fiscal Year greater or equal to the current year. Both need to be reposted. Or you may do them in separate steps, Reposting the new Fiscal Year after the Annual Close for the current year.

R098201 – General Ledger Annual Close

Since we have effectively changed the end of the year balances for the current year, 2014 in our example, we must close Fiscal Year 2014 and create beginning balances for 2015.

Processing Options

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Data Selections

We removed the Company Selection line since we were closing all Companies.

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R12825 – Fixed Asset Account Balance Close

Regardless of whether you followed the process defined in Appendix A or the Fixed Assets Repost, you must now close the Fiscal Year for Fixed Assets as well.

Processing Options

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Data Selections

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Additional Resources:

Reposting the Account Ledger and Recalculating the Fiscal Year (docs.Oracle.com)

E1: 09: How To Change Date Patterns and End Dates In EnterpriseOne (P0008, P0010, R099103) (Doc ID 664748.1)

 

Appendix A

If the Depreciation Calculations were ever Summarized, the method of dealing with the change of the Fiscal Year for Fixed Assets must be done manually. This is due to the fact that the amount of the Depreciation Calculations is in the General Ledger as a lump sum by account but in the Fixed Assets Balance table, F1202, the amount has been Posted by Asset. If a Fixed Asset Repost is done, it will wipe out the Asset Balances in F1202.

The steps taken are as follows:

  • Copy Current Year Balances to another F1202x
    • Copy Current Year Balances to another F1202y
    • Delete Current Year Balances from F1202
    • In F1202x, Clear Buckets for “lap over” Periods
    • In F1202y:
      • Change Fiscal Year to Next Fiscal Year
      • Move Period Amounts to Correct Buckets
    • Copy F1202x and F1202y back into F1202

Here is an example based on our dates:

Fixed Assets (all Ledger Type AA)

  • Copy Current Year Balances to F1202_14
  • Copy Current Year Balances to F1202_15
  • Delete 2014 from F1202
  • In F1202_14, Clear Buckets for Periods 4 – 6
  • In F1202_15
    • Change Fiscal Year to 15
    • Move Period Amounts
      • Period Four to One
      • Period Five to Two
      • Period Six to Three
    • Clear Buckets for Periods 4 – 6
  • Copy F1202_14 and F1202_15 back into F1202

Watch the Video Tutorial!

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By | 2017-01-30T10:58:16+00:00 July 8, 2015|Categories: ERP / JD Edwards|

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