The fiscal year is the period of the year in your organization/business that is used for reporting accordingly to your financial planning. The fiscal year is used in reports, forecasts, quotes, etc. Any report that uses a time frame can use the fiscal year as a filter.
Salesforce® supports 2 types of fiscal years:
- Standard Fiscal Year (Gregorian Calendar): the fiscal year consists of 4 Quarters per Year and 3 months per quarter. It can start at the beginning of any month of the year.
- Custom Fiscal Year: these are predefined structures like 4 quarters per year, 13 weeks per quarter, 13 periods per year, 4 weeks per period, etc. You can define how to configure your Custom Fiscal Year.
Steps to set up the Custom Fiscal Year
- If you have opportunities and forecasts already set up in your organization, it is a good practice to back up this data before enabling the Custom Fiscal Year (changing the fiscal year causes fiscal periods to shift.)
- Go to Setup –> Company Information –> Fiscal Year and select Custom Fiscal year:
If Custom Fiscal year is not enabled for your organization, it will ask you to enable it.
- Select the Fiscal Year Template
Choose one of three types of templates:
3.1 Quarters per Year, 13 Weeks per Quarter
These are templates for your fiscal year to have the same number of weeks per quarter. These templates all have 4 quarters, 12 periods, and 52 weeks per year. Each quarter is 13 weeks long and it includes three periods. Two of the periods in each quarter are 4 weeks, and one is 5 weeks. There are three possible templates included: 4-4-5, 4-5-4, and 5-4-4.
3.2 Periods per Year, 4 Weeks per Period
If your fiscal year has more than 12 periods and if one quarter is longer than the other quarters, these templates are the best option. They all have 4 quarters per year, 13 periods per year, 3 or 4 periods per quarter, 53 weeks per year, and 4 weeks per period (5 weeks in the final period). There are three possible templates included: 3-3-3-4, 3-3-4-3, 3-4-3-3, and 4-3-3-3.
3.3 12 months/year (standard Gregorian calendar.)
Unlike the other template styles, you cannot do advanced customization of a fiscal year that has been created from a Gregorian Calendar template. You should only use this template if you want to create a fiscal year that follows the Gregorian calendar.
- Now that you have selected one template that is similar to what you are looking for your Custom Fiscal Year, the next step is to enter the general information for your Custom Fiscal Year. You need to include in its definition a Start Date, Name, Description (Optional,) and choose the week start day.
Note: If you have already defined a custom fiscal year for the previous year, theFiscal Year Start Date and the Week Start Date are set automatically to the day after the last end date of the previous custom fiscal year.
- If you need to customize the selected template, you have the Advanced Customization setting to customize the prefix Name for the Quarter, the Period Name inside the Quarter, the Number of Weeks for each Period, and the Duration for each of the weeks. The combination between all the available predefined templates and the advanced customization gives you a great flexibility to adjust your Custom Fiscal year the way you need it.
- And there’s one last step. You are given the option to preview your Custom Fiscal Year to do a final review before you save it.
You can keep adjusting it until the Custom Fiscal Year is ready. If you want to start over, you have the option to reset to one of the default templates.
- Something important to consider is that when you enable custom fiscal year, this is not reversible. If you need to go back to the Gregorian calendar, you will have to adjust your Custom Fiscal Year calendar to match the Gregorian calendar. If your fiscal year follows the Gregorian calendar, but does not start in January, you can simply and easily set your fiscal year by defining a standard fiscal year with a different starting month. In this case there’s no need to enable the Custom Fiscal Year feature.
- Fiscal years can be modified any time that you need to change their definition. Changes to the fiscal year structure take effect immediately upon being saved. If you use forecasting, Salesforce® recalculates your forecasts when you save changes to a fiscal year.
- When you enable a custom fiscal year for a specific year, all the existing forecasts, forecast history, forecast adjustments, and quotas for the corresponding standard fiscal year are lost.