Fiscal Period and MM period.

Question

Hi all,
Can somebody explain the difference b/w Fiscal Period and MM Period in business context. Detail explanation will be helpful.
thanks & regards,
Prashant Rathore.

Answer 1

Dear,
Fiscal Year Definition
Usually a period of twelve months for which a company regularly creates financial statements and checks inventories.
The fiscal year may correspond exactly to the calendar year, but this is not obligatory.
Under certain circumstances a fiscal year may be less than twelve months (shortened fiscal year).
Fiscal Year Structure
A fiscal year is divided into posting periods. Each posting period is defined by a start and a finish date. Before you can post documents, you must define posting periods, which in turn define the fiscal year.
In addition to the posting periods, you can also define special periods for year-end closing.
In General Ledger Accounting, a fiscal year can have a maximum of twelve posting periods and four special periods. You can define up to 366 posting periods in the Special Purpose Ledger.
What is the Use of Fiscal Year
In order to assign business transactions to different time periods, you must define a fiscal year with posting periods. Defining the fiscal year is obligatory.
You define your fiscal year as fiscal year variants which you then assign to your company code. One fiscal year variant can be used by several company codes.
You have the following options for defining fiscal year variants:
Fiscal year same as calendar year
Fiscal year differs from calendar year (non-calendar fiscal year). The posting periods can also be different to the calendar months.
You define your fiscal year variants in Customizing for Financial Accounting as follows: Financial Accounting Global Settings ® Fiscal Year ® Maintain Fiscal Year Variant (Maintain Shortened Fiscal Year)
MM Periods
Closing operations are periodic tasks and can be subdivided in FI as follows:
u2022     Day-end closing
u2022     Month-end closing
u2022     Year-end closing
The closing operations component helps you prepare and carry out the activities required for day-end, month-end, and year-end closing. For this purpose, the system provides a series of standard reports that you can use to generate evaluations and analyses directly from all of the posted account balance. The system helps you carry out the following:
u2022     (Time-based) accruals/deferrals of expenses and revenues
u2022     Creating the balance sheets and P&L statements
u2022     Documenting the posting data
Prerequisites
To carry out the closing operations in G/L accounting, you first need to carry out the closing operations in the subledger accounting areas you are using. These include:
u2022     Accounts receivable and accounts payable accounting
u2022     Inventory accounting
u2022     Asset accounting
u2022     Payroll accounting
Regards,
Syed Hussain.