Enter your company’s fiscal calendar. Fiscal dates are used to calculate dates when reports are run by fiscal period, for year-based depreciation methods such as half-year conventions and declining balances, and for future rent commitments if you select commitments by fiscal year (chosen on the Selections tab of System Options).
If your fiscal year ends on the exact same date every year, choose “Dates by calendar month” and select the proper end date of the year. EZLease then considers a fiscal period to be a month long, ending on the same day of the month; therefore, if your fiscal year ends on April 15, the first fiscal period ends May 15. If the year ends on the last day of a month, each fiscal period is a calendar month. If the year ends on February 28, EZLease automatically adjusts to end on February 29 in leap years.
Many companies use fiscal dates that end the same day of the week each period and each year. There are two basic formats: a 12-period year, in which two periods per quarter have 4 weeks and one has 5; or a 13- period year, in which each period has 4 weeks. In either case, once every 5 to 6 years, a 53rd week is added, to reflect the fact that a year is a day more than 52 weeks.
In EZLease, you define such a year as a 12-period or 13-period year, specify the day of the week the year always ends, and the earliest date that a fiscal year can end. If you choose a 12-period year, you need also to specify the week pattern:
Is the 5-week period the first, second, or third period of a fiscal quarter? Select week pattern of 5-4-4, 4-5-4, or 4-4-5 to reflect this. A 53rd week, when it occurs, is always considered to be added to the last period of the fiscal year.
Some companies end every fiscal month on the same day of the week, but the year ends on the same date, no matter what day of the week it is (for example, the last Sunday of each month, but the year ends December 31). For this methodology, choose “Fiscal months ending same day of week,” then select the day of week for the months, and the date of the fiscal year end.
(If none of these options properly describes your actual calendar, please contact LeaseAccelerator so we can understand your situation and potentially adjust the software accordingly.)
For your convenience, and as a verification that the dates are set correctly, EZLease displays the fiscal year end date for the next 5 years.
The most consistent accruals from period to period happen when you choose Monthly as the accrual period for fiscal calendars set by calendar month, or Daily for week-based fiscal calendars. EZLease automatically sets the accrual calculation period (on the Selections tab) when you change the fiscal calendar, but you can override it by changing the selection after setting your calendar.