What is known as Year Shift/Displacement in a Fiscal Year?

When the fiscal year is not the same as the calendar year, we need to define a displacement factor for each of the posting periods to correctly identify the number of posting periods.

For example, consider the fiscal year variant V3 (Figure 25). The fiscal year starts on April 1st and ends on March 31st of the next calendar year so the displacement factor or year shift from April to December is 0, and for January to March, it will be 􀃬1. By defining it this way, the system is able to recognize the correct posting period. A posting made on January 25th, 2006 will then be interpreted as the 10th posting period in fiscal year 2005.