How to Setup a New Fiscal Year Calendar for 4-4-5 or 5-4-4 Periods in Microsoft Dynamics AX 2012
Many industries such as retail, manufacturing, and professional services have a calendar structure that is comprised of quarters with 13 weeks (52 weeks/4), commonly referred to as 4-4-5, 5-4-4, 4-5-4, etc. Each period in the quarter is comprised of 4 weeks with one period containing 5 weeks. The advantage is that the period always ends on the same day of the week (I.e. Friday) and every period is the same length. The disadvantage of the 4-4-5 calendar is that it has 364 days (7 days * 52 weeks), so that approximate every 5.6 years there will be a 53-week year, which can make year-on-year comparison difficult.
Microsoft Dynamics AX 2012, R2 and R3 Fiscal calendar can be configured with 4-4-5, 5-4-4 periods etc. using standard functionality.
To setup a new Fiscal calendar with a Fiscal year with 4-4-5, 5-4-4 etc. periods complete the following steps:
1. Navigate to General ledger -> Setup -> Fiscal calendars
2. In the menu bar click ‘New fiscal calendar’ or if Fiscal calendar already exists go to step 4.
3. If ‘New fiscal calendar’ selected complete the following steps.
- Enter name of calendar in ‘Calendar’ field.
- Enter description of calendar.
- Enter date for ‘Start of fiscal year’.
- Enter date for ‘End of fiscal year’
- Enter Fiscal year name (I.e. 2015)
- Enter Length of period as 1.
- Select Unit as ‘Years’.
- Click ‘Create’ button.
- Go to Step 5.
4. Select Fiscal calendar and click ‘New fiscal year’. Fill out fields for ‘Enter fiscal calendar details as shown in Step 3.
5. Expand +next to fiscal calendar and select the Fiscal year created. The Fiscal year has Period 0, Period 1, and Period 2.
6. Update name of Period name 0 to Opening and Period name 2 to Closing.
7. Select Period 1 and click the ‘Divide Period’ button in the menu bar.
8. Select or enter the Period start as the first date of the next period. Enter ‘New period name’ as ‘Period 2’. Click ‘Divide’ button and hit ‘TAB’.
9. Update Month to ‘Two’, leaving ‘Quarter’ as ‘Quarter 1’.
10. Select period 2 and click ‘Divide period’ button.
11. Select or enter first day of Period 3. Enter ‘New period name’ as ‘Period 3’. Hit ‘Tab’.
12. Update Period 3 ‘Month’ to Three. Repeat steps Dividing Period and updating ‘Month’ and ‘Quarter’ as applicable as you go until you have all 12 periods.
*Note: If you forget to change ‘Month’ or ‘Quarter’ you will have to start at the bottom set same Month and Quarter then go to bottom and change to next Month and Quarter and work your way back up.
13. Once completed there is 1 opening period, 4 13 week Quarters, and 1 Closing period.
