Which statement is true if a custom fiscal year is enabled?
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A. The custom fiscal year automatically updates product schedules. B. The custom fiscal year must be defined manually C. The defined custom fiscal year only affects forecasts D. The custom fiscal year setting CANNOT be disabled
You may have heard about devising custom fiscal years but never understood what it actually means. So it is always a good idea to understand the actual meaning of the year. So, a fiscal year is the time of your business which is used for reporting to the business financial planning.
The fiscal year is basically used for all the reporting, the forecasting and the different assessments to determine where the business is currently standing. If a custom fiscal year is enabled, the custom fiscal year setting cannot be disabled. The custom fiscal year can also be defined manually, which allows you to control the exact setting.
A custom fiscal year must be manually defined. However, you have to understand what it is you’re defining before you start on this route. A fiscal year is basically the period of time that is used to report back about finances, what was sold, etc. If you set your fiscal year to start on June 1st, 2015, it’ll end June 1st, 2016. Then the next one will start June 1st, 2017, and so on.
This allows you to define everything you need to for a fiscal year. You’ll be able to define exactly what constitutes your fiscal year, and you’ll be able to use that every year, since turning on a custom fiscal year means you can’t disable that later on.