Short Years Example

Suppose that the ABC town was established in May 1999 and decided to use a fiscal year-end of April. In 2002, the town adopted a new fiscal year-end of December. In 2007, the ABC town was required to change its fiscal year-end to September. How would you enter this in the application?

Note that the first year of operation for the ABC town was not a short year. Enter a Start Date of 5/1999. For the fiscal year-end, on the Book Defaults tab you enter April. The organization had two subsequent short years, so you select the Short Years tab. In the Year 1 field, you enter the first new fiscal year-end date, 12/2002. Then you enter the second new fiscal year-end date of 09/2007 in the Year 2 field.

The application considers the fiscal year-end from 12/2002 through 2006 to be December, and the fiscal year-end after 12/2006 to be September. The Fiscal Year-End field on the Book Defaults tab now displays September. The application automatically makes all adjustments necessary to prorate depreciation for the short years when you update depreciation.