Clarification on 'Fiscal Year' vs 'Accounting Year' in Dynamics 365 F&O

Question

The Configure and use the general ledger in Dynamics 365 Finance training includes a module on

Create fiscal calendars, years, and periods in Dynamics 365 Finance. In the training documents, terms such as 'fiscal calendars' and 'fiscal periods' are used. However, Dynamics 365 F&O appears to use 'financial calendars' and 'accounting periods'. This difference is particularly confusing when trying to create new calendars as outlined in unit 8 of the aforementioned training.

Could someone clarify whether 'fiscal year' and 'accounting year' are synonymous in Dynamics 365 F&O?
Is it possible to standardize the terminology used in training materials and in the software itself?

Answer 1

Hi Anna Bruska,

Thank you for reaching out to us on Microsoft Q&A forum. 

the terms "fiscal year and "accounting year" both refer to the same thing: a 12-month period used for the purpose of financial reporting and accounting. This period typically starts on the first day of a specific month and ends 12 months later.

• "Fiscal year is a commonly used term in accounting, and it represents the year in which a company tracks and reports its financial activities.
• "Accounting year" is another term for the same concept, used interchangeably to describe the same 12-month period used for recording and reporting financial transactions.

In the context of Dynamics 365 F&O, there is no difference between a fiscal year and an accounting year. Both terms refer to the same thing the 12-month period for financial reporting. The system allows users to use either term, but they ultimately represent the same concept: the period during which financial transactions are accumulated, processed, and reported.

So, whether you use the term "fiscal year or accounting year" in the system, both refer to the same annual cycle for financial operations and reporting purposes. There is no distinction in how they are used within the system they are interchangeable.

If you have any other questions, please let me know. Thank you again for your time and patience throughout this issue.

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