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Generally if posting periods are less then, we will define that fiscal year as year dependent, other independent . In year dependent, allocation of posting periods to calendar days must be made individually for each year. This is necessary if the end of the period is not linked to a fixed calendar day.
Dependent year is used when the fiscal year/posting periods vary from year to year, this is uncommon in practice.
For example of the situation when posting periods are either greater than months (extended fiscal year) or are less than months (shortened fiscal year). The reason for a shortened fiscal year could be as a result of a company winding up or any other special reasons.
With independent year, the accounting periods of a company remain the same each year so there is no change in the number of months each year.
