How to Setup Fiscal Year in Salesforce

A fiscal year in Salesforce is a period utilized to compute yearly fiscal summaries in the organizations. The system administrator can set the fiscal year for the organization. The fiscal year data are utilized in reporting and forecasting. Salesforce uses two types of fiscal years:

  1. Standard fiscal year
  2. Custom fiscal year

Standard Fiscal year in Salesforce

Standard fiscal years follow the Gregorian calendar, but can start on the first day of any month of the year. Salesforce uses the Gregorian calendar as a standard fiscal year calendar by default. However, every organization may not use the same Gregorian calendar.

So, they need to change the fiscal year start month. For example, in the USA, the fiscal year starts on 1st October and ends on 30th September. However, in India, it starts on 1st April and ends on 31st March. If your fiscal year follows the Gregorian calendar but does not start in January, you can define a standard fiscal year with a different starting month.

How to Setup Standard Fiscal Year in Salesforce

To set up the standard fiscal year for your organization, follow these steps:
From Setup, enter the fiscal year and choose Fiscal Year:
Setting up the fiscal year in Salesforce
Select the Standard Fiscal Year option.
Select the start month for the fiscal year.
Select whether the fiscal year is defined based on the start or end of the month.
Click on Save.

To set up the standard fiscal year for your organization, follow these steps:

  • From Setup, enter the fiscal year and choose Fiscal Year:
Setting up the fiscal year in Salesforce
  • Select the Standard Fiscal Year option.
  • Select the start month for the fiscal year.
  • Select whether the fiscal year is defined based on the start or end of the month.
  • Click on Save.

How to Add Custom fiscal year in Salesforce?

For a few companies, standard fiscal year does not fulfill their requirement. They break down their fiscal years, quarters, and so on, into custom fiscal periods based on their financial planning requirements. Salesforce gives the flexibility to define these periods using custom fiscal years. For example, you can create a 13-week quarter represented by three periods of four, four, and five weeks.

If you use a common fiscal year structure, such as 4-4-5 or a 13-period structure, you can rapidly define a fiscal year. Just specify a start date and choose an included template. A template can easily be modified to suit the business.

The custom fiscal periods can be named based on your standards. For example, a fiscal period could be called “P2” or “February.” To set up the custom fiscal year for your organization, follow these steps:

  • From setup, enter the fiscal year and choose Fiscal Year.
  • Select the Custom Fiscal Year option.
How to Add Custom fiscal year in Salesforce
  • Select the checkbox, next to the statement Yes, I understand the implications the custom fiscal year feature has on my organization, and I want to enable it.
  • Click on Enable Custom Fiscal Years.
  • Click on OK.

Before enabling custom fiscal years, be cautious about the following points:

  • Enabling custom fiscal years is Irreversible. Once enabled, it cannot be reverted to standard fiscal years.
  • Fiscal year definitions are not automatically created. It has to be defined each year.
  • Defining custom fiscal years impacts your forecasts, reports, and quotas.
  • Fiscal period columns cannot be used in an opportunity with the product, or opportunity with schedule reports.

Conclusion In this chapter, we covered basic organizational setup. We got to know various company information such as viewing license types and currencies being used. We also learned to set up multiple currencies, personal currency, corporate currency, and adding new currency to the Org. We also learned to set up a fiscal year for the Org. There are two types of fiscal year: Standard fiscal year and Custom fiscal year. In the next chapter, we will develop apps using Salesforce.

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