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SAP Finance and Controlling (FICO) - Interview Questions
What do you understand by "year shift" in the SAP calendar?
The SAP system does not understand what a broken fiscal year is. For Example, from April 2020 to March 2021, it will only understand the calendar year. Suppose that the fiscal year is not a calendar year but the combination of the different months of two different calendar years for any business. In that case, one of the calendar years has to be classified as a fiscal year for SAP and the month falling in another year has to be adjusted into the fiscal year by shifting the year by using the sign -1 or +1. This shifting in the year is called the 'year shift'.
 
For ExampleExample April 2020 to Dec 2020 is our first calendar year, and Jan 2021 to March 2021 is our second year, now if you are taking April-2020 to Dec-2020 as your fiscal year, then Jan-2021 to March-2021 automatically becomes the second year, and you have to adjust this year by using -1 shift, and vice versa if the scenario is reversed, here you will use +1 shift.
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